Where Can You Find The Cheapest Land In Ontario? Here Are List Of Places You Can Start.
Tuesday Dec 13th, 2022
Over the last two decades, we have really only had one “blip” in the real estate market; that blip happened in 2017. Similar to today, everybody thought that blip was going to actually turn into a crash. What actually happened was the market had a correction that lasted for three years which you can see from the chart below. The chart below reflects the change in the market that occurred from July 2020. There’s been a lot of major headlines around the real estate market. Whether it’s a seller market, buyers market, or a balanced market like we currently have, one thing is for sure, real estate and the value of your property will be one of the few things in life that will consistently be top of mind. With home prices soaring through the pandemic due to low-interest rates, low inventory, and the opportunity to “trade up”, everyone is wondering where is the volatility of the market going now that we are in 2022 and have had seven interest rate hikes.
REAL ESTATE IS MORE THAN JUST NUMBERS
However, the real estate market is more than just numbers. The prospect of purchasing homes or land or both in various parts of the province as another type of investment is beginning to sound more intriguing with the news of higher population growth that the government recently announced. For the savvy investor, the prospect of purchasing land in various places where the cohort of immigrants may be travelling for affordable housing is becoming more attractive than ever before. The government will be targeting skilled trades individuals such as doctors, lawyers, etc. to help offset the restraints we are currently experiencing due to the pressures of the pandemic. That is good for the economy because it will help with job creation but on the other hand it does mean that due to our lack of housing supply that we currently have, there still will not be enough homes for them to buy and the majority of them will need to rent because they would not have the ability to purchase a property as soon as they arrive. In turn, the rental rates will increase across the GTHA. We have already started to see a 20%-40% increase in some micro markets. As a savvy investor, that rings true for you in the form of good news.
If you have the money and/or skills to build a custom home, there may be plenty of options available to you. Especially, now that Doug Ford, the Premier of Ontario, recently announced their plans to redact the law inacted in 2005 to protect the Golden Horseshoe Greenbelt and not build any new homes or subdivisions on the land.
Building on once protected lands may not sit right with everybody and if you are one of many that are not comfortable with that, that’s okay, Ontario is a very large province. Although, some of Canada’s most densely populated urban areas are found near Lakes & Oceans (if you are looking outside of Ontario, in Vancouver for example). There is also still a huge amount of sparse land in the northern parts of the province in Ontario. Keep reading to see details on vacant land in Ontario, as well as information on some of the areas where you can find the cheapest land for sale in the province. If venturing out up north for vacant land to build on is not your cup of tea you can also find areas of Toronto with large lots such as the Banbury-DonMills, Parkwoods-Donalda, & Victoria Village areas of Toronto not too far Shops at Don Mills or other trending areas like Leaside . You can purchase a home in any area with a large lot of land, break it down and build your new custom home on the lot.
LOCATION, LOCATION, LOCATION
We have all heard that saying before but it’s even more important when you are planning on buying and developing on crown land. If you do not have the ability to purchase and have your land be within the range necessary to get to and from essential services and institutions that may not be the best investment option for you. Especially with gas prices moving away from the day where you can fill your tank on a reasonable budget. You may want to reconsider and re-evaluate your proforma. Additionally, you may encounter legal issues such as zoning laws and by-laws that regulate governing the installation of utilities. Understanding these encroachments before investing in vacant land should be investigated with the utmost of importance for new and seasoned savvy investors. Some places are zoned for specific purposes while others are not. You want land appreciation, to improve your chances of achieving a worthwhile investment is worth examining your surroundings. Seek professional advice and assistance if need be.
COST AFFORDABLE AREAS
There are a few notable areas in Ontario that strike a good balance of cost, utilities and other costs associated with land development such as Smith Falls, Brantford, & Windsor to name a few, but here are some more areas you can also look into:
- Sudbury – Land prices in Greater Sudbury range from around $49,000 to $5.9 million. It’s a beautiful place close to a sizable city with some important industrial presence. It is also the home of the famous Big Nickel.
- Thunder Bay – There is a lot of affordable land in and around Thunder Bay in Northern, Ontario, with prices ranging from $40,000 to $279,000. The city itself is beautiful, and the surrounding landscape is filled with existing landowners who have positive things to say about their experience.
- Peterborough – Land prices in Peterborough range from $99,000 to $4,599,000. The town itself has a number of attractive things such as museums, art galleries, exhibitions, and access to the cottage area of the Kawarthas.
- London – London is a surprisingly active and prominent city with land prices ranging from $50,000 to $82.8 million. It is relatively close to the GTA and has a number of good things such as the University of Western Ontario.
OUTER ONTARIO MARKETS SEEM PROMISING
While highly populated areas in Ontario remain in high demand, places in Northern & Northeast Ontario as well as further West are becoming more realistic for investment purposes and first-time home buyers trying to get into the market. Even though prices may be attractive, most of the land in Northern Ontario belongs to the Crown. This may complicate efforts to purchase some land so it’s important to pay attention to zoning. Even though rates won't be dropping anytime soon, buyers are going to continue to buy. When rates stabilize and there isn't a looming threat of rates going to the moon, buyers will be back in the market. In the meantime, let's keep the car filled with gas and the coffee ready for when they're back. It's inevitable, until then take advantage of the reduced competition that you will have as a buyer who is currently in the market.