city/town with best multi-family cap rates within 4 hours of TO?

17 Replies

Hello, based on the liberal parties recent immigration goals, and the fact that most immigrants (around 70%) end up somewhere in Ontario around Toronto, i'm thinking the entire area will continue to boom for the next decade at least. 

what are some towns/cities within 3-4 hours of Toronto with decent rent to purchase price ratio (gross monthly rent > 1% of purchase price) that are also poised for more growth? is it even possible to find such a deal? i'm also investing remotely, from Quebec so it should be relatively turnkey. thanks

Originally posted by @Chris Baxter :

@Russell Butler  most of the big commercial brokerages publish cap rate reports... here is the Colliers Q3 report for Canada. They also have market-specific publications on their 'research' tab:

https://www.collierscanada.com...

 thanks Chris. this is useful info, but only covers the major cities. i was wondering more about the smaller cities/towns like Guelph, Cambridge, Brantford, St. Catherines, etc. which surround Toronto. i can't really afford anything in toronto right now buy i'm assuming the appreciation wave will continue to spread out from toronto as population rises. 

@Russell Butler

Toronto will continue to grow! I’m very happy about that. The very young and very old live here to be close to work family and friends.

Vaughn is now creating a

VAUGHN Metropolitan Centre

Becoming the next Toronto!

It contains a bit of Toronto too. With the water, subway, new amphitheatre for events with a solid population already. The condos are going up and selling fast. Vaughn Mills outlet shopping centre is 15 min away from Toronto

Originally posted by @Samantha Wilson :

@Russell Butler

Toronto will continue to grow! I’m very happy about that. The very young and very old live here to be close to work family and friends.

Vaughn is now creating a

VAUGHN Metropolitan Centre

Becoming the next Toronto!

It contains a bit of Toronto too. With the water, subway, new amphitheatre for events with a solid population already. The condos are going up and selling fast. Vaughn Mills outlet shopping centre is 15 min away from Toronto

 thanks, vaughan is way too close though, gonna be difficult to cashflow. 

Go West Young Man!!  LOL.  London, Chatham, Windsor, St. Thomas, Ingersoll, etc all provide better cash flows.  Or go out of province too.   And up Northern Ontario can provide opportunities too yet appreciation may be more limited there.

Originally posted by @Scott Innocente :

@Russell Butler for more information on Windsor's market, refer to my thread https://www.biggerpockets.com/...

 thanks. that's a pretty large thread, can you give an estimate of the cap rate in windsor? for example, how much do you think the following property would gross every month?

https://www.point2homes.com/CA...

Hey @Russell Butler , go northern Ontario! caprates are between 7%-10%, and the cashflows are great! You do not get as high of a market appreciation year over year, however you can get forced appreciation when you renovate and reposition the asset.

Windsor is no longer the kind of market it used to be. Average house prices were 200k just 2-3 years back, and now are over 400k. I don't expect much appreciation in that market anymore. Just maybe cash flow, and that too not worth the risk. What do we want ? 1 Million houses in the Windsor ? Not happening. 

@Bobby Clair Windsor has a long way to go in terms of appreciation and also has many catalysts driving the market.  I think your analysis is off.  There are plenty of million dollar homes in Windsor and plenty of wealth here as well.  

Originally posted by @Scott Innocente :

@Bobby Clair Windsor has a long way to go in terms of appreciation and also has many catalysts driving the market.  I think your analysis is off.  There are plenty of million dollar homes in Windsor and plenty of wealth here as well.  

@Scott Innocente, I am sure that it does. But it really doesn't have all the economic drivers that I would feel safe as a city to invest in, specially at these prices.