Build wealth with affordable housing projects – Investment Real Estate

Photo: Contributed

A.J. Hazzi

The real estate market is changing, and with these shifts come incredible opportunities for those willing to act.

Whether you’re an experienced investor or someone looking to make a significant impact, now is the time to consider pooling resources with a group of like-minded individuals to create something substantial.

With new zoning rules, attractive financing and land assemblies emerging across town, you can now access prime development opportunities that were previously out of reach.

Case Study: Valleyview and Vista Road projects

Our Valleyview and Vista Road projects serve as perfect examples of how strategic planning and perseverance can yield significant returns. Starting in 2016, we assembled the land, navigated challenging negotiations and capitalized on new zoning rules and government incentives.

These projects will deliver 216 units of affordable housing, generating more than $5 million annually in rent and creating approximately $15 million in value, with just $70 million in construction costs.

With federal financing covering 95% of the project’s value, we are able to finance $70 million in construction with minimal equity. That type of leverage is a game-changer, allowing smaller groups of investors to achieve institutional-quality projects without needing vast amounts of capital.

Why the timing is right

• Lower land prices—Market cooling has brought down the cost of land, allowing you to secure prime development sites significantly less cmopared to just two years ago.

• Easing interest rates—As rates begin to fall, financing becomes more affordable, making it easier to fund your project, and improving the cash-flow picture

• New zoning rules: Previous residential areas are being rezoned for higher-density use, turning quiet neighbourhoods into new opportunity zones.

• Land assemblies—These are becoming more common, allowing smaller investors to combine multiple parcels into larger, more lucrative development sites.

Recent incentives and policy changes

Here’s is a list of recent government programs that make this strategy a winner:

• Federal financing program—Ninety-five per cent financing for qualifying projects with rates far below commercial levels and a 50-year amortization period.

• GST exemption—No GST on construction costs, saving 5% of the total cost.

• Ten-year property tax holiday—Significant tax savings during the first decade of operation.

• Density bonuses—New zoning regulations allow for higher-density development, increasing the number of units you can build.

• Development fees waived on micro suites, saving hundreds of thousands

• Depreciation benefits—Changes in the tax code allow for accelerated depreciation, reducing taxable income in the early years of the project.

Why you should consider partnering now

With these favourable conditions, now is the time to consider pooling resources with others to develop something substantial. Whether it’s a 100-unit apartment building or a larger multi-family project, partnering with a group spreads the risk and amplifies the rewards.

By securing a project in one of these new opportunity zones, you’re not just creating value—you’re building long-term, multi-generational wealth.

Why commercial multi-family real estate is the future

As regulations tighten and costs rise for residential landlords, the advantages of controlling institutional-grade assets become more apparent. Apartment buildings offer stable, long-term cash flow, benefiting from government incentives while addressing the critical need for accessible housing.

Through programs like the Canada Mortgage and Housing Corporation’s financing initiative, you can build a $50 million asset with just $2.5 million down. Over 25 years, that asset could appreciate to $100 million, fully paid off and generating $5 million annually in cash flow. This is the kind of legacy that secures your future and creates lasting wealth for generations.

For the action takers

If you’re interested in exploring these opportunities, whether it’s finding land assemblies, securing shovel-ready projects, or partnering with others to build something transformative, I invite you to reach out.

Email me for a list of potential sites or projects that fit your goals. Let’s take advantage of these favourable conditions and start building something incredible together.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.