STUDENT HOUSING

What is it?

Investing in temporary housing for students in close proximity to major University and College Campuses.

Benefits

  • Passive or Active depending on property management arrangements
  • Typically located in AAA locations in major centres
  • Ongoing demand with relatively low supply, giving you the highest positive cashflow of most asset classes
  • Low eviction rates due to the parental guarantees on leases

Considerations

  • Maintenance schedule is more demanding than other investments
  • High tenant turnover
  • Typical cost of entry: $80,000

Waterloo is located in Canada’s Technology Triangle, which is a partnership that markets the competitive advantages of the Waterloo Region to the world and works to attract new businesses, investment and talent to the Region.

Waterloo Region is a globally recognized advanced technology cluster, also having the highest concentration of manufacturing among Canada’s metropolitan areas.

65,000 full-time students are enrolled in either the University of Waterloo or Wilfrid Laurier University year after year, 98% of whom require accommodation off campus. With this influx, 80% of students are finding it difficult to secure housing, producing vacancy rates of less than 1%.

1. SAGE X

Sage X Condos is the newest pre-construction development by IN8 Developments, one of Waterloo’s most successful student housing providers. This project will be situated along the future LRT line that will connect students to downtown Kitchener, a major co-op hub for the business and technology sectors.

With only 58, 1-bedroom units throughout Waterloo’s entirety, there is an overall shortage and as this project is comprised mainly of one bedrooms, and IN8 is the only developer building true 1 bedroom condos, this opportunity will provide the much needed supply.

Highlights

  • 1 bedroom rental rates have increased 10% per year from 2015 to 2017
  • Completion date: September 2019
  • >Walk to University of Waterloo Wilfried Laurier and University
  • Steps from future LRT

Incentives

  • 2 year lease guarantee
  • 2 year free property management
  • Extended deposit structure:
    • $5,000 on signing
    • $10,00 in 30 days
    • $15,000 May 1st 2018
    • $15,000 November 1st, 2018
    • $15,000 May 1st, 2019
  • Fully furnished units

2. 261 Lester

261 Lester Street is the next resale offering from Prica, a real estate development and construction company representing over 14.3% of the Student Housing Market in Waterloo.

Built in 2009, this 5-storey, 18-unit building is a great opportunity for those looking for an immediate passive investment. Envision a single 1,300+ square foot, fully furnished unit, containing 5 bedrooms, 2 washrooms, a kitchen, and living area, each providing total rental income of $3,375.

Highlights

  • Positive monthly cash flow
  • 5-10 minute walk to University of Waterloo and Wilfrid Laurier University
  • Flexible closing date
  • Currently tenanted and managed

Incentives

  • 2 year lease guarantee
  • 2 year free property management
  • Fully furnished units

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