According to Jennifer Hunt, the answer depends on your knowledge of your specific market, your tenant profile, and where you are in your real estate cycle. She is currently buying cash-flowing properties with pre-vetted tenants, but advises waiting if you are unfamiliar with a market or uncertain about how the pandemic will materialize there.
Investors should monitor severe job losses and GDP impacts while managing tenant relationships closely and modeling worst-case cash flow scenarios. It is critical to understand your financial buffers and maintain cash flow reserves in case rents decline significantly during this challenging period.
Multifamily and multi-unit residential apartment buildings tend to be the most insulated because people always need a place to live. Conversely, one-bedrooms and micro-suites typically do worse during downturns because people tend to merge households and share expenses to reduce costs.
Rental demand is expected to increase significantly due to Canada's immigration policies and status as a safe haven. Preferences are shifting toward properties with more space, home offices, outdoor areas, and multi-generational layouts, while exurbs and smaller communities may see increased demand as remote work becomes more entrenched.
