Top Tips When Buying Investment Property in Barrie, Ontario
Are you thinking of investing in real estate in Barrie, ON? If so, this article is filled with the kind of information that you need to know.
Investing in a rental property can be a gateway to financial freedom. Besides earning solid monthly passive income, you may also be able to generate wealth through potential property appreciation.
Barrie’s real estate market is on fire right now. In fact, it’s one of the top investment destinations in the entire province.
The ongoing COVID pandemic continues to push homeowners from Toronto into the surrounding areas.
Given how many people now work from home, many are finding there’s no need to pay sky-high prices for properties in the big city when they can afford something nicer only around an hour away in Barrie.
With that in mind, it pays to follow insider tips prior to making any investment decision. This is especially true if you are just starting out in property investing. While investing in a rental property can be a great way to financial freedom, proper research is key.
If you’re not familiar with the real estate market in Ontario or the province’s landlord-tenant laws, consider hiring a local property management company to assist you with your investment.
What You Need To Know About Investing In Barrie, Ontario
What is the Barrie Real Estate Market Like?
Barrie’s real estate market has seen record growth over the past year. The number of homes sold in the area was 95% higher in March of 2021 than it was in March 2020. In fact, the month of March this year showed the highest number of sales in the month ever.
The city can’t boast of a huge population like that of Toronto, but with 150 000 people and a relatively affordable supply of properties, Barrie provides lots of opportunities for profitable investments.
The demand for rental homes exists at every income level. As a savvy investor, you can expand your investment portfolio and boost your income as people come, stay, and go.
1. Property Values are Increasing
Currently, the real estate market in Barrie is considered a seller’s market. Why? Home prices are appreciating at a very fast rate. The highest rates of price appreciation recorded have been for detached homes.
According to experts, over the last year the average house price grew to around $792 000, a sharp rise of 38% compared to the same time just last year. The value of all homes sold in Barrie in March this year was more than double the amount from a year ago.
The prices of every kind of property is continuing to rise in Barrie, and the number of active listings is lower than it has been in over 25 years.
2. Barrie is an Attractive City for New Dwellers
Barrie is an attractive place to live, work, and play. The city offers its residents an incredible abundance of amenities to enjoy and appreciate, all while sitting on the shores of Lake Simcoe.
Barrie offers plenty of beaches within its limits, including the Wasaga Beach Provincial Park and the scenic Centennial Beach.
You can enjoy all sorts of activities such as snowmobiling and fishing in the winter, and wakeboarding, water skiing, and boating during summer.
What’s more, Barrie is home to great schools, top-rated medical facilities, and lush green spaces.
The city’s jaw-dropping natural splendor has also ensured strong tourism numbers year after year. If you are interested in investing in short-term rentals, Barrie is an exceptional choice.
3. High Potential for Return on Investment.
As an investor looking to invest in rental properties, the rate of return is something you should pay particular attention to. As a savvy investor, you’ll obviously want to invest in an area that promises a good ROI.
Recently, Barrie became the fourth most expensive rental market in the entire country, trailing only Vancouver and Burnaby, BC; and Toronto.
The average cost to rent a one-bedroom apartment grew by around 5% to around $1650. Meanwhile, the average price of a two-bedroom grew to around $1770.
When you consider that some properties in Barrie remain affordable to buy while rents are sky-high, it could be a great time to set up a new rental property.
4. The City’s Economy is Growing.
Here’s another reason why many investors consider investing in Barrie’s real estate market. Barrie’s economy is strong and experts project it’ll continue to grow into the future.
The city’s economic success can be attributed to a good business environment, allowing for new companies to be set up and existing ones to expand.
At one point, Barrie was considered one of the fastest growing cities in the whole of North America. The same growth trajectory is expected to continue into the future.
5. The Population is Growing
Are you an investor with an eye on upscale investments? If you are, Barrie could be the perfect investment destination for you. In the last 40 or so years, the city’s population has grown by almost six times.
What’s even better is that a significant part of the population is still young. The median age for a citizen in Barrie is just 37 years.
These young dwellers are often college-educated and motivated to climb their way up the corporate ladder.
6. Barrie is Well Connected to the GTA Area
You may also want to invest in Barrie due to its close proximity to the Greater Toronto Area. Go Transit—the region’s landmark transportation system—connects Barrie to large swaths of the Greater Golden Horseshoe area.
The transit system covers more than 11,000 kilometers. For those who own cars, Toronto is truly within striking distance—the 110 kilometer drive can be completed in just over an hour, meaning it’s possible to maintain an office in Toronto and a residence in Barrie.
In a Nutshell: Is Investing in the Barrie Real Estate Market Worthwhile?
All factors considered, Barrie is a great real estate destination for both beginners and seasoned investors. That said, it pays to hire expert advice; it’s a highly competitive market, and mistakes can be potentially devastating.
AMR Property Management is a trusted and proven property management company in Barrie and the surrounding areas. We have over 20 years of professional experience in property management, development, and consulting in Barrie.