The Canadian Real Estate Investor

We explore Canada's economic stagnation, drawing parallels to Japan's "Lost Decade" of the 1990s. Canada is experiencing its own version of a lost decade with declining productivity (falling for 13 straight quarters despite an educated workforce), stagnant per capita wealth (producing no more wealth per person than in 2014), overreliance on real estate for economic growth (accounting for over 20% of GDP), lack of business investment in productivity-enhancing capital, rising household debt (101.2% of nominal GDP) with stagnant income growth, and housing shortages amid rapid population growth (creating a "population trap"). The hosts warn that conventional economic remedies may be insufficient, as demonstrated by Japan's decades-long stagnation despite trying various policy approaches. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl Mortgage Unpacking Multiplexes Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

There are some major shifts in Canada's real estate market in 2025-2027, highlighting three key trends: Interest Rate Stabilization, Collapsing International Student Enrollment, Historic Population Growth Slowdown RBC predicts the Bank of Canada will maintain rates at 2.75% with no further cuts expected, forcing investors to adjust their strategies rather than hoping for lower rates. Many Canadian colleges are experiencing a 50% drop in international students due to federal policy changes, with some institutions like Conestoga College seeing up to 95% reductions. This is causing significant vacancy risks for student rental investors.  Canada's population grew by only 20,107 people (essentially 0%) in Q1 2025, the lowest growth in almost 80 years. This is primarily due to reduced immigration and a decrease of 61,000 non-permanent residents. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl Mortgage Unpacking Multiplexes Tickets free 1 week trial for Realist Premium  See omnystudio.com/listener for privacy information.

Should you buy a rental property or invest in a REIT? In this episode, Dan welcomes Simon from the Canadian Investor Podcast to break down the pros and cons of both strategies. Simon goes over some of the key metrics to look at when analyzing a REIT. From payout ratios and leverage limits to tenant base and growth strategy, we cover the critical factors that separate the good from the bad. Whether you're new to real estate investing or looking to diversify your portfolio, this episode will help you decide which path makes the most sense for your goals. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl Mortgage Canadian Investor Rodeo Tickets Unpacking Multiplexes Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

Did you know approximately 10% of home sales happen without ever being publicly listed? Off-market properties offer exclusivity and advantages for both buyers and sellers, including privacy, reduced competition, and potentially better negotiation terms. We explore what makes these deals unique, the appeal of "insider" opportunities, and detail strategies for finding these hidden gems. From driving for dollars and mail campaigns to leveraging wholesaler relationships, this episode gives Canadian investors practical methods to find properties before they hit the market. These strategies help investors of all experience levels avoid bidding wars and secure better deals off-market. We also address potential drawbacks including pricing challenges and limited exposure, providing a complete view of off-market investing. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl Mortgage Canadian Investor Rodeo Tickets Unpacking Multiplexes Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

How do Cap Rates work? Why & how they change & why every investor needs to understand them, especially in a down market. Cap Rate Math Impact: A 2.5% cap rate increase (4% to 6.5%) can cause a 38.5% property value drop, potentially eliminating equity for leveraged investors. Recession Patterns: Cap rates rise during downturns as investors require higher returns for increased risk, even when interest rates initially fall. Investor Strategy: Savvy investors avoid assuming further cap rate compression and instead stress-test for expansion to ensure investments can withstand market changes. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl Mortgage Canadian Investor Rodeo TicketsUnpacking Multiplexes Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

Homeownership remains a strong aspiration for many Canadians despite affordability challenges. A Habitat for Humanity/Deloitte study shows significant benefits of ownership versus renting, including income growth and improved health outcomes. Yet, Canada's homeownership rate dropped from 69% (2011) to 66.5% (2021), with young adults particularly affected.  Strong Desire Despite Challenges: 84% of young Canadians (18-38) believe homeownership is worthwhile despite affordability issues. Measurable Benefits: Homeowners experienced 28% higher incomes than comparable renters, with 73% reporting better physical health. Declining Accessibility: Homeownership among 25-29 year-olds fell from 44% to 36.5% over a decade. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl MortgageCanadian Investor Rodeo TicketsUnpacking Multiplexes Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

The Canadian housing market in May 2025 showed signs of movement but not a dramatic rebound.  National home sales increased by 3.6% month-over-month, primarily driven by Toronto, Calgary, and Ottawa. However, supply is outpacing demand, with new listings up 3.1% and total active listings up 13.2% year-over-year. The market has entered what's being called a "negotiation market" where buyers have more leverage and choices. The market is showing increased activity but remains cautious - sales are up but still 4.3% below last year's levels Supply is increasing significantly with the sales-to-new listings ratio at 47%, below the 10-year average of 55% Prices are stabilizing with the national average at $691,299, down 1.8% from last May, with significant regional variations - Ontario and BC showing declines while Quebec, Manitoba, and Saskatchewan are seeing increases Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl MortgageCanadian Investor Rodeo Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

This is a comprehensive guide for first-time real estate investors, covering everything from initial goal-setting to executing investment strategies. Here are three key takeaways: Foundation is Critical: Start by setting clear goals and understanding your "why," then create a detailed business plan that will guide your investment journey. Build a Strong Network: Success in real estate investing requires a power team of professionals (mortgage agents, real estate agents, lawyers, etc.) and active networking to build relationships that provide opportunities. Focus and Execute: Pick a specific asset class and market to focus on, thoroughly analyze deals based on numbers, and stick to your chosen strategy rather than getting distracted. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl MortgageCanadian Investor Rodeo Tickets free 1 week trial for Realist PremiumSee omnystudio.com/listener for privacy information.

Is the Canadian dream of homeownership still alive? We break down the latest CMHC Mortgage Consumer Survey, revealing how first-time buyers are really getting into the market.  First-time buyers now make up 12% of mortgages (up from 10%), with over half using co-buyers and receiving family gifts averaging $74,000 ($150,000 in Ontario/B.C.). 65% of first-time buyers are at their budget maximum, with fewer using savings for emergencies (50% vs. 78% last year). Most buyers remain optimistic: 80% see homes as good investments, and 74% expect values to rise next year. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl MortgageCanadian Investor Rodeo TicketsSee omnystudio.com/listener for privacy information.

Total household debt in Canada has reached $2.55 trillion, with non-mortgage debt averaging $21,859 per consumer. The situation is particularly concerning in Ontario, where mortgage delinquency rates have increased by 71.5% year-over-year. A "mortgage renewal wall" is approaching, with about 60% of all outstanding mortgages coming up for renewal in the next couple of years, facing significantly higher interest rates (4-5% range compared to previous sub-2% rates). Nearly a third of mortgage renewers are using debt to pay off other debt, while younger borrowers and lower-income households are showing increasing signs of financial stress. Credit card spending has decreased to its lowest since March 2022, suggesting cautious consumer behavior, but payment rates are falling, especially among Canadians under 35. Exchange-Traded Funds (ETFs) | BMO Global Asset Management Buy & sell real estate with Ai at Valery.ca  Get a mortgage pre-approval with Owl MortgageSee omnystudio.com/listener for privacy information.