CMHC Housing Outlook Conference: the owners ofresidential rental propertiesin peril!
Montreal, November 26, 2014--- The Association of Quebec Landlords(APQ), who attended the CMHC conferenceon the prospectsof thehousing market,is more than everconcerned aboutthe turn taken by therentalhousing market.
The ownersfeel thatthe value of theirinvestment isat risk withvacancy ratesremaining very high,up to 6.5%. “At the Associationof Quebec Landlords we find this a dangerous situationwhencombinedwith the lowrent increases that compromiseprofitability,”says MartinMessier, President of the APQ.
Also, it is predicted that the market will be favourableto buyers, and thus sellersor developers maydecide to postponethe sale andto rather rent in the meantime: the slowdownin the areaof the condominiumsinvites entrepreneursto do conventional renting whichincreasessupply, while tenantsbenefit from the marketto purchasehomes andto end theirtenancy.
Moreover,growthis expectedinthe demand forresidential homesfor the elderlyin the coming years. While supportingthe rental marketspecialized in this field the traditional private market runs a risk of suffering fromthis situation.
With such figures oneactuallyfears a growing loss ofinterest in becoming anowner: the next generation loses interestgiven theprecariousness of thecurrent market.Given theadvanced age of thebuildings, investments in renovationsometimes exceedthe profitability ofthe building:the Governmentcontinues toput spokes inthe wheelsof private ownersby buildingsocial housing at greatcostand by confiningownerstoabsurdly lowrent increases.
It is not necessary to mention thatthe APQbelievesthere is no needofnewsocial housing at greatcost tocompetein theprivate market. The APQ hasobtained,throughaccessto information,data onreplacement costs,improvement andmodernization of the public housingreal-estate park. And so,for the approximately 73,000social housing unitscompleted between1960 and1990 alone, the cost forreplacements,upgrades andretrofitsalone, would amount to more than$300 millionper year! The SHQstill envisagedneeds to the order of $1.7billionbetween 2013and 2017.
“This is a ridiculous situationbecause ifgovernment assistance would be granted directly to the person, all these amountscould be used tohelp more peoplein need, people whowould livein private accommodations. It is necessary that our dwellings arerented, so that we havethe necessary funds at our disposal, us too, for the maintenanceof our rentalhousing stock! This concernsthe well-beingof our economy,our tenantsand investors! It is a win-win situation!” concludesMartinMessier.
Founded in 1984,the QuebecLandlords Association(APQ) is the most important association to offerservices torental property owners. It has been serving theowners of allthe regions of Quebecfor over 30years.In addition to offering,as muchtoduplex or triplexowners astoproperty managers, an assessment service on tenants which is uniquein Quebec.