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Revealed: This Little-Followed Real Estate Stock Could Make You Rich – The Motley Fool Canada

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One of the fun things about following the Canadian stock market is there are often opportunities to load up on fantastic stocks that many fellow investors have never heard of before.

Why do these great stocks fall through the cracks? I think one reason is because many Canadian investors focus their attention on U.S. companies, convinced the world’s largest economy is the only answer. There’s nothing wrong with stuffing your portfolio with U.S. stocks, but investors should also remember that there are great opportunities here in Canada as well.

Let’s take a closer look at one such opportunity, a company that has posted a compound annual growth rate of more than 17% over the last 20 years. Despite such a good performance, it’s doubtful many have even heard of this company.

A different kind of apartment owner

Led by CEO Bob Dhillon, Mainstreet Equity Corp (TSX:MEQ) takes a slightly different approach to buying apartments.

Most of Mainstreet’s competitors are only interested in larger assets, properties consisting of 50 or 100 units. This makes it efficient enough for them to insert a property manager without having to spend too much.

Mainstreet does things much differently. The company acquires smaller buildings, including properties with as few as a handful of units. Usually, these properties require some renovations to bring them up to a higher standard. Since it owns so many of these smaller buildings – which are strategically located close together – Mainstreet can create the same kind of efficiencies that way.

The reason why Dhillon and his team focus on this strategy is there are way more acquisition possibilities and, perhaps most importantly, more opportunities for the company to score a deal. Once one of these buildings is acquired – usually for far less than its replacement value – the property is renovated and then refinanced, extracting the equity which is then used for a down payment on the next deal. It’s a wonderful strategy that allows Mainstreet to grow without having to constantly go back to the capital markets.

The portfolio today consists of just over 13,000 apartments in 12 different Western Canadian cities. Approximately half of Mainstreet’s units are located in Calgary and Edmonton, with other major markets including Regina, Saskatoon, Surrey, and Abbotsford.

Mainstreet has been adding properties at a frenzied pace over the last few years, buying 601 units in 2017, 1,296 units in 2018, and a further 1,118 units in 2019. Weakness in the energy market has hit Western Canada hard, and Mainstreet is taking advantage to bolster its portfolio at bargain prices.

Another thing Mainstreet does a little differently is that it doesn’t pay a dividend. While this does alienate a certain number of potential investors, it gives the company a pretty unique structure. Long-term buy-and-hold investors can defer taxes for a number of years this way, which has a pretty compelling appeal.

And despite quietly being one of the TSX’s best long-term performers, Mainstreet shares are still attractively valued today. They continue to trade at a nice discount to management’s estimate of net asset value.

The company should also grow its funds from operations as properties that are being renovated get completed and start contributing to the bottom line. Additionally, it will also get a nice boost when the Alberta economy shakes off its current weakness and starts to grow again.

The bottom line

Despite posting excellent results for more than two decades now, it’s easy to see continued upside for Mainstreet Equity. The company still has loads of growth potential in Western Canada, and it could easily move into new markets, too. It’s the perfect stock to tuck away in your portfolio and forget about for a few years.

Amazon CEO Shocks Bay Street Investors By Predicting Company “Will Go Bankrupt”

Amazon CEO Jeff Bezos recently warned investors that “Amazon will be disrupted one day” and eventually “will go bankrupt.”

What might be even more alarming is that Bezos has been dumping roughly $1 billion worth of Amazon stock every year…

But Bezos isn’t just cashing out, he’s reinvesting his money into a company utilizing a fast-emerging technology that he believes will “improve every business.”

In fact, this tech opportunity could be bigger than bigger than Amazon, Tesla, and Berkshire Hathaway combined.

Get the full scoop on this opportunity that has billionaire investors like Bezos convinced – before it’s too late…


Click here to learn more!


Fool contributor Nelson Smith has no position in any of the stocks mentioned.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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