5 Best Real Estate Investing Options in Canada 2024

The real estate investing market of Canada is an attraction point not only for the domestic but international buyers as well. Properties here offer high return on investment (ROI) and stability, and the trends have always been in favour. If you analyze the ROI on housing properties for the past few years in the Canadian real estate market, the numbers itself will state the scenario.

Canada being a developed country, has big infrastructural developments. People are always keen to invest in a market that will give them higher returns in the future. Even the scenic beauty of this country attracts the buyers to come.

It does not matter if you are a regular investor or a seasonal one. If you are ready for the challenge, of finding the most lucrative real estate deal, then let’s get started with some of the best real estate investing options in Canada.

Is Real Estate Investing in Canada, Good?

Many people question the need of buying property. But statistics have shown that over 55% of Canadians have a home, that they own. The whole process of buying a property is quite complex. That is why it is a challenge that most people do not dare take. 

Before investing in any property you have to understand the local regulations, job opportunities, nearby markets for basic amenities, and even the tax laws of this country. Despite that, owning a home is a great achievement in life. 

Different people have different perspectives when it comes to investing in real estate. While some treat it as an opportunity to make more money. Others prefer flipping the properties. Investment is done only after you are well-informed about the demography. Hence you need to have a local lawyer or a broker for help.

Nevertheless, making a successful real estate investment is a big deal. Even though it will make your finances a bit unstable because of the loans and mortgages. But on the bigger picture, you will have invested your money in a safe deposit.

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5 Best Real Estate Investing Options

Let’s have a look at the different real estate investment options available for you:

1. Principal Residence Property

The most common approach that people follow for a long time is funding in a primary residence. Primary residence is also known as the principal residence or the place where you live. In Canada, the most popular Real estate investing option is in principal residence property.

Owning your home frees you from unnecessary obligations like paying rent, not having to renovate as you like, and listening to the landlord all the time. From a financial point of view also having a principal property is important for financial planning.

When you talk about the tax implications. In Canada, all the principal real estate properties are taxed when their values increase. Moreover, the Canada Revenue Agency allows you to claim exemption on the sale of a primary residence. So, if your property is sold at a profit then the profit portion won’t be taxed.

Don’t you think that investing in your residence provides a lot of benefits? Especially, if you are a newcomer, you have a variety of new immigrant mortgage programs to explore to secure your dream home in Canada.

2. Buy and Hold

Buy and Hold is an old-time practice that mostly the safe investors opt for. It is basically done to get rental incomes and constant revenues from the property. There are various ways in which you can buy and hold a property. 

The first is to rent the property you buy to someone. It can be a small family or a couple. The second is to rent a unit of the property and in the remaining unit, you can live by yourself. In this way, you get rental income and your own place. The last way is to sell the property when the price escalates.

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If you get successful in grabbing the right buy-and-hold property then you can make great profits from it. You can pay the mortgage from the rental income and still have some money in your pocket.  

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3. Residential Rental Income

Another great Real estate investing option is to buy a residential property in Canada. After buying, put it on rent. This way you can ensure a constant flow of income via the monthly rent. The major difference between this opinion and the buy-and-hold option is that in this one you do not wait to sell it when the price increases.

Though being a landlord isn’t easy, there are so many perks to owning a residential property in Canada. Imagine having a monthly rental income high enough to cover your mortgage and expenses. Felt good, right?

4. Commercial Rental Income

The next option for you that is rather not so common is Commercial rental income investment. Commercial properties in Canada are everywhere. Be it shopping malls, offices, or buildings, you can find commercial land everywhere.

When you purchase a commercial property, you can lease it to companies for their offices. Comparatively, the commercial rental income is much higher than the residential rental income. Furthermore, the tenants will also be well-mannered and formal.

Can you imagine that a 2200 sq. ft office in Canada can fetch you over $80,000 annually? Well, it’s true. So, next time when you think about real estate investment, ponder about commercial rental properties too. 

5. Flipping Properties

Have you heard about flipping properties? It sure sounds a bit weird. But if you are successful in it, you can make a buck load of profits. The whole concept of flipping properties is that you buy a property that needs some work. It is either undone or not complete.

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You invest in the property as well as the renovations. Once it is complete, you can sell it at higher prices than the original cost. Obviously, you can adjust the renovation expenses. Though it sounds easy, the only issue is that sometimes the properties do not offer great returns or what you expected.

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To go forward with this option you have to eat the brains of your realtor and survey the area well. Never ever accept a property that has major issues. It can be troublesome for you!

Real Estate Investing in Canada

It does not matter which option of real estate investing you prefer, the main thing is that you always choose diverse options. Doing so, you will secure your investment and get good returns. Stock investing might be a lucrative option, and you have a plethora of other investment options in Canada , but real estate can also prove to be a great deal if planned wisely.

You have an emotional connection with your house, right? It is the main tendency among us humans that we feel connected to something that we have. Investing in real estate is a similar thing. You will have something that you can see, develop and touch. 

Hence, for most people in Canada, investment in real estate is a big thing. It is not just about returns but emotional connection. Comment down which option from above you prefer for real estate investment!

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