real estate investing st catharines

Real Estate Investing St Catharines

If you’re looking to get into real estate investing St Catharines, the time is right now to get into the real estate market.

Patrick Dummit, president of the Niagara Association of Realtors thinks St. Catharines is in a stretch of eight to ten years of continuous growth.

Think about this… if you sold in October 2015, your residential average sale price would have been 26 per cent higher by October 2016.

Niagara property sales in October 2016 also increased 14.8 per cent over October 2015.

You see when you invest in the Niagara market, you’re investing in a leader in the province. Why? The announced GO train expansion is one reason.

And when you get into the Niagara real estate market, you get a deal compared to Toronto’s inflating prices.

Here’s Why You Should Stay Away from Toronto

Sometimes when I meet new people they ask me why I don’t invest in real estate closer to Toronto…

And I always give them the SAME answer.

“I would, if I could make the numbers work.”

It’s simple math really! Home prices in Toronto are just too high. It makes it really difficult to make the investment property cash flow.

Take a quick look at this example…

I found 2 houses that are pretty similar on paper. They’re both bungalows that have 3 bedrooms and 2 bathrooms, and they’re both around 1,200 sq ft. The only major difference…

screen-shot-2016-12-19-at-11-39-13-am

…one is from Toronto…

screen-shot-2016-12-19-at-11-38-57-am…the other is from St. Catharines.

Oh yeah, and the PRICE. There’s a major difference in the price!

The average real estate investor is out searching for the cheapest houses on the market hoping to see the largest margin of profit. Knowing exactly in which cities to search makes the process effortless.

And real estate investing St Catharines can offer you benefits that the Greater Toronto Area can’t. Here two:

  1. Bungalows. According to the Niagara Home Builders’ Association “people are moving to Niagara for bungalow-type living.” In the GTA, two-story homes or townhouses are your options. But in St. Catharines half the product built is bungalows, and that’s hard to find outside of this area.”
  2. Smaller homes. There is a demand in real estate investing St Catharines so land developments projects are planned for years to come.

The right neighborhood is a major influencer in the price you can charge for rent, one more factor in seeing positive monthly cash flow.

3 main things a successful real estate investor will look for in a neighborhood

  1. It must have population growth greater than the provincial average. This means more people are moving in than out.
  2. The average family income must be greater than the provincial average. This means people have jobs, and it’s an indicator of diverse employment.
  3. There must be infrastructure or transportation improvements in the community. Things like highway improvements, sewage development, or new GO train stops.

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

In any economic cycle, there is one market that is always active, or most liquid, and that’s the starter home market. Start homes look different in different neighborhoods, so it is important to figure out what a starter home looks like in the neighborhood you’re investing into. In St. Catharines there are a lot of bungalows that people use as starter homes.

Here in the Greater Toronto Area, there is a hot demand for homes and more and more people are looking to rent because housing prices are out of their budget. A few years ago these same renters would have been buyers, but with the current market, they end up renting. You no longer just get renters in the city or in low-income neighbourhoods. Today’s renter wants to feel the same pride in their home as an actual homeowner, and from our experience, as a real estate investor, the best way you can meet this need is by offering good homes in desirable areas.

More Real Estate Investing St Catharines Facts

Whether you’re an experienced real estate investor or you’re looking to purchase your first home, you should always be looking for ways to simplify the process. We encourage you to attend our Inner Circle meeting. We believe you’ll gain valuable insights that will position you ahead of the rest of the real estate investing crowd in the GTA.

 

your real estate investment coach,
Jose Jafferji

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