Multi-Family Properties A Good Investment Bet For 2013

Posted by Alan Zunec on Monday, January 28th, 2013 at 10:51am.

Multi-family properties are expected to take center stage in 2013. A report that targeted Canadian investing trends came up with that fact, influenced by the somewhat tepid state of the global economy. The Morguard Corporation report noted that the condo market would be influenced by a strong demand and a steadily decreasing inventory.

There is not expected to be a great deal of development in the coming year, which will further tighten the condo market. In turn this will see rental rates rise and occupancy rates close to 98 percent nationwide. Some parts of the country do have rent control legislation, which does influence those rates slightly.

The Morguard study also considers the residential rental sector, in the multi-family category, in stable territory through 2013. This makes an inviting option for investors. Property values, which have risen steadily over the last few years, are expected to stabilize, but still remain at healthy rates.

Other independent studies agree with Morguard, citing the increased immigration and decrease in rental inventory as prime factors in shaping the rental market. Modes of investments such as stocks, bonds and the like are not seen as favourable, at least for the short term, further influencing the rental real estate market.

Smaller investors may still have issues with new build construction, which may cause some to lose their cap rate advantages. Another note, by the end of 2013 new developments, particularly in Calgary, Toronto and Vancouver, will be online, mostly in the industrial and office sectors. The increased inventory may mean more risk for investors in that sector.

1 Response to "Multi-Family Properties A Good Investment Bet For 2013"

KR Group wrote: Thank you very much for providing this information. I think 2013 will be good one for property buyer in Canada

Posted on Wednesday, February 27th, 2013 at 10:51pm.

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