Is Buying an Investment Property Worth It Right Now? Here’s Where Canadian Investors Are Getting Ahead
🏠 Is Buying an Investment Property Worth It Right Now?
Here’s Where Canadian Investors Are Getting Ahead
For much of the past two years, real estate investors across Canada have been asking the same question: Is it still worth buying an investment property right now?
With rising borrowing costs, shifting demand patterns, and new regulations impacting landlords, it’s understandable that many are feeling cautious. But here’s the truth — while the market has changed, strategic investors are still finding ways to win.
From smaller suburban markets with strong rental yields to multi-unit opportunities that offset financing costs, there are still smart ways to grow equity and cash flow in 2025.
Let’s break down what’s happening in today’s market—and where Canadian investors are getting ahead.
💡 1. Rising Rates, Smarter Strategies
Yes, interest rates have made financing more expensive—but they’ve also cooled competition. Investors who were once priced out during the bidding wars of 2021–2022 are now seeing opportunities re-emerge, especially for properties sitting longer on the market.
In Ontario, many investors are using this window to:
-
Negotiate below-list deals on rental-ready properties.
-
Add income suites or convert basements into legal secondary units.
-
Target cash-flow stability instead of rapid appreciation.
Example: In cities like Hamilton and Oshawa, duplex and triplex properties are selling roughly 3–5% below asking, allowing investors to offset higher borrowing costs with stronger rent potential.
📈 2. Rent Growth Remains Strong
Even as home prices have stabilized, rental demand has surged. Immigration targets, limited housing supply, and affordability challenges have kept the rental market tight—especially in Ontario’s urban and commuter regions.
According to the CMHC Rental Market Report, average rents in the GTA rose 7.2% year-over-year in 2025, while vacancy rates remain below 2% in many suburban markets.
That means investors are:
-
Achieving higher rental income per door.
-
Attracting long-term tenants faster.
-
Gaining better cash flow even with elevated interest rates.
✅ Investor Insight: Properties near major transit corridors, hospitals, or universities (like in Mississauga, Hamilton, and Ottawa) continue to see the strongest rental demand.
🏙️ 3. Where Canadian Investors Are Getting Ahead
While Toronto remains a strong long-term hold, investors looking for immediate returns are expanding outward. Here’s where momentum is building in 2025:
Halton Hills & Milton – Great for small multiplex conversions or newer townhomes with legal basement suites.
Hamilton & Stoney Creek – Ongoing redevelopment and GO Train expansion make these strong cash flow markets.
Niagara Region – Affordable entry points with consistent tourism-driven rental demand.
Ottawa & Barrhaven – Government employment stability keeps vacancy rates low.
Durham Region (Oshawa, Clarington) – High rent-to-price ratios make this one of Ontario’s strongest value plays.
🧾 4. Tax Planning & Incentives Still Matter
Canadian investors can still leverage several financial tools to boost returns:
-
RRSP Home Buyers’ Plan (HBP) and FHSA for first-time investors.
-
Capital cost allowance (CCA) to write off depreciation.
-
Interest deductibility on investment loans.
For larger portfolios, consult your accountant about incorporating under a holding company to protect assets and optimize taxation.
✅ Important: With changing CRA audit standards and rental income reporting, professional guidance is key to keeping your investments compliant and profitable.
🧱 5. The Smart Investor’s Mindset for 2025
The era of “buy anything and it will double” is behind us—and that’s a good thing. Today’s real estate market rewards strategy, patience, and long-term thinking.
What agents are seeing now:
-
Investors focusing on multi-unit potential over single-family speculation.
-
Increased interest in joint ventures to pool resources.
-
Growing popularity of secondary suite renovations to increase income.
In other words, the smartest investors are those treating real estate like a business, not a bet.
💬 Final Thoughts
So—is buying an investment property worth it right now?
If you’re chasing quick flips, probably not. But if you’re focused on building sustainable wealth through smart acquisition, stable cash flow, and long-term appreciation, the answer is absolutely yes.
Markets like Halton Hills, Hamilton, and Niagara continue to present strong entry points, and with reduced competition and strong rent growth, 2025 may quietly be the best time in years to buy strategically.
📞 Call 289.670.5888 or visit www.anabastas.ca to connect with our investment specialists and start building your portfolio today.
🏡 Ana Bastas Realty | Experience the AB Advantage™
Categories
Recent Posts
"My job is to find and attract mastery-based agents to the office, protect the culture, and make sure everyone is happy! "