Alternative Investments: 8 New Ways to Grow Your Wealth

Are you looking to grow your wealth in new and innovative ways? If so, alternative investments may be the solution for you.

Alternative investments can include a wide range of options, such as fractional investing, venture capital, and more. By diversifying your portfolio with alternative investments, you can help reduce your risk while also increasing your potential for earnings.

So, if you’re ready to explore some new investment opportunities, read on for more details. Not only are these investments rising in popularity and becoming part of the average investor’s portfolio, but you may be surprised at just how beneficial they can be!

8 ALTERNATIVE INVESTMENTS

fractional investing

Fractional investing is a relatively new investment opportunity that allows you to invest in assets such as real estate, art, and wine. With fractional investing, you don’t have to purchase an entire asset – you can buy a small slice of it instead.

This makes it a more affordable option for investors, and it also allows you to diversify your portfolio more easily.

Fractional investing is a great way to get started in the alternative investment market because it allows you to invest in assets that you wouldn’t normally be able to afford.

This can be a great option for people who are new to investing and want to get their feet wet.

Remember, several different platforms offer fractional investing, so be sure to do your research before choosing one.

Invest in Success

We’re honoured to carry on the tradition of performance as stewards of the historic Karma Candy Building at 356 Emerald St. N. in Hamilton, and we’re excited to invite you to join us as co-owners of this property through BuyProperly.

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venture capital

Venture capital is an alternative investment that involves investing in early-stage companies. This can be high-risk, but it also has the potential for high returns. This investment is great for people who are willing to take on a little more risk to potentially earn a higher return, and for anyone that loves being a part of new and innovative ideas.

If you’re interested in venture capital, you’ll need to research the companies you’re considering investing in and be comfortable with the risks involved.

private equity

Private equity is the purchase of ownership in a company that is not publicly traded. This investment is typically made by a group of investors, and the goal is to improve the company’s performance and then sell it or take it public.

Private equity investing is a great option for people who want to be more hands-on with their investments and who are comfortable with a higher level of risk. Although private equity can be high-risk, it can also offer high returns.

art

Investing in art can be a great way to add some diversity to your portfolio. Art can be a good investment for both short-term and long-term goals, and it can appreciate in value over time. Art is a great investment for people who have an eye for aesthetics and who enjoy collecting.

When investing in art, it’s important to do your research and purchase pieces that you believe will hold or increase in value.

wine

Now we come to a fun (yet often overlooked!) investment opportunity.

Like art, wine is another asset that can appreciate in value over time. Wine is a popular alternative investment because it can be enjoyed both now and in the future. Some bottles can generate returns of 10-12% per year.

However, it’s important to remember that wine is a volatile investment, so you should only invest what you’re comfortable with losing.

It’s important to do your research before investing in wine, as some types of wine are more likely to appreciate in value than others.

peer-to-peer lending

Peer-to-peer lending is a form of alternative lending that allows investors to lend money to borrowers without going through a traditional bank. This can be a good option for people who are looking for lower interest rates and don’t want to go through the hassle of applying for a loan.

Peer-to-peer lending also offers the potential for high returns, but it’s important to remember that it can be a risky investment.

reits

Real estate investment trusts, or REITs, are a type of alternative investment that allows you to invest in real estate without actually buying property. REITs are an excellent option for people who want to invest in real estate but don’t have the time or resources to do it themselves.

REITs are a diverse investment, and there are many different types to choose from yielding a wide variety of returns. To get started investing in REITs, you can purchase shares on a stock exchange.

private placements

Private placements are alternative investments that are not available to the general public. They are typically only offered to accredited investors, which means they come with a higher level of risk. Private placements can be a good way to get access to alternative investments that you might not otherwise have access to.

You can find private placements through a variety of sources, such as angel investors, venture capitalists, and private equity firms.

When it comes to alternative investments, there are many options to choose from. New and innovative companies, technologies, and ideas make it easier than ever to get involved in lucrative projects!

It’s important to do your research and understand the risks involved before investing. These alternative investments can be a great way to add diversity to your portfolio and grow your wealth.

If you’re interested in getting started with real estate investing for only $2500, learn more about our latest opportunity with BuyProperly for the Karma Candy Building here.

Investing in a Volatile Market: Strategies to Succeed

It’s no secret that the current market is incredibly volatile. Prices are bouncing all over the place, and it can be hard to know what’s the right thing to do when it comes to investing in your future. 

In this blog post, we’ll go over some of the strategies you can use when investing in a volatile market, as well as some common mistakes people make during times like these.

So whether you’re a seasoned investor or just starting out, read on for some valuable insights!

what happens during periods of market volatility?

During periods of market volatility, prices tend to go up and down rapidly, making it hard to predict which way the market will move next. This can be a scary time for investors, as there is always the possibility of losing money. However, it’s important to remember that market volatility is normal and happens every few years.

When the stock market is volatile and inflation is on the rise, it can be difficult to know how to protect your investments. But there are some strategies you can use to help safeguard your portfolio.

Remember, there’s no “right” approach for everyone!  The best strategy for you will depend on your individual circumstances and goals. Be sure to speak with a financial advisor so you can figure out a plan that works for you.

Invest in Success

We’re honoured to carry on the tradition of performance as stewards of the historic Karma Candy Building at 356 Emerald St. N. in Hamilton, and we’re excited to invite you to join us as co-owners of this property through BuyProperly.

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the top 6 strategies investors can use during a period of market instability

1. Diversify your Portfolio

One of the best ways to protect your investments during a volatile market is to diversify your portfolio.

It means investing in a variety of different asset types, including stocks, bonds, and cash. This will help to mitigate your risk if one particular asset class starts to decline. It also means investing in a variety of geographies and investing in products.

As an example, your portfolio may include a combination of stocks from different sectors, such as healthcare, tech, and finance, bonds with different maturity dates, or different countries, like Canada, the US, and Europe.

2. Consider Alternative Investments 

Alternative investments can be a good way to diversify your portfolio and protect against inflation. Some examples include real estate trusts, commodities, and hedge funds.

3. Stay disciplined with your investing

It can be tempting to try to time the market during periods of volatility. Often, investors will veer off course in search of a great deal. However, this can be a recipe for disaster. The best way to approach investing during a volatile market is to stick to your investment plan and refrain from making impulsive decisions.  Investing longer periods of time, years rather than months helps even out the ups and downs of the market, and realize market growth over the longer term.

4. Review your investment mix

As market conditions change, so should your investment mix. Regularly reviewing and rebalancing your portfolio will help ensure that your investments are properly diversified and aligned with your goals. This means selling off assets that have increased in value and buying more of the assets that have lost value.

By doing this, you ensure that your portfolio stays diversified and aligned with your investment.

For example, if you’re close to retirement, you may want to adjust your portfolio to be more conservative. On the other hand, if you have a longer time horizon, you may be able to weather the ups and downs of the market and take on a bit more risk.

5. Be prepared for market corrections

A market correction is when the stock market experiences a sharp decline. These declines are often seen as a normal part of the market cycle. However, they can be difficult to stomach if you’re not prepared for them. Learning how to ride out a market correction will help you stay the course when your investments start to decline.

6. Try dollar-cost averaging

This involves investing a fixed amount of money into security or securities at regular intervals. By buying these securities over time, you’ll be able to average out the price and reduce your overall risk. This technique can help smooth out the ups and downs of the market.

With these tips, you (and your investment portfolio) will be better prepared to handle any periods of economic instability!

here are the 10 mistakes to avoid when investing during a period of market VOLATILITY

1. don't try to time the market

People often do this when they think the market is about to crash and they want to sell before it does. But no one can predict the future, so this strategy is often unsuccessful. If your timing is wrong, you could lose a lot of money or miss out on a rebound.

2. Don't invest everything at once

When the market is volatile, it’s often best to invest gradually over time. This way, you’ll be able to average out the price and reduce your overall risk.

3. Don't put all your eggs in one basket

As we mentioned above, diversification is key when the market is volatile. By investing in a variety of asset types and classes, you’ll be able to reduce your risk.

4. don't panic

It can be tempting to sell everything when the market is crashing, but this is often the worst thing you can do. If you sell too quickly, you’ll likely miss out on the rebound. Through diversification and smart portfolio management, you’ll be better prepared to avoid the dreaded “panic sell” mentality.

5. don't try to guess the bottom

A lot of people think they can predict when the market will hit rock bottom and start to rebound. But again, this is often unsuccessful. If you wait too long to buy, you could miss out on a lot of gains.

6. Don't get emotional about your investments

It’s important to remember that investments are just that – investments. They go up and down, and you need to be prepared for both. Getting too attached to your investments can cloud your judgement and lead to bad decisions.

7. don't forget about the fees

When the market is volatile, every penny counts. Be sure to check how much you’re paying in fees and expenses. These can eat into your returns and add up over time.

8. I’m factor in your taxes

When you sell investments for a profit, you’ll likely owe capital gains taxes. Be sure to factor this in when making decisions about when to sell.

9. always stick to comfortable levels of risk

Just because the market is volatile doesn’t mean you should take on more risk than you’re comfortable with. Be sure to stay within your risk tolerance levels and don’t make impulsive decisions based on market fluctuations.

10. don't forget about your goals

When making investment decisions, it’s important to keep your long-term goals in mind. Don’t let the market dictate your decisions. Stick to your plan and stay the course.

The more you hold onto your long-term investment vision, the less likely you’ll be swayed by short-term market fluctuations.

Although it seems simple, keeping these strategies in mind will help you feel more secure as you invest and grow wealth for your future (especially when the market becomes unpredictable)!

Investing during periods of market volatility can be difficult, but there are some strategies you can use to help reduce your risk. By diversifying your investments, using dollar-cost averaging, and avoiding common mistakes, you’ll be in a better position to weather the storm.

By staying diversified, investing gradually, and focusing on your long-term goals, you’ll be well on your way to success.

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What Is Bad Credit?

Bad credit refers to a person’s history of not paying bills on time, as well as the possibility that they would do so in the future. A bad credit score is frequently the result. Companies can also have bad credit if their payment history and current financial status are not in good standing.

Because they are deemed riskier than other borrowers, a person (or company) with negative credit will find it difficult to borrow money, especially at competitive interest rates. This is true of all forms of loans, including both secured and unsecured ones, but the latter has some options.

Understanding Bad Credit

Most people who have ever borrowed money or applied for a credit card have a credit file with one of the three major credit bureaus: Equifax, Experian, or TransUnion. The information in those files is used to calculate their credit score, which is a figure that serves as an indication to their creditworthiness and includes how much money they owe and whether they pay their payments on time. The FICO score, named after the Fair Isaac Corporation, is the most widely used credit score in the United States.

  1. 35%—payment history. This is given the most importance. It simply shows whether the person with the FICO score has paid their payments on time. Even a few days late can count, yet the longer the payment is late, the worse it is viewed.
  2. 30%—total amount an individual owes. Mortgages, credit card balances, vehicle loans, any bills in collections, court judgments, and other debts fall under this category. The person’s credit usage ratio, which compares how much money they have available to borrow (such as total credit card limits) to how much they owe at any given time, is ‌essential. A high credit usage ratio (say, greater than 20% or 30%) can be interpreted as a red flag and result in a worse credit score.
  3. 15%—length of a person’s credit history.
  4. 10%—mix of credit types. Mortgages, vehicle loans, and credit cards are all examples of this.
  5. 10%—new credit. This includes any jobs or internships that someone has recently started or applied for.
Examples of Bad Credit

FICO scores range from 300 to 850 and debtors with scores of 579 or lower are typically considered having poor credit. 

Fair is described as a score between 580 and 669. These borrowers are significantly less likely to default on loans, making them far less hazardous to lend to than individuals with poor credit scores. However, consumers in this range may incur higher interest rates or have difficulty obtaining loans than borrowers with credit scores closer to the top 850.

How to Improve Bad Credit

There are things you may take if you have low credit (or fair credit) to raise your credit score above 669 and keep it there. Here are some pointers on how to do just that.

Set Up Automatic Online Payments

Do this for all of your credit cards and loans, or at the very least, sign up for the lenders’ email or text reminder lists. This will ensure that you pay at least the monthly minimum on time.

Pay Down Credit Card Debt

Whenever workable, pay more than the minimum payment due. Set a reasonable payback target and strive toward it over time. Paying more than the minimum due will help you increase your credit score if you have a lot of total credit card debt.

Check Interest Rate Disclosures

These disclosures are provided by credit card accounts. Concentrate on paying off the debts with the highest interest rates first. This will free up the most money, which you can then use to pay down other obligations with lower interest rates.

Keep Unused Credit Card Accounts Open

Keep your unused credit card accounts open. Also, don’t create any new accounts that you don’t require. Either action has the potential to harm your credit score.

If you’re having trouble getting a conventional credit card because of your bad credit, consider applying for a secured credit card. It works in the same way as a bank debit card in that you can only spend the amount you have on the deposit. Having a secured card and making timely payments on it can help you rehabilitate your credit and eventually qualify for a regular card if you have a low credit history. It’s also a wonderful approach for young individuals to build their credit history.

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Renderings for the Radio Arts building, which is set to begin construction in November at 206 King St. W. in Hamilton.

Radio Arts condo development to begin in November

This week witnessed below-average transaction volumes. However, there was a variety of noteworthy deals.

This week’s largest transaction was in Hamilton, where Guido De Brès Canadian Reformed High School Society purchased a former elementary school for $15.5 million ($175/sq. ft). That price is in line with a former school in Dundas that sold two weeks ago.

In the hospitality sector, Big Coffee Inc. purchased the former Masonic Hall in Dundas for $1.65 million ($332/sq. ft), and Radius Hospitality Corp. picked up 18-20 Hess St. S. for approximately $2.3 million ($446/sq. ft).

Also of note: local firm Effort Trust purchased 37.75 acres of vacant land in Thorold for $4.7 million ($124,000/acre).

In the news, the Radio Arts condo development will start construction in November, Hamilton saw a big drop in per capita municipal spending, and Canada will fund a rent-to-own program as part of its $2 billion housing plan.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.
News Headlines

Plan underway to remove 206 King St W building debris, Radio Arts development to commence November
CHCH News, September 4, 2022

Hamilton sees big drop in per capita municipal spending 
The Hamilton Spectator, August 27, 2022

MLS ® Residential Market Activity for REALTORS® Association of Hamilton and Burlington Areas
August 2022

Canadian universities rushing to address student housing shortage
The Globe & Mail, August 28, 2022

Revised plan for Schneiders site in Kitchener includes 12 new buildings, 2,400 rental units
The Record, August 26, 2022

Three highrises more than 500 rental apartments proposed for South Kitchener
The Record, August 31, 2022

Labour shortage has Canada planning to pick and choose immigrants 
The Financial Post, August 31, 2022

Canada to fund rent-to-own program under $2 billion housing plan
The Financial Post, August 30, 2022

Alex Manojlovich’s Weekly Market Report: Hamilton LRT construction to begin in 2024

The largest transaction in Hamilton this week was for this office building at 630 Main St. E.

This week witnessed a decent volume of deals. Hamilton was the top performer, while Brantford was a rare no-show.

The volume of transactions has been objectively healthy so far. However, it will be interesting to monitor the ripple effects caused by the Bank of Canada‘s latest rate increase.

This week, the area’s largest transaction was for an unaddressed property on Dobbie Dr. in Cambridge. The vacant industrial land parcel sold for $5.64 million (approximately $1 million/acre).

The largest transaction in Hamilton was for an office building at 630 Main St. E., which traded for $4.7 million ($243/ sq.ft). It’s a good price considering the asset class and location.

In the news, the Hamilton LRT process is underway, there are updates on several Hamilton development projects, GHA residential rental rates are rising quickly, and Toronto is increasing development charges by 46%.

The GHA Sales Transaction Database offers you this week’s CRE transaction activity.

News Headlines

Procurement process for LRT to start later this year, construction in 2024
CBC News, July 18, 2022

Two LiUNA towers to remake Hamilton skyline
Daily Commercial News, July 18, 2022

Condo development flattened by fire will go ahead as planned
The Hamilton Spectator, July 19, 2022

Winona builder appeals towering LiUNA Gardens plan to OLT
The Hamilton Spectator, July 18, 2022

New Horizon Development Group’s Stoney Creek tower plan headed to OLT
The Hamilton Spectator, July 19, 2022

Two-way Main St conversion part of Hamilton LRT design talks
The Hamilton Spectator, July 19, 2022

Barton St. parking lot could become vibrant residential infill
The Bay Observer, July 21, 2022

Mayor backs museum at waterfront
The Hamilton Spectator, July 20, 2022

Evolving Workforces: Scoring Tech Talent 2022 — North American Report
CBRE, July 2022

GTA condo rents climb at fastest pace on record
BNN Bloomberg, July 19, 2022

Toronto condo sellers turn to rental market
The Globe & Mail, July 20, 2022

Toronto council hikes development charges 46%
The Globe & Mail, July 19, 2022

BMO: BoC’s 1% point rate hike, a hammer to housing market
The Globe & Mail, July 18, 2022

Canada’s inflation rate hits 8.1%, but signs suggest peak is near
The Globe & Mail, July 20, 2022

Benjamin Tal

CIBC’s Benjamin Tal on inflation, interest rates and CRE

The Bank of Canada is attempting to convince people it’s serious about decreasing inflation, which reached 6.9 per cent last month – the highest rate in 31 years.

Steve McLean, RENX, June 8, 2022

CIBC managing director and deputy chief economist Benjamin Tal told an audience at the June 7 Land & Development conference at the Metro Toronto Convention Centre, however, that rising interest rates should be at least as big a concern.

The Bank of Canada increased its policy interest rate by half a percentage point on June 1 to 1.5 per cent as part of its effort to get the inflation rate back to its two per cent target.

Madeleine Nicholls

CRE is a female-friendly career option

RENX, March 7, 2022

Madeleine Nicholls has been in the commercial real estate business for more than 20 years and the Vancouver managing director for Colliers International is surprised more women aren’t picking up on the female-friendly aspects of the job.

A commission sales job may not have the stability of a 9-to-5 salaried position, but it has its advantages for young women who are thinking of starting families and who are looking for a high-paying profession that offers them options. READ MORE >>

Hamilton airport attracts flurry of industrial sales, development

Hamilton airport attracts flurry of industrial sales, development

Steve McLean, RENX, March 1, 2022

Pictured: A 55-acre industrial development site at 9555 Airport Rd. in Hamilton, acquired by Hopewell and Nicola Wealth. (Courtesy Hopewell)

John C. Munro Hamilton International Airport has grown to become one of Canada’s largest airports for domestic air-cargo distribution, and developers, investors and users are scooping up nearby land for logistics and fulfillment centres.

“It speaks to what’s happened with industrial lands in Southwestern Ontario as well as Hamilton more specifically,” Joe Benninger, vice-president with CBRE’s Southern Ontario investment team, told RENX. “Hamilton was a tough place to sell land three or four years ago. READ MORE >>

CRE a hot investment sector, senior execs agree at RealCapital

CRE a hot investment sector, senior execs agree at RealCapital

STEVE MCLEAN, RENX, MARCH 3, 2022

(pictured: Adam Paul, president and CEO of First Capital REIT.)

A record amount of capital is available for commercial real estate investment, senior industry executives agreed during the closing panel at the virtual RealCapital conference on March 2.

The panelists provided insights on recent CRE performance and views on what to expect during the coming year, and the availability of capital was a central theme. READ MORE >>

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