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Along the beautiful Grand River and Innovation Corridor of Ontario lies a city full of investment potential for investors of all kinds. Cambridge Ontario is a unique city that offers a distinct identity when compared to cities outside of the Technology Triangle.
With a population of over 130,000 people, Cambridge is a moderately sized city with big-city potential in terms of real estate investment and business development. This makes it a very attractive location for commercial investors who know how to read the local demand and utilize it to their own advantage. Notably, businesses in the technology, digital media and tourism sectors are often regarded as strong investments and major drivers in the local economy.
So, if you are interested in investing in and developing real estate in Cambridge, keep reading and let’s take a look at the current Cambridge real estate market and where opportunities may be available for you to invest.
But first, if you are ready to learn more about how to finance your investment in the Cambridge Real Estate market, click the link below to book a free strategy call with our team at LendCity.
Leveraging the Tourism Industry in the KWC
Cambridge is an excellent place for tourism related investments because it is located in a region full of major tourism draws and events.
Firstly, Cambridge is home to some popular local tourism events such as Rock the Mill and the Mill Race Festival. These each attract thousands of visitors into the city each year. Beyond that there are the Cambridge Highland Games in July which is yet another popular event.
However, Cambridge benefits from more than its down domestic tourism events. In fact, for people looking to attend tourism events and celebrations in the cities of Kitchener and Waterloo, Cambridge is a popular place to stay for those looking to enjoy quiet nights away from all of the action due to its relaxing atmosphere and calming environment.
One of the largest tourism events that brings traffic into Cambridge is the Kitchener-Waterloo Oktoberfest, this event draws in over 700,000 annual visitors into the region and brings over $21 million in economic activity. However, the size of the crowds greatly exceeds the normal supply or short-term rental accommodations that the two primary cities for the event can normally provide, as a result many guests find themselves staying in Cambridge instead.
The true advantage of cities such as these is the ability for them to use each other’s resources and infrastructure in this way. As an investor, all you need to do is look for the openings where the cities rely on each other and seek to fill that need in order to leverage the situation into your favour.
Addressing the Housing Demand
Currently, Cambridge has an estimated two per cent approximate vacancy rate. While this is good for avoiding long-turnovers it does restrict room for the city to grow and house new residents while maintaining room for existing residents to move around.
In order to address and resolve this issue the city is in need of new large-scale housing developments such as apartment complexes, condominiums, and townhouses to add large quantities of new housing within a minimal footprint to avoid contributing to excessive urban sprawl and encroaching on other cities’ territory.
Discover How To Buy Commercial Real Estate With This Step By Step Guide
Preparing for the Cambridge Real Estate Market Rebound – Using Commercial Financing to Maximize Your Residential Investments
The Ontario market has been cooling down and cities have been seeing declines in purchase prices across the province – Cambridge is no exception to this event. In fact, the city of Cambridge real estate market has seen its average purchase price drop by approximately $300,000 in the last year alone. However, since this decline is due to larger economic circumstances and not a lack of faith or value in the market, it is highly projected that once the current inflation issues have been resolved, Cambridge will see a return to its previous value.
So, if you are interested in investing in preparation for that rebound but do not have the income to support a traditional mortgage on the properties, you may want to consider a commercial mortgage. Instead of qualifying you off of your income for a mortgage, most commercial lenders will qualify you for a property using the average fair market rent for the property first to see if the property makes proper business sense to purchase and can cover most if not all of its own expenses through rental income.
Then, once the market rebounds as anticipated, you will have successfully used a commercial mortgage to leverage large amounts of equity out of this low point in the Cambridge real estate market.
Cambridge Real Estate – Creating Opportunities in the Creative Capital of Canada
Between the beautiful landscape, strong business mindset, and the ability to leverage the city’s connections with major markets such as Kitchener, Waterloo, and Toronto there is no surprise that investors are starting to take notice of Cambridge coming into 2023.
However, if you want to make the most of the projected growth that this city is expected to experience, you want to ensure that you are getting the best available financing for your investment strategy and goals. That is why at LendCity we have a dedicated commercial financing team in place in order to ensure that you are getting the best available financing regardless of what your goals are as an investor or a developer.
So, if you are ready to get started or if you have any questions about the process of financing your commercial real estate investments and developments, visit us online at LendCity.ca or give us a call at 519-960-0370 to book a consultation with a member of our team.
Cambridge Real Estate Professionals
Here is a list of trusted real estate professionals that service the Cambridge Real Estate Market.
You can also click the link below to book a free strategy call with our team at LendCity.