How to Invest $20,000 in Canadian Real Estate to Become Financially Independent

These real estate stocks are some of the top options for investors to consider, especially for income.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 21, 2025 3:45 pm EDT

Real estate has always been a popular path to financial independence in Canada. But you don’t need to own a rental property or take on a second mortgage to get there. With $20,000, you can build a real estate portfolio on the TSX through Real Estate Investment Trusts (REITs) that pay consistent income and offer long-term growth. It’s passive, accessible, and diversified, all the things you want in a plan to stop relying on a paycheque.

Three REITs stand out right now for anyone with a long-term goal of financial freedom. These are StorageVault Canada (TSX: SVI), NorthWest Healthcare Properties REIT (TSX: NWH.UN), and Granite REIT (TSX: GRT.UN). Each one is in a different sector of the real estate market, offering you a balanced approach to investing without having to own physical property.

SVI

StorageVault is a self-storage company that’s been growing steadily for years. Canadians are downsizing, moving, or just running out of space, and that demand isn’t going anywhere. In Q1 2025, StorageVault reported revenue of $76.3 million, up from $71.4 million a year ago. Its net operating income hit $47.7 million, and adjusted funds from operations climbed 2% year-over-year to $17 million. The company also completed $126.2 million in acquisitions, which means more facilities, more tenants, and more cash flow coming in.

StorageVault has built a reliable model of organic growth and smart acquisitions. It offers a small dividend at 0.31%, but the retained earnings are fuelling future expansion, which may lead to higher share value over time. If you’re focused on compounding, this one has serious potential.

NWH

NorthWest Healthcare REIT is a completely different beast, and that’s exactly why it fits in this plan. It owns hospitals, clinics, and medical offices in Canada and abroad. Healthcare real estate is one of the most stable asset classes out there. People need healthcare in every economy, and governments or large operators tend to sign long-term leases.

In Q4 2024, NorthWest reported a 12% increase in AFFO year-over-year and a 9% increase from the previous quarter. It completed $1.4 billion in non-core asset sales and used that cash to pay down over $1 billion in debt. That’s a smart move in today’s higher-rate environment. The REIT’s portfolio has a weighted average lease expiry of 13.6 years and strong occupancy rates, which means consistent rent coming in. It also pays a monthly distribution that currently yields 7.6% at writing. If your goal is steady passive income, this REIT is hard to beat.

GRT

Then there’s Granite REIT, a long-time favourite among institutional investors for its industrial real estate portfolio. It owns warehouses, logistics centres, and manufacturing facilities across North America and Europe. This sector has become essential thanks to the rise of e-commerce and supply chain infrastructure.

In Q1 2025, Granite reported revenue of $153.9 million, a 10.7% increase over last year. NOI rose to $125.7 million, and the trust’s portfolio now spans more than 63 million square feet. Granite declared a monthly distribution of $0.2833 per unit, which works out to a yield of 5.1%. That’s not the highest, but it’s backed by a strong balance sheet and stable tenants. Think of this as your growth-and-income anchor.

Bottom line

If you’re building a $20,000 portfolio, you could split it three ways: $7,000 into StorageVault for growth, $7,000 into NorthWest for high monthly income, and $6,000 into Granite for a balance of stability and yield. That mix gives you diversification across sectors and risk levels. You’ll benefit from the reliable income of healthcare, the long-term upside of industrial, and the growth of self-storage.

If your goal is financial independence, you don’t have to chase speculative growth or tie up your capital in physical property. A simple, diversified REIT portfolio can provide you with monthly income, long-term appreciation, and peace of mind. With $20,000 invested in StorageVault, NorthWest Healthcare, and Granite REIT, you’re taking a smart, steady step toward a life that’s less about working for money and more about letting your money work for you.