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If you are not looking to put some serious amount of time on maintaining the properties, I'd suggest just check out REIT instead of these company. Because from its site, even though the system works like a REIT, you are on hook for the property. So, let's say if one day you want out, you are still very much dependent to the value of property, not to mention Canadian property market is more likely to be heading toward a correction. So, unless you plan to hold it for 30years+, I don't see why be on hook for the property. REIT, on the other hand, has a much higher liquidity. Also, they seem to be focus on apartment or other non detached properties. This is a big no-no in my book for long term holdings, because they will depreciate in value over time and there isn't much you can do about it. |
I also suggest REITs like hehe mentioned. Safer and easy way to invest into real estates. Also most REITS, give a monthly dividend which is pretty good. Of course theres ups and downs with the stock market but I find REITs to be relatively stable with the bad market these days. I bought some in my TFSA account and I just let it sit there and get monthly dividends. :) Example 5000$ into your TFSA on D.UN (dundee REIT), approx 5000/36.03 = 138 shares. Monthly dividend of 18.3 cents a share means you get just over 25$ a month tax free in dividends. Thats close to 6% return over the year. Beats putting the money in a savings account at the bank. But of course theres always the stock price dropping but you can easily sell it off with a click of a button. Have a read at this article. Why REITs are roaring despite rate threat | Property Post | Real Estate | News | Financial Post goodluck |
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