Rent to Price Ratio in GTA / KWC

Member since 2022 · 7 posts · 1 vote

Hello Experts,

For multi-family (duplexes/Triplexes), what is a good rent to price ratio in the Kitchener/waterloo area or even the GTA? I have been reading about the some real estate rules that many experts say that the rent to price ratio should be atleast 1% for it to be considered as an investable property? But It seems next to impossible to find a property like with that rent/price in Ontario (especially KWC area). Thoughts?

Best Regards

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Roy Cleeves
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
4y
Quote from @Sarthak K.:

Hello Experts,

For multi-family (duplexes/Triplexes), what is a good rent to price ratio in the Kitchener/waterloo area or even the GTA? I have been reading about the some real estate rules that many experts say that the rent to price ratio should be atleast 1% for it to be considered as an investable property? But It seems next to impossible to find a property like with that rent/price in Ontario (especially KWC area). Thoughts?
Best Regards

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Roy Cleeves
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
4y
I have found that it all depends upon what rate you are getting for financing and what the other expenses are for the property.
It can cash flow even as low as half a percent of the purchase price. One percent would be much better.
Best wishes with the numbers.
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