While investing is often associated with stocks and bonds, the Canadian real estate market provides potential investors with plenty of lucrative opportunities. When mortgage rates are low and properties are available, savvy buyers can make a tidy profit in the housing market. However, before an individual decides to invest, they must understand the different ways to invest in real estate, as well as the advantages and disadvantages of each.
Buying, selling and renting
Buying real estate directly is the most common way to invest. Buyers typically purchase a residential property at a low price, renovate it or wait until the market improves, and sell the property at a profit. Buying homes also presents Canadians with the chance to become landlords. Purchasing a property and renting it out to tenants can be a great way to bring in extra income on a steady basis. Continue reading
Homburg Canada Real Estate Investment Trust recently announced that it has agreed to purchase a large portfolio of 29 shopping centers across Canada for a purchase price of $114.9 million.
Of the 29 properties, 24 are leased by the Jean Coutu Group, representing about half of the overall income of the portfolio. Other major tenants include IGA, METRO and Shoppers Drug Mart, among others. Continue reading
Allied Properties REIT has remained busy lately, purchasing four commercial Calgary properties, which total more than 136,000 square feet, the Calgary Herald reports.
So far in 2011, the company has acquired 18 properties for $345 million, 13 of which are located in Western Canada, along with four in Toronto and one in Montreal. The article relays that, at this time last year, the company owned no properties west of Winnipeg.
As part of its most recent transactions, Allied bought the Alberta Hotel Building, Fashion Central, the Cooper Block and Art Central in Calgary. Continue reading
Recently, officials from Dundee Real Estate Investment Trust announced it reached an agreement with Blackstone Real Estate Advisors to purchase 29 of its office properties.
The former Blackstone offices are located throughout Toronto, Ottawa, Edmonton and Calgary. In all, Dundee will pay $831.8 million for the properties, and as part of the agreement, Dundee will direct five of the assets to third parties for proceeds of $142 million. The remaining 24 offices will then total $689.8 million. Closing is expected to occur on August 15.
Dundee is hardly new to the business of conducting commercial real estate transactions, as it completed the nation's largest commercial purchase ever in 2007. Now, four years later, it has acquired the largest office portfolio ever by a Canadian REIT. Continue reading
Expanding its presence in Quebec, Partners Real Estate Investment Trust recently announced it would acquire a 250,000 square foot shopping center in the Greater Montreal region.
The center is located in a growing urban market and includes several high-quality retailers, such as a Super C grocery store, Pharmaprix, Zellers, Dollarama, National Bank and Bank of Montreal. In all, the center is 98 percent occupied. Continue reading