Canada is planning to widely expand the number of foreign students studying here, and the potential for investors to accomodate those students may be very lucrative here in the Oshawa and Whitby areas.
On January 15, International Trade Minister Ed Fast announced that we will have 450,000 foreign students studying here by 2022, up from the current level of 265,000. With that many new students entering the market for rental housing, investors that embrace the market with the proper knowledge and preparation could do very well.
With a gradual increase in the foreign student population, investment property owners can benefit from not only these new prospects, but also from a low vacancy rate in the area, combined with a lower than average property cost and a higher than average appreciation rate than most other areas in the Greater Toronto Area.
Renting to students can be very profitable, but also comes with different parameters. Most students are looking for rentals that are furnished, or mostly so. They can provide a steady income in an already tight market, but also can be more 'hands-on' than traditional rental properties. By understanding the local market, including proximity to learning facilitilities and amenities like transit, a good rental property can be a long term boon for the smart investor.
In Oshawa, the University of Ontario Institute of Technology (UOIT) currently has approximately 10,000 students. Of that, over 500 are currently international, from 65 different countries. Given the substantially higher levels of tuition for those students (some pay over $20,000 annually), there is good motivation for those students to perform well in their studies. They can be fantastic long-term tenants, which also makes for less work in managing turnovers and the associated cost and time for the owner.
If you would like to explore this further, please get in touch with me anytime at 905.434.0067.