The housing market in Ottawa has seen a significant price jump of almost 50% over the last two years. Even with the current lull, real estate remains a relatively secure investment, but with the prices so high is investing in Ottawa still a great deal?
According to Bill Meyer of The Tulip Team at RE/MAX Hallmark Realty Group, “Real estate has been proven to be a great investment. Most millionaires and billionaires around the world have made their money in real estate. But, it’s a long-term play [7-10 years] for most people.” Investment properties do not immediately yield a return, advises Bill, but build equity that compounds over time.
On the whole, the time is right for those interested in beginning to build a real estate portfolio. “The real estate market as a whole still has low inventory, and it’s going to take time for the market to change. Meaning it’s still a great time to get in and invest.”
If you had asked him three years ago about what would slow down the housing market, Bill would have told you that “it would take a world catastrophe.” Nowadays, he knows that not even COVID could stop the price growth. “what we’re seeing that is cooling down the market are interest rate hikes, political pressure and a growing inventory” he shares. “The risks are, I would say, somewhat out of the average person’s control.”
If you’ve been thinking about investing in real estate for cash flow, that’s “very difficult.” Meyer recommends treating today’s market as a long-term hold. “There’s no way you can invest $100,000 in any investment vehicle and expect it to double right away without there being a risk.”
But if you look at the investment/rental market right now and ask “Why are Toronto investors investing in Ottawa? It’s because an investor can buy an Ottawa property for roughly 30% less, but rents/income are comparable.” He continues, “Although living in Ottawa, you sure wouldn’t think our prices are low because we’ve watched them go up 46% over the last two years, other markets have seen this growth continue for a more sustainable length of time, such as in Toronto.” Meyer remains optimistic, saying, “They’re still seeing great opportunities in Ottawa.”
When it comes to looking for the right investment property, Meyer laughingly mentions “TheTulipTeam.com.” He acknowledges that the pickings are slim, but that’s “all the more reason to hire a buyer specialist; someone who can help you put a strategy together.” That way, you can stay on top of things and strike when the iron is hot.
TheTulipTeam.com features a dedicated page for investment properties in Ottawa, which can be found here.
For more information or to contact the Tulip Team at RE/MAX Hallmark Realty Group, visit www.thetulipteam.com or call 613-788-2113.