Gary Doyle
Sales Representative
Realty Executives of Sudbury Ltd.
Well, it has been an interesting start to the 2019 real estate market in Sudbury!
Since the first week in January my phone has not stopped ringing with buyers and investors calling about the Multi-Family market in Sudbury. What is Multi Family you ask? Rental income properties of the residential nature.
Why Sudbury? What makes the Sudbury area attractive to Buyers is the fact that rental income is very good, with an average two-bedroom apartment renting for over $1000 per month, plus utilities in most cases. Further, Greater Sudbury is also experiencing a low vacancy rate as the “stress test” the Canadian government has forced onto lenders over the last two years has stalled a lot of renters from moving into home ownership. But, the impact of the “stress test” on the market conditions as a whole is a topic for another day.
In regards to Multi-Family investment, this factor above, along with still historic low interest rates is providing investors an opportunity to invest in real estate and generate a positive cash flow even after borrowing costs. I’m even seeing a lot of Southern Ontario buyers targeting Sudbury as a place they are looking to invest in because of the high return on investment in the North that is not available in the Southern Ontario market due to much higher purchase prices.
The basis of purchasing investment properties is that, over the course of time, a real estate investment will appreciate while the tenants are paying down the debt. If you are considering venturing into this area of investment, I would highly recommend working with an experienced Realtor® who will help you navigate through all of the factors that will help you maximize your return on investment.
But, before you CLICK HERE to rush to my website to check out all the income property listings, here is just a quick snapshot of a few of the key items that are necessary for a successful transaction:
With all that above, these types of purchases usually come down to one basic item - the financials of the property. In order to professionally assess, verify and manage the due diligences required on these properties, I can’t emphasis enough the importance of partnering with an expert Realtor® to assist so that you are able to meet or exceed the financial benchmarks of the current Sudbury market.
The Multi Family investment model is a project, small business and or investment that you can add to your present portfolio or current career path which is a nice option to have so maybe down the road it will provide you a good secondary source of income and equity.
I am are ready to sit down and help you with this assessment to ensure a successful outcome for your future! Never hesitate to contact me at gdoyle@realtyexecutives.com or call me at 705.691.6166 for any questions you may have regarding Multi-Family investment properties or any other real estate needs.
Contributed by:
Gary Doyle
Cell - 705.691.6166
Office - 705.586.3334
gdoyle@realtyexecutives.com
Disclaimer: The views and opinions expressed in this article are solely those of the author(s) and do not necessarily reflect the official policy or position of any other salespersons, staff or affiliates of Realty Executives of Sudbury LTD. Brokerage, Realty Executives International, the Sudbury Real Estate Board, Ontario Real Estate Association, Canadian Real Estate Association or any of their subsidiaries. For any concerns pertaining to the content herein, please contact me immediately at gdoyle@realtyexecutives.com.
