Investing in Ottawa real estate: Canada is one of the global hot spots in residential real estate investing. Cities such as Toronto and Vancouver are incredibly popular with investors from Asia, the United States and Europe. Prices in these two metropolitan areas reflect this phenomenon: the average family unit no costs over one million Canadian Dollars.
The nation’s capital Ottawa, however received much less overseas investment. This is rapidly changing. Ottawa is considered a very affordable real estate market. Approximately one million residents live in this city, the political and bureaucratic centre of Canada.
Historical Downtown Core
Ottawa is a city of distinct neighbourhoods that contrast well. The downtown areas are made up home built during the first decades of the 20th century. These historical areas are the most popular neighbourhoods: prices have increased substantially with a year over year rate of over 8 per cent. The modern commercial centre is also located in the downtown core.
Characteristic of the downtown areas
Turn of the century brick homes built on spacious lots decorated with mature trees line many streets in Ottawa centre. Most of these old houses have been completely renovated and modernized during the last 20 years. Popular shopping avenues such as Elgin, Bank and Rideau streets offer countless small, family owned coffee shops, spas, restaurants, health centres, boutiques and other commercial businesses. Large and modern high rises now dot these major avenues.
Most museums, private clubs, commercial associations, trade unions, the Central Bank, the Supreme Court and the Canadian Parliament are located in this central area as well as the World Heritage Site Rideau Canal, the world’s longest continuous skating platform. This central area is truly the political centre of this modern nation.
Investors in Ottawa Real Estate
Most investors today decide to purchase property in Ottawa due to three major factors. Prices are still very affordable compared to aforementioned Vancouver and Toronto. Ottawa is a very stable market as most employment is tied to the Federal Government. The jobs tend to be high pay and long term positions. Finally, the city has a high number of transient populations with the many embassies, consultants, two large universities and high immigration rates, making vacancy rates very low.
Apartment condominiums are especially popular with real estate investors. These residential units offer turn-key solutions and are generally easy to rent. Local rental management companies are generally contracted to manage these holdings for a fee of around 10% of gross rent. This allows investors to develop a growing portfolio while the individual units are managed by a well-connected and local entity.
Ottawa is on the rise as a destination or alternative for both international and domestic Canadian investors. This trend is likely to continue in the future as the other major cities in the country become increasingly volatile and expensive. A stable, high earning workforce, immigration and two large universities make the capital of Canada an attractive solution for those looking to augment their real estate portfolio.