Rental/real estate markets in Canada

6 Replies

Hey BPs!

I'm a brand new investor, looking to buy a multi family (<$500,000) to rent out for cashflow somewhere in Canada. I currently live downtown Vancouver, BC, where the market is far too expensive to get into - especially as my first investment. I am looking into markets in Windsor and Hamilton, Ontario, as well as Regina and Winnipeg. I am looking for advice on where people think a "hot" real estate and rental market is in Canada, which may be worth investing in. I haven't been able to find many forum posts or online articles on projected market growth by city.

Thanks in advance!

Alissa

I would advise staying out west, at least I would have before the oil crash, although it is still better than most other areas of Canada.

I strongly advise against investing in Ontario due to the oppressive pro tenant legislation especially rent control. There is no easy way to keep rents at market and poor tenant management can easily bankrupt a investor. Evictions, which are more common that we wish to admit, will take 3-6 months with no rental income. You then have to take tenants to small claims court to possibly collect unless they are welfare recipients which are protected from collections. 

Alissa, despite Greg's generally valid warning about Ontario, you can definitely find cash flowing deals in London. You'd just better make sure that your property manager has a great screening program and doesn't hesitate a second to act against late rent or other issues.

Wow - great advice @Matt Geerts and @Thomas S. , thanks! Where do you find your primary market info (any blogs, newsletters, etc?). I found some great market reports from CMHC but I believe these are biased (they make money when we invest!).

Thanks again, 

Alissa

I like the LSTAR (London and St. Thomas Association of Realtors) report, but I'm mostly going by my own eyes on the city. There are parts of this town that I don't go to, so I don't know what's going on there, I'll admit. I watch all of the property type that I'm interested in go by on Realtor.ca and it gives me an impression of what to expect.

Reports are by definition about the past, not the future, so you can't look at historical gains to know expected gains.

My crystal ball tells me that London will continue on a steady and stable unimpressive climb, and a Toronto bubble burst can't really hurt us too badly if we're already cash flowing well.

@Alissa Greer - Welcome to BP! I'll actually be flying out to Vancouver this weekend for a real estate conference - can't wait - I love Vancouver.

First, I'd encourage you to meet local investors. I imagine there must be pockets in and around Vancouver which you can invest and cash flow without you having to buy far away. When you're starting out, it's really nice to be able to manage your property yourself to learn and fix small things. Meetup.com is a great place to start looking for local meetups - just be aware, there are lots of sales pitches too.

If you do decide to invest outside of local area, I'd encourage you to look at Alberta, specifically Edmonton. It's part of my long term investment strategy. There are lots of reasons to invest there including fair landlord / tenant laws and high rents.

Bottom line, where ever you decide to invest, make sure you're an expert in that area! Good luck and feel free to reach out with any questions.

Cheers,

Ming

Hello @Alissa Greer , welcome to BP!!! This forum and site is a wealth of knowledge, and people are always willing to help. 

We are Alberta based and finding a lot of opportunities out here despite the downturn. Feel free to reach out if you are interested. Thanks.

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