Luxury home in Hamilton, Ontario

April listings: Hamilton’s most and least expensive homes on the market

This month price tags varied from the low end of $399,000 to $3,999,999

A selection of luxury watches

Grow Your Wealth While Managing The Risks With Diversification

Every investment carries some amount of risk. Since markets can be volatile and unpredictable, diversifying your portfolio helps maximize returns over the long term as well as better protect yourself against unexpected market downturns.

This article will talk about what diversification is, its importance, and how you can diversify your investment portfolio. Moreover, we will also shed some light on the benefits of illiquidity and how real estate investments can help you enhance your returns.

Let’s get started!

Diversification: Why It’s Crucial for Your Portfolio?

Diversification is the most crucial step in risk management. It is the investment technique of holding unrelated investments across asset classes that react differently to social and economic events.

Diversification is a technique that is crucial for investors to reach their long-term goals as it enables them to hedge against unsystematic risk and build wealth over a period across different asset classes. Using diversification, an intelligent investor reduces the risk by planning carefully and allocating funds across various asset classes.

For instance, in a growing economy, stocks generally outperform bonds. However, when market conditions change, bonds hold their value, whereas stock prices tumble. Thus, if a smart investor diversifies their investment portfolio and holds both stocks and bonds, they can reduce their overall exposure to such change in market conditions and mitigate the risks of their portfolio taking a big hit.

Investment Portfolio Diversification: How to Achieve it?

An investor can diversify their portfolio by using the asset allocation strategy, which involves selecting a combination of investments based on the investors’ risk profile, financial goals, and time horizon.

Each asset class available to investors have different risk-reward ratios, and thus, each performs differently in varying market conditions. For instance, while stocks are more volatile and risky in comparison to bonds, they also offer the potential for higher returns.

Some of the standard asset allocation classes include the following:

  • Equities (Stocks and ETFs)
  • Fixed Income Bonds
  • Real Estate
  • Gold
  • Cryptocurrency
  • Collectables
  • Cash and cash equivalents

Diversified Portfolio Example

Source: Cary Stamp & Co.

While diversification is essential, it’s equally important not to over diversify. The best way for an investor to do so is to keep their portfolio at a manageable level that varies for each investor based on their financial goals and risk profiles. For instance, avoiding diversification for some investors could mean only holding six assets in different industries that they are confident about. Whereas, for others, it could mean avoiding investment in certain asset classes that they don’t understand, just for the sake of diversification.

The Benefits of Illiquidity

Liquidity refers to the ease with which an asset can be converted to cash and cash equivalents without losing market value. In general, it is seen that liquid assets such as stocks are more volatile in nature. Thus, to capture the benefits of illiquidity, long-term investors may prefer allocating funds towards illiquid assets.

Typically, illiquid assets have a low correlation to the broader stock market, and thus, they are less volatile in nature, and their value remains stable over a more extended period. As a result, such investments are considered low beta investments that are less risky but offer lower returns. As a result, such investments help minimize portfolio losses when the market sees a downturn.

How to Enhance Portfolio Diversification Using Real Estate

Real Estate Investment is the process of purchasing property to either rent it out or sell it to make a profit. As an asset class, real estate is mainly used for diversification purposes and has helped investors amass generational wealth.

Diversifying your portfolio by investing in real estate offers the following benefits:

  • Long-term stability – Real estate market is seen as one of the most stable financial markets. Thus, real estate investment is considered to be a less volatile and stable long-term investment opportunity.
  • Usability – Real estate is a tangible asset that investors can use for renting out or for personal use. For example, real estate bought for diversification purposes can be rented out and used to generate additional income.
  • Mitigating Risks – Real estate is an illiquid asset and thus, is not highly correlated to the stock market. Hence, many investors use real estate to hedge their risks against more volatile assets in their portfolios.
  • Tax Benefits –  Governments in many countries offer tax benefits on real estate investment to promote the sale of properties in the country and boost the economy.

Additionally, there are many different ways through which investors can invest in real estate. They are as follows:

  • Real Estate Investment Trusts (REITs) – REITs enable investors to invest in real estate even with small amounts of money. Shares of REIT stocks can be bought and sold in the market just like any other publicly listed company.
  • Crowdfunding Real Estate Platforms – These online platforms let investors take a more hands-on approach and invest in specific real estate development projects.
  • Investing in Rental Properties – Purchasing rental properties enables investors to add an alternative source of cash flow and earn some additional monthly income.

Important Questions to Ask About Your Portfolio Diversification

To diversify your portfolio successfully, an investor first needs to understand the fundamentals of diversification and ask the right questions to evaluate how these fundamentals apply to their specific portfolio.

Here are some critical questions about your portfolio diversification to evaluate your diversification strategy and make more informed choices.

  1. What is my risk tolerance? – This changes according to investment objectives and time horizon. Each asset class has different risks. Hence, investors must choose an asset class that is suitable to their risk tolerance.
  2. What is my risk-adjusted rate of return? – This question answers how well you are being compensated for the amount of risk you’re taking.
  3. How many asset classes should I invest in? – While diversifying your portfolio, it’s important to look for a wide range of asset classes.

Closing Thoughts

As an investor, to achieve your long-term financial goals, you need to balance your risk and reward. Diversification allows you to choose a mix of assets that reduce the risk of losses in the market. Thus, it’s essential to find the right balance between risk and return and select a mix of assets that can help you achieve your financial goals while limiting your exposure to unsystematic risks.

Number of film projects slated for Hamilton point to a banner 2022

By Daniel Nolan, Thu., April 21, 2022

It looks like it will be another banner year for filming in Hamilton.

The city’s film office says 44 productions registered to film in Hamilton during the first three months of this year.

It issued 150 permits, a slight increase versus the start of 2021.

“(We have) seen more scouting activity than usual in the first quarter, combined with the high volume of permits, indications are that we are on track for another busy year,” the film office said in a statement to The Spectator. READ MORE >>

McMaster Innovation Park

McMaster Innovation Park execs pitch residential towers to city in hopes of avoiding ‘dead zone’

  April 21, 2022

Executives with McMaster Innovation Park (MIP) are making a pitch to construct three residential towers on its research campus as part of its growth plan over the next decade.

A delegation suggested to city councillors at Wednesday’s general issues committee the structures would potentially bring life to what MIP’s vice-president of development characterizes as a “dead zone” after business hours.

“There’s no one here,” Frances Grabowski said.

“We can’t bring in the amenities that require the density for the evening for dinner, more than just for lunch. That’s that’s what we’re trying to do. The innovation park is very different and that’s what we’re trying to build here.” READ MORE >>

Asset Manager – Resorts & Hospitality

Forge & Foster Investment Management is a new-age real estate investment management company. Forge & Foster has over $300M in assets under management and is a fast-paced, growing company based in Hamilton, Ontario.

Forge & Foster is looking for an Asset Manager to manage a portion of our real estate portfolio involving Resorts and Hospitality. Responsibilities would include coordinating with on-site project managers, working with Forge’s leasing and marketing teams to advertise available spaces and ensuring our goals are met with regards to performance and investor return.

The ideal candidate is organized, works well on a team and is passionate about learning on the fly.

Responsibilities

Your tasks will include, but may not be limited to, the following:

  • Assist in the execution of property business plans including tasks related to asset management while developing strategies to maximize asset growth
  • Manage portfolio through increasing value and minimizing risks
  • Conduct risk analyses
  • Prepare financial and asset management reports
  • Monitor asset performance and recommend corrective actions
  • Research relevant markets and identify trends

If this describes you and you’re looking to join a great team with great remuneration, please provide your resume and cover letter outlining why you’d be a great addition to our team.

Job Type: Full-time, Permanent

Pay: From $50,000 per year

Additional Pay: Bonus pay

Benefits: Includes dental care and extended health care

Schedule: Monday to Friday

Leasing Associate

Forge & Foster is committed to generating positive social and economic value for communities, tenants, investors, and other stakeholders through commercial real estate projects in Hamilton and across Southern Ontario. We bring vitality to cities as a leading value-add commercial real estate investment management company.

We are looking for a Leasing Associate to join our growing team.

The duties of the Leasing Associate will include actively promoting units for lease, preparing lease contracts, and arranging units to be move-in ready. This position requires interpersonal skills, strong problem solving skills, good organizational skills and an ability to work independently. Previous real estate experience or a strong interest in real estate is considered an asset.

Responsibilities

Your tasks will include, but may not be limited to, the following:

  • Assist in the execution of property business plans including tasks related to leasing rental properties to prospective tenants while working towards achieving tenancy revenue at target
  • Prepare properties to show prospective tenants while portraying the property and amenities in a positive manner
  • Conduct administrative tasks such as credit/background checks and applications
  • Organize payments and manage lease contracts
  • Provide key services to tenants by determining their needs and addressing any concerns
  • Maintain working knowledge of the property market
  • Foster strong working relationships among tenants and leasing team

Job Type: Full-time, Permanent

Pay: From $50,000 per year

Additional Pay: Bonus pay

Benefits: Includes dental care and extended health care

Schedule: Monday to Friday with availability to work weekends for property showings

Chartered Accountant

Forge and Foster is committed to generating positive social and economic value for communities, tenants, investors, and other stakeholders through commercial real estate projects in Hamilton and across Southern Ontario. We bring vitality to cities as a leading value-add commercial real estate investment management company.

We are looking for a full-time Chartered Accountant to join our team to help with the accuracy and compliance of accounting standards for our existing real estate portfolio as well as our expanding business ventures.

Your tasks will include, but may not be limited to, the following:

  • Full cycle accounting for our operating companies.
  • Full P&L finance accountability for operating companies and projects.
  • Accurate and timely processing of Accounts Payable & Accounts Receivable.
  • Develop and maintain good vendor relations and be proactive with conflict resolution.
  • Preparing bank reconciliations.
  • Prepare and review monthly draw packages, including supporting documentation and schedules to obtain funding from lenders, and equity partners.
  • Process intercompany billings and reconcile intercompany accounts monthly.
  • Obtain and maintain a thorough understanding of the general ledger structure.
  • Create and maintain monthly balance sheet reconciliations, and ensure monthly closing entries are set up, and done correctly.
  • Maintain accurate and up-to-date office records.
  • Ensure compliance with local, provincial, and federal reporting requirements.
  • Responsible for accurate and complete accounting records and preparation of all monthly, quarterly, and yearly remittances, filings, obligations, as may be required.
  • Review and interpret financial statements and operations to facilitate better upper management decision making.
  • Develop and or improve on current financial and management reporting.
  • Work with the VP of Finance to ensure a clean and timely year end audit, including preparation of information required to create annual financial statements and tax returns through the accounting firm.
  • Provide ongoing project-by-project profitability / cash flow / capital projections and communicate with lenders, equity partners, and others as may be required.
  • Pro-actively recommend and assist in development and implementation of new procedures and features to process improvements of the company.
  • Develop and implement systems and procedures to monitor and analyze the progress of construction projects to evaluate estimating, purchasing, variance, and cost to complete functions.
  • Support Vice President, Finance, with special projects and workflow process improvements.
  • Other duties as required.

 

Experience and Skills

  • Accounting Designation CPA; and
  • Computer skills including MS Office, ability to learn and use additional software as may be required.
  • Excellent time-management skills.
  • High attention to detail and ability to maintain a high level of accuracy in preparing and entering information and maintaining records.
  • Strong interpersonal and communication skills required, both oral and written. Willing to take responsibility and being held accountable for results.
  • Integrity and trustworthiness.

Work remotely: Temporarily due to COVID-19

Job Type: Full-time

Salary: $90,000.00-$110,000.00 per year

Benefits:

  • Casual dress
  • Dental care
  • Extended health care
  • Flexible schedule
  • On-site parking
  • Profit sharing
  • Vision care

Schedule:

  • 8 hour shift
  • Day shift

Real Estate Analyst

Forge & Foster is committed to generating positive social and economic value for communities, tenants, investors, and other stakeholders through commercial real estate projects in Hamilton and across Southern Ontario. We bring vitality to cities as a leading value-add commercial real estate investment management company.

We are looking for a Real Estate Analyst to join our team.

You will assist in all aspects of our business including acquisitions, dispositions, financing, asset management and accounting. This position requires strong problem solving skills, good organizational skills and an ability to work independently. Previous real estate experience or a strong interest in real estate is considered an asset.

Responsibilities

Your tasks will include, but may not be limited to, the following:

  • Assist in the execution of property business plans including tasks related to leasing, construction, land entitlement, environmental remediation
  • Assist in creating design packages and lease proposals for prospective tenants
  • Assist in underwriting and preparing investment proposals for new acquisitions
  • Assist in creating mortgage proposals for lenders
  • Provide due diligence documentation for any properties being sold

Job Type: Full-time, Permanent

Pay: From $40,000.00 per year

Additional Pay: Bonus pay

Benefits: Includes dental care and extended health care

Schedule: Monday to Friday

Innovation Park Hamilton

McMaster Innovation Park plans residential towers

‘We need people living here,’ vice-president of development tells Hamilton councillors

McMaster Innovation Park hopes to build three residential towers to help foster its west Hamilton research campus overlooking Highway 403.

“We need people living here, working here, playing here,” Frances Grabowski, vice-president of development for the Longwood Road South innovation park, told city councillors Wednesday.

The residential buildings would spur restaurants, cafés and other amenities that will breathe life into the campus, which is a “dead zone” after 5 p.m., Grabowski said.

McMaster Innovation Park (MIP) — which is home to businesses, labs and offices — is planning for 524 residential units in three buildings of 14, 22, and 26 storeys on the property, a city staff report notes. READ MORE >>

Finneo founder and CEO Amar Nijjar (right) with Scott Chandler, senior managing director of Marcus and Millichap (left) and Jay Hennick, chairman of Colliers International

Finneo accelerates CRE financing sector’s move into digital age

Finneo founder Amar Nijjar says his firm is helping to take the commercial real estate financing industry out of the Excel spreadsheet era and into the modern era with its debt and transaction management software.

During the last two years, Finneo has facilitated more than $2 billion in financing for over 250 projects, 80 per cent of which are in Canada and the rest in the U.S., says Nijjar, the company’s CEO. Most of its financing deals are between $5 to $25 million.

“I saw that there were no real tools for me personally, from the companies that I was working with,” says Nijjar. “Technology has solved problems in other industries and I thought I could do the same for real estate.”

Prior to launching Finneo, Nijjar worked at CIBC, BMO and Royal Bank in real estate investment banking and corporate finance and started JLL’s Canadian debt capital markets business. He also founded R2 Companies, a Canadian online real estate marketplace.

Nijjar says he has worked on more than $15 billion in transactions. READ MORE >>

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