Government is doing everything in MPCTs Favor. Links below. CMHC Financing and other NEW rules (2 Links at bottom)
-December 15th, Individual condo investors can buy NEW condos with 30 year amortization, making buying cash flow positive rentals a reality for investors in the Pre-Development Condo Market.
-Removed HST/GST on New Purpose Built Rentals (Huge Savings for MPCT)
-Removed rent caps on new rental units - Growing SPNOI quick
-10 Year Bond Rate (Currently under 3%) on New Purpose Built Rentals with some Affordable suites. So MPCT's PBRs are getting loans around 2.90% today. MPCT has some loans under 2% fixed for ~10 years.
-CMHC Allows up to 50 Year Amortization, increasing cash flow
-CMHC Loan covers up to 100% of the development costs. No cash needed by MPCT to fund developments.
-CMHC is interest only payments until occupancy, reducing devlopment risk.
With new developments leasing up so quickly (huge demand), MPCT's purpose built rental strategy is going to pay off big time. Lots of partners are going to jump in for MPCT's developments, like 49 Ontario, which will receive this CMHC financing. Quayside, Brightwater and ZIBI are also going to see strong partner demand.
CMHC Development Apartment Program (MPCTs HUGE financing benefit)
https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/apartment-construction-loan-program
New CMHC Changes for Home Buyers (Good for pre-construction condos)
https://www.canadianmortgagetrends.com/2024/09/breaking-federal-government-raises-cmhc-insured-mortgage-cap-to-1-5-million/
I hope this helps others understand the MPCT business model. Only invest if you are buying long term please. Liquidity is an issue in MPCT and is not a good trading REIT. Im not giving financial advice, just a real issue.