For the past few years, everyone has been talking about the Real Estate Market in Ontario and Canada. Of course, everyone knows that Toronto and the GTA are considered some of the most expensive places to buy property in comparison to other cities in Southern Ontario, but what about buying a property in Guelph?
The expansion of Guelph and lower price ranges will draw homebuyers and property renters. If you are thinking of buying a Guelph investment property, now is the time!
What Is An Average Guelph Home on Sale For?
After a very busy and competitive market in 2016 and the first part of 2017, you may be asking where the market sits at right now and what it means for home investments in the area. Let’s take a look at some of the numbers for Guelph Real Estate and compare it to other cities like Kitchener, Waterloo, Cambridge, and Toronto or the Greater Toronto Area.
Average Guelph Real Estate Prices
Buyers and sellers should both note that the real estate market in Guelph has slowed down a bit since 2016. Although the beginning of 2017 was still a hot market and saw houses prices increase, the middle of this year has seen the market with fewer sales. Currently, houses are sitting on the market for 9 days before they are sold, which is more than it previously was. The number of sales and listings has also decreased, which means that homes are not going up or going off the market as quickly.
So What Does This Mean For The Average Home Price in Guelph?
Well, house prices have remained steady with an increase in the overall home price by 26.4% in the Guelph area. If you look at more statistics comparing 2017 to 2016, it shows that there is a 29.7% increase in single-family home prices, a 24.6% increase in townhome prices, and an 8.4% increase in apartment unit prices.
Turning the percentages into more comparable numbers, let’s take a look at the price of an Average Guelph Home. In a 2016 report, Guelph homes were averaging $441,880, and as of April 2017, are selling, on average for $569,576.
Now compare that price to neighbouring cities that have also been listed in the top cities to buy real estate in:
- Kitchener-Waterloo-Cambridge (averaging all 3 cities): $387,235 as a previous average selling price, with $517,020 as an average selling price during April 2017.
- Toronto: $753,528 as a previous average selling price, with $632,386 as an average selling price during April 2017.
- Hamilton: $490,486 as a previous average selling price, with $480,090 as an average selling price during April 2017.
Now that we’re in 2017, the prices have increased a fair bit in all those cities, but in comparison, but Guelph still comes out on top for purchasing real estate, and has been listed as the #1 place to buy real estate in Ontario for 2017. Beyond the prices, the city has more to offer than its counterparts! This makes Guelph real estate sought after and Guelph investment Properties even more sought after.
Why Should I Buy A Guelph Investment Property?
A Quick Recap of Investment Properties
An Investment Property can be one of three things:
- A property that is bought with the intention of rental income
- A property that is bought with the idea to resell in the future
- A combination of rental income and reselling value
In any of the three cases, your investment property is meant to bring you a return on your initial investment (ROI), whether it is a long-term goal or a shorter-term goal. So why should you buy an investment property in Guelph?
Having a Guelph Investment property now will bring you a return on your investment in the short-term and the long-term. Guelph remains one of Southern Ontario’s fastest-growing cities and doesn’t show any signs of slowing down. With the average price of a home still quite reasonable in the city, it is the perfect time to get yourself into a Guelph investment property.
Guelph in the 2016-2017 Housing Market and Population Increase
Looking at the 2016-2017 year, Guelph saw more people moving into the city and pushing out of the Greater Toronto Area. Even with the growth in population, the unemployment rate continues to be monumentally low. A report in April 2017 listed Guelph’s unemployment rate at just 4.6%. With the job market continuing to support the population and the local economy, Guelph is a stable place for people to be.
Guelph’s diversity in local businesses, manufacturing facilities, government jobs, education jobs and health care jobs will continue to pull home buyers and renters into the area.
Any Real Estate Agent will tell you that having a Guelph investment property will benefit the city and will benefit you as the investor with the expansion in Guelph and the additional jobs created. If you purchase a Guelph investment property with the intention to rent it out, there will be renters knocking at your door. Currently, Guelph has a low vacancy rate (in numbers, it’s 1%) so those looking to rent will snap up the opportunity when it is presented. If you purchase a Guelph Investment property with the intention to resell at a later time, it will also give you the ROI you need because of Ontario’s Places to Grow Initiative.
Guelph Is Part of Ontario’s Places to Grow Initiative
The Greater Golden Horseshoe Growth Plan, which is part of Ontario’s Places To Grow Initiative, holds Guelph as one of the main cities that will see development and growth in the next 10 to 20 years, and into the years beyond. In the updated plan that goes into effect July 1st, 2017, the expansion of Guelph means that there will be a growth in population and jobs—creating the perfect mix of opportunity for a Guelph investment property.
Currently, the population of Guelph is estimated to be around 155,000. By the year 2031, Guelph is predicted to have a population of 177,000, and by 2041, it will increase to 191,000. Looking this far into the future may seem a bit too presumptuous, but with the developments in transportation, housing and the economy, these numbers are nothing to scoff at. Based on last year’s data alone, Guelph showed a population growth rate of 7.7% since 2011, which is more than the national growth rate of 5.0%, and even Ontario’s growth rate of 4.6%.
With the government’s plans to grow Guelph and the number of people already drawn into Guelph, the employment numbers will also change. It is predicted that for every hectare of land, 150 people will be employed—and that’s only the minimum target!
The additional jobs and people in Guelph will create a need, and interested homebuyers and renters will be looking at those with Guelph investment properties to fill their needs.
The University of Guelph Draws in Students and Educators
Guelph is also home to one of the country’s top schools, The University of Guelph. The University of Guelph continues to be an institute of growth, particularly in its agricultural programs and science programs that enable students and graduates to support the Guelph economy through agricultural and scientific endeavours. But before they can start supporting the Guelph economy with their knowledge and skills, Guelph students (and employees) of the University need housing and accommodations in the city.
Students and educators are always going to be coming in and out of Guelph, creating a relatively stable flow of those in need of rental units.
If you’re wondering just how many students attend the University, there’s a total of close to 28,700 students (both undergraduates and graduates) according to Maclean’s 2017 University Rankings Magazine. While some of these Guelph students are able to find on-campus residential housing, the majority of students must find their own housing off-campus.
Just by those numbers, you can probably guess where this is going.
Having a Guelph investment property that is dedicated to Guelph student renters ensures that our educational facilities thrive, but also gives you the ROI on your property. For example, if you invest in a unit in an apartment building with four bedrooms, it’s pretty likely that you will find four Guelph students that will rent out those rooms from September to April. Now, the summer months may be a little bit tougher when it comes to finding renters, but rest assured there are still students that need the accommodations and will find your place. If you find yourself waiting for renters, take it as an opportunity to reassess your property, perform any maintenance that may be necessary, and then work on marketing it ahead of time to the next round of students.
When you’re looking for a Guelph investment property, make sure that you are buying in the right location for your target group. Get the help of a Guelph Real Estate Agent for finding a location because they will likely know the ins and outs of the city and will have a sense of the pockets of the dense student population.
Choosing A Guelph Investment Property Near Public Transportation
The other thing to think about with a Guelph investment property is where your real estate is located in comparison to the newest transportation developments. If you’ve heard the saying, “Location, location, location,” then you know that location in relation to stores and transportation is essential to the renting or selling of your property.
Going back to Ontario’s Places to Grow Initiative, Guelph resides in one of the most heavily travelled corridors in Ontario. Transportation has been a key area of development for the government, and with the population rising, the increase in commuters and the overall need for more connectivity between cities, the improvements in Transportation are important to Guelph.
The entire Greater Golden Horseshoe will see changes in their public transportation systems with additional bus routes in place, additional trains, and even rapid transit systems in places like Kitchener, Waterloo, Cambridge and Mississauga.
The updates to transportation systems in Guelph alone will help steady the flow of traffic, decrease congestion, and improve the ways of getting around the city for vehicles and for active transportation. GO Transit is also quite important to the overall urban development of Guelph. While Guelph GO stations and stops currently have connections to the Greater Golden Horseshoe, there will be additional busses and trains fully in place by 2020 to help the flow of public transportation users. This will also complement the growth of other cities in the Greater Golden Horseshoe.
The funding for transportation comes at both the federal and municipal levels. The Federal Government will be putting in $9,681,491 into Guelph’s transportation, which will also be matched by the City of Guelph. This will cover the costs to upgrade, replace and improve the transportation within the city, the connections to surrounding cities. The initiatives in transportation will also keep Guelph as a city that is moving in an eco-friendly direction, which is essential to our futures.
For those buying Guelph income property, choosing properties near new bus stops, GO stops, transportation stations, trails and major transportation corridors throughout the city, will draw in renters and buyers. Transportation and area developments are a feature that requires no extra work on your end to find people looking for a place to live. A Guelph realtor will be able to find you a home in an area that is either currently a hotspot for transportation, or a property that will be up and coming in the years to come.
Now Is the Time To Buy A Guelph Investment Property
With the Guelph Real Estate Market at steady prices and with properties on the market to buy, now is the time to get yourself into Guelph. Whether you will rent out your property to students or those not quite ready for a mortgage, or you make the decision to sell your property in the future to buyers, the timing has never been better to find a property! With all the major developments and plans for Guelph’s growth in population, economy and job market, education, and transportation, investing in a property today will ensure success in the future.
Get in contact with Deb Olender today to find out more about Guelph investment properties and the opportunities in the current Guelph Real Estate market. Deb will be able to discuss your needs and plans for your investment property. She will be able to find you the ideal spot of real estate when it comes to your target market, whether it is students, renters, or people that will be moving into the area in future years with Guelph’s growth.