Investors were gifted a huge potential pool of renters yesterday, thanks to Ottawa’s big plans for the student market.
The student rental market could explode in the coming years following Ottawa’s plans to double the number of international students in Canada by 2022.
International Trade Minister Ed Fast said the government will target students from developing markets, primarily China, India, Brazil, Mexico, North Africa and the Middle East.
Canada hosted more than 265,000 students in 2012, up 94% since 2001. The goal is to attract 450,000 students across all of the major schools in the country.
Speaking to CREW, Tim Collins from Student Rental Investing ,says this is the perfect opportunity for investors to get a slice of the lucrative market. “It will be a gradual increase (of students arriving) and supplement what is a steady market. The student rental bsuiness can be more hands on than other types of investing so people should go into it with their eyes open, and get educated on what to expect.”
While most of the major universities that typically attract international students are located in urban centres – such as Toronto and Montreal – Collins says investors could still acquire a suitable property in other regions, including London and Hamilton for around the $350,000 mark.
According to Study Canada and the online resource for international students, the monthly costs for shared accommodation ranges from $250 to $700 per month, and from $400 to $1500 per month for a suite or apartment.
International students typically want rooms in houses that are fully furnished with as much as possible provided. They, in my experience, make fantastic renters because they are here to work and be successful” says Collins.