REIT in Canada
What is a REIT?
Invest the Proper Way with a REIT in Canada to Earn a Return on InvestmentREITs aggregate investor capital to invest in various properties, allowing individuals to earn from real estate without owning or managing it. REIT portfolios can include apartments, data centers, healthcare facilities, infrastructure, and more. Cascadia Green REIT, a private, open-ended trust, primarily invests in multifamily apartment complexes.
CGREIT V.S. Individual Property Investment
- 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
- 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?
Canadian REITs offer competitive returns through stable dividends and capital appreciation. They diversify portfolios with low correlation to other assets, reducing risks and enhancing returns.
Initial fund distributions may be treated as return of capital. RRSP & TFSA eligible.
Investing in a REIT offers a more cost-effective alternative to acquiring real estate yourself.
Funds across multiple stages of investment ecosystem; land aqusition development, construction and management.
Rent rises with inflation resulting in higher divident yields.
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.
- Real Estate Ownership
- Predictable Revenue
- Steady Cash Flow
- Capital Appreciation
- Backed by Tangible Assets
- Regulated Transparency
- Independently Assessed
- REIT Structures have a Proven Record
- Retirement Plan Eligibility
- Automatic Reinvestment
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.