7 PLACES TO INVEST IN ONTARIO RIGHT NOW

7 PLACES TO INVEST IN ONTARIO RIGHT NOW

1            KITCHENER-WATERLOO

2            TORONTO

3            MISSISSAUGA

4            BARRIE

5            KINGSTON

6            BRAMPTON

7            BURLINGTON 

When preparing this report, the following areas were considered as key fundamentals.  These areas include, but are not limited to:

1.   Employment rate

2.   Population growth

3.   Industries / Employers

4.   Immigration

5.   Transportation / infrastructure

6.   People perception

7.   Geographical location

8.   Household income

Kitchener-Waterloo, Ontario

Kitchener Waterloo is one of Canada’s most dynamic economies.  The average price of a home in Kitchener increased by 6.1% during the first half of 2010 over the same period during 2009.  The presence of large-scale employers, such as Research in Motion, Manulife, Sunlife and Toyota, as well as two universities and a community college has had a direct impact on positive migration.  The largest, the Huron Business Park is home to a number of industries from seat manufacturers to furniture components.  Buying near a profitable major employer usually means security and good wages for employees, which means that the employees are typically good tenants.  There are plans for new infrastructure, connecting Kitchener-Waterloo & Cambridge, making it easier for commuters.  The average vacancy rate in Kitchener moved lower to 2.6% in the Fall of 2010.  It is projected that the vacancy rate in Kitchener will move lower to 2.4% in 2011.

TORONTO

People move into the Toronto downtown core to live and work.  Toronto is the number one city in North America for new condo construction and availability.  Toronto has indeed earned its reputation as the top market for condominiums in North America with over 260 projects planned or already under construction.  You can have confidence that investing in the Toronto market will be a smart investment decision.  Toronto offers safe haven to investor buyers who seek to have their money in a stable environment, lower interest rates and strong economic growth.  However, when investing, keep in mind that brand new condo prices are very high and could be costing you approximately $500-$600 per sq.ft.  On the other hand, an existing condo or townhome may cost you $200 less per sq.ft. than a brand new condo.   Being an investor, you should be looking for a below market value with positive cash flow properties.  With the University of Toronto, Ryerson University and York University being the 3 main campuses in Toronto, rentals are in high demand.

Young people seeking a downtown lifestyle, empty nesters downsizing and people tired of commuting all make Toronto extremely popular and a perfect place for investing. The key is to invest in below market value properties, which would provide equity and appreciation over a period of time.

Mississauga

Mississauga is one of the fastest growing cities in Ontario, Mississauga has thousands of companies, ranging from corporate head offices to small retail businesses.  The city stands as an economic leader in both the Province of Ontario and the country as a whole.

With population of over 700,000 and over $30 billion GDP, Mississauga is the third largest economy in Ontario and sixth largest in Canada.  The city also boasts among the most well educated populations in Canada with an impressive 59% holding either a post-secondary degree or diploma.

Growing population base, community diversity, talented labour force, higher average incomes, technology-driven economy, regional employment centre, post-secondary education and research programs, multi-modal logistics infrastructure, extensive cultural assets, small business and entrepreneurs, evolving health and life sciences sector and diverse finance and insurance sector makes Mississauga one of the best cities to invest in.

The average vacancy rate in Mississauga moved down to 1.8% in October 2010 as compared to 3.0% in 2009.  *

*source: “CMHC Rental Market Report” Fall 2010

BARRIE

Barrie has become a prime destination in Ontario for your family.  Average home prices have increased by 17.2% from September 2009 to September 2010.  Population is expected to rise from 136,000 to 210,000 in 10 years.  Royal Victoria Hospital and Georgian College, which currently has over 8,000 students are expanding and will drive rental demands up.  What drives the market is affordability.  The most typical house in Barrie is about $260,000 to $270,000.  For investors, a 3 bedroom house with 1½ baths could rent from $1,200 to $1,400.  A 3 bedroom townhome would rent for $900 to $1,100.  Barrie’s vacancy rate has decreased to 3.4% in October 2010, as compared to 3.8% in October 2009. *

*source: “CMHC Rental Market Report” Fall 2010

KINGSTON

The cost of a typical suburban home in Kingston averages at approximately $251,624, an increase of approximately 3.6% since September 2009.  If you can get enough bedrooms out of them, they may rent for approximately $450 each.  There is a strong demand for rental units in this area due to Queen’s University and St. Lawrence College, due to little or no construction of new rental units in recent years.

BRAMPTON

Brampton is the 11^th largest city in Canada and 3^rd largest city in the GTA and is among the top 10 most active construction markets in the country.  Brampton is strategically located within the Greater Toronto area – Canada’s economic engine.

With a modern infrastructure, a vibrant workforce, and immediate access to an extensive network of trans-continental highways, seaways and Canada’s Pearson International airport, Brampton is connected to global markets and ready for business challenges of any size.  Downtown development activities are boosting Brampton’s economic and cultural vitality.

Brampton’s population dramatically increased during the last decade and will continue to grow as one of Canada’s most diverse and multicultural cities.

Major companies and businesses currently working in Brampton include an automobile company (Brampton Assembly) which became one of Brampton’s largest employers.  The average vacancy rate in Brampton moved down to 1.9% in October 2010, as compared to 3.3% in October 2009. *

Strong economy and continuous population growth will provide excellent investment opportunities in Brampton.                           *source: “CMHC Rental Market Report” Fall 2010

BURLINGON

Burlington is one of Canada’s fastest growing communities.  Burlington’s economy is not dominated by any single employer or sector.  Burlington’s economic strength is the diversity of its economic base, mainly achieved because of its geography, proximity to large industries in Southern Ontario (Canada’s largest consumer market), its relationship with the Greater Toronto area market and Hamilton and its transportation infrastructure.  The city has a robust economy with potential for future growth.

 

BONUS FEATURE

GREATER TORONTO AREA

Greater Toronto is growing and so does the demand for rentals.  The growing size and level of employment of the 25 to 44 population was a major contributor to the rise in demand for rentals.  Population trends available at the Provincial level for the first half of 2010 indicate that immigration is up 20% compared to the first half of 2009.

Rental Apartment Vacancy Rates Move Down

The rental market in the Greater Toronto Area (GTA) experienced significant change in 2010.  The average vacancy rate for rental apartments fell by a full percentage point to 2.1 percent.  Strong demand for renting this year led to a 30% decline in the number of vacant units.  Several factors worked together to contribute to the sharp reduction in vacancies this year, including a rebound in employment, a high level of immigration and the rising cost of renting units in the condominium market.  Perhaps the most influential underlying force was the marked slowdown in demand for buying homes.*

Disclaimer:  This report is for informational purposes only.  The author, company, employees or any related individuals are not responsible or liable for any damages.  Everyone is expected to do their own due diligence. This information and any materials are not legal, tax, or accounting advice. We suggest you consult your own professional advisors in running your business and working with private lenders.  The information contained herein has been researched in good faith without warranty or liability for any incomplete or misleading information.

*Source: MCHC, Rental Market Survey

PLACES TO INVEST IN THE USA - 6

LAS VEGAS

Las Vegas is the most populous city in Nevada, United States, and an internationally renowned major resort city for gambling, shopping and fine dining.  Las Vegas, which bills itself as the entertainment capital of the world, is famous for the number of casino resorts and associated entertainment.

The primary drivers of the Las Vegas economy have been the confluence of tourism, gaming and conventions, which in turn feeds the retail and restaurant industries.

Constant population growth means that the housing construction industry is vitally important.  In 2005 Las Vegas was regarded as the fastest growing community in the US.  However, the financial crisis of 2007 – 2010 and the accompanying business downturn has sent business and growth tumbling.

In recent years, the Nevada state government has tried to attract non-gambling companies and industries into the state and there has been an increase in the number of non-gambling manufacturing companies.

Local government spending has also focused on bringing the human traffic back to Nevada City.  Property investors in the area would therefore want to take a look at properties in this area if the revitalizing of the city is successful.  Investing in the line of progress is excellent in this respect.

Property investment in Las Vegas is thus a good place to start investing, especially in the areas which are situated next to some of the most famous casinos in the area.  Such properties provide good rental yield and income for the longer term.

PLACES TO INVEST IN THE USA - 6

ARIZONA

North Arizona lies on the Colorado plateau, an area of dry plains more than 4000 feet high, with deep canyons, including the famous Grand Canyon by the Colorado River.

Manufacturing is the leading economic activity with electronics, printing and publishing, processed foods, aerospace and transportation leading sectors.  Arizona abounds in minerals.  Copper is the states’ most valuable mineral.  Arizona leads the nation in production.

Arizona’s economy, which also largely depends on the real estate industry, has been hit hard.  Prices of homes have fallen approximately 50 percent from their peak, but on a positive note affordability has improved.

There is a huge demand for rentals in different counties of Arizona.  Rental households comprise almost one third of the total occupied homes in Arizona according to census 2000 (32%) and American Community Survey 2005-2007 (31.4%)

PLACES TO INVEST IN THE USA - 5

ATLANTA, GEORGIA

Atlanta is the capital and most populous city in the US state of Georgia.  The Atlanta Metropolitan area with more than 5.2 million people is the third largest in the southeastern United States and ninth largest in the country.  Atlanta is considered to be a top business city and is a primary transportation hub of the southeastern United States.

Atlanta is one of ten US cities classified as a “Beta World City and ranks fourth in the number of Fortune 500 companies’ headquarters within city boundaries, behind New York City, Houston and Dallas.  Several major national and international companies are headquartered in Atlanta including Coca-Cola, Home Depot and United Parcel Service.  When it comes to real estate, sure, the projected price gain is only a third of Panama City, but it’s dramatic for a metro region with a population of more than 5 million people  Andrew Schiller, founder of Neighborhood Scout, notes “Atlanta’s strategic importance as the primary “growth pole” for the entire southeast.”

With the greatest job growth expected near Atlanta’s heart, commuters from far-flung suburbs are fighting harder each day to get back inside the I-285 “perimeter” that encircles the city.  That has already pumped up prices in the more desirable North Atlanta neighborhoods.  Expect to see the greatest appreciation along Atlanta’s southern perimeter fringes.

PLACES TO INVEST IN THE USA - 4

NORTH CAROLINA

The eastern end of North Carolina just out from the east coast of the United States into the Atlantic ocean and the Gulf Stream, North Carolina, in the warm temperate zone, has a generally mid-climate, with abundant and well distributed rainfall.  The states congenial climate, its’ many miles of beaches and its’ beautiful mountains attract large numbers of visitors and vacationers each year.

North Carolina leads the nation in the production of tobacco and is a major producer of textiles and furniture.  It grows 40% of all US tobacco, but the continuing trend is toward diversification.

North Carolina is attracting thousands of visitors each year, including Hollywood, which filmed 180 features here during past two decades.  This makes North Carolina one of the best places to invest in the USA.

PLACES TO INVEST IN THE USA - 3

TEXAS

Few cities in Texas are gold mines for investors.  One of the cities in Texas is McAllen.  A Hispanic baby boom is working its’ way through the regional economy.

McAllen is already 85% Latino and is larger: 3.8 members on average, compared with 2.4 for Caucasians.  These border towns have a housing shortage.  Cochrane says, “There’s pent-up demand.  They’ll be looking for more space and better space.”

He predicts that incomes will catch up to the areas’ economic growth, currently more than double the state average of 2.9%.   Manufacturers located on both sides of the border to take advantage of low wages and the common market for goods created by NAFTA.

Buying properties in an area where there is a housing shortage is predicted will usually provide investors a consistent rental income with great appreciation value.  Being an investor you may buy now and wait for the market to go up, while enjoying cash flow every month.

PLACES TO INVEST IN THE USA - 2

PANAMA CITY, FLORIDA

Unlike the rest of Florida, Panama City hasn’t really attracted either, mainly because it is isolated on Florida’s panhandle.

But now, Panama City is poised to host big airlines, more visitors and a lot more buyers.

Panama City is an economy waiting to break out says Steven Cochrane, Chief Regional Economist for Mooday’s economy.  Other major factors increasing demand are property prices are still low by Florida’s standards.

Due to a major visitor’s place, rental demand will remain at a high level.  Buying and holding properties in Panama City, Florida may explode your profit in the next five (5) years.

PLACES TO INVEST IN THE USA - 1

OHIO

Ohio is a mid western state in the Great Lakes region of the Unites States.  The state is bordered by Pennsylvania, West Virginia, Kentucky, Indiana, Michigan and Lake Erie.

The state is most industrialized in the nation.  It has a leading share in the production of lime, clays and sale in the whole United States.

Chief industries of the state are manufacturing, trade and services.  Important manufacturing goods are transportation equipment, machinery and primary and fabricated metal products.

Due to major manufacturing industries located in Ohio, this state is usually known as “blue collar” population.  Currently, in Ohio, a home can be purchased for less than $40,000 with a potential rental income of $400 - $500 per month.  Rental demand is high and triple AAA tenants are available.  What’s even better, rent to own tenants are easier to locate. We are buying here because of one reason…positive cash flow. I mean cash flow of 15-20% has become norm and you can access a fully detached house that is completely renovated with a renter or least to own tenant for only 25K.

These properties are generally located in Cleveland, Cincinnati, Toledo, Youngstown and Columbus area. 

By the way, in all cases, we use a management company so we don’t have to do day to day work with the tenants, making it a great passive income opportunity. We expect to cash out big time in approximately 5 years while we wait, we collect amazing amount of cash flow. Some of you may not want to ever sell these cash cow properties…and I don’t blame you. By the way, Ohio may not be a sexy place to invest but my bank account loves it.

7 PLACES TO INVEST IN THE USA by Sunil Tulsiani

USA IS ON SALE

Lots of people are talking about how bad the real estate market is in the USA and we should stay away from buying anything right now.  I guess people who are writing these kinds of statements are either from the media or they are like to buy when the market is up and sell when the market is down. One thing is for sure, they are not investors who make full advantage of investing in real estate.

From an investors’ point of view, this is a better than perfect time to invest in the USA.  Why? Because the US real estate market is on sale and what happens when there is a sale going on?  Do you take advantage of rock solid real estate opportunities or simply follow majority of people who stay away and let good opportunities go?  I don’t have to go into this more, either you believe that you should invest when the market allows you to grab properties at 30, 40, 50 % or more off the replacement value. 

Currently, US market is presenting to you, what most people can only dream of. In fact many people pass these opportunities thinking it’s too good to be true or it’s so hard to invest in the US from Canada. The real estate in the US market is at an all time low, offering Canadian property investors the opportunity to purchase excellent US properties in great neighborhoods at low fantastic prices.  

Typical cash returned of between 15% - 18% are being achieved right now, and these passive income returns are in addition to the capital gains that these properties are delivering to their owners.

So, to summarize, here are some of the reasons why I am investing in the US right now:

 Extremely low price (no need for a mortgage)

 Good Positive Cash flow

 About 15-20% income on monthly basis

 Can be set up as Passive 

 Huge amount of upside potential in approximately 3-5 years

 You collect great cash flow while you wait for the market to come back

 Our Canadian dollar is at par with US dollar

There are thousands of “Cash Cow Properties” available all over the USA.  Here is a list of States where excellent properties, at a great price, are available.  These are places where, I personally and my investors are buying properties or are considering to invest in the near future. Some states are great because you get a huge discount when purchasing properties, others because there is large sums of passive income coming into my pocket every month or both.

So, what are these places?

Here are 7 Places where I have personally invested, or my friends have invested or where I am currently doing my due diligence. I find the following 7 states worthy for you to look into further. Ready? Here we go.

 Ohio

 Florida

 Texas

 North Carolina

 Atlanta

 Arizona

 Las Vegas

Stay tuned, I will provide you my full analysis on each of these areas.