Ontario Markets - First Time Investor

[Ben Welch]

Hello BP Canada,

I'm hoping to get some feedback on the community's feelings towards the Ontario market right now and some advice for a prospective first-time investor. 

I've been researching real estate for about a year and sitting on the sidelines while I educate myself on the topic. However, as you're all likely aware, the markets are red hot, making affordability in most areas an issue. I'm open to a number of different investment strategies but am leaning towards the more buy and hold options.

What I'm really trying to understand is whether or not this is the best time to buy as a first time investor to get into the market (and leaning towards a more buy and hold option). I know there are always options with JV partnerships, but I'd ideally like to get my first deal done solo.

I know we can't predict the future and most of us wouldn't have expected these market headlines back in April, but just curious what the community's general feel is towards the market right now and where expectations lay for the future. 

Welcome any and all thoughts! 

Thank you kindly,

Ben

[Roy Cleeves]

If you hold onto real estate long enough - you should never lose on it.  In my market of Kitchener - Waterloo, Ontario we have incredible growth over the years and it is expected to continue for some time due to the following:

1. Low-interest rates - allow for low monthly payments - keeps prices rising

2. Low supply of homes compared to demand - under 200 homes for sale right now in a market of over 500,000 people.

3. Transition of people out of Toronto to communities nearby.  Kitchener and Waterloo is only 1-hour drive down the 401 from Toronto so we have a lot of people moving out of Toronto and into Kitchener Waterloo.

4. Desire for more space due to Covid-19.  Many people are moving out of condos (again many from Toronto) and into homes with more space in our market.  This drives detached home, semi-detached home and townhouse sales.

5.  Predicted price appreciation for next year is double digits.

6.  Increased costs of construction keep prices rising as well.

7.  Kitchener Waterloo has a solid economic base including high-tech companies such as google which are driving more jobs and more influx of people that will need housing.

8.  Our Cities have excellent services including 2 Hospitals, 2 Universities, and a number of colleges both private and public.

9.  Growing infrastructure investments including the LRT (Light Rapid Transit)

10.  Beautiful Family Spaces including large Parks, Sports Facilities, Community Centres, Chicopee Ski Hill, Bingemans Family Fun Centre and many more!

This is just to name a few from the top of my head!