Guelph gains for investors

“Locating a bungalow or raised bungalow in a mature neighbourhood and fixing up to a two-unit home would be the best opportunity and provide the best return,” says Fitzpatrick.

Basso thinks investors should give consideration to townhouses. A four-bedroom townhouse tends to rent for $1,600 per month, which can generate a significant amount of cash flow. Plus, some of them can be picked up on the cheap.

“I would say that the best buy is townhomes,” Basso explains. “The reason for this is because you can still get them at a lower price, and you can rent them out for very good money, which provides a great ROI.

"I personally look for cash-on-cash return and ROI on my properties, so it’s basically a balance of what I can rent them out for, and what it will cost me.”

Campbell believes investors can do no wrong in this market, as each property type has the ability to provide opportunities for strong returns. However, he maintains that prospective buyers do a full analysis of what is available on the market in order to find the best option for their personal needs or budget.

“Everything in Guelph is a great [investment],” he says. “That might sound crazy, but with a thriving rental market and a huge student population, is there really a bad choice? Obviously, a buyer has to review all of their criteria and make sure the cash flow is there.”

Looking ahead

A top performer in 2013, Guelph is forecast to continue its strong rate of growth in 2014. Campbell is confident that the market will continue its upward trend, an element that will factor into investors’ decisions to enter this market.

“I can see Guelph enjoying steady growth of up to 3-5 per cent by year’s end,” he says. “While other cities may struggle with value and a struggling buyers’ market, Guelph is already shaking off the cold and off to a great start.”

Fitzpatrick’s outlook for Guelph is also favourable. However, he points to a pertinent issue that could potentially slow the growth of the market.

“Rising mortgage rates will help to slow our market, but I don’t anticipate it taking all of the wind from our sails,” he says. “Our market fundamentals remain strong, and I expect our local market to continue to be one of the leading markets in Ontario. 

“If January is any indication, our spring market will be strong.  We are experiencing strong demand for one of the slower months of the year."

This article was first published in the April 2014 issue of CREW

To find out more details about other hot neighbourhoods, cities and regions across Canada, check out CREW's free online investment hotspot tool.

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