... is a more attractive asset class than public equities in terms of cash flow generation.
... is less volatile, more predictable and has the return profile of higher risk asset classes.
• Investors benefit from immediate cash flows from their investment: 6 to 7% on average (with the potential to increase to 9% when leveraged optimally) while the dividend yield of the S&P 500 index is as low as 1.87%.
• Real estate is a productive asset: it performs a function in everyday life. For retail, industry, office, farming or living, people will always need buildings.
• The value of real estate has built-in appreciation as construction costs increase with inflation.
• Real estate investment is a tax-efficient investment. In this case, we handle all aspects of Canadian tax, avoiding double taxation with your country of residence.
• The physical safety of the investment asset is protected by insurance: this is obviously not the case of public equities and other private equity asset classes.
• Real estate is a stable asset class with low volatility. Even if the valuation decreases in recession (which is not always the case), cash flows remain predictable and regular.
• While it is not as liquid as public equities, it remains possibly the most liquid private equity asset, especially in an economy like Canada’s.
• Stock, bond, commodity markets are highly volatile due to cycles. Real Estate market offers great diversification. Real estate investment is supported by the inelastic demand of almost every consumer in the market.