When to Purchase a Student Rental Property at Western University or Fanshawe College in London, Ontario
There are several times per year where there are family homes and student homes that go up for sale around the campuses of Fanshawe and Western. In our history, we see many of these properties go up for sale October-December and May-July. This is not a coincidence: many times these properties are not rented out for the upcoming year (usually Sep. 1 or May 1 lease) so current owners are losing money onto their asset and would rather sell then keep losing money. This is where several real estate, property management, small businessmen, and even numbered corporations come in and buy up properties in the area. But when should you buy?
Finding a property for a good value is difficult at Fanshawe College, and especially at Western University. The best investments that we see from local landlords and businesses are those that are buying houses on the “low end.” There are several reasons why houses still sell in these areas for under market value: they are not fully rented, they are empty and need a lot of work, and if a new owner would step in there would be several months of carrying costs prior to renting the house out to a new group of students. Since the new owners (who are usually savvy Landlords with a good realtor who know what the real price of some of these properties are) understand the market and cycle of renting, they know that they need a maximum of 90 days before May 1 or September 1 to buy, renovate, and rent a house comfortably while minimizing carrying costs. Therefore, the best time for a prospective Landlord to close the purchase of a house on the low end of the market is around February 1 and July 1.
This advice is not for all Landlords. Buying and selling happens on a weekly basis around Fanshawe and Western in London, Ontario. However, if you are looking in to investing in these areas outside of the time frames outlined previously you will be buying a turnkey investment: a property that is renovated, rented, and hassle free. There are Landlords who definitely want this (usually Landlords from out of town) but there are others who have a different philosophy: buy low, spend some money, rent it out, and either hold onto the equity or cash out.
There are several times per year where there are family homes and student homes that go up for sale around the campuses of Fanshawe and Western. In our history, we see many of these properties go up for sale October-December and May-July. This is not a coincidence: many times these properties are not rented out for the upcoming year (usually Sep. 1 or May 1 lease) so current owners are losing money onto their asset and would rather sell then keep losing money. This is where several real estate, property management, small businessmen, and even numbered corporations come in and buy up properties in the area. But when should you buy?
Finding a property for a good value is difficult at Fanshawe College, and especially at Western University. The best investments that we see from local landlords and businesses are those that are buying houses on the “low end.” There are several reasons why houses still sell in these areas for under market value: they are not fully rented, they are empty and need a lot of work, and if a new owner would step in there would be several months of carrying costs prior to renting the house out to a new group of students. Since the new owners (who are usually savvy Landlords with a good realtor who know what the real price of some of these properties are) understand the market and cycle of renting, they know that they need a maximum of 90 days before May 1 or September 1 to buy, renovate, and rent a house comfortably while minimizing carrying costs. Therefore, the best time for a prospective Landlord to close the purchase of a house on the low end of the market is around February 1 and July 1.
This advice is not for all Landlords. Buying and selling happens on a weekly basis around Fanshawe and Western in London, Ontario. However, if you are looking in to investing in these areas outside of the time frames outlined previously you will be buying a turnkey investment: a property that is renovated, rented, and hassle free. There are Landlords who definitely want this (usually Landlords from out of town) but there are others who have a different philosophy: buy low, spend some money, rent it out, and either hold onto the equity or cash out.
