Investors should be focused on sectors that present strong yields today, combined with a strong outlook for yield and capital appreciation in the future. Residential real estate, presents a strong case for its ability to meet this criteria and to be resilient through a recession.
Here are 3 key points why:
1) Housing is a necessity – A place to live is a primary need for people no matter the state of the economy. People that are unable to afford to own a home, are forced to live in rentals, increasing the rental demand even further.
2) Work from home trends – Many companies were forced to implement work from home policies due to the pandemic. Companies may continue to offer more work from home opportunities in the future since it can help reduce their overhead expenses from leasing expensive commercial office space.
3) Government Protects housing – The Canadian government works to help residents afford housing through the pandemic. For example, in response to the pandemic, they implemented the Canadian Emergency Response Benefit to help people unemployed or underemployed afford food and housing.
For all these reasons, Westbow Capital continues to focus on acquiring, and managing residential rentals across Canada. The Westbow Capital management team has a proven track record with over 40 years of success in the Canadian real estate market and the Westbow Group of Companies currently controls over $300 million worth of assets.