Real Estate Investor?.. follow the money trail.
Updated: Nov 18, 2019
Investment in residential real estate in Canada has doubled in the last 10 years bringing residential construction, related services and credit intermediation to now be a part of our economy as large as our energy and manufacturing sectors combined.
So what about business investment in Canada? According to BMO it has fallen to its lowest levels since the mid-1990s, from more than 14% to 10% over the past five years. In contrast, the same U.S. metric has held steady at 14 per cent over the same time frame.
So where's the money trail?
There isn't as much excitement around the TSX oligopolies, like there is around our tech stocks (tech currently make up 5.2% of the TSX and just three stocks account for 3/4 of that -Constellation Software, Shopify and CGL) but these big Canadian firm investments are and continue to be steady earnings and dividends machines. I am no investment adviser but I know good returns when I see them.
With interest rates likely looking to fall again in the near future investment in these areas is looking very, very attractive. Want proof? Here are a few examples.. Bank of Nova Scotia currently pays 4.75 per cent, Great West Life 5.15 per cent, Enbridge 6.1 per cent and BCE 5.1 per cent.
Perhaps if more Canadian businesses were willing to also offer higher-growth opportunities like these then more Canadians would stay even closer to home with their investment dollars and also start to look beyond just residential real estate for a place to speculate, which would be a good thing for the economy as a whole.
If you are looking for help buying, selling or investing in real estate myself and my real estate team are here to help. We specialize in real estate in Aurora, real estate in Newmarket, real estate in Richmond Hill and real estate in Vaughan. We also help with investing in real estate in pre-construction condominiums all over Toronto and the GTA. Whatever your direction in real estate, you can always turntotammy.