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The Weekly 411: Thousands of New Rental Homes Hitting the Market | How GST removal affects investors

How GST removal affects investors

Author

Urban 411
October 15, 2023

Your Weekly 411

TLDR:

💡 What the new GST removal means for investors

🏘 Dream Unlimited to build 5,000 rental units in light of housing shortage 

🤔 Canada is undercounting Non-PR residents by roughly 1 million.

💰 Blackstone Sets Sights on Canada for Major Investment

💡 What the new GST removal means for investors

  • GST removal aims to curb high interest rates that remain a challenge for new construction projects

  • With the removal of GST purpose-built rental projects are becoming more attractive for developers.

  • Toronto's low vacancy rates make it a hot location for new rental housing development.

  • Institutional investors, like the Canadian Pension Plan, have invested $350 million in purpose-built rental buildings.

  • You may want to consider REITS (Real Estate Investment Trusts) as a potential real estate investment option.

  • Scroll down to view a list of REITs we've compiled 👇​

🏘 Dream Corp Unlimited to build 5,000 rental units in light of housing shortage

  • Dream Corp will construct 5,000 new rental units in multiple Canadian cities: Ottawa, Saskatoon, Calgary, and Toronto.

  • This initiative is made possible by the government's removal of GST charges on rental developments.

  • Canada faces a housing shortage, requiring around 3.5 million more housing units by 2030 to address affordability concerns.

🤔 Canada is undercounting Non-PR residents by over 1 million

  • In 2021, the census reported about 925,000 non-permanent residents, while quarterly estimates showed 1.17 million

  • This undercounting has significant implications for Canada's population growth and housing market planning.

  • Recent growth in non-PR resident numbers suggests that in 2021, the gap between the two counts is up to 250,000.

💰 Blackstone Sets Sights on Canada for Major Investment

  • Their move presents new opportunities for investors seeking returns in the Canadian market.

  • Canada's population is growing at 2.7% rate , five times of the U.S rate

  • Blackstone sees the demand and limited supply as an opportunity. 

  • Student housing is a focal point, given the strong demand for a Canadian education.

Population Growth in Canada vs USA since 1965

🔎 REITS for investors to explore