PV, Mit & Jeff
Brent crude spiked to nearly $110 a barrel yesterday. That's up 80% since the Iran conflict started three weeks ago. Gas at the pump has jumped 25 cents a litre across Canada. Groceries are next. The Strait of Hormuz is effectively closed, choking 20% of global oil and gas flows. Analysts are now seriously asking whether oil could hit $200. And yesterday, the BoC held rates at 2.25%, citing the war as a major risk to the global economy. You're feeling this at the gas station. Here's how it actually helps your rental income
Oil goes up. Construction costs go up. New supply goes down. Rental demand goes up. If you already own the buildings, the math just got better.
Here's the pattern nobody talks about during an oil spike. Construction costs rise because materials and transport get more expensive. Developers delay or cancel projects because the math stops working. New supply dries up. At the same time, inflation pushes household costs higher, making homeownership even harder to reach. More people rent. Fewer units get built. And the buildings that already exist, already occupied, already cash-flowing? They become more valuable and more essential with every dollar oil climbs.
Cash-Flowing Apartment Buildings · Southwestern Ontario
Targeted Total Return: ~15%
Distributions: 7% Annualized, Paid Monthly
Every major oil shock follows the same playbook for real estate. Energy costs spike. Transportation and materials get more expensive. Condo developers and private builders who don't have access to government-backed financing pull back. New construction stalls. At the same time, inflation erodes household purchasing power, pushing homeownership further out of reach. Mortgage stress tests get harder to pass when groceries and gas are eating into disposable income.
The result is the same every time: more renters, fewer new buildings, and stronger demand for existing housing. Economists are already warning that if oil stays elevated, inflation could jump back above 3%, wiping out the progress Canada made getting it down to 1.8% in February. That's the environment where owning cash-flowing apartment buildings is exactly where you want to be. Your tenants still need a place to live. Your rent still gets paid. And the cost of building anything new without CMHC backing just went through the roof.
Yes, higher oil helps parts of the Canadian economy. Alberta is benefiting. Energy stocks are up. But for everyday Canadians, this means higher costs on everything from commuting to groceries. The household squeeze gets tighter. And the tighter it gets, the more people need affordable rental housing. That's the asset class FCPRET owns.
Purpose-Built Rentals · Build-to-Core, 4-Year Horizon
CMHC Financing + Government Grants (De-Risked)
Targeted Returns: 24% to 27% Annualized
"We looked at REITs, GICs, and even buying a rental property ourselves. Nothing came close to the simplicity of FCPRET. Professional management, monthly distributions, and we don't have to lift a finger. It's the best decision we've made for our portfolio."
Analysts are now floating $200 oil if the Strait of Hormuz stays closed. Canada's economy shed 84,000 jobs in February. Inflation is threatening to reverse course. And through all of it, our tenants paid rent this month and FCPRET's distribution landed on the 15th. We'll have your weekly wrap-up on Monday.
This week's live stream breaks down why the current trade war, rate environment, and global uncertainty are creating a once-in-a-cycle opportunity for Canadian rental housing investors.
War in Iran. Oil at $110. Gas spiking. Inflation threatening to return. Job losses mounting. Private developers are shelving projects because the numbers don't work anymore. And through all of it, the thesis stays the same: people need a roof over their head, and that need only gets stronger when everything else gets more expensive. Two vehicles. One thesis. Monthly income from essential housing through FCPRET, or equity creation through ground-up development with Wellington Tower, backed by CMHC financing and government grants that keep the project viable while everyone else pulls back.
Oil prices move. Gas prices move. Your distribution doesn't.
To your success,
PV, Mit & Jeff
P.S. Oil up 80%. Gas up 25 cents. Inflation threatening 3%+. Construction costs climbing. And FCPRET's distribution? Same as every month: 7%, deposited on the 15th. If you want income that doesn't depend on what's happening in the Strait of Hormuz, just reply to this email and say "interested" and we'll set everything up for you.
By the Numbers
