The wild days of buying anything with a roof and watching its value skyrocket overnight? They’re behind us. So are the days of tenants clamouring to outbid each other on rent, offering months’ worth upfront just to lock in a unit. When interest rates were at rock bottom and property values soared, it was easy to look like a savvy investor. Plenty of people jumped in without knowing the first thing about running an income property. Those accidental landlords often enjoyed quick wins, but they weren’t ready for the realities of managing real estate. Then interest rates climbed rapidly, and those who lacked a solid plan found themselves stuck—some learning hard lessons about the risks of going in unprepared. 


 

But now, things are shifting again. Over the past year, interest rates have started to come down. This change has already sparked a buzz, and in 2025, we might see more people diving back into real estate.


 

For seasoned investors, that’s not a bad thing—but it’s also not the time to jump in blindly. Now is the time to set yourself up for long-term success, no matter where interest rates go. Because here’s the truth: real estate investing in Ontario has never been foolproof. 2025 is shaping up to be an excellent time to build or grow a portfolio - if you’re ready to approach it with the right mindset and proven strategies.


 

What makes a good home?

Nice homes - in desirable areas - typically draw in better-quality tenants and can demand better rent. Think clean, thoughtfully cared-for properties. These don’t need to be high-end luxury homes, but they should offer more than just the bare minimum - homes with upgraded finishes and features that make life easier and more comfortable for tenants.


 

The result? Fewer headaches and issues for you over the long run.


 

What makes a good area?
 

One of the first factors for success is picking the right location. Ontario is a great place to invest in real estate. There are plenty of opportunities, and there are investor groups that can assist you throughout your journey. There’s no “one” right place, but there are a few main criteria to use when determining if a city/neighbourhood is a good investment opportunity.

1.    A Community that has Growing Demand. 

Before jumping into a market, take a moment to check out the population trends in the neighbourhood. Are more people moving in than out? Even better, is the population growing faster than the provincial average? You can find this info on the Stats Canada website. It’s a quick search that can give you a solid idea of whether a neighbourhood is worth your time.


 

Demand also depends on the type of property you’re investing in. If student rentals are your thing, being close to the main campus and transit hubs is key - those features will keep your tenant pool steady.


 

Starter homes are another safe bet. While the definition of a “starter home” might vary by area, they’re always in demand, especially with first-time buyers and young families.

2.    A Community that has Higher than Average Income and Job Growth

Income is a big indicator of the prosperity of a neighbourhood. Generally, higher household incomes mean strong job diversity in the area, a solid local economy, and a greater “staying power.” 


 

You want to make your investments as simple as possible, and an area with multiple sources of employment creates a healthy and active real estate market. It provides a good base of tenants, first-time buyers, and “move-up” buyers. This is another thing you can figure out by looking at Stats Canada. Many real estate apps also offer quick demographic insights into the local region.


 

In addition to higher income, new job growth is another great indicator of a good area to buy. New factories, schools, hospitals, large commercial businesses, etc. They can bring thousands of jobs to an area which can snowball growth and demand for good homes from the people who are going to fill these new roles.  On the flip side, when you see major employers closing and moving out, it’s maybe not the best time to invest in that neighbourhood. 

3.    A Community with New Transportation or Infrastructure Projects.

Is the city putting money into the neighbourhood? If they are, that’s a solid indicator of growing demand and rising property values. Infrastructure upgrades - big or small - are worth keeping an eye on. Whether it’s cleaning up streets and parks, repairing roads, or major investments like adding transit, upgrading sewage systems, or building new hospitals, these are all signs that an area is on the rise.


 

Most towns and cities share their plans for the next 5-10 years, so it’s easy to spot where they’re focusing their budget and efforts. If an area already looks well-maintained, great!  But if it’s run-down and the city isn’t planning any significant improvements, it might not be the best place to invest.


 

There are plenty of “target areas” to consider. Focus on neighbourhoods with growing demand (population growth), above-average income (diverse job opportunities), and upcoming transportation or infrastructure projects. Get those factors right, and you’ll be setting yourself up for long-term success.

If you are thinking of becoming a real estate investor yourself, or you are already an investor and would like to leverage your current investment(s) into more properties, or you are looking to sell one or more of your investment properties, give me a call at 905-683-7800.  





I’ll be more than happy to answer any and all of your questions, including any regarding topics such as this one about “Things To Look For When Becoming A Real Estate Investor”.  









 

Thanks For Reading Today’s BLOG!

If you would like to see any of my previous blog posts, please click here.

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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