It seems like the threat of a mortgage rate increase has been on the horizon for the past few years or so, but this news is starting to creep back into recent articles. While no one really loves a rise in interest rates, it becomes especially challenging for people in major cities like Vancouver and Toronto, who have seen the house prices steadily rise to levels that are making home purchases more and more out of reach for the average individual or couple looking to get into the housing market. Slap a higher interest rate on top of that and people have to look for other options...enter: London, Ontario!
Even if mortgage rates are going up, London’s real estate prices are quite low, so it’s a great entry point for first-time buyers or those who may be looking for a cheap, second property to rent out for some extra passive income. According to LSTAR, the average home price in London, Ontario last month was only $386,520!
London, Ontario is still one of the most affordable cities to buy real estate in Canada. There’s lots of potential for growth (and prices are going up every year) and the city offers great rental market returns with low vacancy rates, if you’re looking at adding some rental properties to get your passive income going. London is fast becoming known as the awesome mid-sizes city with a small town feel, which means you can benefit from a lower cost of living without the sacrifice quality of lifestyle.
In the past year, there’s been an influx of buyers from Toronto with floods of people looking to escape the high prices of larger cities.They’re loving the diversity of the neighbourhoods in London, the affordability (you can get a nice, single family home with a big backyard in London for the same price as a tiny condo downtown Toronto).
There are cool, hip, up and coming neighbourhoods like Old East Village, for those looking for walking distance to indie coffee shops and more established, higher-end neighbourhoods like Hyde Park, that offer larger homes with proximity to excellent shopping. If you’re from out of town and aren’t sure which neighbourhood is best for you, I have the full details on my neighbourhood page (and you can always get in touch with me to get help picking one out). I never shy away from boasting about how great London is. The great people, the amazing amenities, reasonable real estate prices and the proximity to Toronto…what more could you ask for?
Thanks for reading!