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Getting older can be tough, but in reality, there are many financial benefits that come with it! Now, though, I’m not just talking about some early bird special or seniors discount at Shoppers Drug Mart. Today, we are talking about free money from the government.
If you are a senior who is also currently a home owner in Ontario, then you may be eligible for the Ontario Senior Homeowners’ Property Tax Grant (OSHPTG).
What is OSPTG?
OSHPTG is a tax grant that aims to help offset property taxes for low- to moderate-income senior homeowners. The program is funded by the province of Ontario, so it is not offered at the federal level.
It’s easy to apply, because you can apply when you file your income tax before the year and benefit return, with the program going back to 2009. The maximum grant is $250 in 2009 and $500 annually thereafter. Payment will be made in a one-time payment immediately following your notice of assessment.
It is important to remember that not only those who own houses can apply. If you own or rent a principal residence in Ontario, you can apply for a grant. As for what makes low or middle income, the Ontario government says low income is for those making less than $50,000 per year. An average income can be slightly higher, although it can change from year to year.
If you qualify
Here’s the thing: that $500 doesn’t mean much to Canadian seniors looking to help their cash flow. Although it helps offset property taxes and other living expenses. Instead, seniors may want to consider investing in safe, stable investments, especially those that provide dividends.
Now, it is important to note that this should not be done without first meeting with your financial advisor. If your income is low or moderate, then risking your finances in your later years is not a good option. So, make sure that your debts are paid off and that you have an emergency fund available before you go ahead and start investing.
But if your finances are strong, then investing that money will definitely generate some income that can lead to great returns!
A stock to consider
A stock to consider these days is NorthWest Healthcare REIT (TSX:NWH.UN) for several reasons. The stock is now down about 48%, as of this writing last year. So it currently has a huge dividend yield of 12.97%. Of course, this is also due to the large drop in the share price. But if you want to use that $500, this is the way I would do it.
Healthcare assets around the world have always been important but are being looked at even more during the pandemic. This major investment in health care properties did not go unnoticed by NorthWest stock, and it has been expanding ever since.
The problem, however, is that the company’s future in a joint venture with a UK investor has recently fallen. This is why the stock in the tank. However, this is a short-term issue for a long-term stock that continues to have high occupancy rates and long-term lease agreements.
With $223.6 million in free cash flow ready to go, and solid assets worldwide, it’s a great option for $500. Plus, here’s what can happen if you invest $500 today and if it returns to a 52-week high.
COMPANY | NEW PRICES | NUMBER OF PARTS | DIVIDEND | TOTAL PAYOUT | FOR the most part | PORTFOLIO TOTAL |
NW.UN | $6.25 | 80 | $0.80 | $64 | Every month | $500 |
NWH.UN — 52 week high | $13.42 | 80 | $0.80 | $64 | Every month | $1,073.60 |
As you can see, your shares will more than double! Add the payment, and you have returns of $637.60 after reaching the maximum – all from a taxable grant.