The headlines read “Too many housing options for students in the City of Waterloo” and “Waterloo facing sizeable glut of student housing”, but they continue building them and (Toronto and foreign) investors keep on investing in them.
The idea is good and the marketing is slick, although the math does not make much sense (and the buildings never seem to be finished on time). Student condos are easy to get into, and offer good cashflow, guaranteed for two years, sometimes more (with a management contract).
But they are harder to get out of. The law of supply and demand is seeing to that.
The problems with student housing
This is a new problem for Waterloo. A decade ago and a half ago we had a different problem — a shortage of student housing, a shortage so short that one of the universities was offering free laptops to students if they would agree to share a dorm room.
And investors, they did well back then.
Early investors do well
The late comers have to fight harder battles. If you are looking for a place to park your money, maybe you should consider being an early investor into senior’s condos.
Essentially the same model as purpose built condominium units aimed at university students, an investment into purpose built condo units aimed at supplying the needs of our aging population are an exciting new option for turn-key real estate investors.
Park Meadow Place
I usually don’t promote pre-construction projects, but a few weeks ago, I had a meeting with the developer of Park Meadow Place, and I liked what I saw. If you are a real estate investor, I would like to encourage you now to look into this new pre-construction project being build north of Waterloo in Listowel. It is a retirement community. It is just getting starting.
According to PWC’s emerging trends in real estate, “A number of respondents, sensitive to the potential in an aging yet wealthy boomer population, believe investing in retirement homes and other senior housing will be a growth opportunity over the long term. Whether they can do so at the scale needed to deliver both care and desired profits remains to be seen”.
Edit: The sales package is now available. Please email me if you would like more information