2021, THANK GOD!
2020 was a brutal year, however it was also a year that was full of opportunity for some, while with others it caused pause, and perhaps even some fear.
No one could’ve predicted the COVID-19 pandemic that crippled our local, national and global economies but it wasn’t all bad news, so what does 2021 have in store for us? Well, a lot, I believe.
Here are 4 things you should look for as we head into 2021.
1. Population Growth & Immigration
Population growth is something that drives the local real estate market. With the move to remote working as a result of COVID-19, many are realizing that they want more from their homes and are choosing to cash out of Toronto in the desire for bigger lots and more outdoor space.
Immigration drives the market. Every year 100,000 choose the GTA as their new home, many of whom are renters. This further strengthens the market from both a sales side as well as a tenant side.
2. Strong Market Appreciation
Hamilton & Niagara are experiencing strong market appreciation largely due to the fact that demand in these areas are strong. We’re seeing a constant stream of investors flock to the area to get in on the action which only helps strengthen the market.
Further, both of these economies promote strong, stable economies which is something that investors and those looking to start a family look for, as well as close proximity to GTA and transit.
3. Forced Appreciation in Older Properties
Unlike other cities with newer homes, Hamilton & Niagara have many bungalows that need a lot of work. If you are able to purchase and renovate these homes to bring it up to its highest and best use, you can unlock a lot of value.
For example, take a property, purchased in the Hamilton area for $450,000 and $75,000 was put into renovations. After the upgrades, the property was appraised for $625,000 which means there was a $100,000 gain through forced appreciation.
4. Higher Cash Flow & Stronger Rents from Strategic Upgrades
Along with increasing the value of your property, an upgraded property can mean that you’ll attract a better tenant pool which is willing to pay higher rents for a nicer home.
In addition, not every city needs and allows secondary suites.
By doing so, you can increase rentable living space which means higher cash flows for your investment property.
HOW WELCOME HOME CAN HELP
With a good balance of cash flows and appreciation, Hamilton & Niagara residential real estate makes 2021 a great time to jump into the market.
If history is any indicator, during an economic downturn, rents have remained relatively stable and typically real estate drops less than other investments, like stocks and bonds, and rebounds quickly. On top of this, housing is a necessity, regardless of what happens, people need a place to live.
Welcome Home can help you through your real estate investing journey, whether you’re looking to acquire your first rental property, or someone to manage it for you, our team is here to help:
- Recommend the best properties based on your requirements and preferences.
- Direct you to lenders who can get you the best mortgage terms.
- Get your investment properties up and running.
- Help you grow your real estate investment portfolio.
Interested in learning more? Let’s see if we are a fit, today!