Home Ownership As An Investment (More)

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Last week I discussed the notion of home ownership as an investment, something which has been a good choice for many Canadians over the past decade or so, although it’s been a questionable choice for many Americans, putting aside the run-up in housing prices in the US during the pandemic. This week I provide links to two additional articles on… Read more »

Home Ownership As An Investment

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Just before Christmas I came across an interesting article which does a good high-level job of pointing out some of the contradictions in housing policy with regard to ownership versus renting and how that relationship results in less affordable/’affordable’ housing than society requires. The article dates from 2016 and focuses on the US, but it’s worth a look. Here’s the… Read more »

How We Got Into This House Price Problem

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The following paragraphs are from a Toronto Star newspaper article (dated December 4th, 2021) on GTA house prices and affordability. It’s a good summary of how we got where we are. Kean Birch, as associate professor at York University, said because housing as an investment has historically paid off, those who can afford it are signing up for huge debt… Read more »

What Are Renters Paying In Niagara?

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Late last year I wrote a post (dated September 21, 2020) which used Census data to answer the question, “What are renters renting in Niagara?” I found that the bulk of Niagara’s renter households are most likely to rent detached houses and units in multi-unit buildings with less than five floors, followed by multi-unit buildings with more than five floors…. Read more »

Being Proven Right Takes Time

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One of the biggest frustrations with real estate consulting is having to wait to find out whether you’re right or wrong. Because most development projects, especially multi-unit rental properties, take years to get approved, built, and leased, if you as a consultant give advice to a developer you won’t find out for 3 or 4 years whether your advice was… Read more »

Weathering The 2020 Pandemic

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This past Saturday (November 6th) the print edition of the Toronto contained an interview with Dennis Mitchell, the CEO of Starlight Capital. In the interview he was asked how Starlight’s “multi-residential properties” did during the pandemic. His response: The businesses that we own collected well north of 90 per cent of their rent during the pandemic. Actually, during the recovery… Read more »

A Sign Of The Times: The Billionaire Amateur Architect

Charlie Munger is pretty much a household name in the finance and investing worlds, having made his name by becoming wealthy and being Warren Buffett’s investing partner for many decades. Apparently, he also has aspirations to be an architect. Read the article below. What can I say? To give credit where credit is due, his design is well suited to… Read more »

The Effect Of Increasing Supply On Average Rents

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In my post last (last) week I talked about ‘trickle down’ supply issues and explained my reasons why I don’t think it results in increased affordability or increased access to affordable rents (some extreme situations excepted). One of the assertions I made was that rents in older buildings will keep going up, no matter how many new buildings—i.e. high-rent rentals—are… Read more »

Trickle-Down Rental Housing Development Doesn’t Work

There’s a recent article which has been making the rounds titled “How luxury apartment buildings help low-income renters.” I think it showed up first on a US website but it’s been republished in Canada. I’ve included a link to a US website below so you can read the article (I suspect that’s where the article was published first). https://fullstackeconomics.com/how-luxury-apartment-buildings-help-low-income-renters/ The… Read more »