Many houses in Thunder Bay have been listed for sale in recent years. It’s because the housing market in Thunder Bay is accessible to a large number of people. This can be attributed to the city’s strong economy and low cost of living.
A brand new single-detached home in Thunder Bay with three bedrooms and two bathrooms will cost around $300,000 (with a downpayment of around 16000 dollars). The same property in the GTA, on the other hand, would set you back around $1 million.
Consider it for a moment. For $1 million, you can buy and rent out three detached homes in Thunder Bay to multiple families. there is always the option of renting out rooms to international students or selling them through brokers or an agent.
Is it worth investing in a Thunder Bay property?
Absolutely!
Thunder Bay is one of Canada’s most popular destinations for international students, with over 10,000 international students studying at its universities and colleges every year. International students are an important part of Thunder Bay’s economy, contributing $1 billion annually to the region’s GDP. The number of international students in Thunder Bay has been steadily increasing since 2000 with more than 40% of them coming from China, India, and Iran. (It is expected to rise even more in the coming years)
Most of these students come from wealthy backgrounds. These students are looking for places to stay as they don’t prefer college dorms. Let’s say you rent out 3 rooms to 3 students, you’ll be earning $2000 dollars per month. You’ll not only be able to cover your monthly mortgage but also can save up cash for repairs and any other discrepancies in the property.
There are many couple and family households in Thunder bay who are renting out their rooms for 500 to 700 dollars a month. Furthermore, students themself are investing in Thunder real estate due to the potential it has in the near future.
What is the city of Thunder bay like compared to Toronto?
As mentioned earlier, Thunder bay is much more affordable compared to Toronto. But there are perks to living in both the cities.
Pros of living in Toronto
- The cost of living is lower than in other big Canadian cities like Montreal or Vancouver;
- A diverse group of people with different mother tongues and age
- Several amenities in residential homes
Cons of living in Toronto
- It’s crowded in Toronto
- The cost of living is much higher than in Thunder Bay
- The commute takes hours together
- Rising prices
Pros of living in Thunder Bay
- The total population in Thunder bay is considerably less.
- The cost of living is significantly lower than in Toronto
- The commute is much easier as everything is within a walking distance
- Booming real estate market
- Beautiful during the summer
- Elementary schools for your children are much more affordable
Cons of living in Thunder Bay
- Fewer job opportunities
- Too cold during the winter
International students investing in Thunder Bay properties
International students have a lot of options when it comes to investing in property. Some choose to invest in real estate, while others choose to invest in stocks. However, the cost of living is not very high in Thunder Bay and so international students can save more money by investing in property.
Since international students do not have a PR or citizenship, they have to pay 15% international investment tax on properties. For instance, for a detached house worth 300,000 dollars you have to pay around 45,000 thousand dollars as an international investment tax.
It is still worth the money in a city like Thunder Bay as there will be a huge influx of students moving into the city in the coming year. It would be the right time to invest in Thunder bay real estate now due to the housing price.