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Is Airbnb property investment lucrative in Niagara Falls, Ontario?

airbnb property investment Niagara Falls

Niagara Falls is known for offering unique views of the waterfalls as well as a variety of outdoor activities for all those who wish to embark on new experiences. Located on the western bank of the Niagara River, this city can surely overwhelm travelers with its diversity of top attractions that can attract families and adventurers alike. 

While Niagara Falls’s lively environment can easily catch investors’ attention, it’s certainly important to consider major costs and revenue before deciding to purchase a property here. At the same time, it’s also essential to consider the Airbnb rules in Niagara Falls in order to operate an STR business without worrying about breaching the laws.

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“During the past year, we have observed significant demand for rental properties in Niagara from renters from all over Canada and in particular from the GTA region. Niagara Region has tremendous potential for growth as there is still valuable land space for new housing development with green spaces scattered throughout all the cities which are becoming increasingly rare in bigger cities.”

– Alina for Upscale Living

Aside from looking at a property’s architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. 

In this article, we’ll discuss the metrics in order to gauge the best property investment. This includes the best website recommendations for property investment in Niagara Falls, Ontario, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Want to learn more? Then we recommend you to continue reading!

Top reasons for buying an Airbnb property in Niagara Falls

Leaving behind the fact that Niagara Falls offers unique experiences, great waterfall views as well as picturesque landscapes, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Niagara Falls:

1. Outstanding touristic destination

It is nothing new that Niagara Falls is a popular destination with a strong touristic market, right? In fact, this city welcomes around 12M visitors arrivals annually according to the Tourism Industry Association of Canada! This surely will catch the attention of investors who want to cater to tourist accommodations.

2. Good Housing Market

Considering that Niagara Falls is a hot touristic destination, the housing values remain fairly affordable. According to AreaVibes, Niagara Falls housing price is 50% lower than the national average and the median selling price is near C$700K. 

3. Great local infrastructure

As a renowned touristic destination, Niagara Falls doesn’t disappoint when it comes to local infrastructure and its reliability. The city invests a lot in its infrastructure to offer the best of the best to visitors and locals alike.

4. Low cost of living

If you are looking to invest in Niagara Falls, then another important point to consider is the cost of living. Luckily this is another remarkable advantage in Niagara Falls because it has a low cost of living which is 18% lower than the national average. 

What to Expect When Purchasing a Property in Niagara Falls?

Now that we know the pros of investing in Niagara Falls, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

  • Tourist everywhere!

While being a hot tourist destination can be an advantage to investors, it can also be a nightmare sometimes because the city is full of tourists all year round, especially on weekends and in areas like Clifton Hill & Fallsview. 

airbnb property investment Niagara Falls

Is Property Investment Profitable in Niagara Falls, Ontario?

Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in Niagara Falls can generate an annual revenue of C$40,966 with a steady occupancy rate of 58% and a nightly rate of C$175.

airbnb property investment Niagara Falls

airbnb property investment Niagara Falls

Properties for sale in Niagara Falls, ON, Canada

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. You can look for profitable homes for sale in Niagara Falls areas like Downtown, Chippawa and Cherrywood Acres. However, it’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the Niagara Falls houses and condominiums for sale along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property investment Niagara Falls
airbnb property investment Niagara Falls

1035 CARTIER BOULEVARD UNIT#1, Hawkesbury, Ontario K6A2Y4

1. Studio-type Property for Sale Niagara Falls City Centre
  • Centrally located with easy access to shopping, golf and the downtown core of Hawkesbury.
  • Asking Price: C$127,500
GROSS RENTAL YIELD 22.56%
ANNUAL REVENUE C$28,651
CASH ON CASH RETURN 41.91%
airbnb property investment Niagara Falls
airbnb property investment Niagara Falls

2211 KING Street Unit# 11 Main St,  Catharines, Ontario L2R6P7

2. 1-Bedroom Waterfront Property for Sale Niagara Falls
  • Only minutes from QEW access
  • Asking Price: C$79,900
GROSS RENTAL YIELD 19.50%
ANNUAL REVENUE C$37,051
CASH ON CASH RETURN 32.73%
airbnb property investment Niagara Falls
airbnb property investment Niagara Falls

57 Baldoon ROAD Unit# 302, Chatham, Ontario N7L1E2

3. 2-Bedroom Waterfront Property for Sale Niagara Falls
  • Located in Keil Dr North to the right on Baldoon Rd
  • Asking Price: C$180,000
GROSS RENTAL YIELD 27.91%
ANNUAL REVENUE C$50,229
CASH ON CASH RETURN 57.95%
3-Bedroom NiagaraFalls
3-Bedroom NiagaraFalls

1730 COLUMBIA COURT Unit# 104, Windsor, Ontario N9B1E1

4. 3-Bedroom Type Property for Sale Niagara Falls City Centre
  • Walking distance to elementary schools and parks, bus routes and easy access to 401 & EC ROW. 
  • Asking Price: C$219,900
GROSS RENTAL YIELD 29.44%
ANNUAL REVENUE C$64,473
CASH ON CASH RETURN 62.55%
4-Bedroom NiagaraFalls
4-Bedroom NiagaraFalls

 501 GLENN ABBEY Way, Seguin, Ontario P2A2W8

5. 4-Bedroom Waterfront Property for Sale Niagara Falls
  • Located at Lake Joseph Road to Hamer Bay Road to Glenn Abbey Way to #801
  • Asking Price: C$225,000
GROSS RENTAL YIELD 42.20%
ANNUAL REVENUE C$94,958
CASH ON CASH RETURN 100.84%

Conclusion

Conducting market research in Niagara Falls is helpful for accuracy and knowing the potential profitability. With the variety of recreational activities that attract a great number of visitors to Niagara Falls and an affordable housing market, it can certainly generate a nice cash flow for property investors. 

As long as the potential revenue is calculated using an Airbnb profit calculator, it’s definitely worth the time & effort to invest and speak with a short-term rental expert to make the wisest decision for property investment that you won’t regret.

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