Finding Stability in Alternatives

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As 2022 proved one of the most challenging years for public markets in over a decade, interest in alternative investments like private real estate has absolutely exploded. Financial advisors across Canada report fielding a torrent of inquiries about these assets that can provide stability and income for portfolios amid market turbulence. However, many in the advisor community still find alternatives unfamiliar terrain compared to traditional stocks and bonds.

Why Alternatives Now?

With major institutional investors like pension funds aggressively increasing allocations to alternatives over the past 10 years, the case for diversification and retirement income from these assets looks increasingly persuasive. As Alex Steele, Head of National Sales at Avenue Living, notes, "The interest in alternatives is increasing constantly."?

For aging baby boomers seeking steady retirement income streams, alternatives like real estate investment trusts (REITs) can provide far more stable cash flows than volatile stocks. And with public market volatility increasingly driven by high-speed algorithms and shifting sentiment, private market valuations based on property fundamentals have real appeal, says Avenue Living's Gabriel Millard.

Finding an Edge in Real Estate

As a veteran player in Canadian rental properties since 2006, Avenue Living believes powerful demographic trends will continue to fuel demand for its portfolio focused on the Prairie provinces of Alberta and Saskatchewan. Net migration to the region has been strongly positive for years. And with the Canadian government pushing higher immigration, more new Canadians will need housing.

But as construction and operating costs rise across the industry, vertically integrated players like Avenue Living seem best positioned to outperform. With in-house skills from property management to financing, Avenue Living has pricing power and relationship advantages many others lack. With experience managing costs and optimizing operations since 2006, Avenue Living aims to maintain its edge.

As Steele says, "We take professional pride in what we do: for our customers, for our investors, and for our employees." For advisors and clients seeking defensive real estate returns, that deep experience and focus on fundamentals could prove a compelling recipe for resilience.

To learn how you can help alleviate the supply shortage and benefit by investing in Multi-family Rental Apartments, contact me at (604) 613-1693 or adrian@adrianspitters.com to learn more.?

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Credits: Avenue Living: creating defensibility and stability for alternative investors

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