Real Estate Investment Trusts

Real Estate ownership continues to be one of the most lucrative ways of building wealth over time.  As with any other form of equity ownership however, its return is variable and as such it is is time-in (PDF) and not necessarily timing which builds wealth. From an investment management perspective, real estate ownership may be considered an alternative to other traditional investment solutions; including stocks and bonds...

Beyond appreciation potential (and/or the potential for rental income,) your principal residence is specifically advantaged in that realized capital growth is generally considered to be non-taxable. Only one principal residence can be owned at a time however – it is not possible for married or common law spouses to own separate principal residences.

An alternative to physical ownership is a Real Estate Investment Trust. REITs are a convenient, liquid and cost-effective way of participating in the growth and income potential from a pool of (commercial) real estate assets. REITs are designed to pay a regular, often tax-efficient (monthly) cash flow, but also enjoys the potential for long-term capital appreciation.