PV, Mit & Jeff
28 condo projects cancelled in 2025. Over 7,000 units erased from the pipeline. GTA condo prices down 29.6% from their peak. Ontario just created a $1.3 billion fund to buy unsold condos because developers cannot move them. Housing starts fell 6% in March alone. The construction industry is in full retreat.
Everyone else is pulling back. That is exactly why we are building. The window is open. We intend to walk through it.
And we are doing the exact opposite. Here is why that is not a contradiction. It is the strategy
The developers who are pulling back built the wrong product. Luxury condos priced at $800,000 for end users who are no longer buying. GTA condo prices have fallen 29.6% from peak. Unsold inventory hit record highs. Ontario had to step in with a $1.3 billion fund just to buy up the units that developers cannot move. Construction starts are at their lowest since the mid 1990s.
That is the condo market. We are not in the condo market.
We build purpose built rental housing for the core workforce. The nurse, the tradesperson, the teacher, the young family. Rents between $1,200 and $1,800 per month. These tenants are not discretionary buyers weighing whether to purchase. They need a home. Vacancy in this segment across Southwestern Ontario is running near 1%. That is not tight. That is functionally zero. Our units do not sit empty. They have waitlists.
25 Storey Purpose Built Rental · Southwestern Ontario
$100K Minimum · Accredited / Existing FC Investors
Targeted Return: 20% to 24% Annualized
Right now there is a window that will not stay open forever. Three things are aligned at once, and none of them are guaranteed to last.
1. CMHC financing. Through the MLI Select program, purpose built rental projects can access up to 95% loan to value with amortizations up to 50 years. That means significantly less equity required upfront and dramatically better cash flow at stabilization. This level of leverage does not exist for condos. It exists because the federal government wants rental housing built.
2. Government incentives. Ontario is waiving HST and development charges on qualifying rental construction. Property taxes are discounted 15%. These are not minor savings. On a $100 million project, they can represent millions in cost reductions that flow directly to investor returns.
3. Cities want us to build. Municipal approvals for purpose built rental are moving faster than they have in years. Cities know they need workforce housing. They are not going to fight the projects that deliver it. This regulatory tailwind will not last once the political cycle shifts. The builders who move now capture the advantage. The ones who wait will face a different environment.
Cash Flowing Apartment Buildings · Southwestern Ontario
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible
Distributions: 7% Annualized, Paid Monthly
"My advisor had me in a mix of bonds and dividend stocks and I was getting maybe 3.5% after fees. I kept asking him for something that paid monthly and actually kept up with inflation. He did not have an answer. A colleague at work mentioned Foundation Capital and I looked into it. The diligence took me about three weeks. The fund structure, the audited financials, the actual buildings. Once I saw how it was set up, I moved a portion of my RRSP over. The distributions have hit my account on the 15th every single month since. That consistency is what I was looking for."
The Bank of Canada rate decision lands April 29, just one day before our FCPRET closing window. Tomorrow we break down what a hold at 2.25% means for mortgage renewals and why every month rates stay elevated is another month renters stay put.
While condo developers are cancelling projects and sitting on unsold inventory, we are capitalizing on the strongest alignment of CMHC financing, government incentives, and municipal cooperation that the rental market has seen in decades. That combination will not last forever. Wellington Towers is how we seize it. FCPRET is the proven foundation underneath it.
To your success,
PV, Mit & Jeff
P.S. CMHC financing, government grants, zero HST, 50 year amortizations. This window does not stay open forever. Wellington Towers is how we take advantage of it. The FCPRET April 30 closing is 10 days away. If you have been sitting on a decision, reply to this email and say "interested" and we will set everything up for you.
By the Numbers
