Cornwall Is Ideal for Rent To Own

Written by David Pereira

Managing Partner and Co-Founder

February 22, 2023

Cornwall, Ontario has recently become a focus community for Rent To Grow Homes. My wife grew up and still has close family and friends there, so it’s rewarding for us to contribute to a community that is meaningful to us.

We recently made a trip to Cornwall to look at houses, speak to realtors and get a feel for the city. We came to the conclusion that Cornwall is an ideal community for Rent To Own (RTO).

Here are some of our reasons.

1) Houses are still affordable. A quick scan of MLS reveals that you can still find a nice family home for $400K. This means that we can work with Tenant Buyer clients that have a combined income of $80K and a down payment of at least $12K.

Click here to see listing

2) Rent is affordable. A nice 3-bedroom house goes for about $1,500 – $2,200 + utilities which is VERY different than the rents we hear about in Southern Ontario.

3) Economic Growth. The City seems pretty progressive in terms of generating economic development. Here’s a recap of some of their initiatives in 2021.

4) Job Growth. There are hundreds of jobs currently available in Cornwall from a wide variety of employers, ranging from entry-level positions to management. You can view current job postings and download a career guide on the Choose Cornwall Job Board.

5) Top 10 Communities in Canada. Cornwall ranked 8th out of 415 communities in Canada by Maclean’s magazine in terms of being a top community in Canada. Factors included in this assessment include:

  • housing affordability
  • population growth
  • taxes
  • crime
  • weather
  • access to healthcare
  • amenities and community engagement

But Cornwall Might Not Be Affordable in 5 Years

Another reason RTO makes sense in Cornwall today? House prices are accelerating. Homes are regularly being sold for $50K over asking. This means a tenant-buyer will want to lock in a good price before it gets out of reach. And an investor who gets in today can enjoy positive cash flow.

Since the pandemic, locals will tell you that rent and housing prices have increased by 30-50%. The data seems to confirm this. Will it slow down? Maybe. But we think prices could continue to go up as demand from investors, homeowners and renters increase for all the reasons we listed above.

So it’s entirely possible that a home today that goes for $400K will go for $500-$600K in 3 years’ time. In an RTO deal with us, the investor and tenant-buyer are typically agreeing to 15% appreciation over 3 years, which means a $400K home today would be purchased by the tenant-buyer for $460K. That could be a HUGE difference for someone working hard to save up a bigger down payment and to improve their credit scores.

Want to Discuss Cornwall?

Cornwall presents an RTO opportunity for both Tenant Buyers and Investors.

Tenant Buyer: An affordable community to live and work in that provides the opportunity to earn your way into home ownership.

If you’re currently a renter looking to earn home ownership in Cornwall, fill in our intake form. We’ll get back to you within 24 hours.

Investors: A city where cash flow and a 20% annual return is possible on a passive investment.

If you’re interested in investing in an RTO deal, please reach out by filling in this short form. I’d be happy to speak with you.

– David

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