Why real estate is a sound investment in Canada

Real estate is one of the fastest-growing investments in Canada and has proven to be one of the best ways to grow your wealth. Over the past few decades, property prices have profited from regular increases across most of Canada fueled by the lack of supply and immigration trends. As the stock market continues to fluctuate, Canadian real estate is so much more than a place to live, it has become a sought-after asset class to invest in.

For many, investing in real estate is a key asset in their portfolio diversification to achieve a balanced portfolio that minimizes risks and maximizes gains. The key to making strategic investment decisions is to consider the underlying economic factors that impact your investment. Three key indicators that are driving more towards this investment is that Canada has a growing economic environment, a very low unemployment rate and a strong immigration plan. With this strong population growth, government budgetary decisions are being made that are propelling growth in the national housing market, all of which point to a healthy future.

A focus on Ontario

Last month, a new generational trends report released by Mustel Group and Sotheby’s Realty Canada reveals that an overwhelming majority of urban Canadians remain confident in the long term financial performance of residential real estate. Despite rising interest rates, stubborn inflationary pressures and economic uncertainty, nearly half (49%) of urban Canadians ages 18–77 believe that a residential real estate purchase will perform the same or better than their other financial investments in the next 12 months. 

Ontario has long been a desired destination with a balance of culture, lifestyle and access to job opportunities. With the province’s population anticipated to increase by as much as six million over the next two decades, local governments have made positive moves over the past decade with infrastructure and planning for new housing.

In 2019, the Huffington Post published that Toronto is the fastest-growing city in the U.S and Canada. Both immigration and educational opportunities are bringing a growing population of qualified residents to the city. With rental vacancy below 2%, and the growing population creating demand for rental properties, investing in Toronto real estate is considered a sound move financially. 

Investing with Dez Capital

Dez Capital has funded over $500 Million into mortgages across Ontario to date and the Dez Capital Mortgage Investment Fund offers you the opportunity to invest directly into the proven real estate market with low correlation to public markets. Together with our investors, we maximize returns while preserving capital with a simple and transparent approach to co-investing.

As with any investment, understand the risks and make sure you’re willing to take them. To learn more about how you can add real estate to your portfolio through investing in a mortgage fund, speak to one of our Exempt Market Dealers.