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RE/MAX | Where to Invest in Ontario Real Estate – RE/MAX News

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The impact of COVID-19 has been felt across the province, country and the world at large, as so many of us have pressed pause on routines, plans, businesses and even our short-term goals. What is just as important as keeping you and your loved one safe amid this unprecedented crisis, is remembering that this is temporary. Life will, eventually, start to regain some normalcy, and we’ll be able to breathe new life into goals that we previously put on hold.

If investing in Ontario real estate was part of your 2020 vision, continue to keep your finger on the pulse. An experienced Realtor will help you stay abreast of what is happening within real estate markets across Ontario, which have shown strength and favourability. Below we share some of our top choices for those looking to secure an investment property within Ontario, for those who are in the market to buy.

LONDON

London headed into 2020 with a smoking hot market, according to the RE/MAX 2020 Housing Market Outlook Report – and it is easy to see why. The city is home to two big post-secondary schools, Western University and Fanshawe College, as well as several large hospitals. These institutions not only help keep a steady flow of people into the city, but they are also three of the top employers for London and the surrounding area. More recently, there has been an influx of digital media companies dotting the city’s downtown core, earning London a reputation as the region’s burgeoning tech hub. These are only a few of the many reasons why, over the past five years, the city has experienced significant growth due to migration from the GTA, adding to the high (and ever increasing) demand for housing.

London maintained a seller’s market throughout 2019, and is projected to stay this way through 2020, even despite a COVID-19-related cooling of demand. Real estate investors looking to purchase within the city’s hottest neighbourhoods should look within North and South West London; these regions are in close proximity to the city’s hospitals, university, and entertainment and retail hubs, as well as Hwy. 401. Due to high demand, vacancy rates for these areas, are accordingly very low. According to Canada Mortgage and Housing Corp.’s yearly rental market report, London’s vacancy rate was 1.8% in 2019, down from 2.1% in 2018.

For a more affordable investment property within the city, East London is a hot neighbourhood worth looking into.

While the popularity of London as a place to live and work has certainly contributed to steadily rising average home prices over the past few years, property price tags are still immensely more affordable than those within the GTA.

KITCHENER/WATERLOO

Kitchener-Waterloo boasts a thriving (and growing) tech industry, universities, state-of-the-art health institutions, and a real estate market that has recently seen promising growth.

In 2019, residential real estate offered solid returns on investment, with the average sale price of homes climbing 9.3% for the year. According to the RE/MAX 2020 Housing Market Outlook Report, prices were expected to rise 7% for the year ahead.

According to the 2020 RE/MAX Housing Affordability Report, Kitchener-Waterloo ranked 11th on the affordability scale, out of 16 of Canada’s most populous regions. The COVID-19 public health crisis has temporarily cooled many markets across the province, however with demand heavily outweighing supply within this real estate market, there remains much optimism for a healthy bounce-back post-crisis.

NIAGARA REGION

The Niagara Region has a lot to offer besides a breathtaking waterfall. The area is one of the country’s most popular tourist destinations, drawing wine lovers, casino enthusiasts and nature buffs. Niagara is also home to a quickly growing number of businesses and residents, with the demand for affordable housing and rental properties outweighing supply.

With the Niagara region playing host to a massive Metrolinx expansion that will take place over the coming years, the popularity of this destination is projected to skyrocket. Upon completion of this proposed expansion, there will be 11 GO trains connecting Niagara to downtown Toronto, which will make it an attractive destination for commuters looking to avoid the manic GTA rush-hour traffic.

Now, let’s talk prices. The average house price differs significantly across the cites that make up the Niagara region.

According to data from the Niagara Association of Realtors, for the first quarter of 2020, the average price of a home within the Niagara Region was $496,000, however within the region, there is much variance between price points. The cities of Niagara-on-the-lake and Fonthill & Pelham tip the scale with average price tags of $792,000 and $706,000 respectively.

Investors looking to get the most bang for their buck can look to affordable communities where vacancy rates are still low, and demand is still high. On the more affordable end, St. Catherine’s – the largest city in the Niagara region – offers homes with an average price tag of $457,000, and much new development on the horizon.  With the GO Transit expansion to include a stop within St. Catherine’s, prices could be on the rise.

For insight into the most liveable neighbourhoods in Niagara, check out our list of the Best Places to Live in Niagara for 2020.

WINDSOR

Just kissing the US/Canada border, Windsor sits at the southern-most tip of Ontario across from Detroit, and from all angles, is a city on the rise! While historically known for its cheap cost of living and low property price tags, the tides have been slowly shifting within Windsor in recent years. The area has become an attractive destination for business, and accordingly, the employment rate in Windsor is the highest it has been in close to 20 years. Job prospects also attract new immigrants, which is driving up the demand for properties.

This rate of growth is fuelling an already high level of housing demand, which is driving up prices, but comparative to the rest of Canada, Windsor still sits comfortably on the top spot as the most affordable real estate market in Ontario, according to the 2020 RE/MAX Housing Affordability Report.

Affordable prices, the gradually re-opening economy and sustained demand are all positive signs for hopeful real estate investors.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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B.C. voters face atmospheric river with heavy rain, high winds on election day

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VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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No shortage when it comes to B.C. housing policies, as Eby, Rustad offer clear choice

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British Columbia voters face no shortage of policies when it comes to tackling the province’s housing woes in the run-up to Saturday’s election, with a clear choice for the next government’s approach.

David Eby’s New Democrats say the housing market on its own will not deliver the homes people need, while B.C. Conservative Leader John Rustad saysgovernment is part of the problem and B.C. needs to “unleash” the potential of the private sector.

But Andy Yan, director of the City Program at Simon Fraser University, said the “punchline” was that neither would have a hand in regulating interest rates, the “giant X-factor” in housing affordability.

“The one policy that controls it all just happens to be a policy that the province, whoever wins, has absolutely no control over,” said Yan, who made a name for himself scrutinizing B.C.’s chronic affordability problems.

Some metrics have shown those problems easing, with Eby pointing to what he said was a seven per cent drop in rent prices in Vancouver.

But Statistics Canada says 2021 census data shows that 25.5 per cent of B.C. households were paying at least 30 per cent of their income on shelter costs, the worst for any province or territory.

Yan said government had “access to a few levers” aimed at boosting housing affordability, and Eby has been pulling several.

Yet a host of other factors are at play, rates in particular, Yan said.

“This is what makes housing so frustrating, right? It takes time. It takes decades through which solutions and policies play out,” Yan said.

Rustad, meanwhile, is running on a “deregulation” platform.

He has pledged to scrap key NDP housing initiatives, including the speculation and vacancy tax, restrictions on short-term rentals,and legislation aimed at boosting small-scale density in single-family neighbourhoods.

Green Leader Sonia Furstenau, meanwhile, says “commodification” of housing by large investors is a major factor driving up costs, and her party would prioritize people most vulnerable in the housing market.

Yan said it was too soon to fully assess the impact of the NDP government’s housing measures, but there was a risk housing challenges could get worse if certain safeguards were removed, such as policies that preserve existing rental homes.

If interest rates were to drop, spurring a surge of redevelopment, Yan said the new homes with higher rents could wipe the older, cheaper units off the map.

“There is this element of change and redevelopment that needs to occur as a city grows, yet the loss of that stock is part of really, the ongoing challenges,” Yan said.

Given the external forces buffeting the housing market, Yan said the question before voters this month was more about “narrative” than numbers.

“Who do you believe will deliver a better tomorrow?”

Yan said the market has limits, and governments play an important role in providing safeguards for those most vulnerable.

The market “won’t by itself deal with their housing needs,” Yan said, especially given what he described as B.C.’s “30-year deficit of non-market housing.”

IS HOUSING THE ‘GOVERNMENT’S JOB’?

Craig Jones, associate director of the Housing Research Collaborative at the University of British Columbia, echoed Yan, saying people are in “housing distress” and in urgent need of help in the form of social or non-market housing.

“The amount of housing that it’s going to take through straight-up supply to arrive at affordability, it’s more than the system can actually produce,” he said.

Among the three leaders, Yan said it was Furstenau who had focused on the role of the “financialization” of housing, or large investors using housing for profit.

“It really squeezes renters,” he said of the trend. “It captures those units that would ordinarily become affordable and moves (them) into an investment product.”

The Greens’ platform includes a pledge to advocate for federal legislation banning the sale of residential units toreal estate investment trusts, known as REITs.

The party has also proposed a two per cent tax on homes valued at $3 million or higher, while committing $1.5 billion to build 26,000 non-market units each year.

Eby’s NDP government has enacted a suite of policies aimed at speeding up the development and availability of middle-income housing and affordable rentals.

They include the Rental Protection Fund, which Jones described as a “cutting-edge” policy. The $500-million fund enables non-profit organizations to purchase and manage existing rental buildings with the goal of preserving their affordability.

Another flagship NDP housing initiative, dubbed BC Builds, uses $2 billion in government financingto offer low-interest loans for the development of rental buildings on low-cost, underutilized land. Under the program, operators must offer at least 20 per cent of their units at 20 per cent below the market value.

Ravi Kahlon, the NDP candidate for Delta North who serves as Eby’s housing minister,said BC Builds was designed to navigate “huge headwinds” in housing development, including high interest rates, global inflation and the cost of land.

Boosting supply is one piece of the larger housing puzzle, Kahlon said in an interview before the start of the election campaign.

“We also need governments to invest and … come up with innovative programs to be able to get more affordability than the market can deliver,” he said.

The NDP is also pledging to help more middle-class, first-time buyers into the housing market with a plan to finance 40 per cent of the price on certain projects, with the money repayable as a loan and carrying an interest rate of 1.5 per cent. The government’s contribution would have to be repaid upon resale, plus 40 per cent of any increase in value.

The Canadian Press reached out several times requesting a housing-focused interview with Rustad or another Conservative representative, but received no followup.

At a press conference officially launching the Conservatives’ campaign, Rustad said Eby “seems to think that (housing) is government’s job.”

A key element of the Conservatives’ housing plans is a provincial tax exemption dubbed the “Rustad Rebate.” It would start in 2026 with residents able to deduct up to $1,500 per month for rent and mortgage costs, increasing to $3,000 in 2029.

Rustad also wants Ottawa to reintroduce a 1970s federal program that offered tax incentives to spur multi-unit residential building construction.

“It’s critical to bring that back and get the rental stock that we need built,” Rustad said of the so-called MURB program during the recent televised leaders’ debate.

Rustad also wants to axe B.C.’s speculation and vacancy tax, which Eby says has added 20,000 units to the long-term rental market, and repeal rules restricting short-term rentals on platforms such as Airbnb and Vrbo to an operator’s principal residence or one secondary suite.

“(First) of all it was foreigners, and then it was speculators, and then it was vacant properties, and then it was Airbnbs, instead of pointing at the real problem, which is government, and government is getting in the way,” Rustad said during the televised leaders’ debate.

Rustad has also promised to speed up approvals for rezoning and development applications, and to step in if a city fails to meet the six-month target.

Eby’s approach to clearing zoning and regulatory hurdles includes legislation passed last fall that requires municipalities with more than 5,000 residents to allow small-scale, multi-unit housing on lots previously zoned for single family homes.

The New Democrats have also recently announced a series of free, standardized building designs and a plan to fast-track prefabricated homes in the province.

A statement from B.C.’s Housing Ministry said more than 90 per cent of 188 local governments had adopted the New Democrats’ small-scale, multi-unit housing legislation as of last month, while 21 had received extensions allowing more time.

Rustad has pledged to repeal that law too, describing Eby’s approach as “authoritarian.”

The Greens are meanwhile pledging to spend $650 million in annual infrastructure funding for communities, increase subsidies for elderly renters, and bring in vacancy control measures to prevent landlords from drastically raising rents for new tenants.

Yan likened the Oct. 19 election to a “referendum about the course that David Eby has set” for housing, with Rustad “offering a completely different direction.”

Regardless of which party and leader emerges victorious, Yan said B.C.’s next government will be working against the clock, as well as cost pressures.

Yan said failing to deliver affordable homes for everyone, particularly people living on B.C. streets and young, working families, came at a cost to the whole province.

“It diminishes us as a society, but then also as an economy.”

This report by The Canadian Press was first published Oct. 17, 2024.

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