Real estate bonds the newest option in real estate investing
Joe Rosengarten
Canadian Real Estate Wealth
Don’t be concerned if you haven’t heard about real estate bonds yet, not many investors have. But as Canadian investors look for alternative ways to generate income, growth and maximize their tax savings on their investments, secured real estate bonds are destined to take off.
Real estate bonds are different from traditional real estate investments, like residential income properties, REITs, limited partnerships, syndicated mortgages and MICs, in some fundamental and crucial ways. They represent a new opportunity for investors who see the long-term benefits of real estate investing but want a more well-rounded and efficient vehicle with which to invest in the market.
“Despite this wide range of choices, the available options may not meet every investor’s specific requirements,” says George Lawton, CEO, North American Home Finance Inc. “Because investors have differing priorities – such as security, income, return on investment, and tax treatment – each investor’s needs are specific. In response to those needs, real estate bonds are evolving to provide more options with unique elements that expand the potential of real estate investment.”
Traditional real estate investments are a familiar tool amongst the investor community and although real estate bonds are not aiming to replace these options, they do represent a much-needed evolution in real estate investment options. “SKYIRE has launched three separate next-generation real estate bonds that provide growth participation as well as mortgage security,” Lawton says. “In addition to the rate of return on the bond, SKYIRE bondholders also benefit from the profits generated by the underlying real estate assets securing the bond.”
Making real estate assets behave like a bond has not been done before in Canada. But with a rapidly changing real estate market and uncertainty spreading through other investment markets, never has a bond-like real estate tool been more necessary. Real estate bonds may be new and unfamiliar to many, but they won’t stay that way for long.
Tomorrow on CREW Online, we delve a little deeper into SKYIRE’s HomeBuild bonds.
If security and growth are important to your real estate portfolio, now is the time to act. SKYIRE will send you a complete Real Estate Bond package including a free copy of the book Residential Investing featuring HomePlan and HomeBuild Bonds As a bonus, SKYIRE will also include the discussion paper “Evolution in Real Estate Bonds,” as well as a certified registered investment certificate in the amount of $250 to be used towards any SKYIRE Real Estate Bond investment.
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