Few think of student residences as a good investment in real estate, and for good reason. However, with the right advice, you can get a very good opportunity. But what regions of Ontario have more to offer?
The owner of Strauss Investments says that cities with satellite schools are a good network because of their small but concentrated markets.
“The universities of Laurier and Nipissing have satellites in Brantford,” said Strauss, who is also a sales representative at Rock Star Real Estate. “In Kitchener, there’s the Waterloo Regional Campus at McMaster University, and it’s its own market.” Satellite schools offer niches that allow small investors to get in. All you have to do is provide a good product and get plenty of action. without much competition. ”
Waterloo, on the other hand, has a large number of inventories driven largely by foreign investment, but Strauss said the accommodations are superlative. However, the closer the property of the University of Waterloo is, the less trouble investors will have to find tenants.
Strauss warns that some cities have certain stipulations, such as the number of rooms allowed, that can hinder the potential of the investment. However, he is optimistic about London and Hamilton.
“Building with purpose is obviously better than simply taking an old house and converting it, but in Hamilton the areas near Mohawk College and McMaster University are very student-friendly. There are many rental opportunities, and at the brokerage house where I work we make many properties in those areas for students who work very well. ”
Of course, smaller locations with little or no competition will always give investors a safe return.
“One thing I discovered is that there are massive markets, such as Waterloo, London, the areas around McMaster and the universities of Toronto and Ottawa, which are always going to be the best,” he said. “One of the interesting things I found is that I had a student property in North Bay and the prices were half of what I had in the GTA but the rents were the same.”
According to Ryan Coyle, a real estate broker and founder of Connect Asset Management, student housing is a good investment strategy because it not only pays well, but is virtually resistant to recession.
“Student housing is often referred to as ‘recession-free real estate’, which means that when recessions affect student housing it is usually among the strongest real estate because more people return to school and that increases demand both in the rent as in the resale, “he said.
“The areas in which we invest are seeing some of the highest enrolment rates in the country, and Canadian schools have a shortage of housing on campus, so there is a new demand for student life, such as condominiums.”
If you are looking for ways to invest your money wisely, a student residence could be a good option for you. Contact me and I will help you make the best decision.