Buying an investment property near a school is one of the surest ways to maximize returns on investments.
“They go hand-in-hand,” said Rosie Gimeno, a sales representative with REMAX Specialists Estate Group, of real estate and schools. “Typically, the better the school the better the area, which means more profit for your investor in that given area. It’s a more sound business decision to purchase your investment property in that locale.”
In downtown Toronto, buying near any one of the city’s universities or colleges both ensures steady tenants and high rents.
“Some investors are looking solely to purchase by universities because you know there’s always going to be a niche of renters there, and the profitability around a major landmark like a university is a major investment. Investors always look at surroundings, like schools.”
Post-secondary institutions aren’t the only schools that positively impact property values and rental returns. Families often move into areas just for their schools, and once they move their intention is to remain awhile.
“It offers longevity for homeowners to be nearby good schools,” continued Gimeno. “Housing is very much controlled by some parents accessing a good school district.”
Liz Smith, a REMAX Hallmark Realty sales representative, says investors should think about capitalizing on the location from the outset.
“That would be an investment property around a university or college indowntown Toronto or Hamilton, London or Guelph,” she said. “You don’t have to be in a major market to make a very strong investment.”
While being near a school in Toronto won’t impact demand one way or another, it could in a smaller market. Most renters are in their 20s and they’re less raucous tenants—believe it or not.
“Most investors, or certain people who are seasoned investors, often find it’s easier for them to rent to someone who is in their 20s than it is to rent with a family,” she said. “Families make a lot of noise.”
Investors earning high ROIs on rural properties
Is Toronto's supply crunch over?
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