Altyn Equities Saskatoon Economic Update 2020

Please download the Altyn Equities Saskatoon Economic Update, the 2019 Saskatoon CMHC Rental Market Report, and Braden Equities 2019 Annual Report from the links below:

Saskatoon Fundamentals – Altyn Equities

2019 Saskatoon CMHC

BradenEquitiesIncAnnualReport2019

Greetings investors and welcome to the Saskatoon January 2020 economic update and analysis.  I put together this report with extensive research on the local economy, rental market conditions, as well as my own and other local real estate investors feedback.  Saskatoon has a perfect storm of a fundamental foundation as well as rebounding economy providing a rare opportunity to own and buy cash flowing assets in this region. Several larger landlords including Mainstreet Equities and Avenue living have been buying up hundreds of units in the past few years, and continue to buy as we speak. I am in fact so bullish on Saskatoon that I submitted 3 offers on large apartment complexes (250+ units) in 2019 alone, and hope to pick up at least 100+ units in 2020!

I have been investing in Saskatoon since I began my real estate investing career in the year 2000 with my first suited home.  I currently manage 50 suites in three buildings that my partners and I have owned since 2016/2017.  After a few challenging years, we are making massive strides this year starting with a new management company and an immediate 10%+ increase in rents on all buildings.  Capitalized at 5.75%, this will create a lift in value of around $1,000,000 on these projects.  Vacancy rates have dropped from 10.3% in 2016, to 9.6, 8.3, and now 5.7% as shown in the CMHC report released January 15th 2020. All factors are lining up to a rebound including in migration, shrinking vacancy rates, rising incomes, decreasing unemployment, rents rising (finally), and property values stabilizing.  Saskatoon is also one of the most affordable cities in Canada and a favorite destination for new Canadians. My analyses indicates that there is about 3-5 years remaining in the current recovery cycle so we plan to be very aggressive this year in our acquisition and management in Saskatoon, where due to diversification I strongly believe it will outperform Alberta in the next few years. Saskatoon was hit with a combination of overbuilding, and a commodity crash in oil, uranium, and fertilizer – all at the same time.  All of these products are showing signs of a rebound in the next few years as well.  My report is very thorough, however reinforces my firm belief in this market today and going forward.  Please stay tuned as there will be investment opportunities coming shortly, and I appreciate your patience to those who have been seeking to actively participate in these deals.

I will close with a portion of the attached 2020 report from my Edmonton property manager . In tough times people will often panic and sell an investment, solidifying the loss. You see this all the time in the stock market.  Real estate is cyclical, and in the past 50 years has demonstrated a downturn about every decade.  Owner Robert Paquette has been a property manager for over 50 years and has seen this happen many times. These are his words:
“We would like encourage all our battle worn investors to reflect on history. Once the economy turns upwards all owners start to raise rents to recapture lost revenue caused by high vacancy. Values and cash flow will normally exceed previous highs reached before the current down cycle. Patience will eventually bring its rewards.”

Please download the Altyn Equities Saskatoon Economic Update, the 2019 Saskatoon CMHC Rental Market Report, and Braden Equities 2019 Annual Report from the links below:

Saskatoon Fundamentals – Altyn Equities

2019 Saskatoon CMHC

BradenEquitiesIncAnnualReport2019