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Real estate is one of the best ways for an investor to make money - you must have probably heard about the age-old truth. Not only do investment properties can earn you excellent long-term returns but they also offer you tax benefits and add diversification to your overall investment strategy.
There is one problem though; real estate investment can be a pretty expensive venture to take on. Especially now, when the spring real estate market is heating up and property prices are springing up.
But here’s some good news for aspiring investors, there are some cities in Ontario where property prices are still within budget, in fact under $700K. These housing markets with affordable properties and great profit potential can make your invested dollar stretch further.
One may think Niagara Falls is the biggest city in the Niagara region. Instead, it is its neighbouring city of St. Catharines with a population of over 140,000.
St. Catharines is home to the renowned Brock University and Niagara College also has a campus located in Welland, which is a very short drive from St. Catharines. Many of the students who go to both of these institutions opt to live in St. Catharines, which in turn has caused the city’s property market to heat up.
St. Catharines real estate market has seen a significant price appreciation over the last decade, beating the national average. Rental yields in this city are also attractive, averaging around 5.5% per annum. This clearly explains why a large number of savvy investors and first-time homebuyers are flocking to this city recently.
A few years back, MoneySense magazine placed Brantford in the first rank on the Where to Buy Real Estate list. Ever since then, all eyes have been on Brantford, the southwestern Ontario city located on the Grand River. And the city has managed to strike everyone with wonder with its rapid growth and development.
Over the last few years, Brantford has achieved the perfect blend between a small Southern Ontario city and a thriving community that has welcomed growth. At present, Brantford has over 380 different industries and is within commuting distance of many more large industries.
Apart from attracting businesses and investors, Brantford has become a prime destination for homebuyers. This is because the city offers a great quality of life to those looking for an alternative to the big-city expense, and crowding without leaving the Golden Horseshoe region.
The 2021 census reported a population of 104,669 in Brantford, a 6.21% increase as compared to 2016. This growth has significantly outpaced both the national (5.2%) and provincial (5.8%) averages for the same period.
Brantford has plans to accommodate a projected population of 163,000 by 2041. So, in case you have been on the hunt for a city with immense growth potential and affordable property prices, Brantford is the city for you.
Located in southwestern Ontario, along the confluence of the Thames River, London is a city that offers the perfect mix of history, culture, and nature. This Forest City is particularly appealing to nature enthusiasts and has also become a magnet for real estate investors. This is mainly thanks to its growing economy, stable housing market, and growing rental market.
Statistics Canada has ranked London as the fastest-growing city in Ontario and the fourth fastest-growing city in the country, in terms of population. The steady growth of the population in London is mostly because of its thriving economy and renowned educational institutions - Fanshawe College and the University of Ontario.
The city’s population is projected to grow to 650,000 by 2051. Hence, we can expect a consistent demand and property price appreciation in the London housing market in the years to come.
Niagara Falls draws around 14 million tourists annually. With this steady flow of tourists comes a high demand for rental properties, both for short-term vacation rentals and long-term stay properties. The average rate for short-term rental properties in Niagara Falls ranges from $200-$500, significantly higher than other Ontario cities.
Niagara Falls has shown tremendous potential for growth, as its population has increased significantly in the last few years. In the 2021 Census, the population of Niagara Falls was around 92,000 and it’s expected to reach 100,000 by 2026. Thus, from consistent tourist traffic and growing population to affordable properties, all signs point towards a promising investment journey in Niagara Falls.
Ottawa doesn’t have the crowds & competition, and stress & fast pace vibe of the big cities. Instead, characteristics such as green, clean, safe, and quiet suit the vibe of the country’s governing hub better. This factor is the biggest reason behind the city's population increase of 8.9% in 2021, much higher than the province's 5.8% growth rate.
Ample job opportunities are the second factor behind Ottawa’s exponential population growth. As the nation’s capital, there is a steady and stable amount of provincial and federal government job opportunities in the city. Apart from the public sector jobs, there is also a wide variety of employment options in industries such as hotels and tourism, manufacturing, and more.
Ottawa has an excellent healthcare system with four major hospitals within the city limits. It has several reputed educational institutions such as the University of Ottawa, Algonquin College, and Carleton University. Their crime rate is also quite low compared to the national average, making the city attractive for individuals and families. All these appealing factors make Ottawa a great choice for real estate investors looking to buy a property in 2024.
Real estate investment has always been an attractive option for those interested in building substantial wealth. From 2018 to 2023, the average house prices in Ontario surged by a whopping 52.93%, signalling the enormous profit potential within this market.
However, just like any other investment, make sure to build up a good base of market knowledge before you start investing in the housing market. Research the property values, rental yields, occupancy rates, crime rates, amenities, and growth potential of the city before committing to it. With the right knowledge and research, your real estate investment can become the bedrock of your future financial stability.