Newmarket Rental Property – How You Can Become a Successful Newmarket Landlord
It’s been a crazy 2016 for Newmarket landlords. And by “crazy” we mean “crazy good!” It’s been a perfect storm for those of us who own rental property in Newmarket, Ontario.
While things have been going well for Newmarket landlords and rental property investors before, landlords say they have never experienced such terrific market conditions ever before. Even some old, grizzled veterans who have own rentals here since the 1970’s (the type of people who rarely get worked up and almost never get too optimistic!) say now is the best time they have ever seen to be a residential landlord in Newmarket
How Have Things Been “Crazy Good” For Newmarket Landlords?
For a number of reasons. However, from our conversations with experienced and successful landlords there are three main factors which have led to their success.
1. Prices Are Rising Fast
A report in Bidding adieu to the home of your dreams Through The Roof – A Metroland Special Report recently was all about the huge rise in property prices in the entire Greater Toronto Area (GTA) According to York Region, the average price of property went from $605,336 in April of 2015 to a whopping $725,235 in April of 2016!
Furthermore, a detached house in Richmond Hill now sells higher than a detached home in Toronto. One Re/Max realtor who has over twenty-five years of experience in the industry said he’s never seen anything like this before. He just listed a bungalow in Richmond Hill for $899,000. This price quickly led to a bidding war. There were nine bidders and the property sold for $1,430,000.Newmarket,
Ontario Is One Of the Hottest Real Estate Markets
Cam Forbes in the general manager and the broker for RE/Max Realstrong Realty in Toronto. He stated that demand is so strong in Newmarket and the Northern GTA (such as Aurora, Ontario) his brokerage has decided to start a new office in Newmarket, Ontario. According to Forbes, “Our greatest growth is in that office.”
2. Rents Are Rising Fast
As property prices are rising, so are rents. And now landlords has become wise and don’t rent inclusive of utilities.
3. There Are A Lot of Good, Qualified Tenants in Newmarket and Aurora
Experienced landlords tell us there are lots of good, qualified tenants in Newmarket and Aurora these days. These are tenants who respect you and your property and will follow the lease and pay rent on time. These tenants are also qualified, as more and more landlords run credit checks on tenants before ever handing over the keys!
Should I Buy A Rental Property in Newmarket in 2016?
Now is the time, before prices go up to high.
For example, Newmarket real estate Jarrah said that there were 120 houses listed in May 2016 in Newmarket and 110 of them had quick offers!
The fact that Chinese buyers have “discovered” Newmarket has led to increased sales and prices. The time to buy is now. However, before you buy remember a couple important tips:
1. Buy in the Right Area
Everyone who has experience in buying residential real estate knows the importance of “location, location, location.” This is even more important in Newmarket, Ontario.
Many new investors aren’t aware of the different areas of the town. Furthermore, some local real estate agents like to “hype” certain bad areas to get quick sales, even though they know they are selling the “worst part of the town” called “The Dog Patch” (the area near Longford and Davis Dr.).
What Are the Best Areas To Buy In Newmarket, Ontario?
There are a lot of good areas in Newmarket.
However, for rental properties the best area is near the Southlake Regional Health Centre. Not only is this a strong, middle-class neighbourhood it’s seen huge price gains and also a lot of good tenants want to live in the area.
Why? Because it’s safe and has lots of parks and good schools. There are also a lot of nurses who will want to rent from you in this area. The best rental street in Newmarket is Patterson Street and the streets close to it.
What Are the Worst Areas To Buy in Newmarket Ontario?
Many of our most experienced landlords have been burned/lost money buying in what is called The Dog Patch. This is the area on and near Longford and Davis Drive.
We see lots of real estate agents “hyping” this area and it’s a place where experienced landlords avoid. We’ll have another blog on the reasons why soon but in general it just doesn’t attract the same quality of paying, respectful tenants that an area near the Hospital does. You’ve been warned!
2. Not All Rental Properties Are Created Equal
It’s also important to buy the right type of property. Most of our experienced and successful landlords buy legal duplexes in Newmarket. Getting two income streams from 2 units is important. Just make sure you only buy a LEGAL REGISTERED rental property.
How Can you Become a Successful Newmarket Landlord?
Newmarket is one of the fastest growing real estate areas in Canada in 2016. Investing in Newmarket means prices gains.
It also has a lot of good tenants and if you buy the right, winning “legal” property you are on track to become a success landlord!