Toronto gets a lot of the real estate attention in Canada with Vancouver a close second. While both markets have rewarded owners and investors, it’s the region known as the Golden Horseshoe that has sneakily offered stability and a high potential for return.
Much of what’s driving this housing market are the same factors that drive Toronto’s and boils down to simple economics: supply, employment and the Canadian dollar. Consider this, in 2016, this region’s accumulated approximate population was 9.2 million, which means it made up 26% of Canada’s population and close to 70% of Ontario’s.
Let’s delve deeper into these markets and the reasons why they might prove to be smart investments.
What is The Golden Horseshoe?
The Golden Horseshoe is a region of Southern Ontario that stretches from Lake Erie to Georgian Bay. Like the GTA, it is facing a supply issue when it comes to single-family detached houses. This factor could heat and drive the market in 2017.
While Toronto and its greater area are the most bandied about, The Golden Horseshoe holds a lot of untapped value for investors. Remember, as more people gravitate to the Toronto job market, many will choose a Go train commute over city living.
Areas of the Most Interest in the Golden Horseshoe
The Golden Horseshoe is a diverse and sprawling area that comprises some of Canada’s most recognizable and vibrant cities. From Hamilton to Kitchener to Barrie, there’s no shortage of real estate investment opportunities with some very strong markets to choose from.
What this Means for Investors?
A lot of investors shy away from Toronto due to price and competition. The Golden Horseshoe offers a safer alternative that can still yield significant returns. Granted, it might not be as profitable overall and there is still some fierce competition, but it’s a healthy alternative and good way for investors to enter the market.
Mortgage Company of Canada is a mortgage investment corporation whose objective is to provide investors with an attractive risk-adjusted return by investing in mortgages secured by single family homes in the Greater Toronto Area. Our experienced management team employs an independent Board approved credit policy, follows rigorous underwriting analysis and leverages its third-party mortgage brokerage relationships as well as its affiliated mortgage brokerage for mortgage originations.
Mortgage Company of Canada’s Board of Directors (“Board of Directors”) comprises a majority of independent members who provide a framework around best practices.