Real Estate Investing

Discover how real estate investing works in Canada, from rental properties to REITs, and how to grow wealth through income and appreciation.

Real Estate Investing

May 22, 2025


What is Real Estate Investing?

Real estate investing involves purchasing property or shares in property-based assets to earn income, generate capital appreciation, or both.

Why Does Investing Matter in Real Estate

In Canada, real estate investing is a popular strategy for building wealth and generating passive income. Investors may choose between owning physical properties or investing in real estate through public markets.


Common forms of real estate investing include:
  • Rental properties (single-family, multi-unit, or short-term rentals)
  • Commercial real estate
  • REITs and publicly traded funds
  • Development or house-flipping

Key considerations include:
  • Upfront capital and financing
  • Cash flow and return on investment (ROI)
  • Tax treatment and deductible expenses
  • Property management responsibilities


Successful investing requires research, due diligence, and financial planning. Risks may include market downturns, vacancy, and maintenance costs. Leveraging mortgages allows investors to control larger assets with less capital, but it increases exposure to interest rate changes.


Understanding real estate investing allows individuals to diversify portfolios, supplement income, and plan for long-term financial goals.

Example of Real Estate Investing

A couple purchases a duplex and rents out both units, earning monthly passive income while the property's value increases over time.

Key Takeaways

  • Involves buying property for income or growth.
  • Can be active (landlord) or passive (REITs).
  • Requires financing, planning, and risk management.
  • Generates income, equity, and tax benefits.
  • Popular for long-term wealth building.

Related Terms

Additional Terms

Construction Loan

A construction loan is a short-term, interim financing option used to fund the building or major renovation of a property, with funds disbursed in. more

Certificate of Occupancy

A certificate of occupancy is an official document issued by a municipal authority confirming that a building complies with applicable codes and is. more

Bylaw Variance

A bylaw variance is official permission granted by a municipal authority allowing a property owner to deviate from local zoning or building bylaw. more

Absorption Rate

Absorption rate is a metric that measures the rate at which available properties are sold or leased in a specific market over a given period.. more

Corporate Restructuring

Corporate restructuring refers to the reorganization of a company’s operations, assets, or liabilities, often under court supervision, to improve. more

Consumer Proposal

A consumer proposal is a formal, legally binding agreement in Canada between an individual and their creditors to repay a portion of their debt over. more

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