How to Start Investing in Real Estate Through REITs (Without Buying Property)

How to Start Investing in Real Estate Through REITs (Without Buying Property)

Are you dreaming of getting into real estate but not quite ready to buy a home or rental property? You’re not alone. Many first-time home buyers and investors want exposure to the real estate market but aren’t prepared for the big down payments or property management that come with buying a physical home.

The good news? You can still start investing in real estate — without purchasing property — by investing in REITs (Real Estate Investment Trusts).

What Are REITs?

A REIT is a company that owns, manages, or finances income-producing real estate like apartment buildings, shopping centers, offices, or industrial properties. REITs are traded on stock exchanges, making them easy to buy and sell.

Why Should Home Buyers Consider REITs?

If you’re saving for your first home in Ontario — whether in Brampton, Mississauga, or the Greater Toronto Area — investing in REITs can help grow your savings while giving you a taste of the real estate market.

Here are some key benefits of REITs for future homeowners:

1. Grow Your Down Payment

REITs offer steady dividend income and growth potential. While you save for a down payment, your money could be working for you.

2. Learn Real Estate Market Trends

By following REIT performance, you’ll start to understand which types of real estate are thriving — residential, commercial, industrial — giving you insights when you’re ready to buy.

3. Affordable Entry Point

You don’t need $100,000 to start. You can invest in REITs with a few hundred dollars while continuing to save for your future home purchase.

4. Passive Income

REITs pay regular dividends, which can become an additional income stream while you prepare for homeownership.

How Do REITs Work?

REITs collect rent or interest on properties and distribute profits to shareholders as dividends. There are different types of REITs:

• Equity REITs – Own and manage buildings like apartments, retail stores, and offices.

• Mortgage REITs – Invest in real estate debt and mortgages.

• Hybrid REITs – A combination of equity and mortgage investments.

Are REITs Safe?

Just like with any investment, there are risks. However, REITs are typically less volatile than individual stocks and have a long track record of providing consistent returns. As you build your down payment and prepare to buy your first home, REITs can be a stable part of your investment strategy.

Start Small, Think Big

Even if buying a home in Brampton or Mississauga feels out of reach today, you can still take steps toward real estate wealth through REITs. And when you’re ready to make your move, I’m here to help you find the perfect property to turn your dreams into reality.

Final Thoughts:

• Start by researching Canadian REITs and consider adding them to your portfolio.

• Keep saving for your down payment while your investments grow.

• Follow real estate market trends so you’re prepared when the right opportunity arises.

If you’re planning to buy a home and want to discuss the real estate market, strategies to build your down payment, or how to transition from REIT investing to buying physical property — reach out! I’d love to help guide you on your real estate journey.

Mellinda Thaxter

📞 647-289-9765
📍 Century 21 Leading Edge Realty, Mississauga, ON
🌐 mellinda-thaxter.c21.ca
📧 mellinda.thaxter@century21.ca
🏡 Helping You Buy, Sell & Invest in Ontario Real Estate