According to Equiton's SVP, Business Development, private multifamily rental apartment funds are well-suited for long-term investment and beyond
This article has been produced in partnership with Equiton
In Canada, the great generational wealth transfer is well underway, with an estimated $1 trillion in personal wealth expected to pass from baby boomers to the next generation between 2023 and 2026. As a result, the concept of building generational wealth has come to the forefront. That is, a long-term, sustainable portfolio designed to provide not just an inheritance, but a meaningful, life-changing foundation for one’s children.
“We’re hearing more advisors tell us that their clients are asking ‘How do I support my kids?’ They're trying to set them up for success as much as possible,” says Geoff Lang, SVP, Business Development at Equiton, a private real estate investment firm. “Investors are thinking longer-term than ever. They want more than just results; they want to see stability in their investment.”
With recent market volatility and trade tensions encouraging many to reevaluate their strategies, these clients are looking beyond traditional equities and fixed income to maximize their portfolio’s resilience and upside. One asset class that keeps coming up is private equity real estate and the stability of multifamily real estate.
“Multifamily real estate — think rental apartments — are the definition of a generational, long-term strategy,” says Lang. “If you're looking for monthly income, tax efficiency, potential for capital appreciation, and wealth preservation, there are many reasons we see investors turning to multifamily real estate.”
Strategies for long-term wealth building
The nature of multifamily investing means advisors should shift conversations away from short-term gains and toward long-term, tax-aware strategies. Lang says investors often aim for consistent monthly income in the 5.5% to 6% range while also deferring or minimizing taxes to maximize what can be reinvested. “That reinvestment of gains is key. The effects of compounding can accelerate generational wealth goals, and having more to reinvest — paying fewer taxes along the way — can get you there even faster,” says Lang.
Lang encourages advisors to explore different account types and investment structures that can support intergenerational goals. “There’s in-trust-for accounts that children won’t get until they’re 18,” he notes. “Other investors will create joint account arrangements with their adult children which, depending on their situation, can help minimize taxes as their nest egg is passed on. It’s worth looking into.”
These vehicles provide flexibility to pass on wealth responsibly — whether by helping with education, down payments, or simply offering a financial foundation.
“It’s really important for giving your kids a head start if you have the finances,” says Lang. “I look at it very similar to a child’s RESP.”
Benefits of multifamily real estate on generational wealth
The primary draws of private real estate for a long-term investment horizon are its historical stability and simplicity. “Anything that doesn't have the volatility of the stock market is appreciated, especially in that later stage of an investor’s journey,” says Lang. He notes that multifamily real estate’s primary source of revenue — rental income — is easy to grasp and particularly appealing as a passive investment, sparing investors the headaches of hands-on property management.
For advisors, real estate’s inherent tangibility helps clients understand the opportunity provided by the investment. “There’s something to be said about being able to drive by your investment,” says Lang. The physicality of real estate speaks to its long-term investment horizon, as well as illustrates the asset class’s strong track record. “That building is your investment. It’s already been there a long time and it’s not going anywhere anytime soon. That longevity gives these individuals real peace of mind, and that’s the role that multifamily real estate plays well in an investor’s portfolio.”
Real Estate as a cornerstone of generational wealth
For investors focused on longevity and impact, selecting the right solution matters. Private equity real estate funds like the Equiton Residential Income Fund Trust (Apartment Fund) invest in multifamily buildings across Canada and are designed with income, capital preservation, and long-term growth in mind.
Lang emphasizes the value of maintaining a diversified portfolio that includes equities, fixed income, and real estate, with each component playing a role in balancing opportunity and risk.
“It’s important to look at the portfolio as a whole and consider the diversifiers. Having exposure to the equity markets, fixed income, and some allocation to real estate as a resilient cornerstone — I think that’s a very well-rounded portfolio.”
