Global Real Estate Income

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Global Real Estate Income

Global Real Estate Income

Downtown Burlington

Real Estate Income funds may average +/- 7% return in combined income and growth.  That in itself is excellent, and offers a safer journey than the roller-coaster stock market.  When in the early 2000s stock markets fell >60%, real estate was generally up 7%.  In the 2008 global meltdown, real estate dropped a mere 5% while wider markets lost ten-times that amount.

We prefer to make this Real Estate a global mandate rather than just Canadian.  Canada is a tiny 3% of the world economy.  Anything in Canada will reflect what’s happening with interest rates, our currency, trade, jobs, environmental legislation, and so on.

Global Real Estate funds offer the diversity to hold specific types of assets across Canada, U.S.A., Europe, Britain, Japan and S.E. Asia.  Now we benefit from exposure to and greater stability of at least 65% of the world’s economy.  If the U.K. is troubled with Brexit there is no lack of opportunity in leading cities of Europe and the Pacific Rim.

We distinguish four – and maybe five – key types of investable real estate.  With commercial office space think of the land on which our largest banks have their head offices – those are lucrative properties.  For commercial industrial, picture where Magna (manufacturing) or Amazon (logistics & distribution) have their plants.  Retail is self-explanatory with malls etc.  Multi-unit residential speaks of housing developments where population is expanding.  Elsewhere we’ll touch on land that hosts toll bridges and highways, telecom towers, freight service and transportation hubs, utility services – anything that moves people, products, essential services and data.

That’s a lot in so few words.  Point is, all these forms of real estate offer a way to participate in the income and growth of such properties while securing precious income for life.

Global Real Estate is a prime and highly desired asset among pension funds worldwide, and notably even our CPP.   Including real estate as 10-20% of your investments won’t guarantee growth every year, but it assures a smoother ride.  You’ll rest well, confident that these assets will endure and pay a healthy, growing income for needs and opportunities of years to come.

2019-04-16T12:17:46-04:00February 27th, 2019|

2 Comments

  1. […] Imagine in your portfolio you find land on which our major banks, insurance companies, and manufacturing giants sit in Canadian cities and around the world.  These are valuable long term assets that take years to accumulate and once you have them you get to enjoy consistent and increasing income-yield over the years ahead.  Like infrastructure, real estate this too is a permanent holding we own for comparative safety and rich income.  (More on Global Real Estate) […]

  2. […] consider Real Estate as clients have been asking me.   I am always grateful for questions because we can learn as we […]

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