When you are thinking of purchasing an investment property in Barrie, whether you are looking to own a property as a college rental, rooming house, legal duplex, legal triplex or an apartment complex, Barrie is an area of high demand.
Barrie is an easy commute to the Greater Toronto Area as well as cottage country, just north of the City. Barrie has been designated an Urban Growth Centre by the Province of Ontario (Places to Grow Simcoe Area, 2009). Its population growth, largely due to its emergence as a bedroom community for Toronto, has given rise to the development of numerous subdivisions on the southern side of the city. The city of Barrie fast-tracking development of the infrastructure and services that companies look for when scouting a new location, all the while preserving its appeal as a small historic town on the shores of Lake Simcoe, the city’s beautiful waterfront.
Here are some simple facts as to why you should invest in the City of Barrie:
-Ranked by Don R. Campbell, Senior Research Analyst and his team at Real Estate Investment Network (REIN™) as one of the top 10 places in Ontario to invest in.
– Ranks higher than most Ontario cities including in terms of cost competitiveness – average cost of a home in 2014 was $339,952
– Advantage of being located a days trucking distance to more than 60% of Canadian market, less than 1 hour drive from Pearson International Airport
– 8.4 Million Number of people living within a 100-mile radius of Barrie
-Home to Georgian College and the University Partnership Centre (UPC). Georgian College ranked 3rd world wide” – 2013 International Student Barometer
-40 minutes to Honda Plant
-20 Minutes to our Canadian Forces Base Borden
-City of Barrie has many plans of expanding with over 2000 acres of land already purchase for upcoming expansion of homes
-Barrie Molson Centre & OHL Team The Barrie Colts
-Go Train – TWO Commuter Hubs – South GO and Allandale/Waterfront
-RVH (Royal Victoria Hospital) and Cancer Centre ($450 million dollar expansion)
When it comes to investing, there are various strategies that investors use but the most common one is:
Buy & Hold
The strategy for ‘Buy and Hold’ is simple: buy a rental property that is slightly under market value and hold it for the long term. The goal is to have tenants gradually pay off the mortgage so that in the end you have a property that is mortgage-free and on which rental income is being paid to you indefinitely. Buy and Hold is a popular option for Ontario investors, because it is one of the most straight-forward real estate investment strategies. As long as the property’s income covers the expenses (note that each lender has slightly different ways of calculating this), and as long as you have a minimum 20% down payment, it is also the easiest real estate investment to finance.
Some key advantages to investing in a property in Barrie, Ontario
1-You pay less tax
You can deduct certain expenses from your income – reducing the taxes you owe. The list includes:
- mortgage interest
- property taxes
- insurance
- maintenance/upgrades
- property management
- utility bills (if you include them in the rent).
2. You may be able to deduct losses for tax purposes
If your expenses exceed your rental income, you may be able to deduct that loss from any other sources of income you have. This could reduce your total tax bill.
3. You get a regular monthly income
Other kinds of investments may pay out less often or income may be less predictable.
In all aspects, there are pros and cons to purchasing an investment property, the upkeep and finding good quality tenants that maintain the property, but as long as your RETURN ON INVESTMENT makes sense, take this opportunity with low interest rates to own an investment property in Barrie.
