Wondering if you should invest in Sudbury? As real estate markets in large Canadian cities and their surrounding areas reach unaffordability (or some argue it’s long passed that point), even real estate investors are turning away. The duplexes, triplexes, and multi-family homes that we as investors yearn for are becoming rarer in some of these markets due to new developments favouring high-rise condos and single-family detached homes.
In Ontario, Waterloo-Kitchener and Southwestern Ontario are becoming investor hotspots due to more affordability. But even these areas begin to look like a high bargain. So why not consider an investment property in Sudbury?
The pandemic has pushed dwellers from big cities to leave busy downtown cores for areas with more green space and affordability. For Ontarians, Sudbury is a perfect mix of affordability, green space, and amenities. Sudbury’s also a terrific spot for your next investment property.
This article provides three reasons why you should purchase an investment property within the Greater Sudbury Area. These reasons include better affordability, great city infrastructure, and a low rental vacancy rate.
The Sudbury Real Estate Market is More Affordable Than Other Markets
According to a 2020 affordability report, Sudbury is one of the most affordable Ontario real estate markets. Over the summer, average home prices were $297,938. In October 2020, the average cost of units sold rose to $321, 514 — 14.4% greater than in October 2019.
Now, compare that to $968,318 — the average price of homes sold in the Greater Toronto Area in October 2020. Even as Sudbury homes appreciate, it’ll take an eternity before coming close to Toronto’s prices.
It’s no wonder that many are cashing out their Toronto residence to invest in Sudbury. This migration includes retirees looking for a quieter, relaxed lifestyle; millennials searching for alternative ways to start a family; or working professionals who are no longer bound to an office.
It’s also a great time to purchase a home, further driving demand for Sudbury properties. Canada’s current low-interest rates mean Canadians whose incomes were not affected by COVID-19 can now move from their starter home to their dream home. Or move from renting to homeownership. The combination of Sudbury’s affordability and Canada’s low-interest rates continues to bring the city’s housing market to a broil.
It’s an ideal time for investors to take advantage of Sudbury’s affordable properties and the low-interest rates. Choosing to invest in Sudbury can provide a higher capitalization rate and greater cashflow than property investments in other Ontario cities.
The City is Only Getting Better and Better
You don’t have to be in a big city to get amenities such as a large event centre. Sudbury’s developing new projects to bring more sports, music, and art to Northeastern Ontario. The city is also focusing on its present, with infrastructure projects to enhance its roads and bridges, and to build more pedestrian- and bike-friendly roadways. The Kingsway Entertainment District and Arena is an upcoming facility that will house 5,800 seats as a sports venue and 6,500 seats as a concert venue. The district also hosts a hotel, restaurants, a festival square, and more. Although it’s still in development, the district shows that Sudbury will only get busier.
Place des Arts is another major construction underway in Sudbury. This building plans to be Northeastern Ontario’s first multidisciplinary arts centre. It features a 299-seat theatre, a contemporary art gallery, and office spaces and meeting rooms.
The city is not only focusing on event and cultural centres. Sudbury’s 2020 infrastructure budget includes $55 million for roads, $19 million for bridges, and $22 million for water infrastructure. Part of this construction includes a bikeway project that makes biking and walking a more significant part of Sudbury’s lifestyle.
Invest in Sudbury For a Low Vacancy Rate
Fun fact about Sudbury: we have three fantastic post-secondary institutions — Laurentian University, Cambrian College, and College Boreal. The three schools boast over 20,000 part-time and full-time students. Because of the students and other renters in Sudbury, rental properties have a vacancy rate of 2.1%. The rental market is on an upwards trajectory, as the vacancy rate decreased from its 2018 rate of 2.6% and 2017 rate of 4.3%. This low vacancy rate makes it easier for investors to secure tenants and get a healthy return on investment.
Students are a terrific demographic to rent to because their parents commonly guarantee their rent payments. The influx of international students in Canadian post-secondary schools means that more out-of-town students need a place to rent, driving the vacancy rate even lower in the future. As such, purchasing a multi-family building in Sudbury and filling it with students from the local schools is an excellent investment that provides a reliable income. And because the demand for Sudbury properties is going up, you can also expect incredible capital gains.
Even with the global pandemic pushing many Canadians into hard times, our property management firm, Greater Sudbury Property Management, currently has zero landlord-tenant board cases. This is due to our rigid tenant screening process and Sudbury’s resilient economy.
How Out-of-Town Investors Can Manage their Sudbury Investment Property
Even if you live far from Sudbury, the city remains a great investment. Experienced property managers, such as Greater Sudbury Property Management, can help you not only find a great property but ensure that it’s filled with top-tier tenants. We also ensure that your property is maintained in its best state. A property manager can guarantee you won’t need to drive from your home to Sudbury in the middle of the night to attend to your tenant. We also leverage our experience to advise on renovations or changes to the property to draw out its full value.
Sudbury’s real estate market is hotter than ever. A combination of factors has turned Sudbury into a seller’s market with homes getting multiple offers, according to the Sudbury Real Estate Board. Your biggest challenge to a Sudbury investment property might just be winning the bid But, no sweat! We don’t only help you manage your property, but the LacelleGroup Realty Inc., Brokerage can help you facilitate your purchase. We are investor-focused salespeople helping you find your next winning investment.
