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January 21, 2023 | Real Estate
Why Now is a Great Time to Invest in a Condo in Ottawa
Investing in real estate has long been an excellent way to grow wealth. Today’s market conditions are providing new and unique opportunities for investors, as elevated interest rates are creating a higher demand for rental housing in Ottawa.
For emerging and first-time investors in Canada’s capital, purchasing a condo can be a smart way to earn passive income while also building equity long-term.
If you’re considering an investment in Ottawa real estate, here are a few things you should know about current market conditions, the distinct advantages of condos, and how a local real estate agent can offer you strategic guidance throughout your purchase.
Want a sense of what’s currently available on the market? Click here to explore our listings.
Condos as an Investment Property
For investors looking to purchase their first income property, condos make a great fit. First and foremost, the upfront costs of a condo unit are usually smaller than detached homes. This makes it much easier for new investors to find a property that suits their budget.
In addition, condos often require less hands-on upkeep than detached homes. While there are general landlord duties, the compact nature of condos can make them relatively low maintenance compared to larger properties.
Finally, condos can make a relatively low-risk investment because they fit the lifestyle of many renters in Ottawa – from students to young professionals and everything in between. As a landlord, sourcing high-quality tenants is a critical step in protecting your investment. This elevated demand can provide you with a strong volume of prospective tenants. When your condo is ready to enter the rental market, your real estate agent can provide strategic support in ensuring you find the best possible tenant.
Looking for more resources about managing a successful investment in Ottawa real estate? Check out these posts from our blog.
- Real Estate Investing in Canada’s Capital Region
- Real Estate in Ontario is Shifting, Here’s What Buyers Need to Know
- Buying an Investment Condo With a Real Estate Agent
Why Today is a Great Time to Invest
Back in early 2022, the Bank of Canada began increasing their target interest rate. Throughout the remainder of the year, a series of additional hikes would drastically impact the cost of mortgages for Canadians. This led to a notable shift in Ottawa’s real estate market.
With elevated interest rates making home financing more expensive, fewer home buyers have been able to enter the market. As a result, the demand for rental housing in Ottawa is reaching new heights. Additionally, a boost in available housing inventory has also allowed investors to be more selective in purchasing a property that best suits their goals and lifestyle.
Looking for a condo to call home? We can help with that too. Click here to contact us.
Long-Term Demand For Rental Housing
While the current market is proving uniquely profitable for some landlords, the advantages of owning an investment condo aren’t limited to today’s market conditions. As Ottawa continues to grow and welcome new residents, the demand for rental housing is likely to remain high well into the future.
Financial planning is just as important when buying an investment property as it is during the purchase of your personal home. Explore these tools from our website that can help you budget for your investment.
Partnering With a Real Estate Agent
Just like purchasing a home that you wish to live in, buying an investment condo requires the help of an experienced local real estate agent. While there are some similarities to a traditional real estate transaction, finding and purchasing a dedicated income property is a specialized process with a unique set of considerations and variables.
From selecting the right property to neighbourhood considerations and acquiring financing, working with an experienced agent is the best way to maximize the success of your investment.
After you’ve taken possession of your condo your agent can help you establish a diligent screening process to ensure you find the right tenants. They can also provide you with critical advice and resources about your rights and responsibilities as a landlord.
Searching for a local real estate team who can help you make a wise investment? We’ve served buyers in Ottawa for over four decades and can help you accomplish your goals. Send us an email or call at 613-692-0606 to get in touch.