Dr. Garth

What a day here at the clinic.

J6. Kamala today certifies the votes confirming Trump as president. Four years precisely from when he unleashed an attempted coup of the US government. The irony is thick. And here we are in frosty Canada, ten years after charismatic young Trudeau-with-hair surged to power, sweeping aside Harper. T2 is quitting, and H2 may soon take the wheel.

The polarization of politics continues, forever altered by the residue of a pandemic and the replacement of a fact-based society with the emotional slurry of social media. Is Canada inexorably turning more into America? Poilievre told Peterson on the weekend that his government will immediately deport 30,000 people and track down up to 500,000 more.

Mo doesn’t expect to be one of them. “I was in the US for a while before moving here for, friendlier immigration,” I heard him telling Nurse Jiggles in the exam room. “The Tariff Man did not make it easy for us to stay there.”

So, what ails him?

“We recently moved to Canada, about two years ago. My wife and I are in late 30s. We have good income and we’re good savers.  I was surprised to find out that I cannot contribute to RRSP in the first year. My employer did not inform me about the rules and I naively assumed it was similar to the US. I’m now dealing with the over contributions should be resolved soon.

“I understand the rules are rules, but it seems unfair to restrict contributions for immigrants, specially on the older side, to income earned in Canada. I acknowledge this is selfish thinking, but how can older immigrants, older than me, save for retirement in an equitable way?”

Relax. This is reasonable, not unfair. RRSP contribution room – for all of us – is based on income of the previous year. That maxes at 18% of what you earned, or $32,490 in 2025. So in the first year of residency in Canada, no retirement plan contributions can be made and claimed against income. But you can still open a plan.

Once in the second year, so long as you’re a resident for tax purposes, younger than 71 and have filed a tax return, you’re good to go. Also remember that during the first year in Canada you’re eligible to contribute fully to a TFSA, even if you have no earned income. All you need to proof of residency and a SIN (plus being over 18). So that’s a good start – $14,000 in the first twelve months between you and your squeeze, then RRSPs and TFSAs thereafter.

Also be aware that RRSP contributions can be made, but deferred from being claimed on a tax return. Also know that room for both the retirement and tax-free plans accumulates, year after year. It is never lost – unlike unused deposits in the FHSA, for example (just one year carry-over there).

Finally, Mo, count your blessings. You’re in the promised land, now. Forget the naysayers, the anti-establishment goofs, MAGA wannabes and haters. We need and want people like you, diligent and responsible. Welcome.

It appears Robert has just sauntered into the waiting room, asking if he can rent Ms. Jiggles. He’s been infected with Parkbridge Syndrome.

“My wife and I are thinking of selling our principal residence and purchasing a townhome in a Parkbridge community in Innisfil, Ontario,” he explains. “Leasing would allow us to add another 400k to our retirement investment account. What are your thoughts on Parkbridge, and land leases. Thank you if you have a moment.”

It’s a sleeper strategy for most people – buying a house, renting the land and having condo-like services performed and infrastructure built by the land owner, in this case a mega-corp. The advantage for newbie buyers is a lower price of entry into the equity-building process of owning a home. For retirees like Robert it means untethering a chunk of home equity for income generation since you can downsize more inexpensively.

But what’s this Parkbridge outfit?

Calgary-based, it was acquired more than a decade ago by the BC Investment Management Corporation, and is the country’s biggest land-lease operation. Its portfolio includes more than two dozen retirement communities in Alberta, BC, Ontario and Quebec; over 40 family communities across the country; an equal number of cottage and RV resorts; plus six Ontario marinas.

So, is this all peachy?

Not quite. Buyers must apply for a land lease and be approved before they plunk down money for a house. Second, not all lenders are thrilled about financing a structure which does not come with dirt – so never assume a mortgage will be a slam-dunk. And, finally, selling a land-lease house means the buyers will have to be like you – people willing to accept the benefits and pitfalls of real estate which hybrids between freehold and condo.

Inherently, nothing wrong with land lease. Or Parkbridge. But be aware of problems that have arisen when the land-holder is a FN group. It reminds that we’re all immigrants.

Have a happy prorogue! Be careful of Pierre’s exploding head.

About the picture: “Greetings from mild Victoria,” writes Lloyd, “where we continue to receive climate refugees from Alberta and Ontario (an alarming number of cranes in the area).  Here’s a Ziggy shot – waiting for the Frisbee to be thrown for the umpteenth time. Your continuing loyal reader and beneficiary of advice since March/08.”

To be in touch or send a picture of your beast, email to ‘[email protected]’.

Source: https://www.greaterfool.ca/2025/01/06/dr-garth-52/