Real estate investing. Always a hot topic!
Let’s not waste any time and jump right in on Where to Invest in 2022.
The East is really having a moment.
Although this region made considerable gains over the last couple of years, there is still room for so much more! Hence why it’s on our list – as a whole – of Where to Invest 2022!
For perspective, some cities in Durham saw increases of home prices over 45% year over year. Pickering and Whitby for instance, went from having homes sell with an avg home price of $900k last year to upwards of $1.3m this year.
Our main thoughts for the region are broad, and with good reason!
You could purchase a single family home as a long term play (or for the risk tolerant – a short term flip!).
Prices have already risen, but the room to continue to grow is still great thanks to the rise in population both realized and the proposed immigration targets for Canada. In addition still is the room for land development as the area is ripe with land waiting to be built upon.
Another option, if looking to the future for moving up or even retirement, would be to bank a home or land.
Let us explain.
Many investors with big plans for their future purchase homes based on the land they sit on. Often the land is generous in size, backing onto nature or even waterfront. They purchase the home, typically bungalows, and rent it out while they wait to be ready to eventually renovate or build their dream home or future retirement home.
The idea for Durham investors would be that the bungalow on a nice sized lot you purchase today, will have a renter pay the majority of it over the years. Then, in the future, as appreciation builds equity in the home, use the funds towards the build!
Typical 3 bedroom homes in Durham rent for $2500-$3000 as a whole (this could increase greatly depending on size and finishes of the home).
If you purchase a home with a basement apartment, or build one yourself, upstairs could fetch $2000-$2400, while the basement could fetch $1500-$2000 (again all depends on size, finishes etc.).
Food for thought.
Pre-Construction condominiums and homes are also very much a great idea. (Hello appreciation!).
In Pickering, specifically speaking condos, approx. 75 towers are currently registered as potential projects. The city has MASSIVE plans to reinvigorate and intensify the main artery, Kingston Rd, which is currently a road of low rise commercial mix. This would really amp up Pickering as a BIG city and not just a city with small single family homes.
Pickering Town centre in particular will have a whole new look in the very near future, along with the new casino and entertainment complex currently open but still under construction – epic things are happening.
This is something smart investors will want to be a part of. You could make a great deal of appreciation buying a condo in Durham over the next few years.
Your future self will thank us 5-10 years from now!
Barrie & Orillia
Toronto’s sister to the north, and it’s little sister.
This market is on fire and does not show any signs of slowing down. Barrie in particular went from a place no one really considered – to a place where everyone wanted to be!
An increasing number of GTA residents live in and commute from Barrie to Toronto on a daily basis. Loads of new development, plus a plan that’s already underway to revitalise the downtown waterfront neighbourhood happening here.
We have previously worked with several investors that purchased North of the city. Some starting in Bradford, next Innisfil and now Barrie! Seasoned investors know to follow the transit lines to pots of gold. In this case, Hwy 400 N and the GO Train lead a path straight to solid investments. A lot of gains are yet to be had in this exploding city.
Another very exciting opportunity in Barrie & Orillia, and a reason they’re on the Where to Invest in 2022 list, is the option to add a 3rd unit to your property!
Otherwise known as Accessory Dwelling Units (ADU’s), Garden Suite, Backyard Home etc. If you’re open to a project – this could be the city for you. Where you could literally take 1 home and make it 3.
Many investors would agree that 3 units in a home essentially creates a cash cow of an investment if done right.
We’ve seen investors purchase single family bungalows on good sized lots for $600k and then turn around and list them for upwards of $1M 6 months later. Or keep the asset, refinance to pull out the equity and let the rentals pay for the property as per usual, while you move on to the next project!
Let’s not forget Orillia, the little sister. For the most part, everything you can do in Barrie, you can consider doing in Orillia. Although not AS popular for commuters as Barrie, serious real estate cash flow can be had in this city thanks to the reduced avg home price in comparison with Barrie.
Orillia is just North of Barrie by about 20-25 minutes, but the drop in avg price point is actually $150k. The average home cost only $691k in Orillia. (They too have an exciting waterfront revitalization plan!)
The fun part – the rents are pretty much the same in both cities!
Orillia is experiencing considerable spill over from Barrie’s growth and is a great emerging market to consider. Multi-Family investing makes quite a bit of sense here.
Two words: Cash + Flow
Yes and Yes! Which is why we included this gem in Where to Invest 2022.
A newer market up North for investors. North Bay is a city located 4 hours north of Toronto on beautiful Lake Nipissing and is considered the gateway to the North. (Yes Toronto people – life exists well above us!)
North Bay is quickly becoming a favourite amongst savvy investors due to average home prices being well below any averages those in GTA are aware of. A home in North Bay sold for $400k on average in Jan 2022..
And the bonus? Rents are the same as most cities within the proximity of the GTA.
Vacancy rates are also incredibly low, adding to a tenant pool of sales and service men, tradespeople, hospital and health workers from North Bay’s Hospital, along with educators and students from North Bay’s Nipissing University.
For context, you can purchase a 3 bedroom town home for approx. $250-$350k which will in turn rent for $1900-$2200 in North Bay. Hence why the cash flow is so great. The city has also increased in value, as did the rest of Ontario, over the last year (46% in Jan 2022, compared with 2021).
Alternatively, a semi or detached home in a great neighbourhood can be purchased for $450-$550k and with that price increase, comes a rent increase as well. Some homes rent closer to $2600 depending on the size of the home and it’s finishes.
Another reason it’s great..less competition! (Sudbury to the North is a much bigger city, but with that comes bigger competition to purchase homes.)
North Bay is an emerging investor gem, with it’s hospital, university, gorgeous lake, and also it’s own ski hill, Laurentian Ski. I’m sure by now you can see once again why we put North Bay on our list of Where to Invest in 2022.
Other options from single family rentals also include Student Rentals and Multi-Family investments and even BRRRs.
That’s all for now friends!
Stay tuned for Where to Invest in 2022 – Part 2 coming soon!
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