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Canadian pensions face mounting real estate losses, but won't be ‘forced sellers,’ Fitch saysCanadian pensions face mounting real estate losses, but won't be ‘forced sellers,’ Fitch saysCanada's major pension plans face mounting losses in the real estate sector due to higher for longer interest rates. PHOTO BY JOHN TAGGART /BloombergCanada’s large pensions are facing rising losses from real estate investments, according to a sector report by Fitch Ratings Inc., which concluded that fund titans are nevertheless well-positioned to absorb near-term market swings.“Fitch believes Canadian pension fund investment portfolios will remain pressured by a challenging market backdrop, as the increased cost of debt and anticipated slower growth weigh on private asset valuations,” said Dafina Dunmore, senior director of the ratings agency.However, she said the funds have “exceptionally strong liquidity,” which will provide sufficient cushion to absorb investment volatility and flexibility to work through troubled investments.“They are not forced sellers of assets,” Dunmore said.The Canadian pension funds tracked by Fitch managed approximately $2.1 trillion of net assets as of Dec. 31, 2023.The Fitch report looked at seven large Canadian pension funds: Alberta Investment Management Corp., British Columbia Investment Management Corp. (BCI), Caisse de dépôt et placement du Québec, Canada Pension Plan Investment Board (CPPIB), Ontario Municipal Employees’ Retirement System, Ontario Teachers’ Pension Plan, and the Public Sector Pension Investment Board.Real estate property values are being hit by a combination of factors including higher borrowing costs, scarcity of financing options and a general repricing of assets. The effect on office properties is amplified by the shift to remote work and Fitch expects continuing losses in Canadian pension fund office portfolios into 2025 as refinancing requirements mount.
Biden to propose capping national rent increases at 5%U.S. President Joe Biden holds news conference at the 2024 NATO Summit on July 11, 2024 President Biden hinted at this plan last week speaking at a NATO news conference. Photo: Kevin Dietsch/Getty ImagesIn Las Vegas Tuesday, President Biden is expected to call for legislative action to curb landlords' ability to raise rents, administration officials told reporters Monday afternoon.Why it matters: Rents have skyrocketed over the past few years, contributing to high inflation and putting enormous strain on renters."Families deserve housing that's affordable — it's part of the American Dream," Biden said in a statement Tuesday. "Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes. I'm determined to turn that around."How it works: Under the proposal, landlords that raise annual rents more than 5% would no longer be able to take a key tax write-off on property depreciation over the next two years.The policy would only affect landlords with more than 50 units in their portfolio over the next two years.And so as not to discourage new building, the rule wouldn't apply to new construction or units that have recently be substantially rehabilitated.More than 20 million rental units — about half of what's on the market — would be affected, officials said.The big picture: In an effort to tackle the rent affordability problem, the Biden administration has put forward a handful of policies — limiting rent increases on rentals built with federal tax credits, cracking down on rental junk fees, securing increased rental assistance, for example.The Justice department is reportedly readying a lawsuit against RealPage, a software company used by landlords across the country that is accused of price fixing.But some of the more ambitious proposals to lower housing costs — like those in Biden's 2025 budget — haven't gotten off the ground.Flashback: The President has hinted in the past at the new plan to cap rental increases, both during his disastrous June debate, where it got little attention, and last week at a NATO press conference."If I'm reelected, we're going to make sure that rents are kept at 5% increase, corporate rents for apartments and the like, and homes, are limited to 5%," he said last week.The other side: "Rent Caps don't work and will have a chilling effect on housing supply," said David Dworkin, the CEO of the National Housing Conference, a nonprofit that advocates for affordable housing, in a statement on Monday.Reality check: It's unlikely Congress has the appetite to do this anytime soon. "This is a proposal he would fight for in a second term," an administration official said on Monday's call.And there's little the White House can do to address the record high mortgage rates that have put homeownership out of reach for millions of first-time buyers.
La Comunidad entrega 209 de viviendas del plan de alquiler asequible en Tres Cantos2024.07.16El director del desarrollo Plan Vive CULMIA, Andrés Rituerto (2i); el consejero de Vivienda, Transportes e infraestructuras, Jorge Rodrigo (3d), y la presidenta de la Comunidad de Madrid, Isabel Díaz Ayuso (1d), durante una visita a una nueva promoción de viviendas del Plan Vive en Tres CantosMarta Fernández Jara - Europa PressLa Comunidad de Madrid ha entregado una nueva promoción de 209 viviendas del Plan Vive, que ofrece alquiler asequible, en Tres Cantos, en una urbanización cerrada ubicada en la calle Letonia de la ciudad que cuentan con garaje, trastero, zonas comunes ajardinadas, piscina, espacios de 'coworking' y áreas deportivas.La presidenta regional, Isabel Díaz Ayuso, ha visitado este martes las instalaciones, y en ellas ha destacado que este es un "plan novedoso, único en el mercado, pionero y que es fruto de la colaboración público-privada". Concretamente, según ha desgranado, está movilizando una inversión privada en vivienda por valor de 1.000 millones."Estamos construyendo 8.500 viviendas en un momento muy difícil en el que España está experimentando un importante crecimiento poblacional a la par que faltan viviendas y esto lo que está haciendo es encarecer enormemente los precios", ha indicado Ayuso, quien ha añadido a esto la inflación, el coste de los materiales y "las subidas masivas de impuestos".Los inmuebles de Tres Cantos, que se empezarán a entregar la próxima semana y a lo largo de todo el verano, se distribuyen en 45 hogares de un dormitorio, 140 de dos, 24 de tres, y nueve están adaptados a personas con movilidad reducida. Además, son eficientemente energéticos gracias a la instalación de aerotermia centralizada, paneles fotovoltaicos y led, lo que va a permitir ahorrar a las familias adjudicatarias hasta un 30% en sus facturas.Igualmente, como novedad, los nuevos inquilinos también podrán conocer el consumo en tiempo real de agua, electricidad y climatización de sus casas mediante una aplicación. Estos avances, a los que hay que sumar la mejora del aislamiento acústico, han sido posibles por la utilización del método de construcción industrializada, con el que se reducen los plazos de edificación y se abaratan los costes.Los requisitos mínimos para acceder a estas viviendas en alquiler son tener nacionalidad española o residencia legal en España, destinar la vivienda a residencia habitual y no contar con otra propiedad. Además, se da prioridad a aquellas personas que ya están empadronadas o trabajan en el municipio donde se han construido.8.500 NUEVAS VIVIENDASEsta promoción de Tres Cantos forma parte de las 8.500 viviendas que la Comunidad de Madrid va a poner a disposición de los ciudadanos a lo largo de la presente legislatura a través del Plan Vive. Este programa de colaboración público-privada ya ha posibilitado la entrega de 274 hogares en Alcorcón, a las que se sumarán próximamente 2.506, actualmente en fase de comercialización.Estas se sitúan en San Sebastián de los Reyes (488), Alcalá de Henares (300), Getafe (492), Torrejón de Ardoz (137) y otras 548 en la ciudad alcorconera. Además, esta misma semana se ha abierto el plazo de adjudicación de 332 viviendas del Plan Vive en Valdebebas.Otro aspecto importante es el límite de gasto ya que no se puede destinar más del 35% de los ingresos netos anuales de la unidad de convivencia al pago de la renta total por año.