Benefits of Real Estate Investing in St. Catharines

Benefits of Real Estate Investing in St. Catharines

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At the moment, the Canadian economy is one of the most vibrant on the planet. Millions of dollars are being pumped into the nation from internal and foreign investors every year. Hundreds of thousands of people are moving to Canada each year, resulting in a population and housing boom. The national market is so hot right now, a rookie real estate investor might find themselves overwhelmed with choices.

Indeed, a lot of investors who cannot think of a good starting point find themselves eyeing Toronto, the nation’s largest city. The good news is that if you chose the Toronto area, you’re on the right track. The bad news is that the odds are better than average that the Toronto area will prove impervious to entry for investors who don’t have millions of dollars in startup cash already at their fingertips. In these moments, savvy investors understand that the real prize isn’t the big city itself, but the surrounding communities that benefit from the spillover.

Enter St. Catharines. Located just 51 kilometres south of Toronto, this picturesque city sits on the banks of Lake Ontario. If you haven’t set your sights on this up-and-coming town, you could be missing out.

A commitment to quality of life

Given its proximity to the metropolis of Toronto, it may be tempting to believe that St. Catharines is a less-than-desirable place to live. This couldn’t be farther from the truth. The municipal leaders of St. Catharines are devoted to maintaining the city’s high quality of life. In a province known for its staggering natural beauty, St. Catharines stands out. It has earned the nickname “The Garden City” because of its thousands of acres of hiking trails, parks and gardens.

This commitment to quality of life has enabled St. Catharines to steadily climb the list of best Canadian cities to invest your real estate dollar.

Education and customer service

Novice real estate investors may find it interesting to know that a big portion of the population in St. Catharines is devoted to the teaching of youngsters throughout the Niagara region. The city’s largest employer is the District School Board of Niagara, which has its headquarters in St. Catharines. All told, the DSBN employs 2,500 people and oversees more than 43,000 students between the ages of 5 and 18.

St. Catharines employs several entry-to-mid-level workers, too. For example, one of the businesses in a genuinely thriving area is Sitel Group, which employs hundreds of full-time call center employees. The Sitel St. Catharines location is experiencing aggressive growth and plans to hire as many 400 more employees for full-time positions.

What do these two things have in common? The answer is mid-range salaries. The average income in St. Catharines hovers around $76,000. That puts the city’s gross income right around the provincial average.

The benefit of mid-range salaries

For an investor hoping to score big in the world of real estate, an area with a large middle-class population can be an enormous benefit. Why? Because the home and rental costs lower as the salaries lower. That is precisely the case in St. Catharines, where the average price of a home is roughly $439,000, and the rent for a one-bedroom apartment is $992 a month.

A short 51 kilometres north in Toronto, a home averages nearly a million dollars and rent on a one-bedroom hovers closer to $1,200 a month. Such a substantial difference in the price of homes translates to a much more accessible point of entry into the real estate market.

Consider the rental market

There is, undoubtedly, a lot to be said about searching through St. Catharine’s available single-family homes. As the Greater Toronto Area swells beyond capacity, more and more people are leaving the area to find a house of their own (that’s also within their price range). That said, the St. Catharine’s rental scene is also heating up.

Due to the high number of customer service jobs in the region, the rental market is the ideal option for most adults. In the last year, four new condominiums have gone up along the St. Catharines skyline with several more to follow. Seeking out and investing your capital in new commercial real estate projects in the city could prove remarkably lucrative for the right investor.

Grow with the greater Golden Horseshoe

At the moment, the Toronto area and the surrounding industrialized region (commonly known as the Greater Golden Horseshoe) is host to some of the most amazing growth that Ontario has ever seen. But, there’s a problem. In a lot of areas, strict regulations prohibit the rapid growth necessary to accommodate the increased demand for housing and office space.

However, that’s due to change. In May of 2019, the Ontario government kickstarted the Growth Plan for the Greater Golden Horseshoe. Though it may need a snappier name, the intent of the legislation is noble: to ensure room for 150 jobs and homes per hectare by the year 2032. The Growth Plan is accomplishing this goal by reducing the costs of construction (as well as other associated fees) throughout the target area.

Investors willing to get in on the ground floor of that explosive growth could stand to reap the rewards.

Get the help you need

Throughout Canada, there are real estate investment groups that operate with the sole purpose of connecting investors and guiding them toward smart decisions. Few real estate groups are as active as the one in St. Catharines. If you’re looking to tap into a community of like-minded real estate investors quickly and with little effort, Invest in St. Catharines could be perfect.

The group touts educational and investment opportunities regardless of where you are in Ontario.

Investing in St. Catharines is a smart choice if you’re starting out and want to see some big gains in the future.

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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.