Greetings to everyone who invests in Hamilton, Ontario real estate!
Our local newspaper, The Hamilton Spectator, did an article (behind a paywall) on home prices 10 years ago, versus today which inspired today’s blog post and made me wonder, “What did we pay for houses 10 years ago?”
Here are three key points I took away from the article:
- According to our local real estate board, January is the first time the average price topped $1 million – an astronomical 35% increase from the previous year.
- Ten years ago the average price was $297,960
- A million dollars, ten years ago would fetch a luxury house but now, a newish townhouse or older detached bungalow
This article is spot on, as we are seeing this play out right before our eyes.
After one of our clients retired from their corporate job partly in thanks to having invested in a couple of investment properties. It helps that we just sold one of their student rentals for over $1 million dollars, they have few cash flow worries…
What will they do in retirement? A lot of skiing and world travel!
Let’s Analyze The Numbers…
Legal Non-Conforming Triplex, South of Main St, Near Gage Park, 4 meters.
Purchased: Early 2012
Purchase price: $243,000
Rent: $2,400 per month
Why we bought it: LEGAL multifamily properties are rare. Grab them when you can. The area around Gage Park is popular among families as it’s a huge, lovely park. South of Main St. as a rule of thumb is one of the nicer areas in the lower city.
Today’s market value: $1,000,000+
Market rent: Estimated $4,200/month
1,100 square ft. Bungalow
Purchased: Early 2012
Purchase price: $281,000
Rent: $1,700 per month
Why we bought it: The renovated main floor is quite nice. Detached or any garage is a bonus in Hamilton. Big lot, close to the major highways, and I’m a big fan of in-law suites as multi-generational families love them and will pay above-market rent for said feature.
Today’s market value: $1,400,000
Market rent: $3,000 per month.
Student Rental Near, But Not Too Near McMaster University
Purchase price: $323,000 + minor Renos
Rent: $2,700 inclusive
Why we bought it: The house backs onto a commercial plaza so students could walk through the backyard to a major road and take a bus, be on campus in 15 mins, the magic number for students as students don’t want to live any further. Also close by is a major grocery store, a big bonus.
Today’s market value: $1,000,000
Market rent: $3,500 inclusive.
If you too are interested in learning our systematic strategy to invest in real estate, so you can take advantage of the market and get similar results like the client I mentioned earlier, CLICK HERE to register for our next FREE Online Training Class.
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