VANCOUVER, British Columbia, Oct. 19, 2012 (GLOBE NEWSWIRE) -- A special report by Canada Real Estate Wealth Magazine has uncovered the top 100 investment neighbourhoods in this country – communities most likely to swerve a coming correction.
Forty-one neighbourhoods in Ontario have outshone recent housing trend predications and ranked in the Top 100 list including Mimico in Toronto, Hintonburg in Ottawa, Cornell in Markham, Churchill Meadows in Mississauga and Victoria Park in Kitchener.
"Mimico, known as cottage country in the city, has seen a huge upswing in popularity with young families clamouring for the cottage-style bungalows and two-storey homes that sit on generously sized lots," says Calum Ross, President of VERICO The Mortgage Management Group. "Higher priced homes and key economic drivers found in communities surrounding Mimico are resulting in a "ripple effect" that is benefiting the neighbourhood," adds Ross.
Ross also says that he does not expect the Bank of Canada to raise overnight interest rates at Tuesday's announcement.
"Most economists agree that the overnight rate will remain unchanged until the second half of 2013. However, the maximum amortization change from 30 years to 25 years implemented earlier this year on high ratio mortgages – less than 20% down payment - acted as an approximate 1% effective rise in mortgage interest rates, and borrowers in this category are seeing this affecting what they can afford."
Art Appelberg, President of VERICO Northwood Mortgage Ltd. agrees that there won't be any surprises in the Bank of Canada announcement. "For qualified investors with a large enough down payment for a conventional mortgage, the rule changes will not affect their ability to get a mortgage. Plus, fixed rates are still very low, making real estate investment, still an attractive option."
Appelberg, whose mortgage brokerage company was established in 1990 in Markham, says that the city is very deserving of its ranking in the Top 100 list. "As one of Canada's technology capitals with the presence of Apple, IBM, Lucent, Motorola, Toshiba and Sun Microsystems, there are lots of investment opportunities here," he added.
"Mississauga has been recognized as Canada's safest city for the 10th year in a row and offers a variety of quality housing and the enjoyment of more than 480 parks and trails," says Dave Butler, Owner of VERICO Butler Mortgages. "The city is home to three major University campuses including University of Toronto and it's within commuting distance to an additional 10 universities and 11 colleges, making the city a hub for student renters," says Butler.
Branded as "The Golden Triangle", Kitchener, Waterloo and Cambridge all ranked in the Top 100 List.
"We have a diverse economic base of hi-tech, manufacturing and educational sectors making this area a top destination for new immigrants as well as businesses looking to expand," says Bob Smith, Owner of VERICO K-W Mortgage.
"The area is going to further expand with the support of substantial infrastructure improvements and is essentially the next Mississauga," he added.
Smith also advises investors to seek advice from professionals when looking for investment financing. "Committing to the wrong mortgage product could affect your bottom line and give you disappointing returns on your real estate investment. Our job is to work with you, shortlist the numerous products out there and find one that gets you the returns you are looking for."
Other ON neighbourhoods that ranked in the Top 100 list include:
|City/Town||Neighbourhood||Average home price*||Capital Growth*||Average Rent*||Vacancy Rate*|
|Ajax||North of Salem and Rossland Rds||$333,393||5.87%||n/a||2.00%|
|Brampton||Fletcher's Creek Village||$383,000||6.89%||n/a||1.40%|
|Great Sudbury||New Sudbury||$234,202||17.00%||$828||3.10%|
|Guelph||St. Patrick's Ward||$294,000||5%||$868||1.00%|
|Halton Hills||Goergetown South||$520,000||5.90%||$1,003||1.60%|
|Hamilton||North End Hamilton||$215,675||8.50%||$843||2.90%|
|Kawartha Lakes||Town of Lindsay||$257,500||1%||$788||4.10%|
|Kingston||NW of Queens||$412,000||-0.10%||$998||n/a|
|Newmarket||Yonge St. north of Davis Dr||$449,204||4.30%||$1,557||1.00%|
|Niagara Falls||Downtown Niagara Falls||$213,032||3.40%||n/a||n/a|
|North Bay||Downtown North Bay||$290,000||3.40%||$750||2.40%|
|Richmond Hill||Essex Ave area||$595,000||8.20%||$1,250||0.80%|
|Sault Ste. Marie||Downtown||$149,440||0.64%||$698||1.00%|
|Thunder Bay||Sherwood Estates||$333,000||9.10%||n/a||1.50%|
|Whitby||North of Whitby||$269,852||5.87%||n/a||2.00%|
*source: Canadian Real Estate Wealth Magazine Top 100 Report
Extensive industry analysis and statistics were used in this report including population, average home price, capital growth and vacancy rate.
The most comprehensive list of its kind, the Top 100 Neighbourhoods to Invest report was compiled by Canada's leading real estate magazine, Canadian Real Estate Wealth with the support of Verico Financial Group, Canada's #1 Mortgage Broker Network and Re/Max Real Estate.
The results – set to hit newsstands on Oct. 22 – identify the exact locations investors should focus on as a hedge against short- or long-term corrections.
For a list of media contacts for each city and neighbourhood, please visit www.verico.ca/newsroom
p: 604.681.6155 ext 230
About Verico Financial Group Inc.
Verico Financial Group is Canada's largest network of independent mortgage brokers comprising of over 190 offices with over 2300 brokers who originate over 12 billion dollars in annual loan volume. Our brokers collectively originate approximately over 45,000+ mortgage transactions per year.
VERICO is comprised of the top professional and influential mortgage companies and originators in the country.
The VERICO Mortgage Broker Network prides itself on our core pillars of excellence, professionalism and ethical standards; as a result, we have earned a reputation that is coveted in the industry.
For mortgage help, contact a VERICO mortgage broker near you.
About Canadian Real Estate Wealth
Canadian Real Estate Wealth magazine is Canada's only monthly publication dedicated to Canadian real estate investors. http://www.canadianrealestatemagazine.ca/