Jocelyn welcomes Sacha Gauthier to delve deeper than the standardized figures. Using a real-world example of a 16-unit building construction project, they analyze how a 1% interest rate increase actually impacts the down payment, capitalization, and return on investment.

Then, they explain the difference between actual and standardized vacancy rates, demonstrating how the gap between these two figures can directly influence your net worth and refinancing options.

⏱️ CHAPTERS
00:00 Intro: Rising CMB rates and actual vacancy on the agenda
01:28 Reconnecting with Sacha Gauthier
02:16 Real-world case: a 16-unit construction project
04:21 Upcoming Bank of Canada decisions (Oct 28, Dec 9)
05:53 International context: inflation and interest rates in the United States and Europe
06:22 Why rising interest rates complicate construction projects
07:41 The numerical impact: $570,000 additional down payment
09:52 The necessary leeway in construction
11:01 The impact on capitalization and yield
13:23 Towards lower sales prices
14:56 The gap between comparable sales and market reality
17:27 Second topic: actual vacancy vs. standardized vacancy
19:09 Why this is reflected in your financial statements
21:38 The impact on refinancing and proof of income
23:21 Maintaining a buffer on the DCR (Daily Cost of Capital)
24:23 Concrete example: vacancy rates by rent bracket in Granby
26:29 Lower rents in new construction: the CMHC's objective
28:12 A brief look at the price-to-income ratio and affordability
29:49 Maintaining a financial buffer
31:05 Closing remarks

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