Oakville might be a bedroom community, but according to Sotheby’s International Realty Canada, market fundamentals make extracting respectable ROIs a sure bet.
“As an investor, it’s the affordability factor,” said Adrienne Lake, regional managing broker at Sotheby’s. “The community is continuing to grow; there’s a lot of growth north of Hwy 5 now, so we’ll eventually connect to Milton. There are a lot of affordable things investors can purchase and rent out easily.”
Oakville has expeditious transportation to downtown Toronto—not to mention Hamilton to its west—a healthy economy with steady jobs, and a quaint downtown.
“Things that draw people to the town would be the same things that would attract investors to invest and rent out,” said Lake. “The further west you go from the centre core of Toronto, the least expensive it gets. It’s very easy to rent out properties here. I rent one out myself and have never had trouble finding a good tenant.”
Regional growth plans, if successfully executed, will develop the towns and cities west of Toronto into separate economic hubs, meaning Oakville will become more vibrant in the years ahead. One of those growth centres is Oakville’s neighbour, Mississauga—which under the tutelage of Mayor Bonnie Crombie intends to become a regional powerhouse. Over the next couple of decades, Mississauga expects to create 150,000 new jobs.
In the interim, Oakville is home to Sheridan College and, therefore, has steady demand for student housing. Moreover, the school is internationally renowned for its animation program.
“That’s one reason I invested in Oakville,” said Lake. “You get more white-collar tenants. Because Sheridan College is there, people invest nearby because of the student population. Student housing is always very scarce. Sheridan College is a big, big draw for international students.”
While GTA property valuations declined after the introduction of the Fair Housing Plan, and again after the implementation of the B-20 mortgage rules this year, there has been a recent surge. Now that sellers have accepted the pre-Fair Housing Plan frenzy is over, houses are moving again.
“From January through May, volume was down. In June, sales volume increased 4.08%, and in July 2018 compared to July 2017, the volume increased by 25%, which is phenomenal. That’s great for valuations because it means more things are selling, and as more things sell people get more confident with the market.”
Market flow stymied
Recreational properties booming
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate