Near Fanshaw College

London, ON

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MultiFamily

Primary Listing
Purchase Price

$1,100,000

Projected Gross Rental Yield

6.2%

Projected Annual ROI

42.2%

Capital At Risk - Please read Key Risks and Purchaser's Rights before investing.

High Quality Property

    • Beautifully finished 5 bedroom legal duplex with a main floor and a finished lower level spread over a lot size of 68 x 120ft. The main floor unit offers 3 bedrooms & 1 bathrooms with a kitchen & living room. Lower level features 3 bedrooms, 1 bathroom and a full kitchen with a separate entrance.
    • Quality renovations on both levels, all appliances in excellent conditions - Stainless steel fridge, stove, dishwasher and separate washer & dryer for both units.
    • The main floor and the lower level are rented out as two separate units.

Prime Location

    • Walking Distance to Fanshawe College, London
    • 5 minute drive to downtown London. Close to transit, schools, parks, restaurants, shopping and more.
    • London is located in the heart of southwestern Ontario between Toronto and Detroit, and is one of the fastest-growing cities in Canada. It falls within the Quebec-Windsor Corridor, situated right at the junction of the 401 and 402, London provides easy access to Toronto, Windsor, Sarnia, Detroit, Buffalo, and other surrounding cities.

Growth Potential

    • With a diverse population of over 530,000 people, London is currently the 11th largest city in Canada and offers its residents and visitors big-city appeal mixed with small-town charm.
    • With plenty of business opportunities and access to one of the largest and highly skilled talent pools in Southwestern Ontario, London's economic scene is the ideal place for startups, small businesses and large enterprises alike.
    • Since the start of COVID pandemic, homebuyer preferences have shifted in favour of more space, larger yards and closer proximity to parks. This has been a common trend across many Canadian housing markets as homebuyers seek more space and less density outside of urban areas.

Returns

    • Newly renovated house with 2 separate rental units.
    • Long term rental lease in place providing stable rental returns.
    • Capital appreciation, Principal pay down and Rental distributions are the key drivers of the return on investment (ROI) in this property.

Funding Amount

Purchase Price

$1,100,000

Closing Costs

$25,000

Reserve Fund

$10,000

Funding Amount* info_green

$1,135,000

* Funding Amount is a combination of Debt and Equity.

Rental Yield

Gross Annual Rental Earnings

Purchase Price

$72,000

$1,100,000

Projected Gross Rental Yield info_green

6.55%

Gross Annual Rental Earnings - Projected Annual Expenses

Purchase Price

$72,000 - $17,077

$1,100,000

Projected Cap Rate info_green

4.99%

Annual ROI

42.2%

Understanding Annual ROI

Value: 10

Projected total returns:

Economic Drivers

    • London is located within two hours of three major U.S. border crossings - Sarnia/Port Huron, Windsor/Detroit, and Niagara/Buffalo.
    • The city offers unparalleled access to world-class research at Western University, Fanshawe College and the Fraunhofer Project Centre. London is an ideal place for learning at the post-secondary level, with a growing population of local and international students.
    • London is home to several large companies that are leaders in their industry sectors, including 3M Canada, Trojan Technologies, Dr. Oetker, Brose, Hyundai L&C, London Life and General Dynamics Land Systems.

Real Estate Trends

    • According to the national real estate market For January 2022, the average home price in Canada's housing market was $748,439, up 20% from last year. Compared to last month, average Canadian home prices are up 5% from December 2021's average home price of $713,542. Meanwhile, the MLS Benchmark Price increased 23% year-over-year to $825,800 for January 2022.

     

Near London Fanshawe College

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Market Metrics

HPI Growth In Last 1 Year

24%

HPI Growth In Last 5 Year

118%

Strong sales and limited supply continue to spur big price gains to start 2022

  • National home sales edged up 1% on a month-over-month basis in January.

  • Actual (not seasonally adjusted) monthly activity came in 10.7% below the record January in 2021.

  • The number of newly listed properties dropped 11% from December 2021 to January 2022.

  • The MLS® Home Price Index (HPI) rose a record 2.9% month-over-month and was up a record 28% year-over-year.

  • The actual (not seasonally adjusted) national average sale price posted a 21% year-over-year gain in January.

Source: https://creastats.crea.ca/en-CA/