what are peoples opinion about investing in oshawa Ontario?

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I'm curious to see what peoples opinion are on this blue collar city. I would like to think that it has potential to make it to the top ten list for investment cites in canada. With strong population growth, and cheaper housing. Why not invest there?! It takes 45 mins commute to Toronto by the 401 with no traffic. The 407 highway expansion is cutting through the north end, for easier commuting as well as talks of a another Go train station added to the east end near the 401. There seems to be a hugh housing boom setting new construction records yearly , with new sub divisions eating up all the raw land to the north. University and college have invested heavily in the city and it seems like the manufacturing is less of a factor to employment. I currently own a duplex in the east end of Oshawa and live in the basement of it. I'm pleasantly surprised how much i enjoy living here. I feel this city has its name tarnished and i'm hoping it will make a come back. Does anybody else see any potential here, or should i switch my focus to another city ?

 

[Mike Milovick]

You seem to be very happy in Oshawa. Both living there as well as possibly achieving your investment objectives.



I am originally from Oshawa and have relatives that still live there.



The University is starting to have an impact in this City. And it will hopefully bring some regentrification to the downtown core.



Couple things of note:

1. I have noticed though, in terms of larger, multi-residential offerings in this City, that prices are very comparable to Kitchener-Waterloo. So my question to you would be, given that pricing is very similar to a top ten area like KW, why would you invest in Oshawa as opposed to KW - or perhaps another top ten City closer to where you live?



2. I believe the residential real estate market to be soft in this City - at least for homes in the mid-range price segment - $300K plus.



3. Obviously, the City has managed to tank student housing investment around the University's Main Campus with its Rental Licensing Program. I do not believe the larger, purpose-built student buildings around main campus have been successful. I believe once the campus in downtown gets entrenched, they will introduce the program to this area of the City as well. The Rental Licensing Program seen in Oshawa is very much anti-investor.



So some things to think about. Obviously, you seem to have found some success in your niche. Personally, I don't think Oshawa is a bad place to live. I just wouldn't count on it right now to outperform the other top ten areas on a long term horizon.

 

[housingrental]

Why live in the basement?

If there is a good rental market in area why not move out and purchase second property to occupy?

 

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Thanks Mike for your reply I toally agree with what u have to say.

Does any other cites have this rental licensing program? i personality feel like its a tax grab which effects my cashflow and just another hoop to jump through.

I like the idea of student rentals , due to the fact it generates higher rents compared to a duplex or SFH, most students go home through the summer which leaves that house being less abused and its there parents that pay the rent and utilities.





To answer adams question, i bought this house back in oct 09 as a second year electrical apprentice. By renting out the top and living in the basement ( which doesn't feel like a basement because its a raised bungalow) i could afford to move out of my parents house on my own at the age of 24. So by going this route iv stumbled upon the amazing world of real estate.

My plan is to renovate the basement while living here ( which i would never do again haha) and then get another suitable tenent downstairs and move on to my multi family house next which i will only require 5% down payment because it would be my principal residence.

Iv been following the market around Oshawa and Courtice casually, till i'm ready to make a move.

 

[Abigail]

Have you ever come out to the Durham Real Estate Investors monthly meetings? These meetings run once a month (except we will break for August and September and resume in October) at an Ajax location. Check out the website durhamrei.ca to find out more. We will have a July meeting coming up.

Those who belong to the group and attend the meetings do not have to be REIN members, but many are. We draw a good crowd in every month which allows us to bring in speakers. Topics all pertain to investing in the Durham area.

Good luck!

 

[Aaron Moore]

As long as I can remember Oshawa has been in either the REIN top 10 list or the top 15 list (aka the tier 2 towns). It's also right beside another top 10 town, Whitby. I've bought several properties in Oshawa and Whitby.

With the low house prices, Oshawa is great for cashflow. I find there are more deals per capita in Oshawa than other cities... there are more motivated sellers. So its easier to buy with instant equity, as opposed to counting on future equity growth.

Everyone has their one priorities, but I'd rather invest close to home than spend hours in a car to visit a property. I live in Toronto and I'm in Oshawa in 40 minutes. And I have family in Oshawa, so I have lots of reasons to visit. There's plenty of opportunity in Oshawa and that's why its in the REIN top 15 list.