Benefits of Real Estate Investing in Peterborough
Peterborough, Ontario and the surrounding metropolitan area is the “gateway to the Kawarthas,” sandwiched between Ottawa and Toronto. This affordable town is not only one of the best places to retire in Ontario, it also draws a significant amount of tourism each year. Could this bedroom community be the right place for your next real estate investment?
Peterborough promises steady growth for residential and commercial real estate investors alike. Read on to learn more about this charming area and what it can do for your portfolio.
Peterborough - an ideal location for commuters
Peterborough is located on the Otonabee River, 270 km southwest of Ottawa and 125 km northeast of Toronto, making it a nice location for those commuting to East Toronto and Oshawa. Because of its location and the newly constructed Highway 407 extension, it’s well-connected while remaining a relatively quiet metropolitan area. Experts predict that the Highway 407 extension will lead to further population growth and home sales—and the current real estate market supports that idea. As Toronto’s home prices skyrocket, more people are looking for affordable locations where they can commute to major metropolitan areas. Peterborough is ideal in that regard. The fact that it’s beautiful and offers plenty of recreational opportunities doesn’t hurt, either.
Historical charm abounds
The Peterborough area was initially populated by First Nations tribes, starting several millennia ago. In fact, two indigenous sites are within a short drive of Peterborough: the Serpent Mounds, burial mounds which were constructed and occupied about 2000 years ago, and Petroglyphs Provincial Park, which boasts the largest collection of petroglyphs in Ontario. They are thought to be 900-1100 years old, if not older. The petroglyphs were unknown to non-First Nations people until they were accidentally discovered by a prospector in 1954.
European settlers came to the area in the early 19th century, including a large influx of Irish Catholic families in the 1820s. Sawmills, grist mills, canoe and boat manufacturing and early hydroelectricity all contributed to Peterborough’s success—some of which still exist today.
In addition to the First Nations historical sites, the town’s history is preserved in the Heritage Preservation organization as well as the Peterborough Museum and Archives. Downtown Peterborough features charming Victorian-era streets and storefronts, which are a draw for tourists and residents alike.
Peterborough Demographics
Peterborough is home to about 82,000 people as of the 2016 census, and the metropolitan area’s population is about 122,000. The average age is 43, but over 22 percent of the population is age 65 or over, reflecting its hearty retirement community. About half the population is married or living common law, and children 14 and under make up 14 of the area’s residents. However, 18-34 years olds are the fastest-growing group in the area, and with the completion of the Highway 407 extension, that number is expected to grow.
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Service, manufacturing and tourism bolster Peterborough's economy
As manufacturing has declined over the years, the service industry has taken over the economy. The unemployment rate remains on par with the rest of the province, and in 2016, Peterborough published an economic development plan to facilitate more development in the coming years. The metropolitan area is focusing on attracting more entrepreneurs, established companies and developers; this is an excellent time to invest, before land and home prices increase.
When it comes to tourism, there’s plenty that draws visitors and new residents alike. Peterborough is the “gateway to the Kawarthas,” the chain of lakes that are mostly located in Peterborough county. There’s plenty of outdoor recreation to be had, including Beavermead Campground, kayaking, rowing and ice skating. There are also outdoor trails with historical sites and ecological attractions. The local junior hockey league has a home at the Peterborough Memorial Centre, and there are often regattas in the summer.
Peterborough boasts several museums and art galleries, public arts and community centers. The Canadian Canoe Museum is in development, as well as a new casino. Riverview Park & Zoo, the Wild Water & Wheels amusement park and the Peterborough Skate Park are all worth a visit, whether you’re a local or tourist.
Affordable homes for families and retirees
Peterborough’s housing market is hot and is projected to grow even more so in the coming years. Home prices have gone up over 22 percent in the last year to a record high of $545,942—likely due to the proximity to Toronto. In other words, if you’re planning on investing in Peterborough, it’s a good idea to do it as soon as possible. As the housing market rebounds after COVID-19, you can expect that home prices will go up even more. In November 2020, sales went up 12 percent from November 2019—the highest it’s been in two decades. It seems that buyers are most interested in waterfront properties—as long as they have a strong internet connection.
When it comes to the rental market, the average price for a one-bedroom apartment is $1,388, up 10 percent from last year. The vacancy rate was 2.1 percent in 2019. Rental stock remains stable, and demand for rentals in the downtown area has decreased a bit. If you’re thinking about developing a rental unit, consider the average mortgage price versus the average rental price to determine how attractive (and achievable) homeownership may be. The median household income hovers around $58,000 per year.
The time is right to invest in Peterborough
Overall, if you’re thinking about investing in Peterborough, now is the time to make your move. As the area becomes increasingly attractive to commuters, and as the CMA continues their economic development plan, prices will likely rise over the next decade. Market your properties to families, retirees and vacation renters, and you’ll undoubtedly have excellent luck with your portfolio. Between tourism and steady population growth, this area is one of the hottest hidden gems in Ontario.
Real Estate Professionals in Peterborough
We have searched high and low for real estate investing professionals in Peterborough. Below, you can find professionals we have researched and can confirm they specialize in working with Real Estate Investors.
To ensure the maximum success in real estate investing in Peterborough, or any city, you should always use professionals who understand and work with investors, your income depends on it.
This list may not fully list all the professionals in the area, but the ones we have personally investigated and that we would refer our clients to.
If you’re a real estate professional and would like us to consider adding you to the list, please contact us.
Mortgage Broker
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