With Newmarket Booming and Rental Properties in High Demand, Investors & Landlords Need To Know How To Buy The Right Newmarket Rental Property
We’ve heard of lots of excitement from local landlords on how things have been going so well with their Newmarket rental properties. News is spreading fast and investors are buying here from around the rest of Ontario. We are also seeing international investors from places like China putting lots of money into Newmarket properties in 2016.
Two things are certain if you buy the “right” Newmarket rental property in the “right” area.
First, there are lots of good tenants out there and they will want to rent from you. You will be able to cover your mortgage or make an income.
Second, your property will appreciate a lot over the next few years if you buy in a good area.
Why Is The Newmarket Landlord and Rental Property Market So Hot?
There are a bunch of reasons and we’ll outline them here.
The Entire GTA (Greater Toronto Area) Property Market Is Rising Fast
Toronto and the GTA is growing fast and shows no signs of slowing down. The population of the GTA is expected to rise by over a million people in the next five years and these means lots of renters, new buyers, and lots of property appreciation.
Newmarket is a “New” Market
People are finally discovering what a great place it is. Long term residents in Newmarket have always enjoyed living here. It’s still has polite people and small town charm. It also has great shopping, access to the 400 and 404 highways and lots of parks and good transportation. People are seeing the value in living in a low crime, friendly city that’s moving up fast!
Newmarket Prices Are Low For the Value You Get (but house prices are rising fast)
Newmarket is 10 minutes away from Aurora, 20 minutes to Richmond Hill and 25 minutes to Markham. Yet house prices are much higher in than those areas. Newmarket in 2016 is a steal (but won’t be for long) The good areas of Newmarket are seeing tremendous appreciation. If you buy now you are still getting good prices and your property will appreciate.
Rents are High in Newmarket and Tenants are Used to Paying these High Rents
Some old, veteran Newmarket landlords say they’ve had it good for decades and don’t want others to know about the type of rents they get. Rents are high in Newmarket, and have been for years. You are getting the same rents in Newmarket as would would in Toronto where prices are much more expensive to buy a rental.
There Are Lots of Good Tenants in Newmarket (and more are coming each month as it grows)
Newmarket has always been called the “bedroom of Toronto” and it still is. And more people are moving here. With Toronto prices so high people are coming to Newmarket to buy and to rent. This means you see a lot of people wanting to rent for a few years while they save up to buy their own property. These are the types of tenants that landlords love to rent to.
Buy In a Winning Area
It all starts with looking for the area to buy in. Be careful and buy in an area that is growing and has a great reputation. Good tenants want to live in family friendly, safe, nice areas.
One of the best and fastest growing areas in Newmarket is the area around the Southlake Regional Health Centre.
This is a terrific and fast growing area. It’s near schools, parks, the 404 and most of the people there are home-owners.
Prices are also rising fast in the area as people from around the GTA discover it. It attracts good tenants such as families, single working professional, couples “just starting out” and nurses and other health care staff (who can walk to work).
If you buy in a good, growing area you will also see more price appreciation of your property and it will be easy to sell later on.
Let’s Take a Look At a Recent Sale That Has Pretty Good Value
Let’s take a look at a place that sold for the right price.
30 Lundy’s Lane, Newmarket Ontario sold for $750,000 on June 27, 2016, MLS# N3534855
It’s in a good area near the Southlake Regional Healthcare Centre and all the properties there are appreciating fast and you can rent to good tenants.
It’s a 3 bedroom, two bathroom home in a good area near the Southlake Regional Healthcare Centre. The street is filled with homeowners (not rentals) and comes with a legal, registered basement apartment. There are some amazing parks nearby.
It sold for $750,000. And while the property is not perfect it’s a good value. We would do a lot of upgrades if we owned it, and it’s a bungalow, but It will attract good tenants. The property will also appreciate greatly over the next couple of years.
It’s a winning property for $750,000.
It has parking for both upper and lower tenants (or for your basement tenant if you live in the upper unit). This is important. You need a clear parking spot for the basement tenants. Parking is important and often overlooked by new landlords.
Living room is very old and needs to be changed.
The living and dining rooms are “ok” but should be upgraded.
This looks like the original kitchen from the 1970s. It really needs to be updated to attract “prime time” paying tenants. An attractive kitchen is very important to find good, paying tenants. The flooring needs to be updated.
Bathroom is okay.
Master Bedroom is not bad, but nothing special.
Other bedrooms are clean, which is key.
The basement needs a lot of improvements. It needs new cupboards and flooring to attract good tenants. It’s also not a walk-out, and good tenants love walk-outs.
The bathroom is okay. The flooring isn’t very attractive and it looks old.
Landlord Tips On Basement Units
There are a lot of good basement tenants out there. There are also bad tenants who rent basements.
Experienced and successful landlords know there are a lot of basements on the market and you need your rental to be attractive to find good tenants.
a. One bedroom basements are the easiest to rent out to good tenants
If there are a lot of people they will prefer to put their money together and rent an “upper” unit. Most people who look to rent a basement are single people. They can afford a one bedroom unit. This way you can also avoid big headaches between people share the basement.
b. Cleanliness is an important factor
A large space isn’t nearly as important as a clean, well-maintained space.
Tenants like to have access to laundry. Make sure you have space to add a washer and a dryer.
d. Make Sure It’s Registered and Legal
If you buy a property that is already registered and legal it can save you thousands of dollars and months of paperwork and renovation. Good tenants want to live in a legal basement apartment. It also protects you from liability if something goes wrong.
e. Basement Tenants Prefer “2 story” Homes Over Bungalows
This is because they don’t constantly have the house owners or other tenants above them. It’s are easier to rent a basement apartment in a 2 story home over a bungalow.
Tenants like decks, this is really a great selling feature and really adds value to find good tenants. This is a terrific “value-add” to the property.
Newmarket Rental Property
Buying a winning Newmarket rental property will lead you to find good tenants who can pay your mortgage (or create cash-flow for you) and you will also get a lot of appreciation. Newmarket is growing fast and a great place to invest in 2016. Make sure you buy the right rental property!