As university and college enrolment continues to grow across Canada, there’s also an emerging investment opportunity for student housing. Demand for off-campus student housing is clearly outstripping supply. And for landlords, the investment opportunity for student housing presents new horizons. Needless to say, large urban centres will be high demand centres for rental units.
On one hand, the student-housing sector is somewhat ignored. On the other hand, small and large investors are heavily targeting university campus markets right across North America. In Canada, investor opportunities abound. In fact, there is simply not enough student-centered housing to match the great number of university students (most acute in cities like Toronto and Ottawa).
Taking advantage of an investment opportunity for student housing
Industry estimates for unmet demand in student housing are huge. Montreal needs over 50,000 beds – Toronto needs over 30,000 beds – and Ottawa needs over 20,000 beds. From purely an investment point of view, the real estate numbers favour student-centered housing over other residential rental properties. More than that, demand for student housing is only expected to rise.
Today, “residence life” is integral to the education experience. And quality student housing is in high demand by both students and parents. This secure level of demand (and willingness to pay) translates into a viable investment opportunity for student housing. For real estate investors, both beginners and experienced, the time is simply right to capitalize on investment and return.
Important considerations for landlords when buying a rental property
If you’re buying an investment property (for student housing), the “big picture” should include all of the pros and cons. Once committed, your viability checklist will ensure your potential success.
- you have the required investment capital
- the bottom line on the project makes sense
- you can manage the demands of a mortgage
- you feel comfortable with the financial risk
- you can weather the inbuilt ups and downs
- you can handle unexpected capital expenses
For every real estate investment, it’s essential to “run the numbers” – on the down payment, the mortgage interest, and any projected or contingency costs. You simply must have a “bottom line”.
The fact that you’ve become a landlord makes it necessary to understand the legalities of the Residential Tenancies Act. Being well informed will be advantageous when any problems arise.
To be sure, an investment property in student housing is viable and sustainable. But it has to be viewed as a long-term investment. There are rarely opportunities for quick, short-term gains.
Understanding and qualifying for a residential rental property rebate
If you’re purchasing a real estate rental property (including an investment opportunity for student housing) you could qualify for the New Residential Rental Property Rebate. The NRRP Rebate is a tax refund offered by Canada Revenue Agency that can be processed once a property has closed and a lease agreement has been signed (for at least a year). Sometimes overlooked, the NRRP Rebate can provide thousands of dollars in rebate cash from Canada Revenue Agency.
At Rebate4U, in-house tax rebate experts assist property owners with a wide range of real estate tax rebates available from CRA. Rebate4U helps to navigate through the rules and regulations while assessing eligibility requirements for the different rebates. Beyond rental properties, the team at Rebate4U also offers expertise in condominium purchases, newly built homes, and substantial renovations. Clients are provided with a streamlined process and 100% satisfaction.
Find out more about the wide range of real estate tax rebates by calling 1-800-610-4510 or 416-783-6969 (local) or visiting our website at www.rebate4u.ca. With a professional approach, dealing with Canada Revenue Agency is streamlined and stress-free. Whether you have a newly built home, condo, or have recently undergone a large-scale renovation, you may be eligible to a tax rebate – Don’t wait until the deadline to find out!