Real Estate
Investments 101
Investing in Real Estate
Through Private REITs
Real estate has long been considered an advantageous investment. There are good reasons behind this perception: it tends to appreciate; it’s a tangible asset; and it generates income in the short and long-term, usually through rent. In recent years, real-estate investment trusts, or REITs, have become popular because they offer a way to indirectly invest in real estate. REITs own a portfolio of properties, which they operate to generate a return for investors, making them an accessible way to invest in real estate without purchasing or managing a physical property.
Efficient
Directly investing in real assets, such as property, brings with it many obligations and costs. There may be capital improvements required to ensure the property keeps its value, as well as ongoing maintenance. Revenue properties also bring with them the rental cycle, which requires a commitment to managing paperwork and leasing, as well as advertising costs. In addition, there are tax implications, which likely require expert advice. Investment in a REIT allows investors to benefit from the rental revenue and long-term appreciation of real estate assets without the investment of time and unexpected costs.
Inflation Hedge
Real estate serves as a good hedge against inflation due to multiple factors. Its potential for long-term appreciation can keep pace with or surpass inflation. Proper management of rental income will allow rents to maintain growth alongside inflation. The tangible nature of real estate assets in conjunction with reoccurring cashflow provides inherent value of a physical asset. Lastly, leveraging real estate investments can amplify returns and equity growth during inflation, where supply–and–demand dynamics come into play.
Accessible
Adding a REIT to your investment portfolio is as simple as consulting with your financial advisor about what is available and appropriate for you. Private REITs are categorized as “alternative investments” that are not listed on public stock exchanges. The value of a Private REIT is derived from the underlying value attributable to its investment properties, rather than from fluctuations in the secondary market of a public exchange. Like many public securities, Private REITs may be purchased through registered and non-registered plans.
What Makes Avenue Living Unique?
Avenue Living is one of the largest private real estate owners in western Canada. We offer four distinct investment vehicles that invest in multi-family residential, commercial, farmland, and self-storage properties. Avenue Living is an active owner/operator — we manage the acquisition, capital improvements, property management, and customer service for our properties in-house. This is made possible through a vertically integrated platform comprised of a team of experts who support every aspect of our business. This platform allows us to ensure we meet the needs of all our stakeholders, including residents, employees, investors, and the communities in which we operate.
Disclaimer: This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
Investing in Real Estate Through Private REITs
Investing in Real Estate Through Private REITs
Real estate has long been considered an advantageous investment. There are good reasons behind this perception: it tends to appreciate; it’s a tangible asset; and it generates income in the short and long-term, usually through rent. Many investors will purchase an entire property or a stake in one — for example, multi-family residential, commercial, self-storage or farmland. In recent years, real-estate investment trusts, or REITs, have become popular because they offer a way to indirectly invest in real estate. REITs own a portfolio of properties, which they operate to generate a return for investors, making them an accessible way to invest in real estate without purchasing or managing a physical property.
Efficient
Directly investing in real assets, such as property, brings with it many obligations and costs. There may be capital improvements required to ensure the property keeps its value, as well as ongoing maintenance. Revenue properties also bring with them the rental cycle, which requires a commitment to managing paperwork and leasing, as well as advertising costs. In addition, there are tax implications, which likely require expert advice. Investment in a REIT allows investors to benefit from the rental revenue and long-term appreciation of real estate assets without the investment of time and unexpected costs.
Inflation Hedge
Real estate serves as a good hedge against inflation due to multiple factors. Its potential for long-term appreciation can keep pace with or surpass inflation. Proper management of rental income will allow rents to maintain growth alongside inflation. The tangible nature of real estate assets provides inherent value of a physical asset. Lastly, leveraging real estate investments can amplify returns and equity growth during inflation, where supply–and–demand dynamics come into play.
Easy & Approachable
Adding a REIT to your investment portfolio is as simple as consulting with your financial advisor about what is available and appropriate for you. Private REITs are categorized as “alternative investments” that are not listed on public stock exchanges. The value of a Private REIT is derived from the underlying value attributable to its investment properties, rather than from fluctuations in the secondary market of a public exchange. Like many public securities, Private REITs may be purchased through registered and non-registered plans.
What Makes Avenue Living Unique?
Avenue Living is one of the largest private real estate owners in western Canada. We offer four distinct investment vehicles that invest in multi-family residential, commercial, farmland, and self-storage properties. Avenue Living is an active owner/operator — we manage the acquisition, capital improvements, property management, and customer service for our properties in-house. This is made possible through a vertically integrated platform comprised of a team of experts who support every aspect of our business. This platform allows us to ensure we meet the needs of all our stakeholders, including residents, employees, investors, and the communities in which we operate.
Disclaimer: This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at https://avenuelivingam.com/forward-looking-statements for additional information regarding forward-looking statements and certain risks associated with them.
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