Passive income in real estate is making money through assets where the owner buys the assets and is not actively involved. This is the type of income where the owner’s money works for them without their effort. There is a typical misinterpretation that automated revenue land requires no exertion. In any case, contingent upon the kind of rental system you execute, resource proprietors need to lay the basis to begin producing pay. When you have the rental going, your space will turn out leftover revenue without partaking in everyday work. Numerous proprietors have amassed significant abundance through the standard rental methodology. Financial backers buy homes or business spaces and lease them out. As a property manager, you acquire repeating pay each month.
Throughout history, there has never been a 15-year period that real estate has not appreciated. You can even increase your overall return by leveraging your investment. You can control a property with a 20% investment yet gain an appreciation for the entire value of the property. The opposite is also true if it depreciates, which refers back to the historical trend of real estate, which is why long-term investments are appealing.
Here are some ways you can make passive income in real estate to boost your net worth.
Trusts that invest in real estate (REITs)
Go for REITs if you don’t want the hassle of managing one or more individual properties. REITs are real estate investment trusts or something similar. However, a typical REIT holds business buildings, not just any real estate. They can be office buildings, shopping malls, sizable housing complexes, hospitals, and other non-residential properties. REITs pay out dividends made out of the trust’s net income. But when the trust’s properties are sold, you’ll also get a piece of the capital gain. Commercial real estate has always been the most lucrative investment strategy. You will have the chance to invest in these properties through REITs, much like you would with equities. Shares in trusts can be purchased and sold by well-known brokerage companies.
Borrow money
Real estate developers take on debt from non-banking finance companies, banks, or other institutional lenders. The lenders generally demand a higher interest rate from real estate developers because of inherent risks such as liquidity and execution risks in any real estate development. You will have tenants paying your mortgage, and as long as you make sure to pay your mortgage every month, you will continue to have someone else paying to increase your equity in your property. Later you can repay the debt by considering a professional debt consolidation service.
Stock dividends
The simple way for investors to generate passive income is through dividend stocks. A portion of public corporations’ profits is diverted and returned to investors as dividends. Investors can keep their cash or invest it in more shares. Dividend yields can differ dramatically amongst businesses and might change yearly.
Property crowdfunding
Another, more specialized approach to investing in real estate is through real estate crowdfunding. Crowdfunding real estate development made real estate investments widely available and affected market growth. They allow you to invest in highly specialized real estate ventures, which explains why. Two completely different investments are available on the platform. The first is an eREIT; a non-publicly traded REIT only offered through Fundrise. An eREIT allows for investments as low as $500. Over the past few years, the Fundraise REIT has generated returns averaging between 8% and 12% annually. The Fundrise eREIT invests in commercial real estate like office buildings and residential complexes, just like publicly traded REITs. However, the platform also enables you to invest in special real estate deals. This is accomplished through a Fundraise end, which necessitates a $1,000 minimum investment. Either undeveloped land is bought and developed for sale within the fund, or existing properties are bought, renovated, and then sold for a profit. It’s a chance to participate in the kind of real estate deals you wouldn’t want to do on your own but also yield high rewards.
Rent your property
If you are planning to invest in real estate but planning to begin small, rent out a room at your house if there is any. It is easy to market the room, as websites like Airbnb allow a person to post about it. Those who found it suitable according to their needs contacted and booked it for themselves. An individual can even use social media platforms to do marketing. It is the best way to begin generating income in the real estate journey, as very little investment is required. It even gives flexibility to the person, as they can decide when to rent a room, for how long, and at what price. Just make sure to do proper research about a specific tenant before welcoming them inside your property.
Long-term renting program
The other way to make money is by renting a property. Investors buy a property to sell it when the price increases; in between that time, they can rent the property to generate income in real estate. If a person is buying a property and intends to put it on rent, it is when the location matters the most. The property must be near shops, hospitals, schools, parks, and other necessities.
Private Equity
Real estate developers invite private equity players to invest in their projects by offering a share of the project to the private equity players. The Private equity players invest in real estate projects after comprehensive due diligence, including the builder’s track record, project specifications, and supply-demand equilibrium. Private equity players invest in real estate projects on a project-to-project basis and usually have a timeline for the exit.
Customer advances
Real estate developers can generate capital from customers (home buyers) through advance payments. A Real estate project takes 4–5 years to complete. However, real estate developers usually start selling the housing or individual units to buyers from the beginning as per the construction-linked payment plan. The installments paid by the customers serve as the capital to complete the project’s construction. Real estate investments produce good returns long-term. These investments often have tremendous tax advantages. You get diversification to your overall investment strategy.
Conclusion:
You can depreciate your asset over 27.5 years and take advantage of this tax benefit helping to lower your overall taxable income on the property. An excellent income in real estate investment should cover your Mortgage, Maintenance, Management, Vacancy, etc., and still provide additional cash flow, which you can use to reinvest into more real estate or pay your bills. This attribute will ultimately be responsible for the “passive income” you are looking for.
Author’s Bio: This guest post was written by Lyle Solomon. Lyle has considerable litigation experience as well as substantial hands-on knowledge and expertise in legal analysis and writing. Since 2003, he has been a member of the State Bar of California. In 1998, he graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, and now serves as a principal attorney for the Oak View Law Group in California. He has contributed to publications such as Entrepreneur, All Business, US Chamber, Finance Magnates, Next Avenue, and many more.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
