We have said it before, and we’ll say it again: Niagara is one of Ontario's hidden gems for homebuyers.
In its November statistics report, the Canadian Real Estate Association shows that overall, home purchases in November were down – Niagara, with 584 property sales, showed a 16.93 per cent decrease compared to the same period in 2016. However, Niagara real estate prices have continued to rise steadily. It's still less expensive than the GTA, Burlington, Ottawa, Montreal and Vancouver overall, so smart buyers took advantage of this, showing November’s average sale price rising to $385,360. That’s 13.92 per cent higher than November of 2016. The team of experts at Newbigging-Pearson real estate knows Niagara is still a great place to make a property investment, whether you are purchasing a condo, townhome or detached family home.
For residents who prefer to rent a home rather than own it, the availability of rental properties proves Niagara is one place where homeowners are doing some investing. Becoming a landlord isn’t something you decide to do quickly, however. It’s one area of home ownership in which the homework you do will ensure your success. Our N-P team has some advice, with information we’ve picked up while helping other home buyers purchase investment properties.
First, consider how you are going to purchase this home. Will it be in your own name, or will you incorporate and have your business purchase the home? Seek out the advice of a tax accountant, who will be able to tell you what income tax benefits there might be in purchasing as a corporation. If you have financing worked out, good for you. If you haven’t, perhaps it’s time to first speak with your bank, to find out if purchasing an investment property and becoming a landlord is feasible for you. A visit to the website of the Canada Mortgage and Housing Corp. can help you become familiar with your financial rights and obligations.
Next, make sure you understand the Residential Tenancies Act. This Act, which came into effect in Ontario in 2007, created a rental system that protects tenants, helps landlords and promotes investment in Ontario real estate. There are lots of helpful tips about the Residential Tenancies Act on the website of the Ministry of Housing, including a place for landlords and tenants to air grievances and solve problems. Regarding the rent you will be charging, it might be helpful to read a copy of Bill 144, the Real Rent Control Act 2017, proposed as an amendment to the Residential Tenancies Act. Yearly rent increases are mandated by the province; you’ll want to make sure you aren’t breaking the law when you set your rent.
Once you have covered the provincial rules and regulations, it’s time to further your education as it relates to your municipality: contact the municipal government of the city or town in Niagara where you are planning to purchase your investment property. If you already have a location picked out, you’ll be able to find out if it’s in compliance with any municipal or provincial regulations or bylaws. Some policies on which to refresh your memory may include snow clearing rules, garbage and recycling pickup, fire services and regulations (such as the maintenance of working fire and CO2 alarms), fencing and pool bylaws, bus routes, parking bylaws, and service locate information from all utility companies.
You’ll need to find out about the services for which you will be responsible: Will you see to all the snow clearing and lawn maintenance? Will utilities be included in rent? Will you be responsible for minor repairs, such as changing light bulbs? What if major repairs are required? Just as it is with your own home, your investment property must also be kept in good repair. Houses are work; finding a balance of fair rent, responsible tenants and the time to look after everything being a landlord requires is time consuming.
For some people, that’s the reason they don’t become investment property owners. Some people, however, love the challenge. They seek the help of service companies to handle jobs like landscaping and snow clearing, offer discounts to their responsible tenants for completing small maintenance jobs, and arrange for yearly property inspections to identify problems and complete preventive maintenance.
If you still aren’t sure whether you're up to the challenge, one other website that may be of particular assistance is the Ontario Landlords Association. A membership with this group will help a potential landlord with screening tenants and credit checks, actual rental documents, educational material available in book and CD form, and with strategies for succeeding as a landlord in your city. The group offers up an advice forum, a place for landlords to ask questions and get answers from professionals in the field. Currently, the group’s FAQ database contains more than 70,000 posts, with questions and answers.
As you can see, there is a lot of information to process before deciding to make a long-term rental property investment. Only you can decide if you are up to the task of becoming the owner of an investment property – and that means you have some homework to do! Take advantage of the sources listed here, as well as those provided by our Newbigging-Pearson team of experts. We’d love to help you unlock the door to investment property success!
Reach our Newbigging-Pearson team of experts at 289-686-1552, or send us a message via our website HERE, on our website’s contact page.