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

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Diamond Kilmer Revises Chester Public School Heritage Redevelopment With New Heights

Diamond Kilmer Revises Chester Public School Heritage Redevelopment With New Heights
Left: 954 - 958 Broadview Avenue/Graziani + Corazza Architects, Right: Looking north-west towards the subject site, 1905/Toronto Public Library via ERA Architects Inc.

In a joint venture, DiamondCorp and Kilmer Group are teaming up to restore and redevelop Chester Public School in East York — an 1891 brick school house designated under the Ontario Heritage Act. The redevelopment would preserve certain elements of the historic building while delivering a 26-storey mixed-use condo development with over 300 new residential units, retail at grade, and a new public park.

Plans were filed in early September and comprise an Official Plan Amendment (OPA) and Zoning By-law Amendment (ZBA) application to permit the newly proposed height, density, and uses on site. This application follows previous approvals for the site granted in February 2023 in favour of a 14- and four-storey mixed-use development containing 207 residential units, and aims to build upon those plans in light of recent planning framework developments.

Keep ReadingShow less

Surrey City Development Corporation Planning 4 Towers Near Gateway Station

A rendering of the four towers planned near Gateway Station in Surrey.

A rendering of the four towers planned near Gateway Station in Surrey. / ZGF Architects, Surrey City Development Corporation

The race is on between Vancouver and Surrey to see which City's development entity has the biggest projects and the latest round goes to the Surrey City Development Corporation (SCDC), which was revived in 2023 and recently submitted a rezoning application for a big four-tower project. (The Vancouver Housing Development Office will also be unveiling a four-tower project soon.)

The subject site of the SCDC's proposal is located at the southwest corner of 108 Avenue and University Drive, immediately west of the Expo Line SkyTrain's Gateway Station. The site currently consists of 10744 133 Street, 10725-10757 University Drive, and 13310-13350 108 Avenue and spans approximately 5.7 acres. The site makes up most of the block bounded by 108 Avenue on the north, University Drive on the east, the Whalley Athletic Park on the south, and 133 Street on the west, save for the two Citypoint towers at the northeast corner of the site developed by Century Group.

Keep ReadingShow less

Polished Concrete Meets Poolside Perfection In The Okanagan

Polished Concrete Meets Poolside Perfection In The Okanagan
via Sotheby's

Perched in one of Kelowna’s most coveted enclaves, 764 Rockcliffe Place is a home that’s as much a feat of engineering as it is a triumph of design.

This residence, set within the exclusive community of Highpointe, commands attention with its striking use of concrete and steel, cantilevered forms, and uncompromising attention to detail.

Keep ReadingShow less

Sleek Gated 4-Bed Estate Listed Overlooking Okanagan Lake

Sleek Gated 4-Bed Estate Listed Overlooking Okanagan Lake

Perched high above Okanagan Lake, a striking gated retreat awaits, delivering a rare blend of privacy, style, and sweeping scenery.

Set on 2.7 acres within one of the region’s most coveted enclaves, 8836 Stonington Road offers not only an elegant primary residence, but also room for future expansions — think guest house, carriage home, or even a pickleball court.

Keep ReadingShow less

Innovation Has A New Home In The Canadian Housing Industry (And It’s Built For Collaboration)

Innovation Has A New Home In The Canadian Housing Industry (And It’s Built For Collaboration)

If Canada is going to solve its housing crisis, innovation can’t happen in silos.

It’s not enough for startups to build exciting new tech, or for municipalities to design forward-thinking policies, or for builders and manufacturers to push for efficiency on their own. What the industry needs is a shared space — a platform for collaboration across the full housing ecosystem.

Keep ReadingShow less

Historic Prince Edward County Property Touts Picturesque Pastoral Views

Historic Prince Edward County Property Touts Picturesque Pastoral Views

Think of Prince Edward County and rolling pastures, lush meadows, and picture-perfect natural beauty quickly comes to mind. Think of a home there, and the historic one located at 1164 Danforth Road is the ideal fit.

The three-bedroom, four-bathroom home in the small community of Hillier lends itself flawlessly to the locale. From the outset, you’re greeted with a board-and batten-siding that offers a graceful introduction, set behind a stacked stone fence. A tidy porch brings you to the front door.

Keep ReadingShow less

Bank Of Canada Cuts Interest Rate To 2.50% After Three Consecutive Holds

Bank Of Canada Cuts Interest Rate To 2.50% After Three Consecutive Holds
Shutterstock

On Wednesday morning, the Bank of Canada (BoC) announced that they are cutting the policy rate to 2.50% for their July decision. This decision follows three consecutive holds from the central bank in April, June, and July.

The BoC has delivered a total of 225 basis points (bps) worth of cuts since June 2024, including half-point cuts in both October and December of last year.

Keep ReadingShow less
BREAKING: BoC Cuts Interest Rate To 2.50% After Three Consecutive Holds

Housing Starts Fall 16% In August, Pointing To Construction Slowdown

Housing Starts Fall 16% In August, Pointing To Construction Slowdown
Shutterstock

August represented one of the weaker months this year for housing starts, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC). At the national level, the total monthly seasonally adjusted annual rate (SAAR) of starts fell 16% last month, compared to a 4% increase in July.

This marks the largest SAAR decline so far this year and puts the metric well below the six-month trend in housing starts, which increased 1.6% to 267,259 units in August. CMHC’s Deputy Chief Economist, Kevin Hughes, says this gap is notable. "If sustained, this adjustment in the level of housing starts would be consistent with both our forecast and current market intelligence indicating a slowdown in the pace of housing construction."

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved