Private Financing Montreal

From Canadian Real Estate Wealth: Sept 25, 2017 

With uncertainty spreading through traditional investment markets, more investors are seeking out alternative vehicles in which to place their funds. Historically, when people thought about investment opportunities, their options were limited to stocks, bonds, and real estate, but with returns increasingly difficult to find in traditional places, the alternative investment space is one of the fastest growing segments across the globe.Included in the alternative space are REITs, Mortgage Investment Corporations (MICs) and individual mortgage investments.

“The alternative space has become especially important for people over the last decade as they look for something that is not correlated to the stock and bond markets,” explains Bryan Jaskolka, VP of Canadian Mortgages Inc. (CMI). “Although this space can have the correlation to the real estate market, it does not move in the same patterns as other liquid financial investments that people have historically been buying.”

With a large proportion of the boomer generation reaching retirement, concerns around pensions funds are front of mind for many Canadian families. It’s a definite challenge, particularly when considering that people are living longer than ever before and traditionally fixed income vehicles are not yielding the returns they did previously.

Private Financing Montreal
“Because of quantitative easing and other loosening measures worldwide in the past decade, people are seeing incredibly low returns on their GICs, certificates of deposit, and corporate bonds,” Jaskolka says. “It’s very difficult for people to live on that income, particularly when you consider that returns are, in many cases, totaling just a few percent. When you have a similar inflation rate, the real net income is next to nothing.”

As well as providing returns ranging from 6% to 16% depending on location, equity and risk factors, investments in alternative vehicles, like MICs and individual mortgages, provide investors with a level of diversification that is crucial in any modern portfolio. As was proven in the dotcom-bust and the economic meltdown of 2008 – 2009, having all of your eggs in one basket has the potential to be catastrophic.

“People have been looking for alternative mechanisms for generating income and cash flow and mortgage investments and MICs are excellent areas for them to do that,” Jaskolka says. “Generally speaking, they provide static payments, which are income driven, and they do not trade as a public market stocks so are not subject to daily price fluctuations.”

With all the investment strategies that have come from time to time, real estate has always been the one investment that has proven itself long term, time and time again. The question arises though how to purchase a property that is available at a good price when others are also looking to by this property. The best way is to be able to pay all cash. Having private financing ready is a means for doing this, and one of the quickest private lenders in Montreal is Tempbridge. Contact us and see how we can make your investments plans a reality.

Comments

Post a Comment

Popular posts from this blog

Dunlevy: Decrying gentrification – 'Big developers' are a big problem in Mile End

It's 'sad,' says Project Montréal's Marie Plourde, when new property owners 'don’t have any sense of the neighbourhood' T'Cha Dunlevy, Montreal Gazette Published on: February 17, 2018 Marie Plourde has one word to describe her reaction to the skyrocketing rents for certain commercial properties in Mile End, and how the situation is forcing out businesses that are part of the fabric of the neighbourhood. “I’m devastated,” said the Projet Montréal councillor for the neighbourhood. “It’s dramatic. I support all the business owners who are there, who are resisting, who are worried. All this brings up inflation, and rents in general. “Landlords aren’t crazy. If rent is a certain price for one space, they say, ‘I want to rent my space out for that much, too.’” A week ago, I wrote about Le Cagibi, a vegetarian café-restaurant-indie showbar at the corner of St-Laurent Blvd. and St-Viateur St. The building was recently sold, and the new landlord...
Read more

Apartment Building Lender Montreal

Image
From Canadian Real Estate Wealth magazine (Sept 22, 2017): by Neil Sharma Montreal is Canada’s next investors’ paradise. A city of multiplexes — which continue to yield high returns for investors — Montreal’s burgeoning condo market is also attracting international attention. In particular, the southwest neighborhoods of Griffintown and neighboring St. Henri, the latter of which has rehabilitated it's rough and tumble image through gentrification, are the surest bets, according to Fred Serrecchia, Partner, Broker of Record and Head of Real Estate at Montreal-based NestReady. “Things are changing quite rapidly,” he said. “The condo market has seen absorption, and new developments like the ones in Griffintown and St. Henri have made them unrecognizable. A lot of inventory has gone up there and it’s all being absorbed incredibly well.” Griffintown’s proximity to downtown Montreal and the Lachine Canal, where waterside condos are sprouting with state-of-the-art am...
Read more

Is your home or income property insured when it’s vacant?

Image
A recent Alberta court ruling is a jarring reminder to homeowners and landlords to ensure they are onside with the requirements of their property insurance policies, particularly those regarding vacancy. The ruling, which was released by the Alberta Court of Queen's Bench last month, concerned a man who in 2011 bought an income property in the town of Westlock, just north of Edmonton. Immediately after his purchase, he bought property insurance and rented out the home to a married couple. Several years later, the couple had marital problems and moved out one at a time, with the wife leaving first and the husband moving out of the home by July 13, 2015. The landlord took the unexpected departure as an opportunity to renovate, with a view to renting to new tenants in September, 2015. He then dropped off his camping trailer at the property, which he planned to stay in occasionally during the renovations, and began the work. On Aug. 22, however, these plans were upend...
Read more