Canadian real estate is a viable investment that can yield the best profit for you

The Canadian real estate market has always been lucrative for both locals and migrants who yearn for their dream home or an investment property to fulfill their financial goals.

With the latest turn in global events, many real estate markets have displayed a declining state  However, Canada’s housing and property market is still going strong. It’s real estate industry in itself is still considered as one of the smarter investment moves. 

If one considers investing in other assets such as gold or stocks, they would need to invest 100% of their resources in order to own 100% of these assets. The same doesn’t go for real estate, wherein you only need to cover up to about 20% of the total cost; yet, in doing so, you’ll already be able to own and utilize 100% of the asset. Whichever angle you look at it, real estate is a good deal to take!

Now that you’re seriously considering it, the next thing you should know are the different types of real estate you can invest in.

Types of Real Estate Investments to Choose From

Purchasing a Primary Property

The top-of-mind investment option for real estate is to purchase your primary property. It’s a win-win situation for home buyers who also want to be savvy investors. This holds true, especially when you start young, as this can eventually pay off really well for you as an investor.

If you select this type of real estate to invest in, you’ll already have a house to live in and a hefty investment under your name, that’ll appreciate as time goes by.

Purchasing a Rental or Vacation Property 

Do you want to earn residential or vacation rental income? Then go ahead and hunt for the perfect property to acquire, that can help you yield sums in profit!. The travel and recreation industry might have taken a hit over the past couple of months, but this doesn’t inhibit other would-be renters and vacationers from pursuing their plans to rent. 

Someone who has just recently accepted a new job and is required to migrate would need a rental home. A young couple would prefer to celebrate their honeymoon locally. These are just some milestones in life that may be serviced by your rental property.

Purchasing Condominiums on Pre-Sale

One of the best ways to earn passive income is through securing pre-sale condo properties. Most people are unable to visualize an investment opportunity while it’s still at its conception stage, much less invest in a property that’s just thin air at that point in time. But that’s where it gets interesting for this type of real estate.

Once the groundwork has been laid and when your condominium has begun development, the value of the unit you bought during the pre-sale period will skyrocket, sometimes to four or even five times its acquisition value.

Fixing and Flipping Property

This is probably the most fun type of real estate investment, especially for the creative type. There’s nothing more satisfying than sprucing up and designing a space and turning it into something that’s just not livable, but also elevated and even sophisticated.

It’s important to know, on the other hand, that while it might start out as a fun makeover project, flipping a house is still business and therefore, must be dealt with strategically.

When flipping property, you must be very cautious about your costs for renovation and redesign. You wouldn’t want to rack up expenses that’ll be far beyond the perceived market value of the house you’re trying to flip.

Investing in REIT Stocks

This is a quiet way of investing in real estate. Just like investing in stocks and shares, you invest in a company that operates income-earning real estate. Your shares double as the value of the REIT stocks go up; then, you can cash out anytime.

When it comes to investing in REIT stocks however, it’s important to always check the past performance of REIT stocks. Though they are not clear indicators of the trend in the stocks, you can still apply thorough and thoughtful analysis before investing. 

Funding Your Property Investments Through Mortgage

Ask anybody and they’ll tell you that a mortgage allows a homeowner or property investor to stay liquid. They’ll also remind you not to place most or all of your cash and finances in purchasing property. There are also some who advise that you should never pay off your mortgage and just leave it as an extra layer of assurance on your part, so that you’ll have all your financial affairs in order.

It’s necessary to get a mortgage broker who’s reliable, dependable and has your best interest at heart. Not only will they help you save time and legwork but you’ll benefit from their network, as they’re well-connected and already know their way around the property market.

It’s also the mortgage broker’s job to help you lessen costs by managing the fees and help you shop around for the best deals. By having a mortgage broker around, you can arrive at the best possible decision for your choice property. Whatever type of real estate investment you select, it’s always important to have a mortgage broker behind you.


Daisy Raouph, CLU, CHS, specializes in mortgage financing solutions and financial services. A Mortgage Broker and Financial Security Advisor with over 30 years of experience in financial services. Contact us today to review your mortgage financing options. We can help!