Benefits of Real Estate Investing in Niagara

Benefits of Real Estate Investing in Niagara

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There’s a bounty to be had in Niagara, one of the most famous (and lovely) regions in Ontario and, indeed, the whole of Canada. Though famous for its tourism, the Niagara region is one of those vacation destinations that just feels right as a home. At least, that’s what a growing number of people believe. For anyone interested in a genuine growth opportunity in the real estate sector, Niagara is the place to settle your funds.

Table of Contents - Benefits of Real Estate Investing in Niagara

Welcome to Niagara

The Regional Municipality of Niagara, or, for brevity’s sake, just the Niagara Region, is home to roughly half a million people spread across Southern Ontario. This lush region sits at the tail end of Ontario’s Greater Golden Horseshoe, right on the border with the United States. As a result, the Niagara Region is a vital part of the bustling industrial corridor that spans the western edge of Lake Ontario and beyond.

The Greater Golden Horseshoe encompasses Canada’s biggest city, Toronto, and the surrounding area. It is, far and away, the quickest-growing part of Canada, which — considering the country’s explosive growth over the last four years — is really saying something. As the border entry point to this vast industrial network, the Niagara Region serve an enormously important role in the Greater Golden Horseshoe, and real estate investors are quickly taking notice.

A short-term rental dream

For a great many foreigners who know little of the beauty of Canada, the one enduring image of our nation is Niagara Falls. This gorgeous collection of waterfalls creates a natural border between the province of Ontario and the US state of New York. More than 750,000 gallons of water rush over the edge of the natural wonder every second, a phenomenon that brings in more than 30 million tourists every year. They come for honeymoons, they come for family getaways and they come to sample the hospitality of Ontario’s native citizens.

For its part, the region of Niagara has gone above and beyond to accommodate this interest. The Canadian side of Niagara Falls has a near-countless number of hotels and restaurants dotting the scenery. What’s more, the region has also taken strides to expand its appeal, opening wineries and galleries throughout the region. In short, if you have the capital to break into the short-term rental market in Niagara, you can consider yourself ahead of the game.

Don’t discount the residential market

The natural beauty of the Niagara region is genuinely jaw-dropping. Perhaps that’s why a growing number of people are skipping the vacation and moving directly to the area. Population numbers in Niagara are soaring. The city recently passed the 500,000 mark, and that number is expected to continue rising. In the last few years, the rate of population growth in Niagara has reached 300 percent of its average.

At the moment, home prices in Niagara are relatively affordable compared to the surrounding areas. A home for just over $400,000 seems like an absolute steal when you compare it to a house in neighbouring St. Catharines ($440,000) and Toronto ($989,000). Of course, the cost of a home in Niagara could change rapidly. The Canadian Real Estate Agency explains that home costs have “shot up by 81 percent across the region” between 2014 and 2019.

In other words, for a real estate investor able to purchase a stake in the Niagara residential market, their property could see a considerable increase in value over the coming years.

Diverse economic expression

Because the Niagara Region is something of a geographical conduit, you might think that the area is home to a thriving transportation market. Oddly enough, that’s not the case. The region’s primary employers are jumping on the technological bandwagon that began in Toronto. In fact, the area’s scientific and technical market has grown by nearly 40 percent compared to the transportation industry’s 23 percent.

That’s not a knock against Niagara’s industry, it’s an example of just how strong the entirety of Niagara’s economy is. With 4 major highways, 5 international border crossings, 3 international airports and a million truck crossings every year, Niagara’s transportation market is massive. To consider that it is seeing just over half the growth of the science and tech market is a testament to the value waiting for the right commercial investor.

After all, if a diverse array of sectors are coming to Niagara, they will eventually need someplace to ply their trade (regardless of what it is).

A truly resilient market

For a brief time in early 2020, the effects of a slower global housing market were seen in the real estate market in Niagara, but not for long—the Niagara Region demonstrated its immense strength very quickly. In April, there were 270 new listings on the market. Just one month later, in May, there were 473 new home listings—the region is bouncing back quickly and experts suggest that it will continue to do so.

It’s a clear-cut signal that the real estate market in Canada is only getting stronger day after day.

Ready-made entry point

If you’re interested in getting in on the opportunities in Niagara’s real estate market, then you’ve got allies waiting for you. The Niagara Real Estate Investing Network consists of hundreds of landlords and property managers throughout the region. If you’re looking to get a foothold into the housing market in Niagara, that’s the place to start.

For those people just starting out in real estate investment in Canada, a group like this can be the perfect place to get your feet wet. You can learn an incredible amount from other professionals who have experience in the industry. What’s more, you might be able to find collaborative investments that could serve you well, provided you don’t have the income to set out on your investment alone.

Choosing the right location is crucial—and the facts show that Niagara is an excellent place to expand your real estate portfolio.

Beginners Guide to Real Estate Investing In Niagara Region


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Scott Dillingham

Scott Dillingham

I have been investing and lending to real estate investors for nearly 10 years now. After thousands of successful deals between flips, rent to owns, student properties and commercial assets I have developed a deep knowledge of real estate investments and have a passion of sharing this information with the world! If your looking for a lender who specializes in rental property financing you're going to want to connect with me at team@lendcity.ca.