6 Best Neighbourhoods in Guelph for Buying an Investment Property
If you’re looking for one of the best cities to buy an investment property in, you’ve found it in Guelph! There are some cities that are better than others and we are going to cover all of that for you here.
Before diving into which are the best neighbourhoods, let’s talk about why to invest in Guelph and then what criteria makes one neighbourhood better than another.
The primary reasons Guelph is an amazing place to invest:
- Guelph is a University town with approximately 30,000 students attending UOG. About 87% of them live off campus creating a high demand for rentals.
- Guelph was ranked #1 by Money Sense as, “Where to Buy Real Estate in 2020: Top 35 cities.” According to the article, “Strong economic fundamentals helped Guelph, Ont., top the MoneySense in where to buy now ranking.”
- Guelph has a very stable economy with the Ministry of Agriculture, Food and Rural Affairs, University of Guelph, and Linamar (head office and over 20 plants in Guelph)
- Guelph’s housing prices are substantially more affordable than homes in the GTA and yet it is still computable to GTA.
- In Guelph, you can legally have an accessory apartment and a coach house on the same property, allowing you to generate more rental income from one property.
When buying an investment property, what makes one Guelph neighbourhood better than another?
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- A neighbourhood that can appeal to a diverse type of renter ensures lower vacancy rates. An area that appeals to students, young professionals, and families is ideal. Later in the article, we will discuss the pros and cons of renting to each of these groups.
- Tenants will gravitate towards rental properties with a higher walkability score and availability of transportation in the area.
- As an investor, you need a home that can have cash flow, making affordable housing in the neighbourhood key.
Our 6 Best Neighbourhoods in Guelph for Buying an Investment Property:
- Downtown
- St. Patrick’s Ward
- Exhibition Park
- St. George’s
- Dovercliffe/ Old University
- Kortright West
1. Downtown
- Students: Yes
- Young Professionals: Yes
- Families: No
- Most Affordability #10/18
- Walkable #1/18
- Transit #1/18
Downtown Guelph is the perfect place to buy an investment property for students and young professionals. This area has trendy restaurants, boutiques, and clubs and it comes alive in the evening with young adults. It’s a trendy place to be!
The downtown neighbourhood scores the highest on walkable and transit scores. It is within walking distance to the GoTrain making it possible for commuters to live in the area and work in Toronto. The Go Train currently has a limited schedule but in the near future, that will be improved.
Downtown Guelph has and continues to invest in making the downtown area more vibrant. New restaurants and businesses are popping up regularly. It has many condominiums ranging from trendy lofts converted in old warehouses to new chic buildings with luxurious amenities. You can also find charming older homes in the downtown area.
Although it isn’t one of the cheapest areas of Guelph to invest in with an average sale price of $858,148, there are still some very reasonably priced detached, townhouses and condominiums to be found.
For more information on real estate in the downtown area visit here.
2. St Patrick Ward
- Students: Yes
- Young Professionals: Yes
- Families: No
- Most Affordability #1/18
- Walkable #8/18
- Transit #5/18
St Patrick’s Ward has the most affordable housing in Guelph with the average pricing being $640,002. This area is in the process of major transformation. Many warehouses are being converted into trendy continuum lofts, houses are being torn down, new ones are being built, and many homeowners are renovating their homes. There are numerous desirable features, one of the highlights being its close proximity to downtown and the University of Guelph. It has a beautiful park along the river. Although many families love living in this area, the neighbourhood is still developing and tends to be more desirable for students and young professionals.
For more information on real estate in the St. Patrick’s Ward area visit here.
If you want even more ideas on how to invest, check out the posts below:
- Questions To Ask Potential Property Management Firms
- Is Now A Good Time To Buy An Investment Property In Guelph?
- How An Experienced Guelph Real Estate Team Can Help With Your Investments
3. Exhibition Park
- Students: Yes
- Young Professionals: Yes
- Families: Yes
- Most Affordability #13/18
- Walkable #6/18
- Transit #4/18
Beautiful tree-lined streets, a mix of older century homes, and new infill homes create the landscape for this area. Exhibition Park is an extremely desirable neighbourhood to live in, making it very attractive for investors.
It has a large, beautiful park offering tennis courts, a skating arena, a splash pad & tons of community events. It also has some excellent schools which attract families. There is a true sense of community in this area with some of the most active neighbourhood associates in Guelph.
The close proximity to the downtown offering delicious restaurants and boutiques appeals to all types of renters. Students love this area because they are close to both UofG and downtown. It is more expensive than most neighbourhoods in Guelph making it more challenging to find a rental that will have cash flow but not impossible.
For more information on real estate in the Exhibition Park area visit here.
4. St. George’s Park
- Students: N0
- Young Professionals: Yes
- Families: Yes
- Most Affordability #4/18
- Walkable #4/18
- Transit #8/18
St. George’s Park has some of the most beautiful streets such as Ardmay and Stuart Street that surprisingly still have smaller, more affordable homes. It is a picturesque neighbourhood featuring tree-lined streets & St George’s Park offering tennis courts & a large play structure.
Downtown Guelph’s restaurants and shops are within walking distance making it very attractive to young professionals. It is not very popular with UofG students as it is not within walking distance to UOG nor are there direct bus routes.
There are some larger lots in this area which means there is the potential to build a coach house for additional income. The average sale price of a home in this area is $778,987 which is very reasonable for Guelph.
For more information on real estate in the St. George’s area visit here.
5. Dovercliffe / Old University
- Students: Yes
- Young Professionals: Yes
- Families: Yes
- Most Affordability #12/18
- Walkable #11/18
- Transit #3/18
Old University real estate is some of the most interesting and diverse real estate in all of Guelph. This community is an ideal area for students. It is within walking distance to Downtown and has excellent direct transit to the University of Guelph.
There are plenty of parks and excellent schools to choose from. Since the majority of houses are older, there are beautiful mature trees making them ideal for families. Young professionals like the vibe of this area as well because of the proximity to downtown. Many homes in the area have accessory apartments.
It ranked #12 of 19 on affordable housing in Guelph with an average sale price of $920,397 which will require a bit of searching to find an investment property. Throughout the area, older homes are being torn and replaced with larger new builds. The Dovercliffe area tends to have more affordable housing and therefore more student rentals.
For more information on real estate in the Dovercliffe/Old University area visit here.
6. Kortright West
- Students: Yes
- Young Professionals: No
- Families: Yes
- Most Affordability #5/18
- Walkable #5/18
- Transit #6/18
Kortright West has one of the highest densities of student rentals. Many streets in this area are dominated by detached and semi-detached homes primarily renting to UofG students.
The average sale price for houses in this area is $795,313, which is quite affordable compared to other neighbourhoods. A student rental can command over $600 per room plus utilities.
This area is close to UofG, has restaurants, and has tons of great amenities. Kortright West also has lovely tree-lined streets with large properties. There are plenty of parks and conservation areas making this neighbourhood desirable for families. Due to the affordability of this area, it is also attractive to first-time buyers.
For more information on real estate in the Kortright West area visit here.
Choosing The Correct Tenant
There is a lot to think about when you’re choosing to become a landlord. It is important to look at the pros and cons of each type of tenant experience and be clear on what your goals are for your investments.
The type of tenant you want to rent to will help you determine which neighbourhood to purchase in. Let’s take a look at those options as well.
University Students:
Guelph is home to the University of Guelph so there is a huge demand for student rental.
Pros: A home with 4 to 6 beds can command high rent. Students are usually great at paying rent and as a safeguard, you can have their parents guarantee it.
Cons: They may throw parties and chances are you are going to have to paint and do minor repairs during switchovers. You will have a lot of turnovers and will be re-renting your place every one to four years.
Families:
There is always a demand for homes that can accommodate a family.
Pros: Families tend to be long term tenants, so you won’t have frequent turnover.
Cons: Children and pets can put a lot of wear and tear on your properties. If things go wrong families can be very difficult to evict. It’s important to prepare for thorough screening upon intake.
Young Professionals:
House ownership in Guelph is becoming unaffordable for many young professionals so there is a demand for rentals in this group.
Pros: Young professionals generally have two incomes. They don’t have the high turnover of a student. They also don’t have children that can put extra wear and tear on your home.
Cons: They will tend to turn over faster than families but slower than students.
We have covered a lot of bases when it comes to desirable neighbourhoods for investments and the pros and cons of becoming a tenant. There is always a risk when it comes to figuring out what rentals are best suited for your specific needs but with that risk, there can be great rewards!
One of the best things you can do right now is to contact a real estate agent who will consider your goals and be able to patiently and thoroughly go through the process of finding an amazing rental opportunity for you. Start the process today and if you are interested in learning more about investment properties click here.
