February 15, 2021, by Vikram Barhat, May 25, 2021, by Daniel Wong
Core Development Group Ltd., a Toronto condo developer is buying hundreds of detached houses in Ontario, with the plan of renting them and profiting on the housing crisis ripping across the country.
They are targeting eight mid-sized cities in Ontario, and this year started buying properties in Kingston, St. Catherines, London, Barrie, Hamilton, Peterborough and Cambridge. It will soon start buying in Guelph. Its medium-term goal is to have a $1-billion portfolio of 4,000 rental units in Ontario, Quebec, B.C. and Atlantic Canada by 2026.
Corey Hawtin, Core founder, said these rental units will provide affordable housing for families and residents who do not want to live in small apartments. If Core succeeds, it could spur major investors to follow suit.
So far this year, Core has spent $50-million on 75 properties, the executives said. Their two-bedroom basement apartments go for about $1,600 a month and a three-bedroom above-ground unit at about $2,100 a month. Those prices are higher than the average rental rate of $1,407 for a two-bedroom apartment in Ontario, according to CMHC data. Though Core’s rentals are newly renovated units in houses with gardens.
Mr. Hawtin said he expects to start fundraising for the next stage of the rental business as soon as next year and may consider going public at some point.
Condo Developer Plans To Buy $1-billion Worth Of Single-family Houses In Canada For Rentals
What does this mean?
This article is fascinating, even enlightening, but you may have no idea what to do with the information it provides.
It’s dangerous to load up on knowledge and move without the practical wisdom to act.
Every week, our coaches post real estate insights and stories from the streets. They unpack real deals, breaking down the numbers, and highlight trends that their clients are making money off of.
Their wisdom is freely available to you right here.
Sign up for the iWIN Real Estate Newsletter now so you never miss the practical wisdom we are already sending to thousands of investors in Ontario.
