PV, Mit & Jeff
Sunday night, PM Carney addressed the nation and said something no sitting Prime Minister has ever said: our economic relationship with America is now a weakness. Trade barriers are at levels not seen since the Great Depression. The era of relying on the U.S. as our economic backstop is over.
When governments pick winners, you want to be on the right side of the policy. Purpose built rental is the most incentivized asset class in Canada right now. That is not an accident.
So where does the money go instead? Domestic investment. And at the top of that list, the thing the federal and provincial governments are pouring the most incentives into right now: housing. Specifically, purpose built rental housing
When Carney says Canada needs to invest in itself, he is not speaking in the abstract. The policy is already on the table. Look at what is available right now for builders of purpose built rental housing:
CMHC MLI Select: Up to 95% loan to value with 50 year amortizations. That is the most favourable financing in the country. It does not exist for condos. It does not exist for commercial office. It exists specifically for purpose built rental.
Ontario incentives: HST waived on qualifying rental construction. Development charges reduced. Property taxes discounted 15%. On a $100 million project, these savings represent millions that flow directly to investor returns.
Municipal approvals: Cities are fast tracking purpose built rental. They need workforce housing and they are not fighting the projects that deliver it. The regulatory environment for PBR right now is the most favourable it has been in decades.
25 Storey Purpose Built Rental · Southwestern Ontario
$100K Minimum · Accredited / Existing FC Investors
Targeted Return: 20% to 24% Annualized
In times of geopolitical uncertainty, capital goes where the government is rolling out the welcome mat. Right now, that is rental housing. The question is not whether this is a good time to own apartments. The government has already answered that for you by making it the most incentivized asset class in the country.
FCPRET gives you the income side. Cash flowing apartment buildings, monthly distributions, and the stability of a portfolio that has met its targeted returns every year since inception. This is the foundation.
Development Fund II gives you the growth side. Wellington Towers is purpose built rental, which means it qualifies for every incentive on the table: CMHC financing at 95% LTV, HST exemption, development charge reductions, property tax discounts, and accelerated municipal approvals. These incentives are baked into the project economics. They are not theoretical. They are real dollars that flow to investor returns.
Cash Flowing Apartment Buildings · Southwestern Ontario
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible
Distributions: 7% Annualized, Paid Monthly
The Bank of Canada rate decision is 8 days away (April 29). Markets are pricing a 96.5% chance of a hold at 2.25%. Tomorrow we take you inside the portfolio and show you what we have been working on behind the scenes this month.
Carney said "hope is not a plan and nostalgia is not a strategy." We agree. While the political landscape shifts and trade relationships get rewritten, the fundamentals of rental housing in Canada have not changed. People need homes. The government is incentivizing anyone who will build them. We are building.
To your success,
PV, Mit & Jeff
P.S. 95% financing. 50 year amortizations. Zero HST. Reduced development charges. Discounted property taxes. Fast tracked approvals. That is the policy environment Wellington Towers is being built into. And FCPRET is how you get income while we build it. The April 30 closing is 9 days away. Reply to this email and say "interested" and we will set everything up for you.
By the Numbers
