Multi-Family Rental Investing: Reliability in a Time of Uncertainty


 

Multi-family rental properties offer a more reliable and profitable investment option versus the common single-family home investment. In this article, we shed light on the pros of multi-family property investments and how they offer a more consistent, reliable and profitable return on investment – particularly in a time of economic uncertainty. 

 

Here are some reasons why: 

 

Stability & Consistency 

Markets are unpredictable, and investors seek consistent income. In the case of a single-family home, if a tenant is suddenly unable to pay rent, the responsibility of the mortgage falls back onto the lap of the investor. On the other hand, with a multi-family property, there will always be income. Offering multiple rental units generates several multiples’ worth of additional income. Likewise, the ability to rent out several units also provides investors with multiple opportunities to reduce vacancy rate, allay expenses and offset general risk. Reliable, regular cash flow, appreciation, mortgage pay down, and annual tax advantages make multi-family investing notably less risky. 

 

Facilitates Financing

It is significantly easier to secure one loan for one multi-unit apartment than it is for separate single units. Furthermore, working with one seller and undergoing one inspection is significantly less complicated than managing numerous units across multiple single-family investment properties. 

 

Assistance & Stewardship 

Investing in multi-family real estate might sound cost prohibitive, but in reality, these investments are quite attainable and can be relatively hassle-free. With the guidance and assistance of an asset manager, such as Cacoeli, investors can escape cumbersome managerial responsibilities. Multi-unit properties are typically owned by a General Partner (GP), such as Cacoeli. The GP manages all aspects of the investment – from finding the building to maintaining it. Investors can rest assured knowing that a trusted asset manager is stewarding and safeguarding their capital throughout the investment term.

Canada’s Population Could Reach Close to 57M by 2068


 

The relationship between population and housing is inextricably linked. Population change leads to a changing demand for housing. Population growth, particularly a growth in the number of households, leads to a growth in housing demand. A recent report from Statistics Canada revealed important data on the future of Canada’s population, underscoring the need for more housing and infrastructure projects for the country’s rising population. 

 

Canada’s population is growing faster than other G7 countries: 

Canada’s population grew at almost twice the pace of every other G7 country in the last five years. Although growth slowed down with the pandemic, it started to rise again in 2021. By the first quarter of 2022, Canada’s population experienced its highest growth since the 1990’s. In a medium-growth scenario, the data projects that Canada’s population could reach 47.8 million by 2043, and 56.5 million by 2068 in a medium-growth scenario. 

 

What provinces will experience the most growth? 

Alberta is expected to have the highest growth in the country. In less than twenty years, its population is expected to increase between 31%-61%. For British Columbia, Ontario and Saskatchewan – population is expected to grow between 11%-40%. Quebec’s population is projected to grow 12%-19%. In the territories, there is an expected population growth around 8%-28%. 

On the other hand, Atlantic Canada’s population growth is expected to fall. Newfoundland and Labrador, for example, is the only province forecasted to have negative growth in every statistical scenario. 

 

What does this mean for housing in Canada?

As Canada’s population is expected to become larger and older, experts say this will have huge implications for the country’s housing and health care needs. Mike Moffatt, professor at Western University’s Ivey Business School, says the report illustrates that Canada’s housing supply is “not sufficient to keep up with the growing population.” In order to plan for this level of growth, Canada will have to ensure that homes at all price points are available to accommodate for this speed of growth. 

 

Are provinces and territories prepared for this type of growth? 

Given the most extreme housing shortages are most severe in British Columbia and Ontario, Moffatt argued that these provinces are the least prepared to handle the growth. Without clearance and incentivization by policy makers for housing and infrastructure projects, provinces will be unable to accommodate a wide-ranged, rapid, population influx. 

 


 

Interested in reading the full report?

Access it here: 

https://www150.statcan.gc.ca/n1/daily-quotidien/220822/dq220822b-eng.ht