Managing Risk in Wealth Building Through Residential Real Estate Business in Canada

Abstract

Many Canadians have built their wealth through the real estate business. There are two types of real estate: commercial real estate and residential real estate. In this chapter, risks relating to only residential real estate have been discussed due to two main reasons. Firstly, residential real estate occupies an important place in the income of the household sector. Secondly, in comparison to commercial real estate, it requires a smaller capital to do the business and build wealth. Residential real estate investors build wealth by investing in investment properties and generating current income through capital appreciation. However, there are multiple risks that an investor faces in managing investment properties. This chapter discusses how some risks can be averted before and after buying an investment property. The chapter points out that the essential part of the business is to buy the right property at the right place and at the right time.