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Is Niagara The Best Secret For Real-Estate Investment ?

A crucial lesson learned from the COVID pandemic that will influence my investment choices in the present and future is that the real estate market in Canada is unpredictable and dances to it’s own tune.

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Property prices have appreciated at an uncontrollable pace and there are no signs for this frenzy to slow down anytime soon

Part of the reason is that the COVID pandemic highlighted Canada’s housing supply shortage which is due to several complex reasons and this makes owning real estate in Canada a valuable investment in the interim and future period.

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Various sources have been citing a market crash for the past several years but this has not taken place. The housing market did cool down in 2017 – 2018 but by a very minimal margin and before it could cool down any further the pandemic hit us unexpectedly and here we are trying to make sense of the absurd prices for homes that would never catch our attention or curiosity.

So is owning a home in Canada or specifically Niagara an expensive option for the investor looking to diversify their portfolio or create a sustainable retirement nest egg?

Depends on several factors including your own goals and vision as an investor. It is important that you have a honest conversation with yourself as to why you wish to purchase a property that has almost doubled in price in less than a year.

Long vs Short Investment

During the past year, we have observed significant demand for rental properties in Niagara from renters from all over Canada and in particular from the GTA region. Niagara Region has tremendous potential for growth as there is still valuable land space for new housing development with green spaces scattered throughout all the cities which are becoming increasingly rare in bigger cities.

 

Proximity to Toronto

Living in Niagara for the past twenty years it feels surreal at times to observe the growth taking place in the region. For a very long time, Niagara was only known for Niagara Falls and some fancy Vineyards. It was a place to escape and stay for a few days before returning to the daily grind and traffic of bigger cities. Only in the last ten years or so have people discovered how family friendly and charming the region is where you can experience a laid back lifestyle

The pandemic has also shed light on the importance of finding a place that offers space and access to nature. During the pandemic WFH became the norm which has created an influx of people moving from crammed cities to towns and cities with space and access to nature.

Close To Border

There are two borders in Niagara Falls (Queenston Bridge & Rainbow Bridge) that border Niagara Falls, NY and Peace Bridge in Buffaolo that provide access to the United States. This makes Niagara a hub for economic activity and potential for massive growth as more immigrants arrive everyday. Proximity to the U.S border is attractive for tourists and local residents for jobs, shopping and visiting the States.

Brock University and Niagara College

The Niagara Region is home to Brock University and Niagara College. Brock University is located in the city of St. Catharines and Niagara College has a campus in Welland and Niagara on the Lake. These cities are a great RE investment due to the high demand for Student Housing.

Student Housing requires a certain investor mindset tenacity but if done right can yield a higher rent compared to executive rentals.

  • If you decide to invest in the property for at least five years or more it may help offset the high price of your investment.

  • The population within the Niagara Region has increased sharply in the past 3 years and it shows no signs of slowing down.

  • A plethora of construction activity is taking places in cities such as Thorold, Welland, Niagara Falls, Fonthill, Fort Erie and Port Colborne.

  • “The Province has forecast a 2041 Population of 610,000 persons and Employment of 265,000 jobs that Niagara Region must plan for. This represents an increase of 168,000 persons and 80,000 jobs.” (www. niagararegion.ca, 2021)

  • Quiet towns have been transformed to cities and the demand stemming from people leaving Toronto and other unaffordable cities within the GTA continues to grow at a behemoth pace everyday.

  • Consider the growth projected within the Niagara Region in the next few years according to Niagara Region