Throughout history, investment in real estate has been a preferred vehicle for building wealth. Income properties differ from investments in stocks and debt because the value of real estate is determined and secured by actual physical assets. REITs are a Canadian investment [http://league.ca/about] strategy.

As well, in Canada real estate traditionally has not been subject to wild fluctuations like those seen in stock markets. Growth in Canadian real estate generally remains steady, resulting in a sound, stable investment. REITs take this promise of stability and profit one step further.

REITs are not just a diversifited portfolio of properties held in trust. More significantly, REIT management teams actively manage the properties to generate additional revenue. Managing properties means maximiZing leases, and employing strategies that reduce lease turnover rates. REIT management teams also pay special attention to providing real value to tenants in order to charge higher rents, and what this means for REIT investors are higher monthly disbursements. Revenue can be generated from not just rents, but also from property management fees, financing fees, mortgage fees and many other services. The best REIT managers are able to produce a profit every month well in excess of the cost of actually financing and maintaining the properties. However, the real trick is to do this without charging too much and driving tenants away.

Ultimately, it may not make any sense for the owners of the REIT properties to manage everything themselves, and so it's not unusual if property management is outsourced to a third party. When determining which REIT is right for you, it's important to guage the core competencies of the REIT management team, and whether or not they are making the right choices. You can do this by looking at their results.

Disbursements are typically paid to investors on a monthly basis, and can receive special tax considerations. As well, REIT contributions often qualify for RRSP and RESP plans, which provide additional tax savings. The time is right for
">real estate investing Canada.