Are you looking for a new investment destination? Investing in offshore markets can diversify your portfolio, grant you access to new markets, tap into favorable banking systems, and help with your tax-saving plans. In this article, we explore the benefits of investing in the economically stable country of Canada. Then we show some examples of investments our clients often love. Do you want to become a global investor? Contact Alpen Partners today.
Reasons to Invest in Canada
Before we look at the best investment options that Canada has to offer, let’s look at what entices investors from all around the world to place wealth into Canadian markets.
Overall Stability
One factor that makes Canada appealing for investors is stability. The country has a long history of being politically and economically stable, making it ideal for business and residence. The Global Peace Index even recognizes it as the sixth safest country in the world for residents. Canada is familiar with foreign investors and offers a wide range of career options for those looking to move there from around the world. Many investors will move if they come from countries with political uncertainty. Some just want a change of pace and environment and would like to ensure their comfort in their new home.
Access to North American Markets
The economy in Canada is so stable that it ranks as one of the world’s wealthiest nations, is one of the world’s top 10 trading nations, and has a rapidly growing economy. That is very appealing for investors who want to break out of EU or Asian markets who aren’t interested in the United States or are looking for a way to grow your portfolio to qualify for US programs.
Relocation
One of the most appealing parts of investing abroad is the potential to access even more than just financial gain. Many countries offer temporary or permanent residence to qualified investors who meet the requirements for various programs. Canada is one of those countries. There are several ways for investors to move to Canada, including programs specific to the nation’s provinces. Read more about residence by investment in Canada. Some investors looking to seek a new home will shoot for the United States but may overlook Canada’s stability while gaining the same access to financial success.
Best Investments in Canada
Now that you see the appeal of this world-class destination, we will look at some investment options to consider. To discuss your financial goals and determine the best investment option for you, our team at Alpen Partners is standing by to guide you every step of the way.
Stock Exchange
The main stock exchange in Canada, Toronto Stock Exchange (TSX), is the ninth-largest exchange. Backed by a strong economy, investors worldwide have found success with the over 1,500 companies listed. There is also the TSX Venture, or TSX-V, that lists smaller, up-and-coming companies at a low price. This wide range allows investors to explore many different investment types, markets, and more. Frontera Energy (TSX: FEC), Labrador Iron Ore Royalty Stock (TSX: LIF), and Slate Office REIT (TSX:SOT.UN) are just some of the high performing stocks listed currently. Non-residents can invest in the stock exchange by purchasing stocks through licensed brokers and via exchange-traded funds.
Investment Funds
Investment funds like exchange-traded funds, or ETFs, and mutual funds are inexpensive and easy ways to diversify your portfolio. ETFs are securities that track a commodity, bonds, basket of assets, or index, that are traded like a stock on the stock exchange. With high daily liquidity and lower fees than mutual fund shares, they experience daily price changes as they are bought and sold. Mutual funds are pools of funds collected from investors invested in stocks, bonds, money market instruments, and more. The mutual fund is then monitored by financial managers who distribute the money to produce capital gains or income for the individual investors.
Commodities
With a strong history of producing natural resources like oil and natural gas, Canada is an ideal place to invest in commodities. It is even one of the largest exporters of minerals in the world, as well as a material called potash which is used in fertilizer and highly used by producers of agriculture. The best way to invest in commodities as a non-resident is through TSX.
Real Estate
Real estate is another great way to invest in Canada. For those looking to earn residence, a home purchase is required, so this could be like killing two birds with one stone. It’s relatively easy for non-residents to purchase a home or commercial property as the requirements are pretty relaxed. There is a large ex-pat community, so it’s not uncommon for non-residents to make real estate purchases. One factor to consider when purchasing property in Canada is taxation. Some regions have additional taxes to pay for non-resident investors. Additionally, while there are few restrictions on buying a home, if an investor is interested in buying agricultural or recreational land, some provinces have restrictions. It’s important to work with international experts, like Alpen Partners, when making any offshore real estate purchase.
Investing in Canada with Alpen Partners
There is a wide range of reasons to consider branching out and investing in foreign jurisdictions. Economic and personal benefits, like friendly people, free healthcare, and investment opportunities, are attracting wealthy investors worldwide. You can diversify your portfolio and tap into one of the most stable economies in the world by investing in Canada. We will work alongside you to determine suitable investments for you based on your current portfolio and your future goals. We don’t stop with making a single investment. We can also help manage your portfolio to increase success every step of the way. Many of our clients are well-versed in global investing but are ready to expand your portfolio and hit North American markets without the volatility of the United States. Our experts can help investors at every level of experience. For more information on seeking investment options abroad, contact Alpen Partners today!
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