Multifamily in Canada

#יםמהשבוי Ilana Dadik Zahavi

#Post 5 Multifamily in Canada

Why invest in Canada specifically in multifamily?

Multifamily is defined as a real estate property intended for residence that includes more than one housing unit, when all the units are on the same property and can be rented to tenants.

There are several notable advantages of investing with ValtiFamily in Canada:

Let's take for example a building of 15 apartments.

Fixed income

When we invest in a single family (landed house for example) if there are no apartments in the property then there is no income.

Multiple housing units in the property ensures that there will always be income, even if another tenant has left, there are 14 other tenants still paying rent.

efficient operation

A block of 15 apartments has one sewer line. Compared to an investment in a single house, 15 houses = 15 sewer lines.

Centralization of the plumbing, electrical, sewage, air conditioning, etc. systems are used by a large number of properties and this makes operation easier.

An increase in value that does not depend on the market

Ability to increase income and decrease expenses widely and independent of external factors -

Increasing revenue:

Possibility of increasing rent for all housing units will bring a significantly higher income.

Charging for additional services at the property such as parking, storage, guest room, etc.

Renting public spaces such as commercial facades and roofs.

Reducing expenses:

Installations of energy and water efficient systems.

Taking advantage of government benefits for green energy.

Transition to cheap services and internal maintenance according to capacity.

Leverage

As a company - it is possible to get a 95% mortgage and sometimes even more for a period of time of about 55 years.

In Canada there is a body called CMHC - Government Mortgage and Housing Corporation. A body that is responsible for promoting accessible housing and developing the real estate market in the country, which gives entrepreneurs attractive conditions due to the need to build and create housing units.

In addition, an asset that has improved its value generates a higher cash flow, makes it possible to refinance at a better interest rate and use the capital for additional investments.

* This money is also tax free!

In the photo: my Canadian mentors, the multi-family entrepreneurs Gideon and Noa Avigad.