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Located in Southwestern Ontario, Chatham Ontario is a city known for its rich history and diverse, welcoming community. This rural community is located in a great position with easy access to major markets further north as well as the American border to the south within a two-hour drive in either direction.
This municipality is actually an amalgamation of the towns of Blenheim, Chatham, Dresden, Ridgetown, Wheatley, Wallaceburg, and Tilbury. These towns formally came together in 1998 and since then have been known as Chatham-Kent. This area is now home to an estimated population of approximately 108,000 residents.
While Chatham-Kent real estate offers a very humble lifestyle and quiet community, this is often a very beneficial thing for real estate investors looking to build steady, reliable investments to help them create passive income and cash flow. So, if you would like to learn more about how this city can help you increase your cash flow and build a stronger investment portfolio, continue reading.
However, before we dive in, if you would like to learn how to finance your investments into the Chatham-Kent real estate market, click the link below to book a free strategy call with our team at LendCity.
Chatham-Kent Real Estate – A location made for trade and manufacturing
Chatham-Kent is a municipality that includes the towns of Blenheim, Chatham, Dresden, Ridgetown, Wheatley, Wallaceburg and Tilbury. It was amalgamated in 1998, but the area’s history is a long one. Originally populated by First Nations tribes (particularly after the American Revolution), it became a naval dockyard in the late 18th century. The municipal area is located on the Thames River and named after the Earl of Chatham, just like the town in England.
In the 19th century, Chatham-Kent was an important part of the Underground Railroad. In fact, there are several slave havens that visitors can tour, including the Uncle Tom’s Cabin National Historic Site. The area once had a large Black population (about a third of the overall population), but once the United States abolished slavery, Black families moved back to America. In the 20th century, the automotive industry took over the area—which is no surprise, considering Chatham-Kent is just an hour away from Detroit.
The municipality is also close to Cleveland, Ohio as well as London and the Greater Toronto Area. Cleveland (just across Lake Erie) is a three and a half-hour drive away, London is an hour away and Toronto city limits are just under three hours away. It’s a fantastic location for anyone who wants the benefits of living near major cities, with the charm of a small town.
Old Properties Make Strong Flips in Chatham-Kent Real Estate
One of the main charms of life in Chatham-Kent is the fact that the city is packed full of old properties. This provides a comfortable, rustic charm that can be quite enjoyable for residents. However, the problem with this is the fact that many of these old properties have key flaws and damage from years of wear and distress. Fortunately for investors, that means that there are plenty of properties in the city that are prime for flipping.
Of course, going into 2023, you may wish to be careful when flipping a property for a few key reasons. First, the market is currently on a downturn, and it is not clear when property values are going to rebound just yet. That means that if you are not careful, the current downward trend may eat away at your profits when you are ready to sell. Ideally, now is the time to buy affordable flips and slowly work on them to then make the sale after the market comes back around to experience the maximum return value.
Developing Housing For New Canadians
Canada’s population is project to increase by over 1.5 million within the next ten years, with many of those new Canadian residents expected to be moving to Ontario. Naturally, with such a large increase in the population, residents are going to be on the hunt for the most affordable rentals and housing solutions in order to get by. Fortunately, Chatham is currently an incredibly affordable market.
However, if Chatham is going to maintain its current affordability, it will need to have new housing introduced to the market to meet the demand before it arrives, or else housing prices will begin to inflate from the supply issue.
Ideally, one of the best ways to do that quickly and affordably is through large, multifamily properties such as apartment complexes. That way a single development can add a large number of new housing units into the city.
Understanding the Chatham-Kent Real Estate Market
One of the main things that the Chatham-Kent real estate market is known for is its affordability. Not only does the city boast a low average cost of living with grocery, transportation and entertainment options sitting reasonably lower than other parts of the province, but the real estate market is also affordable for investors and homebuyers alike.
Affordable Property Values
If you were looking to buy a single, detached home in the Chatham-Kent real estate market, you could expect to spend approximately $385,000 at the time of writing this article. Compared to most of the province, this price is an absolute bargain that cannot be passed over. Compared to the previous year, home prices are currently down by approximately 13-14 per cent. Of course, this drop is not due to a lack of faith in the market, but instead a by-product of the Ontario real estate market taking a hit throughout the battle against rising inflation.
A Manageable Rental Market
The estimated average rental cost for a two-bedroom apartment in Chatham-Kent is currently about $1500 per month. This is a fairly affordable price, especially once compared to other markets of a similar size. Normally, such low rents can cut into the cash flow a property generates. However, since the cost of housing is so low in the city, cash flow is often better in Chatham at the current rental price than in other cities with similar rents but higher property values.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Life in Chatham-Kent Real Estate
Since Chatham-Kent is largely a rural area, the lifestyle in the city is relatively lowkey. Instead of massive tourism attractions that draw people into urban centres, the area has a strong focus on its natural spaces on order to attract people into the city and provide recreation.
Notably, there are two provincial parks in the region – Rondeau Provincial Park and Wheatley Provincial Park. These parks offer beautiful green spaces as well as incredible campsites, hiking trails and nature-based activities throughout the year.
In downtown Chatham, there are a handful of notable attractions to note. First, there is the Chatham Capitol Theatre, a historic theatre that hosts a variety of live performances, events, and attractions. There is also the John D. Bradley Convention Centre at the site of the old Wheels Inn. This centre is used to host events and gatherings such as conferences, trade shows and weddings. Then, there is the Cascades Casino which opened in July 2019 which offers a professional and well-maintained gaming environment for those who would enjoy it.
Finally, there is also the annual Retrofest, a classic car showcase hosted by the Historic Downtown Chatham BIA and the Kent Historic Auto Club. This event among many others draws hundreds of classic car enthusiasts to the downtown core to show off their prized vehicles and has helped the city earn its reputation as the “Classic Car Capitol of Canada.”
The ‘Classic Car Capital of Canada’
Although Chatham-Kent is a quieter, rural area, there’s still plenty to see and do. As noted earlier, the area is home to several significant Underground Railroad historical sites—a unique opportunity to see and experience a fascinating, important part of Canadian and the United States history. There are several local museums, including the Chatham-Kent Museum, which focuses on the overall history of the area.
If you love classic cars, you’re in luck. Chatham-Kent is nicknamed The Classic Car Capital of Canada and is home to vintage automobile auction houses and restoration companies. Each year, the annual Retrofest brings hundreds of classic car aficionados to Chatham.
Finally, like much of Ontario, there are plenty of outdoor recreation opportunities to be had. Swimming, kayaking, boating, hiking and more are all possible throughout the region’s rivers, lakes and provincial parks.
Chatham-Kent is an area with plenty of small-town charm and prices—but the affordability might not last. Now is the time to invest in this burgeoning rural area, located in easy driving distance from several major cities.
Chatham-Kent Real Estate – Making Investments in the Maple City
Chatham is an excellent place to live for renters looking for a quiet yet entertaining place to live. It is also a great investment market for investors who wish to invest in something stead and reliable instead of something too exciting with higher levels of risk such as Toronto real estate.
However, regardless of how quiet and manageable the market may be, it is always important to make sure you are getting the right financing for your investments. That is why at LendCity we work hard to bring you the best financing option from the best available lender for each of your investments so that you know you are getting the best product every single time.
Chatham-Kent Real Estate Professionals
We have searched high and low for real estate investing professionals in Chatham-Kent real estate. Below, you can find professionals we have researched and can confirm they specialize in working with Real Estate Investors.
To ensure the maximum success investing in Chatham-Kent real estate, 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 Chatham-Kent real estate professional and would like us to consider adding you to the list, please contact us.
Real Estate Agent
You can also click the link below to book a free strategy call with our team at LendCity.