MLS Canada

Real Estate Investment In Canada

Real Estate is one of the most reliable and profitable investment sectors. There are two main types of investment in real estate: buying home for living and building a home to make a profit. Now investors are looking much deeper than just buying a home for their own private use.

The first type of investment is buying real estate item to earn the profit. For instance, you invest money in a 4-story building. You searched periodical and look through the Internet listings and find a successful construction company and plan and start the project. Then, you leave a couple of apartments for your own private use and sell the rest of them. With such a deal the rest of your house will turn you free (!) of charge. But what is the most important is that you don't even have to invest the whole costs - with just 10-15 to be received through mortgage. That is what the investment business is! All you have to do is to find an appropriate project and reliable construction company.

The second type of real estate investment is buying the item with following leasing of the property. Leasing remains very profitable activity as long as rent is still rising. For instance, rent in London rose 15-20% in the period of 2002 to 2004. The scheme is quite simple: you find appropriate investment project and ask for the mortgage. You invest in building of semi-detached or two separate houses in one area. You occupy one of the houses (or the half of semi-detached) and lease the second. You will cover all your costs very soon!

Another type of investment is large-scale infrastructural objects. These are housing complexes, cottage towns, hotels, entertainment centers, fairs, trade and exhibition halls, schools and hospitals. Such large-scale and long-term investments will require scrupulous planning and much more time for profit earning.

Next type is investment in mutual funds. In this case you buy shares of real estate operators. One of the most popular investments is through real estate investment trust (REIT). Such companies accumulate private investments and then put them in housing or commercial property. For instance, investment trust buys major shopping mall or office block and leases space. Leasing profit will be than distributed among the shareholders. Notice that shareholders usually get about 90% of leasing profit. Don't forget that funds and trusts of all kinds are just middle players using your financial reserves. They are working for those who can not or do not want to get involved in the projects themselves.

Investment in real estate will always be a profitable activity. Immigrants from Asia, Eastern Europe, Post-Soviet countries, Africa, and Middle East keep entering the continent creating great demand on the local real estate market and ensuring profit for investments in building and housing.