Thinking about adding to your real estate investment portfolio? This north-eastern Ontario city may not have crossed your mind but purchasing property in Sudbury could be a good investment. With the largest population and land mass of a city in this area don’t underestimate Sudbury. The market conditions and other considerations make this a market to watch. Here are a few reasons to consider investing in the Sudbury real estate market.
Sudbury is often touted as Canada’s nickel city, yet it is also a fast-growing real estate market. The city is making important investments in other industries such as education, health and retail. This expansion will lead to job diversity and attract more people to seek employment – and residence – in Sudbury.
Sustainability is another key area where this city is making great strides. Other factors include city and cultural centres, green spaces and more.
With increased livability in Sudbury, making a real estate investment in this city could be a smart move. If you’re thinking about purchasing a home in Sudbury, keep in mind that the most livable neighbourhoods include Copper Cliff, Coniston and McCrea Heights. Purchasing in these popular neighbourhoods could increase your return on investment, since demand is higher here.
Sudbury is an attractive market due to its affordability compared to others in the province of Ontario. While Toronto continues to be a desirable market for purchasing homes, the average sale price in Toronto was $955,273 in May. Meanwhile in Sudbury, the average sale price was significantly lower, at $298,431 in May. In fact, Sudbury is considered one of the most affordable real estate markets in Ontario.
Both markets continue to be overall sellers’ markets, with Sudbury experiencing a listing shortage since earlier this year. This remains a top concern for homebuyers hoping to purchase in this city, the majority of which are families and move-up buyers.
Yet, millennials and first-time buyers on the hunt for a bargain, may find that homes in Sudbury may fit the bill.
With recent cuts to the benchmark interest rate, those looking at investing in the Sudbury real estate market can take advantage of even more savings, by securing a mortgage loan at a more affordable rate.
Low Vacancy Rate for Rental Properties
Many people are moving to Sudbury and renting properties. The vacancy rate in Sudbury is 2.1 per cent which points to a healthy rental market. Students flock to the city to attend post-secondary institutions such as Laurentian University, University of Sudbury and Cambrian College. This has led to a strong rental market for students who need a place to live during the school year. In fact, this high demand has made it more difficult for students to find the housing they need.
Although, the vacancy rate is low, average rental prices rose by 5.6 per cent ($1,024) earlier this year, reflecting a tight and expensive Sudbury rental market. For investors this is good news, since increased demand means it will be easier to secure a tenant and you are more likely to get a healthy return on your investment as a landlord each month.
The key to success in the rental property market is to ensure the amount you charge your tenants is high enough to cover the investment property’s mortgage payments and maintenance fees, but low enough to be competitive. Overall, all signs point to Sudbury as a good investment opportunity.
If you’re thinking about investing in the Sudbury real estate market, then now might be the time. The livability in this city is improving with exciting developments, expanding industries and an education hub. Affordability remains to be an attractive factor for making the move north, or at least investing in real estate in this city. Lastly, low vacancy rates for rental properties mean if you invest here, you will likely be able to attract tenants, earn income from renters and get a solid ROI. Yet there are different types of real estate investing strategies you can choose such as buy and hold, rental properties, joint ventures and more. Deciding on the right investment strategy depends on your personal situation, take the right steps to educate yourself before making an investment in the Sudbury market.