Best Ways to Invest in Real Estate in Canada

Investing in real estate in Canada is one of the best steps you can take. The Canadian real estate market has attracted attention from both local and international investors for several years, 2023 inclusive.

The question that begs an answer is, “What are the best ways to invest in real estate in Canada?” For most people, investing in a primary residence is the best method. While this is great, it is not the only way to invest. This post will show you some of the best ways to invest in real estate in Canada.

Best Ways to Invest in Real Estate in Canada

When one thinks of investments, several options pop up. Examples include mutual funds, bonds, stocks, and, of course, real estate. It is no secret that Canada has one of the fastest-growing real estate markets in the world. This market presents investment opportunities to both locals and immigrants.

The investment opportunities available in the Canadian real estate market fall into two categories: active and passive. In this section, we look at some of the best ways to invest in real estate in Canada.

Principal or primary residence

This is probably the most popular mode of real estate investment in Canada and most parts of the world. It involves buying a primary or principal residence. Doing this gives you a place to reside with your family. More than this, it is a wise long-term investment.

With a primary residence, you no longer have to worry about paying rent to a landlord. Instead, you will be paying a mortgage on your own property. Some of the things you should look out for before investing in a principal or primary residence in Canada include the neighborhood, access to highways and public transit, and proximity to amenities.

Rental properties

If you want to invest in a property you won’t reside in but aren’t a huge risk-taker, then you can consider investing in a rental property. This is pretty similar to investing in a principal property. However, you are investing in renting to others.

Like renting a primary property, you should look for several factors before making this investment. Examples of such factors include the neighborhood and access to amenities like hospitals, schools, and restaurants.

Rental properties fall under active investments, but you don’t have to be actively involved in their management. If you prefer to be hands-on, then you may oversee the property as the landlord. On the other hand, you can hand it over to a property manager to oversee the property on your behalf. In this case, the manager deals with the tenants in your stead and looks over the affairs of the property.

House flipping

This mode of real estate investment in Canada was made popular by different HGTV shows. If you get it right, house flipping can fetch you unbelievable returns. How does the process work?

First, you purchase a “fixer-upper” when you make this investment. This presents you with huge potential. After purchase, you quickly renovate the property, turn it around, and sell it for a profit. The process looks pretty easy and exciting on TV. However, it is not as straightforward as it looks. You need to gather as much information as possible before you dive in.

Pre-sale condo assignments

The final way to invest in real estate in Canada is investing in pre-sale condo assignments. This method of investment is passive and presents you with the opportunity to make a good profit.

The investment involves you selling your rights to a condo as a buyer or investor to another buyer prior to its completion. It is known as an assignment because you will be signing off your rights to another buyer. You should note that the assignment fee charged by condo developers in Canada may rise to as much as 1%.

Conclusion

This post has shown you some of the best ways to invest in real estate in Canada. The good news is that you don’t need to break the bank to invest in real estate in this country. With access to accurate information, you can access the best profits from your investments. Would you like us to help you out? Reach out to OneStopBroker.ca, and we will show you how to get the best from your Canadian real estate investments.