Top 3 Ontario Cities To Invest In Real Estate - 2023 Edition
Investing in Ontario's real estate market has become quite the topic of discussion. With inflation on the rise, Ontarians are looking for creative ways to make their money work harder for them. That's where real estate can help. Luckily for you, we've got the scoop on the best places to invest in Ontario's real estate market for 2023!
It's no secret that salaries aren't keeping up with the increasing costs of everyday life, like food, gas, and housing. So, many people are turning to real estate as a way to safeguard their hard-earned savings and generate wealth over the long term.
It isn’t just first-time home buyers feeling the pinch. Even folks who have saved for retirement or a rainy day are realizing that their money isn't going as far as it used to. So, investing in real estate is becoming an attractive option for more and more people.
To get one thing straight, we're not talking about quick flips or get-rich-quick schemes. No, no! We're talking about long-term investments in Ontario's housing market. There's high demand for housing across the province especially in The Golden Horseshoe, and the rental market is feeling the strain with low housing supply and rising rent prices.
Why is this happening? Well, Ontario's population is increasingly exploding. The Canadian and Ontario governments are projecting massive growth from immigration, and new housing developments just can't keep up with the demand. With the federal government's plan of accepting 465,000 new permanent residence in 2023 - ramping up to 500,000 permanent residences in 2025 - the strain on our housing supply is only becoming more exaggerated. This is not even touching on non-permanent residences (NPR), but real immigration is closer to 1,000,000 people per year.
A fact that can’t be ignored is only 20% of immigrants purchase a property in their first 3 years living in Canada. After 10 years, it increases to 50-60%! Based on this alone, it's safe to say that the province will need plenty of new rental accommodations in the coming years to keep up with the wave of newcomers.
Here Are The Best Places To Invest In Ontario Real Estate
Hamilton
Have you heard the latest about Hamilton? Just like Toronto, Hamilton is experiencing a boom in the tech industry, with a 2022 ranking as the 4th fastest-growing tech talent city in North America. Hamilton has been named one of the most diversified economies in Canada. All with a workforce of over 2,000,000 people within a 1 hour drive from Hamilton.
With a rental market that makes up roughly 35% of households, Hamilton is ripe for investing in properties with secondary suites that are sure to provide some serious cash flow for investors in 2023. Homes with the potential for laneway units or garden suites are in especially high demand too, as the potential to have 3 streams of income is significant for an investors' ROI. These accessory dwelling units are popping up all over the downtown core, making it a fantastic way to boost your monthly cash flow and add some serious long-term value to your property.
Don't forget about the student rental market near Mohawk College and McMaster University – it's a great option for generating cash flow. Plus, with the right marketing and management, student rentals can be a fantastic addition to your investment portfolio.
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Listen up! Hamilton may be a large city, but it's got different areas with different investing strategies. That's why it's so important to work with an experienced investor who knows the ins and outs of the city to maximize your investment potential.
Toronto
This bustling metropolis is the centre point of Canadian real estate, where many newcomers enter the province, and it's showing no signs of slowing down.
Sure, there have been some spillover in recent years as people move further out to the neighbouring towns and cities across the Greater Golden Horseshoe, but that's to be expected of any city. With Canada's immigration and international student forecasts, there's a continuous influx of demand moving into the area, far exceeding those leaving.
As Toronto grows and evolves, it's becoming more and more the heart of the province, especially with a focus on innovation and jobs. In the 2022 Tech Talent Report released by CBRE, Toronto ranked an impressive 3rd in North America, right behind the likes of the San Francisco Bay Area and Seattle. With job growth in the tech industry even during the global pandemic - 39,700 jobs added between 2019 and 2021.
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Key Points To Highlight:
One of our international clients from New York who recently visited Toronto said something to us that really stuck. “New York is stagnant, you walk around Toronto and you see construction cranes, developments, and people looking to grow the community.” Toronto is always improving, creating long-term high paying jobs, and a desirable location that sees population growth year after year.
It's no wonder Toronto makes our list of best places to invest in real estate in Ontario for 2023.
Barrie
Barrie sits at the northern end of Ontario’s Golden Horseshoe. This beautiful region wraps around Lake Ontario's Western border, including cities such as Oakville, Burlington, Mississauga, Brampton and the largest of which is Toronto. The Golden Horseshoe is the most densely populated and industrialized area in Canada. Approximately one in five Canadians calls the Golden Horseshoe home, and that number is growing rapidly.
When deciding to invest in Northern living, you’re also plugging into one corner of the most vibrant real estate markets on the planet.
Barrie is not only experiencing a rapid population growth, but it is also projected to grow by 92% in the next 30 years, making it the fastest-growing city in the Greater Golden Horseshoe, twice the estimated average for the area of 45%. This represents an incredible opportunity for investors, as the demand for housing is about to skyrocket. By taking advantage of the city's forward-thinking policies on Accessory Dwelling Units (ADUs), investors can turn a single-unit property multiple income streams, thereby increasing their ROI significantly.
Moreover, with the highest growth rate in tenants in Ontario, Barrie offers an ideal opportunity for investors to tap into a growing market for rental units. From 2011-2021, tenant households in the city grew by an impressive 47.7%, highlighting the need for high-quality rental properties.
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By investing in Barrie now, you can take advantage of these promising market conditions and position yourself for long-term term success. Don't miss out on this incredible opportunity to add doors to your portfolio and generate more income than a singular home. Start exploring investment opportunities in Barrie today!
Is It Worth Investing In Real Estate In 2023?
If you have the mindset of investing for the next 10+ years, trying to build generational wealth. The first thing you should do is build a diversified portfolio. There are of course external factors that can effect timelines, example being rising or declining interest rates. But, macroeconomics should not play a major role in altering your decision. If you plan on owning your portfolio for years then you will be in rising and declining rate environments, recessions, inflationary times and the list goes on.
The same mindset applies to first-time buyers. We fear the main issue specifically with this segment of buyers is they try to time the market. Having a general idea of the economy, supply and demand etc. is essential, but strategizing to time the market accurately is almost impossible. Ultimately leading first-time buyers to sit on the sidelines waiting, and waiting for that perfect time - which will never come.
The decision solely comes down to: can you afford the home NOW without overextending yourself? If the answer is yes, and a property comes up that fits your needs & lifestyle, benefits your portfolio and will help you achieve those 5/10 year financial goals, then do not be afraid to make moves and put that offer in with an experienced Real Estate Representative who can guide your homeownership journey.