Real Estate Investing Best Places – Kitchener-Waterloo

Real estate investing reaps profits when you buy in the right location and hold until conditions are right to sell. 

Investing in Kitchener-Waterloo real estate can be a good strategy for building retirement income, or making mortgage payments when other income is tight. 

We take a look at —

Quick Read

How is the housing market in Kitchener-Waterloo?

Is Kitchener a good investment?

Is Waterloo a good place to invest?

How to mortgage an investment property

Documents your mortgage lender needs

How to calculate land transfer taxes

Real estate investing reaps profits
Image by Gerd Altmann | Pixabay

Investing in Kitchener-Waterloo Real Estate 

So how is the housing market in Kitchener-Waterloo? Pretty robust most of the time.

Home prices are cheaper the further out of Greater Toronto you move. As if to prove it, Kitchener-Waterloo is projected to grow by 33% by 2031. Real estate investing can take advantage of growing demand for rental properties and rooming houses.

Post-pandemic, back-to-class demand, immigration, and stable jobs in professional, scientific and technical services stack the odds for long-term profits investing in Kitchener-Waterloo real estate.   

Rental rate predictions for real estate investing. 

Kitchener, a Good Place to Buy Real Estate

In-demand industries and solid rental returns make real estate investing in Kitchener-Waterloo a positive bet. Average rents for one-bedroom units were $1,723 in October 2022, up from $1,501 in January the same year. Two bedrooms netted $2,149 ($1,901). Rents have climbed 8% and 13% respectively since August 2020.

Record-breaking home price hikes in 2020 (34%-46.7%) made Kitchener a good investment for locals and “move-over buyers”, transplants from Toronto and area who opted to sell. A 23.6% price drop since fall 2021 opens up the market for serious buyers investing in 

Kitchener-Waterloo real estate (September 2022 stats, CREA). 

Average sold prices for residential resale homes were $901,261 in fall 2022. 

Waterloo, a Good Place to Invest

Waterloo has history as a good place to invest. A strong student rental market and the region’s reputation as Silicon Valley North keep real estate investing high on home buyers’ priority list. Easier GO train commutes to Toronto and the iON LRT make getting around more convenient. 

Studios were renting for $1,258 in October 2022, down from $1,340 in 2020, and one bedrooms for $1,800 ($1,475). Two-bedroom suites went for $2,108 ($1,615).

Home sales dropped 25.3% compared to fall 2021, but sold prices saw a more modest 4.7% decline. Townhouses, down 2.7%, and condo apartments (8.5%) dipped the most, as first time home buyers left the market.

Average sold prices for all homes were $752,421 in fall 2022, with detached homes attracting around $862,435. 

What to know about buying an investment property.  

Mortgaging an Investment Property

Real estate investing can extend your amortization period or how long you pay for an investment, but you pay for the privilege.

Lenders charge higher interest rates for commercial investment property (5 or more rental units) vs residential mortgages (1 to 4 units). Down payments are 5%-10% if you live in a property, and 20% when you are strictly investing in Kitchener-Waterloo real estate. Remember to budget for mortgage default insurance if you offer less than 20% down. 

On the upside, mortgages for real estate investing offer generous amortization periods — up to 35 years if you live elsewhere — or 25 years for owner-occupied income property. Your lender will use 50% to 70% of your monthly rental income, added to your other salaried or self-employment income, to calculate your mortgage affordability. 

See if you qualify for a CMHC-insured commercial mortgage for 2 to 5 units. 

What to Give Your Mortgage Lender

Investment property mortgage lenders want to see:

  • the agreement of purchase and sale
  • proof from a zoning department if the property is residential, not commercial
  • a letter of employment, three months of pay stubs, or two notice of assessments from CRA (Canada Revenue Agency) 
  • your latest T776 Statement of Real Estate Rentals for the CRA
  • a notice of assessment from MPAC, the Municipal Property Assessment Corporation, showing what the property is worth
  • lease agreements with tenants
  • or a property manager or realtor’s opinion on market rents in your community.

Our Kitchener Waterloo lawyers are experienced at working with first time home buyers. Ask us when we review your offer to purchase an investment property. 

Questions to ask a real estate lawyer. 

Who Pays Land Transfer Taxes

Your virtual Axess Law lawyer, Waterloo or Kitchener, pays the land transfer taxes when they transfer title to your new property. Whether real estate investing or buying an owner-occupied home, your taxes are based on the amount you paid for land or its fair market value. Axess Law can explain land transfer tax rebates for the first time home buyer. 

Calculate land transfer taxes

Why You Need a Real Estate Lawyer

Let Axess Law review your agreement of purchase and sale before or after you sign. Your Axess Law real estate lawyer, Kitchener or Waterloo, looks for essential clauses in your offer to purchase that enable you to cancel if you change your mind. Tips on real estate investing

Bringing your real estate sales contract to Axess Law ensures you understand terms and conditions that protect your legal or financial interests. Sign closing documents by video conference with our virtual real estate lawyers. We witness your signature, and send you an electronic copy for your records. Signing the offer to purchase when investing in Kitchener-Waterloo real estate. 

When your mortgage is approved, your Axess Law real estate lawyer liaises with your lender to sign the documents you need to make it legal. Any existing mortgages you have are discharged at your lender’s instructions, and your new loan obligations finalized. Locate Kitchener real estate lawyers, private mortgages

Axess Law searches title to your investment property for financial claims or contractor liens that could get in the way of your contract closing on time. We transfer title to a property into your name, and arrange title insurance to prevent you from becoming a victim of mortgage fraud. Transfer title in Ontario.

Hiring an estate lawyer

Affordable Real Estate Lawyers, Anywhere You Are

Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario  when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.

Hiring a real estate lawyer, Waterloo. Find real estate lawyers in Kitchener

Phone or Go Online for Real Estate Lawyer Appointments

Make legal appointments by calling Axess Law, or dropping into our Greater Toronto Area or Ottawa law offices. Dial toll-free to 1-877-402-4277, or 647-479-0118 in Greater Toronto Area for personal assistance. Axess Law’s licenced real estate lawyers make day or evening appointments at times convenient for you, and we can video conference with you anywhere in Ontario. Book online 7 days a week with our convenient web form. It’s quick and easy. 

Axess Law has onsite parking, and easy transit access.