The Demand for Houses to Rent in Collingwood is Leading To Desperation
Barely a day goes by that I don’t get an email from someone wanting to buy an investment property. With low interest rates, limited alternative ways to invest, the desirability of our growing area (2x the provincial average), it’s not a surprise that investors are out in full force here in the Collingwood area.
If you are a regular reader of this blog, you’ll know I’m a fan of real estate investing and in particular, properties that are suitable for annual tenancies. There is however, a serious flip side of the coin.
As house prices rise, the ability to create housing rentals that mesh with local demand becomes more and more challenging. On one hand, many people can no longer find affordable homes to buy so they need to rent and on the other hand, rents are escalating so fast due to higher house prices that they too are becoming unaffordable for the average person or family.
I get several emails each week from people who are literally homeless or about to become so. These are working class families with jobs, kids and decent credit who are staying in hotels or couch surfing with friends to keep a roof over their heads. The highest income earners with no pets and perfect credit are usually the lucky ones which is great for investors but what about the tenants?
The only solution is to create more rental stock that is affordable. That means converting single family homes into duplexes or other forms of multi-unit dwellings. The combined rents will offer a decent return for investors and, two or more tenants will be able to find affordable housing. It’s what we’ve seen happening in larger city centres and the time is nigh to start here.