With geopolitical risks increasing and equity valuations looking stretched, more investors are implementing real estate investment strategies into their portfolios. Achieving decent returns and broad diversification is increasingly challenging in the modern investment landscape and it is of little surprise that more Canadians are boosting their exposure to real estate assets.
“Because real estate does not move in tandem with other markets, real estate investments provide a prudent third facet of portfolio diversification beyond exchange-traded assets,” says George Lawton, CEO, North American Home Finance Inc. “Traditionally, investors have been able to choose from a variety of real estate investment vehicles ranging from residential income properties to real estate investment trusts (REITs), limited partnerships, syndicated mortgages and mortgage investment corporations.”
These traditional investment vehicles have served investors well up until recently, but as the world and its economies changes, so too should the way people invest. In the modern market, it’s unlikely that these traditional strategies meet every investor’s specific requirements, risk tolerance and differing priorities.
“In response to those needs, real estate bonds are evolving to provide more options with unique elements that expand the potential of real estate investment,” Lawton says. “SKYIRE’s next-generation real estate bonds provide growth participation as well as mortgage security. In addition to the rate of return on the bond, bondholders also benefit from the profits generated by the underlying real estate assets securing the bond.”
Real estate bonds are structured in a way that enables them to combine the security of a traditional bond with the wealth-building capacity of profit participation through income, growth rate or development profit. With three types of next-generation bonds to choose from, investors can select bonds based on whether they seek a long-term or short-term investment, quarterly income, maximum growth or tax efficiency.
“RealProperty Bonds, RealIncome Bonds and HomeBuild Bonds were all developed for growth and stability by prioritizing capital protection, management alignment and return predictability, as well as attractive and consistent annualized returns,” Lawton says. “Unlike some other real estate investment vehicles, real estate bonds are directly secured by a registered asset. That means bondholders have financial priority over creditors and shareholders.”
If security and growth are important to your real estate portfolio, now is the time to act. SKYIRE will send you a complete Real Estate Bond package including a free copy of the book Residential Investing featuring HomePlan and HomeBuild Bonds. As a bonus, SKYIRE will also include the discussion paper “Evolution in Real Estate Bonds,” as well as a certified registered investment certificate in the amount of $250 to be used towards any SKYIRE Real Estate Bond investment.
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At SKYIRE, we know real estate is an important asset component for portfolio diversification and risk management. We believe in strong investor protection and security. Through our exclusive Real Estate Bonds investors enjoy a predictable return with direct security. And, by investing in HomePlan or HomeIndex Mortgage investors receive steady monthly income while participating in the appreciation of real estate assets.
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