Why New Build Investing Might Not Be the Best Choice in 2024

Josh Perez • October 31, 2023

Hey, everyone, Josh Perez here, and today I want to talk about a significant shift in the real estate investment landscape. It's essential to keep up with the latest trends, and in 2024, one strategy that may not work as well as it used to is new build investing.

From a pure investment standpoint, it's going to be very hard to justify the purchase of new build properties in the next 12 months.

The real estate market is constantly evolving, and right now, the dynamics have changed. Here's why I believe new build investing might not be the most attractive option in the next 12 months.

1. Rising Interest Rates: One of the key factors to consider is the rapid increase in interest rates. These rates are not expected to drop significantly in the near future. As a result, many potential investors are hesitating, and it's becoming more challenging to make a strong case for purchasing new build properties.

2. Limited Resale and Refinance Opportunities: New build investments used to promise great resale and refinance opportunities. However, the landscape is shifting. These types of investments are becoming less appealing in the current market environment.

3. Cashflow Deficits: Long-term ownership of new build properties can lead to substantial cashflow deficits. These deficits can burn a significant hole in your pocket. If you've seen your property's value increase substantially since your purchase, you might be able to tolerate this. But if you're close to breaking even once the project is complete, it can be risky.

4. Builder Pricing: It's crucial to watch how builders price their properties. If their pricing isn't aligned with the current state of the market and the projected trends for 2024, it might be wise to hold off on new build investments.

So, what should you consider instead? Here are a few alternatives:

1. Explore Larger Multifamily Apartments: Larger, multifamily apartments can be a solid investment option. They offer better cashflow and are less susceptible to market fluctuations compared to new build properties.

2. Secondary and Tertiary Markets: Expanding your search to secondary and tertiary markets can be a game-changer. These markets often provide excellent opportunities for investment and growth.

3. Private Lending: Another option to explore is becoming a private lender. This allows you to earn a return on your investment without the hassle of property ownership.

In conclusion, while new build investments have been popular in the past, the changing dynamics of the real estate market, including rising interest rates and potential cashflow deficits, may make them less appealing in 2024. It's essential to adapt to the evolving market conditions and explore alternative investment options that align better with the current landscape.

Whether you consider multifamily apartments, secondary markets, or private lending, there are plenty of avenues to explore for a successful real estate investment strategy in 2024.



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What You Need to Know About Mortgages and Parental Leave

By Josh Perez • July 8, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.
Suburban two-story house with a front porch, two-car garage, and a large tree-lined lawn.

Gifted Down Payment in Ontario? Don't Skip This Step

By Josh Perz • July 7, 2026
Using a gifted down payment to buy a home in Ontario? Learn exactly what lenders require — and the common mistakes that can delay or derail your approval.