The real estate market in Canada is a hot one at the moment, and housing flipping is a way to take advantage of that. Housing investment remains strong despite COVID, with some cities witnessing massive returns in real estate investment. So, which places are the best to flip houses in Canada?
The best places to flip houses in Canada are where you can get them for pretty low prices and sell for higher. Such places include Hamilton, Windsor, Guelph, Kingston, St. Catharines-Niagara, Gatineau. All these cities have seen a substantial rise in the value of real estate over the past year.
All these places are close to or easily accessible from the major cities in the country. This, among other factors, makes them ideal places to flip houses for a profit. We now look at the best places to flip houses in Canada.
Best Canadian Cities to Flip Houses
Here are the best cities to flip houses in Canada:
1. Hamilton, ON
This city is a port city with a population of over 500,000. While Hamilton is an industrial city, it’s more than that. It’s become one of the hottest cities for real estate in Canada. Its food and restaurant industry, as well as healthcare institutions, has helped its rise.
What further makes it perfect is its proximity to Toronto. The city is only 45 minutes drive away from Toronto, where real estate prices are well over $1 million on average. Compared to the high price of homes in Toronto, the average cost of homes in Hamilton is over $750,000 in July 2021, with a 27% year-on-year increase. The surge in home prices here is due to increased property demand from Toronto-based workers. So, flipping here can be very profitable.
2. Windsor, ON
If you’re looking for affordable housing in Ontario, Windsor is one of the best places to be. This makes it an excellent place for flipping houses in Canada. Windsor is a great place to live for many reasons, which is encouraging for real estate investors.
Windsor is just 13 minutes away from Detroit, Michigan, through the Detroit-Windsor Tunnel. This means it’s close to one of the major American cities. Thus, it’s possible to live in Windsor and work in Detroit.
Homes here cost an average of $543,983 in June 2021, a 36% increase compared to June 2020. This shows that the demand for homes in Windsor is quite high. Thus, it’s a perfect market for anyone interested in flipping houses.
3. Guelph, ON
Guelph was considered the best city for real estate investment in Canada in 2020. It achieved this due to its over $60,000 5-year dollar appreciation, 6.83% compound annual rate of return for a year, and 5.72% compound annual rate of return for five years.
But beyond all that, the Royal City has a lot to be proud of. It’s famous for the University of Guelph and its proximity to agricultural communities. The price of homes in Guelph is clearly on the increase, as data shows. The average price of single-family homes was $825,000 in June, a 33.7% rise from June 2020. Townhouse benchmark prices rose by 30.5% to $569,200, and apartment prices increased by 20.9%.
More people are buying homes here as there’s a 13.1% increase in the number of houses sold in June 2021 compared to the same month in 2020. In addition, the town is close to 401-highway, which means it’s close to Toronto, with only a 1-hour drive between them. With the rising demands for housing within the city, it’s undoubtedly a good place to flip houses.
4. Kingston, ON
Location is very important when it comes to flipping houses, and this city proves it further. It’s less than two hours from Ottawa, the capital city, making it ideal for those working in the capital. Home prices in Kingston are also on the increase, showing that the market is hot and profitable.
There’s an incredible 51.9% rise in the number of homes sold within the first six months of 2021 compared to the same period in 2020. It isn’t only that there are more house sales, but the prices are higher too. The average price of homes in June 2021 was $582,179. This is a 27.3% rise compared to June 2020. For the first six months, it’s even higher at 33.8%. Thus, Kingston is a great place to flip a house.
5. Gatineau, QC
Gatineau is a city in Quebec, but its proximity to Ottawa makes it a priced real estate spot. It’s only 13 minutes away from Ottawa, with a bridge separating the two cities. This means many Ottawans are buying houses in Gatineau, thereby increasing the housing demand.
While houses in neighbouring Ottawa are going beyond affordable, it’s still possible to get a cheap place in Gatineau. The average home price in Gatineau is still around $276,621, which means it’s very cheap. Thus, it’ll be easier to flip the house for profit as demand is unlikely to subside anytime soon.
6. St Catharines, ON
Here is another city from Ontario to complete the list. Known as the Garden City, this city is on the Queen Elizabeth way that connects Toronto and New York. It’s a little over an hour to Toronto and just 37 minutes from Buffalo, New York. This proximity is part of what makes it a prime real estate spot.
The average home price increased by 28.4% on a year-over-year basis in the second quarter of 2021. This shows that homes are selling for a premium in the city currently. In addition, the fact that there’s an 87.7% increase in home sales in the second quarter of 2021 compared to last year shows that demand is high too. All these make the city a great place to flip houses.
The Bottom Line
Canada’s real estate market is at its hottest right now, making it a great time for flipping properties. But while all these places are great, it’s also important to focus on specific areas within each city. Some neighborhoods offer higher returns and appreciate better than others. That’s why flipping houses requires substantial research and understanding of the markets, prevailing trends, and data to profit.