REIT in Canada
What is a REIT?
Invest the Proper Way with a REIT in Canada to Earn a Return on Investment
Similar to other pooled investments, a REIT will pool the capital of numerous investors to acquire targeted properties. This makes it possible for individual investors to earn distributions from real estate investments without having to buy, manage, or finance any properties themselves. Properties in a REIT portfolio may include apartment complexes, data centers, healthcare facilities, hotels, infrastructure – in the form of fiber cables, cell towers, and energy pipelines, office buildings, retail centers, self-storage, and warehouses. Cascadia Green REIT is a private REIT that is open-ended and incorporated real estate mutual fund trust which primarily focuses on multifamily apartment complexes.
CGREIT V.S. Individual Property Investment
REIT
- Greater levels of diversification
- Lower barrier to entry
- Portfolio of professionally managed properties
- No limit on the number of registered funds one can invest
- Ability to invest registered funds at any stage
(RRSPs/RESPs/RRIFs/TFSAs) - Investment redemption options available
Individual Property Investment
- Limited diversification
- Significant funds required
- Landlord responsibilities and inconveniences
- RRSP limit of $35,000 available only to first time home buyers
- Cash on hand required
- Funds locked in until refinancing or sale
Why invest your money in REITs in Canada?
REITs in Canada typically provide competitive total returns via high, consistent dividend income and long-term capital appreciation. Because of their low correlation with other assets, they help diversify your investment portfolio, decreasing the risks, and increasing investment returns. Here are some of the benefits of investing in REITs in Canada:
Tax Efficient
Initial fund distributions may be treated as return of capital. RRSP & TFSA eligible.
Cost Effective
Investing in a REIT offers a more cost-effective alternative to acquiring real estate yourself.
Diversified Risk
Funds across multiple stages of investment ecosystem; land aqusition development, construction and management.
Inflation Hedge
Rent rises with inflation resulting in higher divident yields.
Passive Income
Prior to distributions, investors have an accruing 6% preferred return.
Reasons Why Investing In CGREIT Is The Best Choice For You
Aside from diversifying your investment portfolio and providing sizeable returns, REITs in Canada offer multiple benefits to investors.
Investment
- Real Estate Ownership
- Diversification
- Predictable Revenue
- Steady Cash Flow
- Capital Appreciation
Security
- Backed by Tangible Assets
- Regulated Transparency
- Independently Assessed
- REIT Structures have a Proven Record
Options
- Flexibility
- Retirement Plan Eligibility
- Automatic Reinvestment
We’ll be with you every step of the way, whether it’s questions or concerns, we have an answer.
What You Should Know about REITs
REITs are an excellent way to invest in real estate without having to own or manage the property. Learn the essentials of REIT investing:
- REITs in Canada are trusts that own passive income generating real estate holdings.
- REIT's in Canada is controlled by and started with a declaration of trust. The REIT's trustees maintain legal ownership of, and administer the trust properties on behalf of the REIT's unitholders.
- Trustees of REITs in Canada are subject to fiduciary requirements comparable to those imposed on corporate directors.
- There is no law regulating a REIT's corporate structure. However, contract law and trust law principles apply.
- Benefit from preferential tax treatment — trust revenue is allowed to pass through the trust fund into the hands of unitholders, and as a result, income is not taxed at the trust level.