Investing is more than just increasing your funds or putting capital into the latest and most significant companies. Instead, you must be careful and calculated with your investment strategy to create wealth truly. While interest in real estate as an investment has ebbed and flowed over decades, many investors are returning to real estate for its stability in the market. Real estate can generate steady returns and rapidly appreciate its value in a city like Ottawa, which is ever-expanding and modernizing.

Understanding the Value of Real Estate Investments

Research from the Government of Canada showed that in 2020, investors opted to invest more in condominium apartments than houses. This shift demonstrates the market’s understanding of the value of large-scale real estate investments. Compared to other assets, real estate is a key diversifying opportunity for your investment portfolio, even when markets, as they were in 2020, are uncertain. 

The Stability of Real Estate Investments

Although real estate stability depends on how well the economic climate is, it faces less of an immediate impact than investment avenues like the stock market. Value rises and falls, but more reliable data, demographics, and trends mean investors can better identify real estate market opportunities to maximize potential growth. That kind of predictability is priceless.

Real Estate as a Long-Term Investment

Investments are often measured based on their longevity in generating investors' returns. Since real estate has generally grown in value over time, individuals can expect to see returns immediately and well into the future. This long-term strategy helps safeguard from shifting interest rates and economic factors that might otherwise impact other investment vehicles.

Further, the increased combination of initial investors, new investors, and fund managers contributing to a project ensures the real estate investment market remains active and exponentially growing.

Reliable Rental Income

While there’s a lot to love about investing in real estate, one of the most oversized pulls is rental income. A rental property in a desirable area can easily offset mortgage costs while still turning a monthly profit. Depending on when the structure was built, there is a chance that rent prices may be subject to yearly increases, which helps with rising inflation and increases overall revenue even further. 

Tax Credits and Incentives

Real estate investors can claim deductions on expenses like utilities, property tax, and insurance depending on their specific building. Although several costs are associated with being an investor or rental property owner, there are ways to offset them. That makes investing in real estate all the more appealing,

Ready to Take the Next Step?

We’ve shared a lot of key information on why real estate is a wise investment strategy. But you might still wonder: how do you move forward, and what opportunities are out there? With over 50 years of experience, CLV Group is proud to lead several real estate investment ventures in Ottawa, ensuring our community is ready for the future. Explore our projects and learn more about our investment approach today