Municipal governments are starting to put green standards in place for developers and builders to follow to help protect the planet. But will it really work?
Offering regular cash flow, stable returns and asset appreciation, real estate investment trusts (REITs) and other real estate-based investments play a key role in the private market’s consistent outperformance. REITs give investors access to institutional grade investments in the form of large scale and professionally managed apartment buildings. “Some investors have income properties or a condo they rent out, but it’s very difficult to take on more than a couple of units if it’s not your full-time job,” says Jason Roque, CEO at Equiton. “When you own your own income properties you end up getting 4am phone calls about broken toilets or you have to deal with a tenant who doesn’t pay the rent.” The vast majority of investors simply don’t have the funds to buy a 50 unit apartment building, but, even if they did, managing the property would be far beyond their comfort zone. “REITs offer access to a high-grade investment that is professionally managed and provides stable, resilient returns,” says Roque. “As much as an apartment building or REIT is tied to real estate, it is, ultimately, run like a business. As with any business, you want to increase the top line, minimize expenses and make the business as efficient as possible in order to generate as much income as possible.” REITs, and apartment buildings in particular, generate returns in three different ways:
Apartment REITs are assets that work three times harder for the investor’s dollar than something comparable. However, the ongoing performance is reliant on the ability of the REITs’ management team to identify and buy profitable properties. “We always look for properties where we know we can increase the value rather quickly,” says Roque. “We buy buildings that are undervalued as a result of unprofessional management and then put systems and processes in place that will unlock the intrinsic value and drive up cash flow faster than the market place can alone.”
The survey shows that buying a home in a major city centre has risen 5% since last year.
The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.
Coming to Toronto May 14-15 is an in-person event discussing multifamily investing and the benefits it can have for new and experienced investors.
Many Torontonians and GTA investors perceive Windsor in a different light. But the reality is, it's a growing city that has much to offer investors, homebuyers, students, immigrants, and retirees alike.
While Calgary has continued to increase in popularity, prices have remained steady unlike in markets like Toronto and Vancouver. It holds many benefits for investors.
The Scott McGillivray Real Estate Fund helps people understand passive real estate investing. Scott McGillivray himself has been speaking to people about how to invest in real estate for over 15 years.
From February 2022 to April 2022, there have already been significant price decreases. However, that doesn't mean affordability is around the corner.
According to OSFI, the real estate market in Canada has seen a massive run-up resulting from low-interest rates and supply/demand imbalances.
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