Canadian Rental Real Estate Market is HOT! Check out the best bets for high return on investments for Canada Rental Apartment Properties - GREAT ROI!

Canada Rental Condo Market – Best Bets for High ROI

The Canadian condominium apartment rental real estate market is booming and there are a few urban centres that are leading the way in terms of return on investments for real estate investors as well as low vacancy rates. Even with the economic problems we face in Canada, there are many cities that are facing a shortage of rental housing, and because of this, many Canadian property investors are reaping the rewards of owning rental property. During this time, high ROI is seen in rental condos and apartments as many would-be homebuyers are playing the waiting game for prices on housing value to plummet even further. Because of this, property investors who own rental condos and apartments for rent are seeing higher than normal returns on investment and there is no reason why this won’t continue for the rest of 2009. According to the Canadian Real Estate Magazine, here are the top 4 featured condo markets that are providing high ROI to property investors in Canada:

Saskatoon Rental Apartment Market 2009

CMHC is forecasting an increase in the average vacancy rate to 2% in October 2009, as Saskatoon’s employment continues to grow, leading to in migration and rental demand. CMHC is also forecasting employment gains of 1,800 jobs in 2009, following 2,300 new positions in 2008. Global demand for oil, gas potash and uranium provided a significant boost to Saskatoon’s real estate market in recent years, but weakened demand for some of these goods and the global economic struggles had an impact on the Saskatoon real estate market in 2008. Still, Saskatoon real estate continues to be one of the fastest growing cities in Canada, and the Saskatoon rental market will continue to benefit immensely. The Saskatoon Vacancy Rate for October 2008 was 1.9%. The Saskatoon rental apartment rent increase average for a 2 bedroom apartment from October 2006 to 2007 was 13.5%. The rent increase from 2007 to 2008 for a two bedroom rental Saskatoon condo was 20.3%.

Regina Rental Market Update 2009

The average vacancy rate for Regina rental apartment market will increase slightly to 1.2% in 2009, the CMH says, as in migration slows because of a slower increase in employment and higher rents. Some Regina renters are doubling to compensate for rising costs, thus contributing to the increase in Regina condo vacancy. As well, newer, investor owned condominiums in Regina are drawing off demand from existing rental projects. Despite some cooling in 2008, the provincial economy of Saskatchewan continues to fire on all cylinders, and Regina rental property market will certainly benefit. The Conference Board of Canada, for example, expects Saskatchewan to lead the country in real GDP growth in final 2008 numbers, about 5.2%, and in 2009, about 3.6%. The province’s diversified mix of natural resources and agricultural commodities will maintain strong export growth. A number of large scale Regina capital projects will keep employment levels an wages increasing, leading to strong Regina rental condo demand. The Vacancy Rate for Regina in October 2008 was 0.5%. The rent increase for a typical two bedroom Regina apartment for rent from Oct 2006 to 2007 was 6.2% and then from Oct 2007 to 2008 was 13.5%.

The Sudbury Rental Market Forecast 2009

A growing mining sector and corresponding strong in migration are driving Sudbury rental apartment demand in Greater Sudbury, according to Canada Mortgage and Housing Corp. With little new Sudbury rental construction planned, the vacancy rate will resume a downward course, edging lower again in 2009. Once solely dependent on mining, the Sudbury economy of 2009 has diversified in recent years, and now boasts government offices for taxation, education, technology and health. Mining is still a vital component, but expansion in these other sectors as well as education and heathcare, is providing a more balanced economy in Sudbury Ontario, according to Re/Max in its Sudbury Housing Market Outlook for 2009. The Sudbury rental vacancy rate for October 2008 was only 0.7%. From Oct 2006 to 2007, the apartment rental increase in Sudbury for an average two bedroom suite was up 7.7% and to 2008 was up by 5.6%.

The Kelowna Rental Apartment Market Outlook 2009

Strong population growth and declining supply of purpose built Kelowna apartment and townhouse rental units have kept vacancy rates low, according to CMHC. Sustained low vacancy rates have put upward pressure on both Kelowna apartment rentals and townhouse rents during the past year. Kelowna’s vacancy rate is expected to increase slightly to 1% in 2009. Rents in Kelowna are forecast to continue rising, though possibly with smaller increase. Kelowna’s reputation as a lifestyle community will continue to attract people to the area. Kelowna is well supported by economic fundamentals with growth and job increases in the education, tourism, service and health sectors. The average Kelowna vacancy rate for October 2008 was 1.9%. Between October 2006 to 2007, the average 2 bedroom rental Kelowna condo apartment increase was 13.5% and to 2008 was about 20.3%, one of the highest in all of Canada’s rental markets.