Safe Investments Outside Of the Stock Market For Canadians
Ok, to be fair, when talking about investments, there are no safe investments, as they all have some inherent risk that's associated with them. Yet there are safer investments compared to how the stock market has been behaving this past year and a way to grow your overall portfolio comfortably. This safer option is the real estate market, but in a unique way that helps to earn better returns with the compounding factor, such as using a mortgage investment corporation or a mutual fund trust.
Why not just put money into the bank?
Some say the safest option is to place money into a bank guarantee investment certificate, savings accounts, or government bonds. These are technically the safest option, but their returns also reflect that by offering the lowest possible amounts. They are also primarily determined by the interest rates of the government and will not provide as lucrative returns as the real estate market would.
What about pensions?
Pensions themselves are built to be as safe and protective as possible, so while they will do much better than simply placing it in a bank instrument, they will, at the most, work to beat whatever inflation accumulates between initiation of the pension to when people start to retire. While that is not a terrible option, it is also not the best option for finding the right type of safer investment opportunity.
Can’t I just handle real estate myself?
You can. You can purchase a home, pay off the mortgage, buy an investment property and gain rental income. There are bundles of people out there doing it. Housing markets tend to be quite stable, and one or two properties to manage are quite doable.
But guess what? That rental income still may not be as high or lucrative as you originally thought. It's also not as passive as you may think it is, as many amateur landlords tend to find out. Eventually, you find yourself with a part-time secondary job where your rent is simply another type of income
Ok, I get it. So how do I go about real estate the right way?
What we've done is take all the positive elements from real estate investments and combine them into a mutual fund trust. This means you, as an investor, don't need to put up extensive amounts of capital to reap the benefits of real estate investments. You won’t need to apply for mortgages, search for properties, or even find ways to produce income from those properties. We handle all of that, and all you need to do is decide how much you’re willing to invest and take advantage of a rewarding APY.
Our strategy goes beyond simply producing income from real estate; but we also look at getting the best purchasing agreements for residential and commercial properties. We focus primarily throughout the British Columbia region to help diversify our portfolio but still be able to manage it properly for those that invest with us. So when you're ready for a less volatile investment strategy, reach out to us.