As Toronto real estate prices remain high, or at least too expensive in comparison to what the majority of people can afford, real estate investment Oshawa is growing in its appeal as an alternative for buyers.
The Mayor of Oshawa had this to say about the city, “It’s one of the best places to live and invest. Residents and investors enjoy an exceptional quality of life with top-notch post-secondary options, job opportunities in growth sectors, and a wide variety of leisure and recreational opportunities. All these assets are underscored by an integrated transit network that includes highways 401 and 407, Durham Transit, GO Transit, VIA Rail, airport and harbour. We have it all.”
The average real estate investment Oshawa is selling for around $400,000. On an average family’s income, the time to buy a home in Oshawa is about 3.7 years. This is much more appealing than the 5.6 years time it takes to buy a home in Toronto, or the 9.1 years for Vancouver, in comparison.
The appreciation rate of homes in Oshawa and the surrounding Durham region have been 7.3 per cent over the last 5 years.
The real estate investment Oshawa market is seeing more buyers than sellers and that is causing upward pressure on the value of homes.
The single-family home remains the most popular choice in Oshawa by far. Buyers recognize that they could aim for a 600-square-foot condo in the heart of downtown Toronto or a 2,000-square-foot house in Oshawa. Oshawa is expected to have better value than other areas of the GTA for some time but as GO train service increases in frequency and extends to Bowmanville, and Hwy. 407 is completed, the difference between the east and west ends of Toronto will narrow.
Don’t Undervalue Real Estate Investment Oshawa Market
Communities like Ajax, Oshawa, Pickering, Whitby and Brooklin have become magnets for millennials, especially as GO Transit frequency has improved and the eastern extension of Highway 407 nears completion.
Here are the 3 biggest reasons savvy investors are looking at Oshawa right now:
- Property appreciation: Research shows that properties in Oshawa appreciate double fold within a year. Homes are showing a steady appreciation due to many people moving into Oshawa to live and work. Even international investors have shown interest in investing here, as business is good in this part of Canada.
- Leverage: Take an example where an investor needs around $100,000 to acquire a house. Houses in Oshawa appreciate at an estimated rate of 5% per annum, meaning the property would increase by $5000 within the year. In addition to this, it is much easier to get financing from financial institutions such as banks. This because you would only need an initial deposit of $20,000 to buy the house, with the bank financing the remaining $80,000. This an irresistible investment for any investor.
- Cash flow: With hundreds of people living and working in Oshawa, plus the number who come for vacation, there is a constant demand for rentals. This is good news for any investor looking for good income producing properties in nice neighborhoods.
Another apparent reason and advantage of investing in real estate here in Oshawa is the fact that you will be generating long-term wealth. As long as the houses are kept well, you could make tons of money, which you could use to invest in more houses or lifestyle choices. You will also have more security for your money as well as have the capacity to borrow more money from financial institutions over time. It is however advisable to do a market research on the property market in Oshawa or contacting a realtor to advice on the same is recommended.
If you’re serious about a real estate investment in Oshawa, feel free to write me a message on my contact page or leave a comment below.
Until next time…
Jose Jafferji, your Real Estate Investment Advisor