Buying a condo or a house seems to be a great way to make money, but it’s not an option for those who don’t qualify for a mortgage.
However, there is another option: real estate investment trusts (REITs).
REITs are traded on stock exchanges and there are various sectors to choose from such as industrial, residential and commercial.
But if you can’t decide which REIT to buy, there are a few exchange-traded funds (ETFs) available that holds a basket of REITs so you can get instant diversification. For example, there’s the BMO Equal Weight REITs Index ETF, the FTSE Canadian Capped REIT Index ETF and the iShares S&P/TSX Capped REIT Index ETF.
The great thing about a REIT is that you get exposure to real estate without having to come up with a huge down payment.
And unlike a property, you can sell a REIT in seconds instead of having to wait 30 to 60 days. Plus you don’t have to worry about deadbeat tenants.