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This article was supplied to us from Erwin Szeto at Infinity Wealth.
When it comes to real estate investing, the name of the game is location, location, location. Where you decide to invest your money, dictates the long-term profitability of your investment properties and your success as an investor.
So, as a real estate investor, you naturally will want to invest into the best performing markets. That way, you know that your properties will experience the highest appreciation and generate the most cash flow available to help you achieve financial freedom and expand your investment portfolio.
So, in order to help you learn which towns have helped real estate investors achieve the most success, here are the 5 best cities in Ontario for real estate investing.
The 5 Best Cities in Ontario For Investors
Here are 5 of the best cities in Ontario for real estate investing.
Hamilton is a city known for experiencing massive amounts of growth in recent years and one of the best cities in Ontario. The city has become a very attractive place for both new and old families to live contributing to a revitalized population with a thriving economy with a below-average unemployment rate. As well, Hamilton is home to many families who work elsewhere in the GTA (Greater Toronto Area) but choose to commute to work instead of moving into more expensive cities and towns such as Toronto.
As a result, Hamilton has a very high demand for rental properties, with prospective tenants frequently offering to pay over asking price in order to secure good apartments and rental units, making the market incredibly profitable for real estate investors.
Additionally, as a property owner in Hamilton, you are able to apply to build laneway housing – a secondary dwelling built in the backyard of a home that opens to the back lane of the property. This not only creates additional housing to meet the demand in the city, but it also creates an additional source of cash flow for the property owner.
In the last year, it is estimated housing prices in Hamilton have increased by a total of 12.9 per cent, meaning that if you purchased a home for $400,000 last year, it could be worth over $450,000 now.
With statistics like that, it is not hard to see why, as an investor, Hamilton is one of the best cities in Ontario.
Brantford is considered to be one of the most business-friendly cities in North America and in-turn one of the best cities in Ontario, and that includes real estate businesses. With its rapidly growing population and recent boundary expansion back in 2017, Brantford is a city that is currently experiencing a steady growth period, which is perfect for real estate investors looking to get in early.
The city of Brampton has a detailed development plan set to cover the next 20 years of growth in the city in order to accommodate the ever-growing population. This is incredible for investors because they can look at the plans to improve the city and arrange their investments accordingly in order to maximize the growth of their own portfolios.
Currently the average sale price for a home in Brampton is estimated to be over $970,000, with a 16.3 per cent increase when compared to last year’s prices. This makes Brampton one of the best cities in Ontario for equity investors.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Many people used to look at the Niagara region as nothing more than a tourist trap with little interest beyond appealing to tourists. However, in recent years the housing market in the region has seen serious success despite the Covid-19 pandemic devasting the tourism industry converting it into one of the best cities in Ontario for residential investors.
In fact, residential real estate in the region has seen a massive surge in value in recent years. For example, the average home price in St Catharines in January 2021 was $527,000. By January 2022, that price had risen to $790,000, an approximate 50 per cent increase from the previous year.
Now, with the majority of restrictions lifted, towns like Niagara Falls and Niagara-on-the-Lake have seen a massive resurgence in the local tourism industry, bringing back the demand for commercial property usage such a hotels and short-term rental properties (Airbnb, VRBO, etc.) This means that as the balance is restored Niagara will continue to be one of the best cities in Ontario for investors and culture.
While technically being three separate towns, the KWC region is still one of the fastest-growing regions in the country and some of the best cities in Ontario. This can be attributed to both the region’s booming job market and the interconnected nature of these cities.
In KWC, it is not uncommon to find residents commuting between cities in order to take advantage of job opportunities in other parts of the region, contributing to the financial health of each city.
Additionally, each city has a wide variety of different forms of housing available, ranging from downtown apartments to suburban single-family homes with plenty of yard space.
However, it is important for investors to note that the city of Waterloo does have rental licensing requirements. This means that if you plan to buy in the city of Waterloo, you will need to apply for a specific license that is renewed yearly.
Housing prices are currently up by 19,6 per cent year over year in the region with the average home price sitting over $890,000 in each city. While it is expensive, its undeniable that the KWC are some of the best cities in Ontario.
Real estate investors can often find themselves intimidated entering the market for the first time because they are unsure where to start. Fortunately, for them, Belleville has consistently been a strong choice for new investors looking for an affordable city to begin building their portfolios.
Recently, Belleville also experienced a record-high when it comes to increased home prices. In 2021, the average home price in Belleville was $547,626, which is 43.9 per cent higher than the 2020 average of $380,658. This record-breaking increase has been tremendously beneficial for investors who invested into the region early.
Invest for the Future, Not the Past
One of the most important things you should always do as an investor is to structure your investments off of what is going to happen, not what already has.
If you want to generate meaningful wealth, look at regions that are currently making investments into infrastructure or business developments and buy early. That way once the cities begin to see the return on their investments, you can experience the greatest returns on your own.
If you are looking to connect with your fellow investors and learn how to generate meaningful wealth, you should consider coming to our upcoming events.
We host a variety of networking opportunities including out monthly real estate meetup, free in-person real estate training and street-smart tours learn more about real estate opportunities around Ontario.
If you are interested in signing up or would like to learn more, visit our website at https://www.infinitywealth.ca/events today.
If you would like to learn how to finance properties in some of the best cities in Ontario, click the link below to book your free strategy call at the link below.