Peter(borough), Paul and Mary

Why is EVERYONE talking about peterborough all the time????

Ok, they aren’t.

But we are!

And heres why:

As real estate investors we are always watching for a city about to have a boom (increase in property value!)

Peterborough has a lot of things going for it in this regard.

Peterborough benefits from having a diverse range of economic players: from established global companies to locally-grown. Unlike traditional manufacturing communities that tend to focus on one sector, Peterborough has long been a place where industrial, agricultural and cultural businesses cooperate, collaborate and flourish.

Total population of Peterborough was registered at 82,847 (2016) of the residents living directly in the City of Peterborough. The whole region is growing steadily at an 8% increase since 2001.

In spring of 2020, the 407 super-highway will connect with the main highway into the City. If the past proves true again, this will have a fantastic upward push on property values, industry, population and rental rates near the 407 ETR.

Furthermore, Peterborough has two well attended universities: Fleming College in the West end (4800 full time students) and Trent University at the North end of the City (7500 full time students.) There is also a campus of Seneca College’s School of Aviation, Peterborough.

This creates the perfect place to operate a student rental property (which can be very lucrative.) Because of the demand for this type of rental, the City offers a fairly easy registration process to allow up to 10 bedrooms in a single family home (as long as standard safety and fire code is adhered to.)

For this strategy we target houses in the $350K-$410K purchase price. Often times we can find the perfect option for 6-8 bedroom student rental property, at a great price, that needs only minimal renos, and that is close to a bus stop ( Peterborough has a fantastic public transit system. ) Most student rooms currently rent between $550-$650/month.

If student rentals seem daunting or have a certain stigma, these same properties could also be converted to legal 2 unit dwellings or “Duplexes”; In general there is a high demand for rental units in the City and the vacancy rate is approximately 1% (Dec. 2019.)

These duplex conversions are now allowed Citywide in any residential zone (as long as they don’t fall in a flood plain.) The average rent for 3 bedroom upper unit is $1650/month + utilities, and $1350/month for lower 2 bedroom units (the max that the city currently allows.)

Located just 90 minutes northeast of Toronto, and with the completion of the 407 slated for spring of 2020, the commute will be very attractive for people traveling to the big city.

All of these elements encourage us to continue to invest in Peterborough!