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Located along the Thames River in southern Ontario, London is a city that offers a taste at big city living without the hassle of moving towards some of the province’s largest population centres.
With a local culture built and structured around its schools, education and research facilities, London is quite the hot spot for people across Ontario and the rest of Canada who would like to research medicine, media and more. As a a result, the London real estate market is a hot spot for people looking to invest.
However, how does all of that come together in a way that makes the London real estate market a strong contender for real estate investment? Let us take a closer look.
But first, if you would like to learn how to finance your London real estate investments, click the link below to book a free strategy call with our team at LendCity.
Thriving Local Culture
London Ontario is an incredibly attractive place to live for many Ontario residents due to the thriving local culture the dominates the local landscape. The city is home to a variety of festivals, performances, and attractions that each work together to create a very expressive and open atmosphere that brings the city to life.
Local Arts and History
One of the largest draws in the city for those looking to explore the local arts and culture scene is the variety of art galleries and associations in the area. Notably, places such as the Forest City Gallery, the Canadian Artist’s Representation society and Museum London all stand as historic landmarks and centrepieces for the city’s artistic identity.
The city also is home to the Museum of Ontario Archaeology which works to highlight the land’s history before Ontario as we know it came to be. Notably the city is home to Canada’s only ongoing excavation and partial reconstruction of a prehistoric village.
For those looking to take a look into Canada’s military history, residents are also free to visit the Royal Canadian Regiment Museum at Wolseley Barracks and the Secrets of Radar Museum at Parkwood Hospital.
Theatre, Film, and Music
London is also a home to plenty of notable theatre, film, and music performances, events and venues which help make the city an appealing place for residents to flock towards.
In regard to festivals the Forest City boasts many notable events such as SunFest, the London Fringe Theatre Festival, the Forest City Film Festival, and the London Ontario Live Arts Festival. These are only a few of the countless events that encourage people to stick around the city year-round and experience everything it has to offer.
The city is home to multiple notable theatre and live performance venues. Specifically, in Central London you can find the Grand Theatre, a professional proscenium arch theatre that hosts multiple performance spaces for both professional and community performances alike. As well, you can find the Palace Theatre in Old East Village. This former silent movie theatre became a live theatre venue in 1991 and is currently undergoing a revitalization process to restore and maintain some of its more historic features while making it more versatile for modern purposes.
A Strong Local Economy
The London real estate marekt is far removed from the devastation it took during the 2009 financial crisis and is now a thriving modern community with a strong future in both arts and technology.
While many of the industrial jobs never returned to London after they first disappeared, the city’s economy shifted to survive by turning its focus to the modern technology industry. In fact, many of the technology companies which now hold key roles in London’s economic identity have moved into the vacant industrial sites that once were the financial hubs for the city.
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Excellent Housing Affordability
Despite being one of the largest cities in the province, the London Real Estate Market is home to relatively affordable housing when compared to some of the cities other major cities.
The average home in London is currently selling for approximately $684,000 at the time of writing this article – significantly less than you would expect to pay in larger markets such as Hamilton, Toronto, or Ottawa.
This affordability is matched with rents that keep up with the provincial average, meaning that many rental properties have a high potential to generate cash flow in the city.
London Real Estate Needs Developers
In early 2022, it was reported that the amount of commercial and industrial real estate in the London real estate market was starting to near its limit as developed land within urban boundaries began to run out. However, since that time the Ontario government has made strides to reduce the limitations and procedures that developers need in order to get their projects approved.
With the red tape lifted, now the city is going to need developers in order to satisfy the needs of the community as it expands. As applications pour in for expansion of urban boundaries to create new developments, there are two main concerns that need to be addressed.
Increased Housing Demand
Much like the rest of Ontario, London is forecasting a massive increase in the overall population over the next three years as the government is poised to welcome nearly 1.5 million newcomers to the population on top of our ever-growing domestic population. This creates a steep demand for new housing in order to adequately house everyone and maintain healthy, affordable real estate and rental prices.
One of the main types of development that can help solve this demand is large-scale multifamily properties such as large apartment complexes, condominiums, and townhouses. These properties are great because they add large quantities of new housing units into the market at affordable prices while still having the potential to provide large cash flow yields for the investor who chooses to operate these developments.
Commercial Infrastructure and Availability in the London Real Estate Market
With a growing population, it is natural to expect that new and expanding businesses are going to come with the residents. So, it is only natural that on top of the need for new housing, new commercial developments will also be in-demand.
These can be retail and main-street businesses such as restaurants and shops, or larger developments such as plazas and office buildings – of course for these larger developments it is often advised to find an interested tenant to become the main draw for the property before making the commitment. This tenant is often called an ‘anchor tenant’ and serves to attract other businesses. A prime example of an anchor tenant is when a new mall secures a contract with a major retailer prior to beginning work on the location. In fact, securing an anchor tenant before development may make it easier to secure a mortgage with some lenders because they already see the promise of income from the property
Education in London Real Estate
London Ontario is home to a variety of notable post secondary institutions that contribute to the city’s large student population. Most notably the city is home to Fanshawe College which has multiple campus sites within the city, and the University of Western Ontario (often referred to as Western University). As well, the city is home to variety of career colleges for individuals who wish to enter the skilled trades industry, the technology field and more.
The student population of London makes the city a great home for student rental properties. At Fanshawe College there are estimated to be over 43,000 students enrolled at the institution between full-time and part-time education programs. At Western, the student population is estimated to be approximately 32,000 students. Once you factor in remote students, commuters, and satellite campuses, that still leaves well over 10 per cent of the city’s population enrolled at these institutions.
London Real Estate – A City for the Next Generation
London is a city that has made clear efforts to structure its infrastructure and culture in efforts to nurture students and young people looking for a place to settle and call home. This is great for investors because it means that the number of people likely to want to build a life in the city is only going up with time and the London real estate market is not expected to falter with time as seniors and retirees move away or pass on.
If you wish to build investments that can stand the next of time for you to pass them on to the next generation, you need a mortgage that supports those types of stable, long-term investments. That is why at LendCity we work hard to bring you the best available rates and terms so that you can focus on growth instead of wasting time on paperwork.
London Real Estate Professionals
We have searched high and low for real estate investing professionals in London. 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 London, 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.
if you would like to learn more about how to invest and finance your London real estate investments, click the link below to book a free strategy call with our team at LendCity.