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  • Tag: Real Estate

    U.S. real estate – no more “low hanging fruit”

    The U.S. real estate market is once again attracting investor interest and there is an abundance of mortgage money available to buyers. Investors in the commercial and multi-family housing sectors appear confident the market recovery is real and sustainable. As a result, prices for these types of properties have been rising.

    The multi-family sector (i.e. apartment buildings) has been one of the strongest performers for many reasons – not the least of which is that since the financial crisis many Americans have abandoned the dream of home ownership.

    We have been investing in the U.S. multi-family space since 2011 and our clients now have interests in apartment buildings in Texas, Georgia, Florida and Tennessee. Our goal was to build a diversified portfolio of properties that would capture an attractive yield and a meaningful capital gain. The capital gain would be the result of both a recovering real estate market and strong growth in rents. Our experience to date has been very positive and if anything, the market has recovered more quickly than we anticipated.

    Venterra Realty, a specialty real estate investment company investing in multi-family residential communities in the southern United States, has been an important partner for Newport Private Wealth in this program.

    [read more >>]

    Meet the asset class specialists

    We hosted our semi-annual Meet the Pros event last week in Toronto where clients had an opportunity to meet some of the independent asset class specialists we retain for specific components of the portfolios we manage. This year’s panel of pundits included Maureen Farrow of Economap (our independent economist), Tye Bousada of Edgepoint Investment Group and John Foresi of Venterra Realty –specialists in global equities and U.S. real estate respectively.

    The key takeaways in my view were:

    • the recovery from the of 2007/08 financial crisis is on a good path and has slow but steady momentum;
    • after a strong run-up in both equity and real estate prices; be very careful not to overpay

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    Looking for income? Try looking south.

    We look everywhere for income.

    Throughout our history, we have been able to earn attractive income-based returns for our clients ranging from the conventional (i.e. corporate bonds) to the hard to access (i.e. mezzanine debt on a privately-owned self-storage business).

    We are not alone in the pursuit of income.  Investors throughout the world have been seeking yield in an era of low economic growth and mediocre equity returns.  As a result, money has flooded into every popular idea and driven up the prices and, regretfully, driven down yields.

    Specifically, a lot of money has flowed into Canada’s real estate market – a sector that has been a reliable source of income for us and other investors. Much of the interest has come from overseas.  Foreign investors have liked our real estate, our economy, our currency and our stable political environment.  This inflow of capital has pushed up prices to the point that we now think there are more significant risk/reward opportunities elsewhere. [read more >>]

    Finding investment opportunities when the economy isn’t handing them out

    Last week, we organized a lunchtime panel with four outstanding financial minds that are part of the pool of talent we have to draw on for the management of client investment portfolios:

    • Maureen Farrow, (economist), President, Economap
    • Tye Bousada, (global equities), President & Co-CEO, Edgepoint Investment Group Inc.
    • Rick Grafton, (energy), CEO, Grafton Asset Management
    • Corrado Russo, (real estate), Managing Director, Global Securities and Investments, Timbercreek Asset Management Inc.

    It was a lengthy and meaty conversation about the state of the global economy, how Canada is faring and what it all means for clients of Newport Private Wealth. This summary won’t fully do justice to the depth and scope of the presentations, but we will try to boil a 90 minute discussion down to a readable blog post for you.
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    Landlord or investor?

    i-ea075cba0d2eb850555a932785b9b21c-RE White paper_st catherines ON.pngReaders of this blog will know that we have written a lot about investing in real estate — commercial, multi-residential, etc.   We like the asset class for its diversification, cash flow, capital appreciation potential and inflation protection.  So we decided to share some of our thinking in this white paper Real returns from real assets: How to profit from investment in multi-residential real estate.


    In it we discuss how Canada’s demographics favour apartment rentals; why the market is ripe for consolidation; along with the pros and cons of various investment options.  Hope you enjoy it.  Feel free to send us a note if you have any comments or questions.

    Real returns from real estate assets

    i-6a4f402c00bd01a106d1a0e608bee0e4-75 Broadway.jpgHow many of us have toyed with the idea of owning real estate investment property? After all, there’s some appeal to hard assets you can ‘touch and feel’. They generate monthly cash flow from rents, generally appreciate in value over time and can offer protection against inflation. What’s not to like?

    But then you start to think about what it’s like to be a landlord — the phone calls in the middle of the night about a broken furnace,  the capital requirements to maintain the property’s value, the concentration risk — most of us decide it just isn’t worth it.

    [read more >>]

    Florida real estate … why I’d rather rent than own

    i-050bc674c50db4b1aa95e31fa2481b3d-Florida_real_estate.jpgA recent article by Dianne Nice of the Globe & Mail, For aspiring snowbirds, it’s a great time to feather your U.S. nest quotes David Keats, a cross border financial planner,as  saying that in his 30 years of practice he has never seen more favourable conditions for purchasing U.S. real estate. Perhaps it’s true, but just because it’s cheap doesn’t mean it won’t get cheaper… perhaps a lot cheaper.

    [read more >>]