PV, Mit & Jeff
Every time the stock market drops, people ask the same question: "Is this the one that takes everything down with it?" And every time, the answer for purpose-built rental apartments has been the same. Tenants still need somewhere to live. Here's what that looks like in practice
The stock market crashed three times in 18 years. Each time, tenants still paid rent. That's the asset class we invest in.
We went back and looked at rent collection data during the three biggest market corrections of the last two decades: the 2008 financial crisis, the 2020 pandemic crash, and the 2022 rate shock. In each case, purpose-built rental apartments in Canada maintained collection rates above 95%. The stock market lost 30% to 50%. Rent cheques kept clearing.
Purpose-Built Rentals · CMHC Financing + GST Rebate Eligible
Government Grants + De-Risked Capital Stack
Targeted Returns: 24% to 27% Annualized
The reason is simple. People can stop buying stocks. They can pause their retirement contributions. They can cancel subscriptions and cut discretionary spending. But they cannot stop needing a place to live. Housing is the last expense people cut, which is why rent collection in purpose-built apartments barely moves during economic downturns.
This is not speculation. It is 18 years of data across three very different types of crises: a banking collapse, a global pandemic, and an aggressive rate hiking cycle. Each one crushed equity portfolios. None of them stopped tenants from paying rent.
Cash-Flowing Apartment Buildings · Southwestern Ontario
Targeted Total Return: ~15%
Distributions: 7% Annualized, Paid Monthly
"I maxed out my TFSA every year and had it sitting in index funds. When I learned I could hold a private REIT inside my TFSA and target 15%, I honestly couldn't believe it was an option. The team walked me through everything. It took about 2 weeks from my first call to my first investment. Really transparent process."
Canada's population grew by over 1.2 million in the last 12 months while housing starts are flat. Tomorrow we'll look at what the growing supply gap means for rental demand in Southwestern Ontario specifically, and why our portfolio's vacancy rate sits below 2%.
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.
History doesn't repeat perfectly. But the pattern is clear. When markets crash, people sell stocks. They don't move out of their apartments. That fundamental truth is what makes rental real estate such a powerful complement to a traditional portfolio. Two vehicles. One thesis. Monthly income from FCPRET plus equity creation through Wellington Tower.
To your success,
PV, Mit & Jeff
P.S. Three market crashes. Three times rent collection stayed above 95%. Zero missed FCPRET distributions. If you want your income backed by signed leases instead of stock tickers, reply to this email and say "interested" and we'll set everything up for you.
By the Numbers
