If you’re new to real estate investing and are considering the Durham region, you should know that you’re looking at one of the best value Real Estate Markets inside the Greater Toronto Area. A 2016 survey by Money Sense magazine looked at the 35 largest cities in Canada, running a comparative analysis of price and price appreciation, factoring in economic health, income potential, value and momentum, and put Oshawa at the very top. When it came to the Durham/Oshawa region, the area ranked #9 in Canada. As far as the metric of five-year price appreciation goes, Oshawa was tops in the GTA and second in all of Canada.
In the MoneySense study, the average home price in Durham/Oshawa sat at around $439,842. Five-year home price appreciation averaged 8 per cent.
When the analysis zoomed in to take on the neighborhood level, it looked at more than 400 neighborhoods just within the Toronto area. Two of the Oshawa neighborhoods cracked the Top 25 list for real estate investors: central Oshawa (#5) and the O’Neill neighborhood (#25). Taunton and Windfields – two other neighborhoods in Osahawa – got four-star ratings from realtors – two of just 19 neighborhoods in the Toronto area to get that highest rating.
Oshawa mayor John Henry echoed these sentiments in response, pointing out in an interview with DurhamRegion.com, that Oshawa “boasts an exceptional quality of life.” He cited job growth in a number of sectors that are tacking upward, college and university study options, and leisure and recreational activities. The convenience of highways 401 and 407, GO Transit, Durham Transit, VIA Rail, the harbor and the airport all play a role as well.
So what does this mean for HOS Financial Inc (HOS) investors?
A lot of people think that “rent to own” means a grubby home in a sketchy part of town that the owner simply can’t sell any other way. However, in the aftermath of the 2008 housing collapse, the number of people looking to enter rent to own programs has exploded. Bank lending guidelines have tightened up, particularly in the areas of credit score and income verification. That means that a lot of people who would have qualified for Mortgages before – and have the means to purchase homes in upscale parts of Canada, including the Durham region – need alternate forms of financing. If they don’t have the large down payments that private lenders require, then they often end up looking for lease purchase agreements.
Even if you don’t have the money to purchase an investment property and put it on a lease purchase agreement for two or three years, you can Joint Venture with other Investors in a property through HOS’s Real Estate Investing program.
Here’s how it works. You invest, either as a sole owner or as a Joint Venture Partner, in a property. In many cases, a borrower/tenant has approached HOS with interest in a particular house, and then you invest in that house. The borrower/tenant then puts down a deposit – usually between 5 and 20 % of the value of the home. This will eventually go toward the down payment at the end of the agreement, but for now it goes into a savings account.
Then the borrower/tenant starts paying rent each month. The rent is set at or near the top of the local market, and then on top of Market Rents the tenant pays a “Savings Component” known as Option Credits that will be added to their initial deposit to form their final down payment at the end of the Rent to Own Program. In the unlikely event the borrower/tenant cannot exercise the option to purchase at the end of the lease term, the tenant agrees to a defined percentage of the deposits will be used as punitive damage to offset the cost of selling the premises. Any cost associated with property management, Realtor fees, Legal Fees, clean up and repairs, staging, cost of initiating this Agreement will be deducted from the sum of all deposits.
Our Program is one of the most successful Rent to Own Programs in Canada. Part of our success is attributed to the HOS Compass Credit Rebuild Program whereby the borrower/tenant follows a structured program to fix his or her credit or income history issues over the course of the lease purchase agreement. HOS screens potential borrower/tenants just as carefully as the banks do, and we have developed a reliable system for identifying people who are (and are not) likely to succeed within our program. At the end of the lease purchase, you walk away with the principal you invested – Monthly Cashflow and Profit on the sale of the Property (Appreciation).
Interested in what HOS has to offer? Give one of our rent to own specialists covering the Durham region a call today. We have helped many investors turn a profit that normally exceeds gain from mutual funds, MICs, REITs and stock investments without the risk other markets may represent. We look forward to talking to you and helping you decide whether the HOS Financial Rent to Own Program is the right Real Estate investment choice for you. HOS is here to make Real Estate Investing Safe, Secure and Simple!