Smart Real Estate Investment Strategies for Canadians

The Canadian real estate market remains a strong avenue for wealth creation, but rising property prices have made it more challenging for investors to enter the market. Fortunately, there are alternative investment strategies that can help Canadians grow their real estate portfolios without requiring massive capital upfront. From Real Estate Investment Groups (REIGs) to house hacking and joint ventures, this article explores the best strategies for Canadians to invest in real estate in 2025.

1. Real Estate Investment Groups (REIGs)

For those looking to invest in real estate without the hassle of direct property management, Real Estate Investment Groups (REIGs) are an excellent option. REIGs allow individuals to pool resources and collectively invest in residential or commercial properties, reducing individual risk and financial burden.

Benefits of REIGs:

• Lower capital requirement compared to solo property purchases

• Professional management handles property upkeep and tenant issues

• Diversification across multiple properties for reduced risk

How to Get Started:

• Research and join reputable REIGs in Canada

• Understand the investment structure and potential returns

• Review legal agreements before committing funds

2. House Hacking

Turning your home into an investment house hacking involves buying a multi-unit property, living in one unit, and renting out the others to offset mortgage costs. This strategy is popular among first-time investors looking to build equity while minimizing housing expenses.

Why House Hacking Works in Canada:

• CMHC-insured mortgages allow lower down payments for multi-unit properties

• High rental demand in cities like Toronto, Vancouver, and Montreal

• Generates passive income while covering mortgage payments

Best Property Types for House Hacking:

• Duplexes and triplexes

• Basement apartments in single-family homes

• Laneway or garden suites

3. Joint Ventures

Joint Venture (JV) allows investors to combine resources, experience, and capital to purchase properties that may be out of reach individually. A typical JV structure involves one partner providing financing while another handles property management.

Advantages of Joint Ventures:

• Access to larger investment opportunities

• Shared risks and responsibilities

• Ideal for investors with limited capital or experience

How to Structure a Joint Venture:

• Clearly define roles and responsibilities

• Draft a legally binding agreement

• Establish an exit strategy upfront

4. Real Estate Syndications

Passively investing through real estate syndications allow investors to pool funds to acquire large-scale properties such as apartment buildings or commercial real estate. Unlike REIGs, syndications typically have a lead investor or sponsor managing the investment on behalf of passive investors.

Why Consider Syndications?

• Ideal for those seeking passive income without active management

• Provides access to high-value properties usually unavailable to individual investors

• Offers potential for strong returns through rental income and appreciation

Getting Started:

• Research syndication opportunities in Canada

• Evaluate the track record of syndication sponsors

• Understand the risks and projected returns before investing

5. Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) provide an easy way to invest in real estate without owning physical properties. REITs are publicly traded companies that own and manage income-generating real estate assets.

Advantages of REITs:

• Liquidity – buy and sell shares on the stock market

• No property management responsibilities

• Diversification across multiple property types (residential, commercial, industrial)

Despite rising property prices, there are still many ways for Canadians to invest in real estate without needing to purchase a property outright. Whether you choose to join an REIG, explore house hacking, or invest passively through REITs, there’s an investment strategy that fits your financial goals. By leveraging these smart strategies, you can build wealth and secure your financial future in the ever-evolving Canadian real estate market.

Published: April 21, 2025

By Private Lending Queen

Want to learn more about real estate investing strategies in Canada? Stay updated by subscribing to our blog!

Subscribe

Imagine Financial Freedom—What's Your Next Move?

If you’re dreaming of building wealth through real estate—whether as a confident private lender or a capital-raising investor—our Real Estate Investing Masterclasses are your gateway.

Whether you want to be hands-on or make your money work for you and earn through passive income, we’ll give you the step-by-step clarity, tools, and confidence you need to invest with purpose and power.

Your journey to financial freedom starts here. Are you ready to begin?

Learn more about our masterclasses at www.privatelendingqueen.commasterclasses or book a Discovery Call with Marinella Nicolosi.