Up-and-coming locations popular for substantial ROI

In a recent column, I mentioned keeping an eye out for up-and-coming areas when looking for a pre-construction home or condominium. As an area builds up, residential real estate will increase in value, creating an attractive return on investment. Plus, if you are willing to live or invest outside the GTA, you can find amazing deals.

Connected municipality

Stratford, for example, is known for its theatre and arts focus, with the Stratford Festival attracting more than a million people each year – but it is also home to a robust automotive industry and technology clusters. This forward-thinking city invested in fibreoptics to make the entire municipality “connected.” Residents can use their devices anywhere, even walking down the street. For years, the City has been bidding for technology contracts from government and private companies to bring in work opportunities for highly educated tech employees. The area features great restaurants and a culinary school, as well. Average townhome prices range from the low- to mid-$600,000s to the $800,000s; and detached from about $950,000 to $1.2 million. Stratford has extremely low vacancy rates for residential rentals (less than one per cent) and commercial venues. Home prices are on the rise, so wise home shoppers are buying now.

Niagara Falls also offers some of the best home prices in the Golden Horseshoe. Townhomes tend to run from the $700,000s to the $900,000s, and detached homes from $1 million to about $1.4 million. Condos range from $650 to $900 per sq. ft. These prices are $50,000 to $150,000 less than comparable homes in the GTA. People in the industry are calling Niagara “the new Brampton,” because you can still find 45- and 50-ft. lot sizes there. A 2,600-sq.-ft. home on a 45-ft. lot will go for about $1.2 million in Niagara, whereas in Richmond Hill, it would be $2.5 million. Niagara residents enjoy great highway access and the GO train with day service available to take riders to Union Station in Toronto. In two years, the new University of Niagara Falls Canada will open, making the city even more desirable. Besides being a natural wonder, the region is also home to renowned hospitals and outstanding wineries. It’s an amazing place to live, work and play.

Beachfront communities

Another area to consider is Grand Bend, offering beautiful beachfront communities on Lake Huron. The beach feeling is enhanced by a boardwalk with shops, eateries and entertainment, as well as boating and other water sports. Because of this, Grand Bend is often referred to as “Florida North.” With the population swelling to about 50,000 each summer, rentals near the water can average about $6,000 per week. Even with higher interest rates, the ROI for investors is substantial. Average lowrise home prices in Grand Bend range from the $700,000s to $1.1 million for detached, and those include a high level of features and finishes.

For outstanding real estate deals, think outside the GTA.