Discover The Different Types of Real Estate Investment Properties in Canada
Have you ever found yourself wanting to get into the Canadian real estate market, but you’re wondering “what are the different types of real estate investment properties in Canada available to me?” Well, wonder no more, because we have some helpful info that can outline for you what is a possible option on the market.
Just as there are a variety of different types of shoes, hairstyles and the like, there are many different investment properties that work best as an investment opportunity for different people in different situations. There is no one size fits all real estate investment opportunity, every circumstance is unique and tailored to you as the buyer or investor. Now let’s go over some of the specifics regarding all the options for property investment you can get into in Canada.
Real Estate Investment Opportunities
There are a variety of investment opportunities within Canada when it comes to property, from buying single units to entire buildings. There is an option for most people at whatever place in life you are in to get into the real estate investment scene. Read on below to learn some more about the different real estate options available to you in Canada.
Single Family Home
One of the main things people think of when they consider buying property, is the purchasing of a home, more especially a single-family home. A single-family home might be either fully or semi-detached, a townhouse or what is known as a row home. Single-family homes tend to be the most plentiful type of real estate available as well, considering that many people have the goal of homeownership. To be considered a “single-family home” if the house is attached to another unit it has to be separated from the adjacent property by ground to roof level wall.
The average price of a single-family house in Canada is about 817,000. With the highest prices being in main cities such as Vancouver, Montreal and Toronto, and the lowest prices being in small cities in provinces such as Nova Scotia.
Multi-Unit
Multi-unit houses are also referred to as multi-family homes and they usually consist of a singular building that is enabled to take in multiple-family units, such as a large house divided up into 3 floors, each one being a separate unit. The units are designed for different families living separately in the same building such as a duplex which is two separate dwellings within one building, to small extremely low rise apartments of homes with no more than 4 units. If a building has more than four units within it, it is considered to be a commercial property and no longer a multi-family dwelling.
The average price for a multi-unit or multi-family home in Canada, is $887, 000. That is because these properties are often larger than single-family homes and are used to house multiple different groups of people.
Condo
A condominium, which is the full term for the shortened version of “condo”, is a privately-owned individual unit within a community of other units. They can be similar to apartment buildings with multiple units, up to hundreds being housed in one building. Condo owners typically jointly own shared common areas including pools, garages, elevators, outside hallways, gyms, tennis courts and more. The types of amenities available to people who live in condos vary by building. While most condos are found in high-rise buildings, you can find detached condos in some markets that are similar to townhouses. For the most part, the owner of the condo typically owns the interior of the condo and the structural components of exterior walls that surround it and divide it from other units.
The average price for a single condo unit in Canada is $ 710, 087. Most condos are found in cities such as Toronto and Vancouver, less so in rural areas outside of major cities and as such they can be costly.
Storage Facility
The storage facility is an often underrated property type that many people look past when considering real estate investment. But that is a huge mistake, storage facilities are part of the number one asset class in the USA, turning over income year after year. People will always stuff, and as such they will need a place to store it, and so the storage unit is the perfect opportunity. The self-storage industry rents out storage space, known as storage units, to tenants, on a short term or long term basis to hold their items. Self-storage tenants include businesses and individuals who need to store their items. Storage facilities also enable you to easily evict uncooperative tenants and auction off their items. Have you ever heard of Storage Wars? If you have, this might be familiar to you.
The average price that a storage facility goes for is about 1.75 per sq/ft, but can be more or less depending on a number of factors, including location.
Apartment
Low-rise apartment buildings are also a great option to rent out, especially in undervalued areas where you can buy an entire building, renovate the units and charge more than other buildings in the area. Typically an apartment, or flat, is a self-contained housing unit that occupies part of a building, generally on a single story. An apartment building contains all the units and other amenities such as elevators that might be a part of it. Apartments can be rented out from $1000 anywhere to up to over $3000 for high-value units in high-demand locations such as Toronto. For example, a one-bedroom apartment in downtown Toronto may cost the same price as a 3 bedroom unit in Pickering.
The average price of an apartment unit back in 2019 was about $350,000 but has increased since then.
Business/Retail Space
With the boom of people opening up small businesses over the course of COVID, there is an influx in demand for physical spaces to house these businesses. As such, it is a great time to be the one renting these spaces out to eager tenants. A business or retail space can be anything from a small storefront to a larger space. Usually, they are used to sell products or provide services to customers.
The average lease rate for a commercial or retail space is about $21/per square foot.
Office Space
Office space is a unit, room or room within a building that is used to provide a working environment for office operations, such as printing, scanning, faxing, meetings and computer work. There are also “shared working spaces” where people can go and work on things for their job by themselves or in a team, in a setting that isn’t their workplace but also isn’t home. They can be rented out by people, or by businesses looking to set up a space. These have become more popular since COVID.
The average office lease rate is about $17/ square foot nowadays in Canada.
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