‘Very tough to find’: Developers struggling to get financial backing for derelict properties

One Winnipeg realtor says getting financing for neighbourhoods like the North End is far from straightforward. Daniel Halmarson explains.

Realtor Rahim Mirza has been buying derelict buildings for the past 10 years – primarily in Winnipeg’s North End – and turning them into rental properties.

“We fix them up, revitalize the neighbourhood, clean up the block, and stick great tenants in,” Mirza told CTV News Tuesday.

Mirza said he owns about 100 rental units with prices starting around $1,200 for a single-family property.

But these days, Mirza said it’s getting hard to secure backing for properties in the North End and inner city.

“We’ve noticed financing and insurance have been very, very tough to find these days,” he explained. “[Lenders] just say no, we don’t want to touch the lending area,” Mirza said.

He said it’s because some financial institutions aren’t willing to take the risk on boarded-up and burnt-out buildings.

Coun. Ross Eadie, who represents the Mynarski ward, said he’s heard similar stories from other developers.

“[Banks are] saying the odds are something’s going to happen to that house, and you might end up losing the house and you won’t have the ability to pay the mortgage on it,” Eadie told CTV News.

According to a spokesperson, the city is currently monitoring 707 residential properties under the vacant building bylaw, including 542 residential buildings. Based on Winnipeg Fire Paramedic Service data, there were 182 vacant building fires between January and September 2024.

Eadie said there should be more incentive and funding available for people looking to redevelop property in the North End.

“If it doesn’t cost as much to renovate, that’s less money that they need to recuperate,” Eadie said.

However, he said issues like crime, addiction, and poverty need to be further addressed to make these neighbourhoods more viable.

Mirza added that fewer boarded-up homes and empty lots make the North End safer – and developing formerly vacant properties gives people more housing options.