These are the cheapest cities for Mississauga and Brampton residents to invest in

Investing in real estate might seem out of the question for residents grappling with the high cost of living in major Ontario cities such as Mississauga, Brampton, Toronto and Burlington, but a recent report suggests that “rentvesting” isn’t that out of reach. 

Furthermore, the report suggests that “rentvesting” can put a buyer in a better position to eventually buy a home in a town or city with a higher cost of living. 

A report by real estate website and brokerage Zoocasa indicates that people who earn an average income of $54,150 in Mississauga can afford mortgages of up to $240,339. While there are few (if any) homes in Mississauga with mortgages in that range, the report says residents can invest in properties in Edmonton (total mortgage of $163,542), Regina ($183,630), St. John’s ($185,680), Saskatoon ($189,528), Saint John ($207,404) and Winnipeg ($218,642). 

In Edmonton, a Mississauga resident could charge $1,553 (average rent) and earn a profit of $667. In Regina, the profit could be $443 and in Saskatoon, $310. In Saint John, the profit would be about $252 and in Winnipeg, $436. 

St. John’s, NFLD. wouldn’t be as alluring as the report suggests a $33 shortfall. 

Brampton residents can also invest in properties elsewhere in Canada.

According to the report, the average income is $45,400, meaning residents can afford a mortgage of up to $201,503. That means someone looking to invest in a rental property might find a condo in Edmonton, Regina, St. John’s and Saskatoon. 

The report says that “rentvesting” allows someone to earn additional income from a property while still enjoying the perks of living in their chosen city, whether that be Brampton or Mississauga. 

“Rentvesting is an equity-building strategy where you purchase a property in a more affordable city and rent it out to earn investment income, while simultaneously renting a home in a typically more expensive city where you prefer to live,” the report reads. 

“After a few years of earning monthly income from your tenants and building equity in your investment property, you can sell it and use the gains for a down payment on a home in your desired city. “ 

The report indicates that Toronto and Burlington residents have a few more options when it comes to investing in a rental property. With an average income of $66,100, Burlington buyers can afford to buy and rent out condos in Calgary and Moncton. Etobicoke residents, who earn an average of $69,200 a year, can also buy in Brantford. 

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