Five Year Bond Yields Up Sharply – Rental Housing more attractive

As you can see from this chart, 5 year mortgage bond yields are up sharply since spring.

This has created upwards pressure on five year mortgage rates, thus making buying houses or condos more expensive.

Investing in Real Estate TFSA and RRSP

As shown here for the last few weeks, due to CMHC capping its insurance to lenders, and rising Government of Canada bond yields, mortgage rates were expected to rise, and they did as shown in this Financial Post article.

Specifically this means that house or condos will be tougher to finance and more people will rent, longer .. thus driving up rents and values of apartment building values, as we see across our portfolio now approaching 1000 units (assuming we close our well positioned, under-rented large 70+ unit asset under contract in Edmonton in October)

Is your investment portfolio positioned to take advantage of it, for example by owning rental properties in urban growth markets, RRSP or TFSA eligible ?

Thomas Beyer, President