Best Places to Invest in Real Estate

There is a MoneySense “Where to Buy Now” report outlining the best places to invest in real estate in Ontario, that’s getting a lot of attention online. The last few days I’ve seen a bunch of people sharing this article across Facebook and LinkedIn.

Whenever I scroll through my news feed, sure enough, it’s there!

With real estate values skyrocketing across much of the Greater Toronto Area (GTA), homebuyers and investors have been look elsewhere for years for a place to put there money.

While average home prices have increased more than 20% in Ontario over the past year, the province is still home to several attractive markets that offer steady price growth and plenty of investment potential.

In an effort to elaborate on the MoneySense article, I wanted to share with you my “on the street” experience with the best places to invest in real estate.

My goal is to help you narrow your real estate search to areas that have great appreciation potential and aren’t already on most homebuyers’ radar.

These are the best places to invest in real estate

Hamilton

The Real Estate Investment Network of Canada (REIN) has declared that the #1 city to invest in is Hamilton real estate investment. Year after year affordability rates in the city have been stable. Even though average home prices in Hamilton are reaching $400K, there are still many good neighbourhoods where $250-350 can still get you a very nice single family or 2 family home.

On the investment side, vacancy rates are reaching their lowest points in a decade. This means rental demand is high and there will be increased upward pressure on rental rates, offsetting somewhat increased carrying costs.

Cambridge

REIN conducted research in a 140-page report, where they assessed that real estate in Cambridge was attracting a lot of young adults who are moving to the area to start families. They’re also staying there in the region, so a trend toward younger families is growing. Cambridge has an older stock of homes, which allows people to get in and add value and revitalize neighbourhoods. Just like other cities throughout the GTA, there is an increasing number of small companies forming in the area.

Barrie

What makes real estate investment Barrie so appealing is that the city has a growth strategy it is implementing straight through to 2031. A major factor to Barrie’s growth is the addition of the GO Train transit expansions. It will become the main mode of transportation for those commuting to and from the GTA.

Although you can invest in condos, townhouse, 8-plexes or detached homes, Barrie’s best offerings are single family homes. In any economic cycle, there is one market that is always active, or most liquid, and that’s the starter home market.

St. Catharines

After Hamilton, real estate investing St Catharines is the next hot spot in Ontario. There are 3 big reasons why St. Cahtarines is poised to be so hot. For one thing, it has a population growth greater than the rest of the provincial average, which means more people are moving in than out.

Secondly, the average family income is higher than the provincial average. This means people have jobs and it’s an indicator of diverse employment.

Lastly, there’s infrastructure and transportation improvements in the community. Things like highway improvements, sewage development, and new GO train stops.

St. Catharines covers all 3 of these criteria. Which means when searching for a neighborhood to invest, St. Catharines makes it possible to find a good property where you’ll have an easier time getting a good tenant with higher rent.

Oshawa

Real estate investment Oshawa and its surrounding communities like Ajax, Pickering, Whitby and Brooklin have become magnets for millennials, especially as GO Transit frequency has improved and the eastern extension of Highway 407 nears completion.

Research has shown that property appreciation has been strong in Oshawa. Home appreciation has been steady due to a stable influx of people moving into the area to live and work. Even international investors have shown interest in investing here, as business is good in this part of Canada.

With hundreds of people living and working in Oshawa, plus the number who come for vacation, there is a constant demand for rentals. This is good news for any investor looking for good income producing properties in nice neighborhoods.

Kitchener

My investors invest for cash flow, and for good reason, it’s a critial component to making a sound investment decision. But Kitchener is different in that, you could look to invest in appreciation.

You see, there is a lot happening in Kitchener. There is an ongoing increase in employment in the city, expansions to the GO transit system, the implementation of the LRT (light rail transit), easy access to highways 401 and Conestoga Parkway, local universities and colleges and many flourishing neighbourhoods.

All this economic development points to appreciating home prices in Kitchener. You can read more about the Kitchener real estate investment market in this article.

Want even more information on the best places to invest in real estate?

Whether you’re brand new and it’s your first time trying to find the best places to invest in real estate, or even if you already have a few income properties and you’re looking to expand your real estate portfolio, you’ve come to the right place.

My website is full of valuable Canadian real estate investing information. There is a ton or resources here!

I encourage you to read through some of my other real estate investing articles. I cover topics like create a real estate investment business plan, how to find a lender who’ll provide you with a mortgage geared specifically for investors and how to flip houses for profit in Canada.

While you’re sticking around also take a look at my blog and videos. I make new ones every week. This is great content to follow if you want to see what I’m actively doing in my own real estate investing business. So follow me as I examine and share insights on income properties all around the GTA.

One last thing before I go, I have a real estate investing starter kit. It’s a culmination of all the information products I’ve put together in the last 2 years.

And I want you to have it… for FREE!

Inside the kit I show you my personal strategies based on my experiences right here in the Greater Toronto Area, which have helped me to snowball my real estate investment portfolio.

Jose Jafferji,
Your Real Estate Investment Advisor