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As the capital city of Canada, Ottawa is a well-observed market with plenty of opportunity for investors who wish to invest in a location so central to Canada’s culture and identity.
Despite being the capital of the country, Ottawa is not the largest city in Canada – in fact with its estimated population of just over 1 million residents the city is currently the fourth largest city following behind the cities of Toronto, Montreal, and Calgary. However, despite not being the largest, the Ottawa real estate market is still loaded to the brim with opportunities and bargains that you cannot find in other Ontario real estate markets.
So, if you would like to hear how the nation’s golden city is still home to affordable real estate, cash flowing rentals and great appreciation potential, keep reading and we will explore the wonder that is the Ottawa real estate investment market going into 2023.
However, before we dive in if you would like to learn more about how to properly finance your Ottawa real estate investments, click the link below to book a free strategy call with us at LendCity today.
Rich Culture in Canada’s Capital City
As you would imagine in the capital city of a country, Ottawa is a city greatly defined by its rich history dating back to some of the nation’s earliest moments. The streets of the city are lined with notable heritage properties and historic landmarks that evoke a sense of pride in the effort that has been put into building up Canada’s heart and pushing towards the future we now know today.
Residents in the Ottawa real estate market are treated to a beautiful landscape with notable sites such as Parliament Hill, Chateau Laurier, the Rideau River, and Canal, and more. Many of the key sights and locales in the city become home to major tourism, business and cultural events, structures, and traditions. Notably, in the winter the Rideau Canal is frozen and becomes the world’s largest skating rink. This 7.8 kilometer stretch of ice offers recreation, transportation and leisure for residents and tourists alike and many businesses are known for setting up carts, stands and pop-up locations along this stretch in order to increase business by catering towards these skaters who utilize the canal.
Education and Development
The city also has a strong education culture with major post-secondary institutions such as Carleton University, the University of Ottawa, Algonquin College and Collège La Cité – Canada’s largest French-language college. These institutions are known for their reliable rate of turning out highly qualified engineers, scientists and PHD graduates – in fact, Ottawa is known for having the highest population of PHD graduates per capita in the entire country.
Understanding the Ottawa Real Estate Market
Despite is population of over 1 million residents and its reputation as the home to our nation’s most powerful governing bodies, Ottawa real estate is a surprisingly affordable market – especially when compared to cities of similar size.
However, despite this fact, a lot of the focus for investors and developers in the city is turned towards making new apartments and condos, leaving the single-family housing market a hot commodity for investors who are looking for something a little more manageable to take on for their portfolio.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Shockingly Affordable Housing Prices
When you picture housing prices in major Ontario cities you would normally be right to assume prices ranging from $750,000 to over $1 million on average like you would find in Toronto, the KWC, Hamilton and more. However, despite its population of over 1 million and its strong reputation as one of the most prolific Canadian cities, the average purchase price for a single-family detached home in the Ottawa real estate market is estimated to be roughly $620,000 at the time of writing this article. That is dramatically less you would expect to spend in markets with equally as much of a reputation behind them.
The average rental rate in the Ottawa real estate market for a two-bedroom unit is approximately $2000 per month at the time of writing this article. Combined with the low average purchase price, that means that rentals in Ottawa are usually expected to be strong cash-flowing investments. This is an uncommon thing to find in such a major city, because typically, investment properties in major metropolitan areas are usually better geared towards appreciation and equity than cash flow. However, there are still strong appreciating properties available in the city as well.
The city of Ottawa has a relatively healthy vacancy rate of approximately 3.4 per cent. This is on the lower end of the recommended three to five per cent. However, it is important to note that in terms of low-income rentals, the city is in desperate need of new supply with an estimated vacancy rate of only 0.2 per cent.
Ottawa Real Estate – Investing in the Capital of Canada
Investors who take advantage of the Ottawa market in order to bolster their portfolio get to enjoy the blissful irony of earning capital in the nation’s capital – and you can too if you plan accordingly. Often because of the high-profile nature of the city, people overlook the bargains that can be found in Ottawa when they should be seizing the opportunity to build their wealth off of these deals.
So, in order to make sure you are ready to seize a great deal the moment one arrives, let us help you get prepared at LendCity. Learn your maximum purchase price and start hunting for investment properties today with our quick and easy pre-approval process. Then, let us provide you with the best available rate from one of our experienced lenders so that you can spend more time focused on your investments and less time on your finances.
To get started today or if you have any questions, simply visit us online at LendCity.ca or give us a call at 519-960-0370 to book a consultation with one of our expert mortgage agents.
Ottawa Real Estate Professionals
Here is a list of professionals that service the Ottawa Real Estate market.
You can also click the button below to book a free strategy call with our team at LendCity.