Good time to build apartment buildings !
This was the message that was most prevalent at last week’s “Québec Apartment Investment Conference” that was held at the Palais de Congres. The Conference brings together owners, managers, developers, investors and lenders to provide valuable insights into the multi-unit residential market.
This is what I took away from this conference:
1.There’s strong investor demand for apartment buildings. There’s still a strong rental demand.
2.Interest rates are still near all-time lows, and the single largest cost of owning an apartment building is the cost of capital. And it’s never been cheaper.
3.Because interest rates are low, cap rates are low and pushing apartment building prices up.
4.The last point is that Canada is an attractive place to invest relative to the rest of the world. People want to come here for the stability of Canada can offer.
5.They’re a safer investment than office properties, where the loss of an anchor tenant could be devastating to a landlord, while people will always seek affordable places to live.
6. When you build an apartment, you’re building it for its ongoing cash flow and you measure it from a 10- or 20-year internal rate of return.
Please call me to discuss any project you may have in mind.
Commercial real estate mortgage broker