Admittedly, the article is from Australia, and market factors both inside and outside real estate are different than what we are experiencing inside and outside the real estate market in Toronto and the GTA. However it is a good reminder of how crucial real estate’s role is in providing solid returns on investment and why investors should consider it a cornerstone of their long-term portfolios. In terms of specifics the article states:
property has provided a total return of 10.4 per cent per annum over the last 15 years, outperforming Australian Real Estate Investment Trusts (A-REIT) (5.9 per cent per annum), Australian equities (9.1 per cent per annum)and bonds (7.7 per cent per annum).
Now these numbers are not exactly transferrable to our market, but it illustrates that over the long haul, real estate provides a solid dependable return in almost any mature market in the world. That can be said with even more conviction in Toronto, which has been dubbed one of the top investment locations for high end real estate for foreigners wanting to keep their money in a solid premium market.
This is why so many investors look to commercial or residential real estate as a way to earn superior returns over the long term. The problem many of them face is that despite the good sense to place their money in real estate, many investors have either zero experience, or very limited backgrounds in managing properties and the tenant relationships that go along with them.
That is where we come in. At Real Estate Management Toronto (a division of Northern Property Rental) we have over 20 years experience in all aspects of the Toronto Real estate market, and have successfully dealt with productive and profitable tenant relationships through that time period. Give us a call or email to set up a time to discuss how we can put our experience to work for you and help you maximize your real estate investments.