Hello Real Estate Investors in Hamilton Ontario!!
You know I’m still surprised to speak to real estate investors who haven’t considered investing in Hamilton. Take for example my friend Michelle who lives in Markham (I know it’s a bit of a drive from Markham to Hamilton but no excuses, another client of mine has five student rentals including 30 student tenants which he manages himself with a full time job yet lives in Pickering) where her condo is worth high 300k which she rents for 1,700 per month. Sounds OK…. but she pays a $500 condo fee so really her rent is 1,200. Annual rent to asset ratio = under 4%. Brutal… so I tell Michelle how on the Hamilton Mountain my investor clients pick up freehold detached properties for around 250k that they can rent as single family homes for about 1,500 per month. Rent to asset ratio = 7.2%. To me, I would choose a Hamilton investment property over almost anything from GTA in a heart beat because of the fantastic balance of both cash flow and appreciation. “But I hear the steel industry is dead?!” was what Michelle said next. Well not quite as my readers would already know who read this post about how ArcellorMital is humming along quite nicely and then just a few weeks ago the US Steel Lock out just ended so 900 something people are going back to work.
“What’s going on in Hamilton that makes it a great investment town?” asks Michelle.
Well, just recently announced was another Maple Leaf investment of $390 million to build a new facility on the East Mountain that will employ another 670 jobs (on top of the 300+ jobs from Canada Bread). Read the full story here or continue below for my own summary and analysis:
- this move adds $2 million to the city’s property tax each year
- Hamilton won out over 23 other cities vying for the plant
- to be the largest and most technologically advanced plant in the Canada and on par with best in North America
- Opening 2014
- Hamilton won due to its skilled labour base and access to transportation routes
Needless to say Michelle is now very interested in Hamilton for her next investment property. Bottom line, its the #1 investment town in Ontario and with all that’s going on in the world economy and slow recovery by our friends in the US. You need to be investing for cash flow.
Hope that helps!
Till next blog post – happy investing everyone!!
Erwin | MrHamilton.ca
PS: If you would an on-the-ground tour of Hamilton and select investment properties please let me know (email Maria and she’ll set it up: Maria (at) MrHamilton.ca)
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