All Money Chasing Real Estate Investments [are You Missing Out?]
New figures show there is still plenty of private capital out there in the economy but savvy Canadians and professional investors all seem to be chasing commercial real estate these days. After a record first half of 2012 for commercial real estate transactions in Canada. The Globe and Mail reveals around an additional $1.2 billion has been raised in just about 4 weeks for investment in Canadian commercial real estate and particularly in real estate investment trusts (REITs).
So it isn’t just major Canadian companies sitting on a stock pile of cash and these types of high yielding investment opportunities are sure to do wonders for Canadians’ portfolios, wealth building and disposable income over the years ahead, providing additional strength to the overall economy.
Despite continued uncertainty in the global economy recent analysis of the commercial real estate marketing in Western Canada supports predictions of ongoing growth and safety for capital. In particular DBRS, the credit ratings agency, is bullish on real estate investment trusts and operating firms, saying performance is stable as are risk profiles going forward and a combination of limited supply and low interest rates will continue to fuel this.
Continued poor news surrounding the U.S. economy is likely to keep more investment dollars here at home in Canada and the Loonie and Canadian stock market have also benefited from Bernanke’s recent moves to make up for a diving jobs market down south. Whether it works or not or if he is still in his seat after November new anti-American trouble spreading throughout the middle east and around the globe makes U.S. real estate an even riskier bet than before, making it more likely we’ll global direct investment in Canadian real estate ahead.