Waterloo Real Estate Investing Success in 2023 

Waterloo is a thriving city located at the very heart of Ontario’s landscape. This city is largely known for its strides in education, technology, and industry, but it can also become home to some of the best real estate investments on the market. 

After all, not only is the city home to a strong and competitive real estate market capable of standing against many properties in the Toronto area, but the city’s environment, lifestyle and economy also work together to produce a high quality of living that is attractive for working professionals who are looking for a place to call home. 

So, if you are interested in learning more about how Waterloo may be the ideal spot for your real estate investments in the new year, keep reading and let’s explore this market together. 

However, before we get started if you would like to book a free strategy call to discuss financing your Waterloo real estate investments, you can do so by clicking the link below.

Waterloo Real Estate Builds a Healthy Local Economy 

One of the first things you are likely to hear about when looking into Waterloo is its rich technology-focused economy. As part of Ontario’s Innovation Corridor, and the Technology Triangle of Kitchener-Waterloo-Cambridge, there is no surprise that many major technology companies have chosen to call Waterloo their home. 

As a result, Waterloo’s economy is an attractive one for many working professionals who want to earn strong wages and live comfortably. The average salary in Waterloo is approximately $66,000 per year with an average household income of over $100,000. That contributes to most of the city not only earning a living wage but being capable to afford a higher quality of living than the average Canadian. 

This means that you are able to operate higher quality, luxury rental properties in Waterloo without worrying too much about affordability. 

As for the unemployment rate, despite the current economic hardships facing Ontario and Canada as a whole, the unemployment rate in Waterloo is currently estimated to sit at approximately six per cent – a higher than average rate, but not to a degree that should raise too many concerns for investors at the time of writing this article. 

Tourism in Waterloo

Though not as large as Toronto, Waterloo still brings in plenty of tourism. This is thanks to its many fun events and attractions. For example, people from all over Canada visit Waterloo in October to attend the annual Kitchener–Waterloo Oktoberfest. It’s estimated that this event brings in close to 700,000 visitors each year, making it the perfect time to promote a vacation rental.

The Kitchener–Waterloo Oktoberfest isn’t the only Waterloo event that pulls in plenty of visitors. The Waterloo Busker Carnival in fall and the Tri-Pride Festival in summer each bring in a multitude of tourists each year. Other popular festivals held in Waterloo include the World Religions Conference, Waterloo Festival for Animated Cinema and many more. With so many popular festivals held in Waterloo, there’s no shortage of people needing a place to stay.

The Waterloo Town Square also brings in plenty of visitors all throughout the year. This area was renovated in 2006 and now features a multitude of amazing shops, restaurants and other attractions. Most of Waterloo already knows and loves the Town Square, so if you purchase property here, it’s sure to go fast. You might even consider buying a property in the Town Square to rent out to a local business.

A prime destination for nature-lovers

Since Waterloo is located right along the Grand River, visitors from all over Canada come to enjoy in amazing kayaking, canoeing and other boating opportunities. Waterloo also offers some of the best fishing options in the area. Campgrounds and local parks are found all over Waterloo, and thanks to its lower population, they’re never too crowded. Popular outdoor attractions in Waterloo also include Lexington Park and Bechtel Park.

One of Waterloo’s most popular destinations for nature-lovers is the Laurel Creek Conservation Area. This area is home to over 100 beautiful campsites, all offering great views of Laurel Creek and its local wildlife. The area is also home to over 4.5 kilometers of hiking trails and multiple picnic areas. Investors might consider purchasing land near the Laurel Creek Conservation Area to use as a possible vacation spot for those that prefer staying indoors at night.

Affordable Housing Prices in the Waterloo Real Estate Market

For a city with such a strong economy located within one hour of the city of Toronto, Waterloo has some incredibly competitive housing prices that are worth turning your eyes towards. According to estimates from the end of November 2022, Waterloo had an average purchase price of approximately $736,000 for a detached home. This price is noticeably lower than comparable properties in the early months of 2022. So, if you are interested in securing a bargain before the market begins to rebound and prices start climbing once again, you may want to consider buying in the near future. 

Discover How To Buy Unlimited Rental Properties With This Step By Step Guide

A Strong Market for Waterloo Real Estate Investors 

While some of the current market conditions are not prime for all renters in Waterloo, the current rental market largely reflects a strong, competitive period for investors trying to earn cash flow and maintain consistent, long-lasting tenants. 

At this time, the average two-bedroom rental in Waterloo is going for approximately $2000 per month. This is enough to provide a relatively affordable rental experience when compared to nearby markets such as Toronto. However, the residential vacancy rate in the city is on the lower end of the recommended average hovering near three per cent and trending slightly downward as people turn their eyes towards this excellent city.  

Economic growth in Waterloo Real Estate

According to recent statistics, the average cost of a home in Waterloo is around $740,103. This shows a major increase from last year’s average housing cost, which was about $568,275. An increase of this size could actually be good news for investors as it shows that property values may continue to grow. If you buy now and property values in Waterloo grow at the same rate, you’ll easily make high profits.

Decline in Available Industrial Properties in the Waterloo Real Estate Market 

According to a study by real estate firm CBRE, in the first quarter of 2022, there was only a 0.4 per cent vacancy rate for large-scale industrial real estate in the city, meaning that the city may soon need to begin turning away businesses that it cannot accommodate with its currently available properties. 

So, if you are a developer looking for an in-demand industrial market, Waterloo may be the place for you. 

The Tech Sector in Waterloo Real Estate 

Two of the most major employment and business sectors in Waterloo are the technology and digital media industries. As a result, some of the largest employers are tech companies, many of which are notable names that play major roles in the digital landscape. 

Companies Headquartered in Waterloo Include: 

  • Blackberry 
  • Descartes Systems Group 
  • Maplesoft 
  • ON Superconductor 
  • OpenText Corporation 
  • And More 

In addition, major companies such as Google, McAfee, Intel, and Shopify have offices in Waterloo despite their headquarters being located elsewhere. 

Due to the volume of businesses in this sector in the city, it may be a strong investment to buy offices and workspaces for companies such as these. However, as current trends indicate, you should note that many of these companies are locating themselves outside of the downtown core so it may be advantageous to buy or develop properties with that trend in mind. 

Leveraging the Technology Triangle 

One of the key advantages to investing in Waterloo is the city’s role as part of the Technology Triangle. The combined cities of Kitchener, Waterloo and Cambridge are home to a variety of technology companies that are interconnected between cities. So, it can be incredibly advantageous to try and leverage that as an investor in order to build successful additions to your portfolio. 

This can be done in a variety of ways such as making worker-friendly housing that offers fast internet speeds and space for a home office, investing in coworking spaces for professionals who need a place to stop and work when away from their primary office. 

Rich Local Culture in Waterloo Real Estate

Each year, Waterloo is full of many rich cultural offerings that make the city an attractive and unique place to live. These range from cultural events and establishments, major tourism attractions, and the city’s beautiful landscape. 

Most notably Waterloo is one of the hosts of the Kitchener-Waterloo Oktoberfest celebration. This nine-day event is the largest Bavarian celebration in the world outside of Germany and attracts over 700,000 visitors into the region each year. This event is also estimated to generate over $21,000,000 in economic activity in the region, making it a powerful force within the city. 

The city also is known for being a haven for the arts communities of Ontario, offer year-round supports for artists and even celebrating their talents each year in the Waterloo Busker Carnival, an annual event that has been ongoing since 1989. This event draws visitors from not only Canada, but the rest of the world as one of the premier busker events globally. 

As for year-round cultural offerings, the city of Waterloo is home to attractions such as the Canadian Glass and Clay Gallery, Waterloo Central Railway, and the Perimeter Institute for Theoretical Physics. 

Waterloo Real Estate – Investing in the Future 

If you are interested in investing in a market that is primed to drive our country’s future, then Waterloo may be the place for you. Sitting right in the heart of Canada’s Silicon Valley, this city is ready to grow and expand – all it needs are the investors ready to make the city’s potential into a reality. 

So, if you want to jump on the opportunities in Waterloo today, get started with a mortgage optimized to your specific goals with our team at LendCity. We promise to take your application through our network of experienced lenders to help you secure the best available rate, term, and conditions so that you can build long-lasting successful investments. 

To get started today, all you need to do is visit us at LendCity.ca and apply online or give us a call at 519-960-0370 to book a consultation with a member of our team.

Waterloo Real Estate Professionals

We have searched high and low for real estate investing professionals in Waterloo.  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 Waterloo real estate investing, or any city, you should always use professionals who understand and work with investors, you’re income depends on it.

This list may not fully list all the professionals in the area, but the ones we have personally looked into and that we would refer our clients to.

If you’re a Waterloo real estate professional and would like us to consider adding you to the list, please contact us.

Mortgage Broker

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If you would like to book a free strategy call with our team at LendCity, you can do so by clicking the link below.

Benefits of Real Estate Investing In Ontario for 2023, With Scott Dillingham