As a personal real estate investment advisor, I have the privilege of talking to many people about how I can help them to build an awesome portfolio of income properties. One of the biggest challenges my clients face when they begin looking into real estate investing is figuring out where to invest, especially if they live in expensive places like Vancouver or Toronto. They look around their neighborhoods with their expensive housing prices and think to themselves, “how could I possibly purchase an income property here?”
The simple answer is you do not have to be limited to looking within your own neighborhood or even in your own city. In fact, great real estate investment opportunities are everywhere across Canada. And as a real estate investment advisor, my job is to show my clients great and affordable places to purchase real estate investments. The last places they would have looked to invest in real estate.
Sudbury, Ontario is an example of one of these “last places”, a remote city in Northern Ontario known for its mining activity. A home in Sudbury is certainly affordable: the average price of homes sold in Sudbury in June 2020 was $317,592. Meanwhile, the average price of an apartment in Vancouver in July 2020 was $682,500. But as real estate investors, we want to invest in growing cities, places which will continually attract people. And the biggest thing which attracts people are jobs; we want to invest in cities with a diverse economy, a city with multiple ways of attracting people.
Despite being known as “the nickel city”, the table below from the August 2020 Sudbury economic bulletin below that Sudbury’s economy is surprisingly diverse. Sudbury has industries ranging from warehousing to scientific services. Sudbury is also home to 4 colleges and a Canada Revenue Agency office which employs around 4 thousand people.
Here are some other highlights from the August 2020 Sudbury economic bulletin which show that Sudbury is a good place to invest in real estate:
- Sudbury unemployment is the 8th lowest amongst the census metropolitan areas for July 2020. Sudbury’s unemployment rate on July 2020 was 9.2% which is lower than the national unemployment rate of 12.3%. The unemployment rate of Sudbury is also lower than that of Vancouver which sits at around 13%.
- Sudbury’s GDP is projected to continue growing modestly from 2020 – 2022.
- Consumer bankruptcies decreased in Sudbury by 53.2% in Q2 2020 compared to Q2 2019.
- Retail sales are expected to grow modestly from 2020 to 2021.
- The average price of a home in Sudbury in June 2020 is 12% higher than it was in June 2019, revealing that the housing market in Sudbury is heating up despite the pandemic.
As Sudbury’s economy continues to grow, so will its population. According to a 2018 report entitled “City of Greater Sudbury Outlook for Growth to 2046”, the population of Sudbury could grow by between 7,000 – 15,000 people by 2046. The report also predicts that between 6,400 to 11,000 new jobs will be created from 2018 to 2046. Such population growth, if realized, will lead to stronger demand for housing.
Sudbury is just one example of a small city in Canada which offers tremendous investment opportunities. If you are going to invest in real estate, do not dismiss these places. The last place you would consider investing in real estate could very well be the best place for you to invest.
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