Investing in Canadian Real Estate
Seven out of 10 Canadian millionaires have made their wealth
through prudent and well planned real estate investments,
or by just buying real estate at the right time and at the right
location and at the right price.
Commercial Real Estate Investing - Choosing the Right Type For Your Needs There is no question that now is a great time for investing in commercial real estate in Canada. Commercial real estate should have a place in every one's portfolio, but what is the best way for you to invest?
There are a number of factors to consider when choosing the right commercial real estate investment. You not only need to decide which type of property is right for you, but what the right way to invest is. Commercial real estate may be an exciting and profitable proposition, but you still ought to ensure that you are making the right choices for your individual financial goals and needs.
The first thing you should be asking yourself is what your real purpose is. Are you looking for a property which you will use part of for your own business, or are the numbers the most important thing to ensure the returns are there? Are you most concerned about building up equity and increasing the size of your nest egg, or is an income investment that pays you consistently every quarter what you need, or both?
How much money do you have to invest? Do you have millions to put into a large Class A office building or to develop a new shopping mall, or have you been looking at small, single unit properties, hoping to get financing in order to leverage your commercial real estate purchase? Though even if you have a sizable amount of capital to invest, would you be better off spreading your investment over several properties to diversify and maximize your potential returns?
Are you planning on being hands on in buying, managing and selling commercial properties? Do you really have the expertise and time it takes to deal with multiple tenants and avoid making contract mistakes, which could cost you hundreds of thousands of dollars? Or is it smarter to have a professional handle negotiations and property management for you, in order to maximize returns and actually let you enjoy your money and free time?
If you haven’t looked into shopping centres in Canada for commercial real estate investment yet, you may find that they check a lot of the boxes. They provide both income and capital gains, and provide built in diversity and a cushion against changing business cycles with multiple tenants, as well as being something that you are already familiar with.
Choosing to invest through some form of partnership that provides expert advice and professional property management allows you to get on with what you love doing the most, while your money does all the work for you, as your property is managed to its maximum potential. This also allows you to invest smaller amounts in each property so that you are able to spread your eggs amongst multiple baskets to ensure you can cash out quickly if an emergency arises which requires you to access your funds.