Mortgage Investment Corporation Canada
A mortgage investment corporation, or MIC, is a mortgage investment and lending company in Canada. A MIC manages a portfolio of secure mortgages where individual investors pool their finances to create mortgage loans. At NLMIC, mortgages are only loaned to Nautical Lands Group, cutting costs and maintaining their in-house strategy. Some MICs in Canada may diversify their portfolio to include anything from smaller second residential mortgages to mortgages for commercial development properties.
Every MIC in Canada should be widely held, with at least 20 shareholders of the corporation each owning less than 25% of the shares. If a shareholder owns more than 25% of the shares, they become a specified shareholder. Each MIC will also have its own investment strategy. However, unlike property loans from banks that will lend up to 100% of a property’s value, the ideal MIC loan is generally around 60% of a property’s value, and does not exceed 85% for added security. The recommended time period for investors to hold their shares varies from corporation to corporation.
At Nautical Lands MIC, we look for investors seeking an investment opportunity from two to five years. Investments are generally safer and offer consistent returns, with 100% of the net profits returning to investors. So when you decide to invest in a MIC, you can rest assured that your investment is sound and your shares will continue working for you. It is always safest to invest in a MIC when audited financial statements are available for every year. The most successful MICs are lower risk and offer consistency and longevity.
REAL ESTATE INVESTMENT CANADA
In recent years, stocks and bonds have become increasingly volatile. Many investors in Canada are seeking to diversify their investment portfolio in order to have more security in their returns. Investing in real estate first mortgages has always been viewed as being stable for both the beginner and the affluent investor, and is increasingly becoming more recommended for investment in Canada.
Nautical Lands Mortgage Investment Corporation (NLMIC) has created a unique business model that allows those seeking to invest in Canadian real estate to make a low-risk, worry-free investment that offers consistent returns. The stability associated with real estate investments is further increased by the growing need for retirement and living solutions for seniors.
Over the next two decades, the “baby boomers” will be retiring. By 2030, the number of seniors is estimated to reach 23.6% of Canada’s population, an increase of just over 8% from 2013. The numbers above confirm that the demand for senior living solutions is sure to grow in Canada. Investing in the senior living segment of the residential real estate market is sure to bring superior returns as demand increases.
Nautical Lands MIC invests its mortgages solely in Canadian real estate. Its unique business model provides low-risk investment opportunities by building retirement communities. Nautical Lands Group is dedicated to providing luxurious living solutions that are also affordable; and they are internationally recognized as leaders in the retirement and adult lifestyle community living industries.
RRSP & TFSA ELIGIBLE INVESTMENTS
Your investment with Nautical Lands Mortgage Investment Corp. is RRSP & TFSA eligible. This means anyone with a self-directed RRSP can make a mortgage investment in Canadian real estate with us. However, our MIC shares are also eligible on a non-registered basis. Whether you are a sophisticated investor or simply seeking a steady stream of income through an investment return, you have the flexibility to contribute to your financial strategy in an industry that offers superior returns compared to traditionally-offered investments.
When choosing your investment strategy, a diverse investment portfolio is always a smart option. By offering interim mortgages solely to Nautical Lands group, NLMIC’s in-house strategy reduces costs and provides a steady stream of income for investors through an experienced retirement community developer in an underserved market; and by holding a share in a corporation, liability is with the corporation and not the individual. These unique aspects of investing in the MIC through Nautical Lands Group decreases the risk associated with your investment.
Investing in real estate through your RRSP grants you all the tax benefits associated with a retirement savings account. With consistent returns from your mortgage investment shares, you can grow your retirement savings. Also, as all of NLMIC’s mortgages are secured by first mortgage-backed security, you can rest assured that your investment is sound.
RRSP Eligible Investments
Registered Retirement Savings Plan (RRSP)-eligible investments are made through self-directed RRSP investors that offer flexibility for Canadians seeking an investment source for their retirement fund. This means investors are offered the opportunity to choose for themselves where to invest their RRSPs, where the RRSP is the investment vehicle and the investor determines what to invest in.
Not all investments qualify for a self-directed RRSP. This has to do with tax regulations set by the Canada Revenue Agency. Our RRSP-eligible investments offer various tax benefits to all investors. When it comes to your money and your RRSP choices, we always recommend you discuss your investment options with your financial adviser. Dean Grant, President of NLMIC is also available to answer your questions.
Any investment that is not RRSP-eligible generally has to do with tax regulations provided by the Canada Revenue Agency. It may seem more complicated to go with a non-registered retirement investment strategy; however, RRSP-eligible investments offer various tax benefits to all investors. It is always recommended to discuss your investment options with a qualified financial adviser.