To get started in the rental market, you must learn some key aspects that can help you succeed in this type of business. Choosing your city and the real estate significantly depends on average house prices, incomes, and important vacancy rates. Here are some practical examples to get you started.
We can take Brantford rent prices as an example. This small city is located about 64 miles / 103 kilometers away from Toronto and 21 mi / 35 km southwest of Hamilton. It offers easy access to the leading centers in the Greater Toronto Area (GTA).
It is connected to Highway 403, so residents can easily commute between neighboring cities and towns. This is all accounted for in the average rental price of $1,528, which is a 4% increase compared to the previous year.
Low vacancy rates and city growth
It is no wonder that in a city with easy access to a metropolis, better education, and beautiful nature, the demand for housing increases. Rental demand has been heightened in the last several years by external factors such as immigration, student renters, and communal households formed by young adults working remotely.
Despite the latest economic problems, Brantford has seen rising full-time jobs in essential services, such as agricultural, transportation, delivery, education, and trade services.
This naturally brought more people into the region, making the city have years of low vacancy rates that continue to increase rental rates. This is excellent news for real estate investors who want to analyze the Canadian rental market. The average overall vacancy rate is 2.4%, which indicates a demand for more residential buildings. 3% is considered a healthy rate, and anything lower indicates rental prices will increase.
The rental market in Brantford
As the city continues to grow, so does the price of homes. In 2019, MoneySense ranked Branford as the third best place to buy real estate. It was called the hidden gem of the GTA, offering the cultural and historical part of a big city, without actually having to actually live in one. According to the city’s website, “Brantford saw $25.45 million permit value in Industrial Building Permits in 2019.” This means new residential areas will be needed in the long term.
One downside to the overall analysis is more than 70% of residents are homeowners. Because the demographic of the city is centered around adults in their 40s, not many people choose to rent. However, this is not a major worry, as the return on investment in this city is more significant than the average in GTA.
Rental prices have increased 18.5% in the last five years, which is fantastic news if you are interested in cash flow for your properties. In the long term, this can also guarantee you strong capital appreciation.
For rental investors and landlords, the best category for them to market towards is the students. Home to Conestoga College, Nipissing University, and Wilfrid Laurier University, more than 3,100 students are enrolled every year. As campuses and dormitories are now being considered, there is a huge demand for affordable rentals for students.
If you want an even more authentic example, we can consider the city of Oshawa. A decade ago, the city was in the same position as Brantford today. Home to many universities and in a state of constant economic growth. It offered people affordable housing in order to move there. Both are located along the 401 highway and are at similar distances to the GTA. Those who invested in Oshawa can now significantly increase their real estate value. It is estimated Brantford will have a similar path.
Best areas of investment
The safest option for investing in a growing city is downtown. It holds the most stability and potential for growth, as all infrastructure, business, and government buildings will attempt to be located there. As an investor, you can only benefit from the developed part of town. If this is not a viable option for you, investing in reputable new building projects is also a good choice.
Each neighborhood has the potential to grow and develop, so it is up to you to decide where to put your capital and begin the game.
Advantages of Investing in Brantford
There is plenty to consider before renting out your property. As property becomes increasingly more expensive in Toronto and the surrounding areas, more people are moving away in order to start families at an affordable price.
One of their most popular options lies in Brantford. With a 4% annual increase in rent prices, and a new development in education, business, and infrastructure, Brantford is a city that can have not yet been affected by the housing crisis.
Another great lead investors can pay attention to is alternative housing projects. As the housing and rental market keeps expanding, so do the population’s needs. Brantford has proposed projects including alternative building designs besides classical single-family detached houses. Brantford is essentially a great area to invest in nowadays!