April 6, 2022 | By admin

Why Moncton

Moncton

Fast Facts about Moncton

  • largest urban centre in the province
  • nicknamed “Hub City” because of its central inland location in the region and its history as railway and land transportation hub for the Maritimes
  • population of 158,695 and growing faster than Toronto, Vancouver, Edmonton, Ottawa and 24 other metropolitan areas across the country, placed as Canada’s 7th fastest growing municipality in 2020

Economy

  • Due to its central location, Moncton is a commercial, distribution, transportation, and retailing centre
  • Headquarter city for Atlantic Lottery Corporation, Assumption Life Insurance, Medavie Blue Cross Insurance, Armour Transportation Systems, Major Drilling Group International
  • 37 call centres in the city which employ over 5,000 people, including Exxon Mobil, RBC, Tangerine Bank, UPS, Rogers, TD Bank, etc.
  • Several arms of the Irving corporation have their head offices in Moncton as well

Education

  • Université de Moncton – largest francophone Canadian university outside of Québec
  • Crandall University
  • University of New Brunswick
  • New Brunswick Community College
  • Collège communautaire du Nouveau-Brunswick
  • Medavie HealthEd – providing training in primary and advanced care paramedicine
  • Eastern College
  • Moncton Flight College – one of Canada’s oldest and largest flight schools
  • McKenzie College
  • Oulton College

Health Care

  • the Moncton Hospital, affiliated with Dalhousie University Medical School
  • The Dr. Georges-L.-Dumont University Hospital Centre
  • employing over five thousand essential workers

More businesses are moving to Moncton

After a record-breaking year of land sales and sales value in 2019, Moncton Industrial Development (MID) thought the pandemic would lead to a sour 2020. But MID not only broke its 2019 record but also almost doubled it. Here is an excerpt from an article from Huddle.Today:

“… General Manager Pierre Dupuis said the boom was driven by companies from outside that were ‘looking to get a better handle on their supply chain and logistics’ by establishing a presence in Moncton.

The lower cost of industrial land and construction, coupled with low-interest rates, also makes Moncton attractive, especially to smaller and mid-sized companies looking to expand, he said.

For instance, JessEm Tool Company of Orillia, Ont., a woodworking tools manufacturer, decided to move its whole operations to Moncton primarily because of cost. “Our business is growing and it’s not really affordable in Ontario anymore, and I couldn’t find any suitable industrial space or land,” owner Darrin Smith told Huddle in December. Dupuis said MID is in talks with companies from Southern Ontario and Quebec that are facing similar challenges.”

The Promise Land for Buy-and-Hold Landlords

For me and Lyne, these are some of the key advantages about the New Brunswick market that caught our attention as real estate investors, and the reason we packed our lives into the Jeep and moved to Moncton from Montreal in the midst of a global pandemic. (Read our story here)

  • More landlord-friendly regulations
  • Ideal tenant profile made up of hard-working industrial workers, call center agents, and international students
  • Amazing cash-flow on rental properties for buy-and-hold strategy
  • Extremely low-cost properties and low barriers to entry
  • Faster to scale our real estate portfolio
  • Phenomenal community and trustworthy people
  • Fewer competitions comparing to Ontario and Quebec markets, both as an investor and a wholesaler
  • BONUS: The freshest lobster we have ever had!

Applying Ontario-REI Analysis on the Moncton Market

Just like you, we binge real estate content and are learning a great deal from Canadian real estate coaches and big-name investors from Ontario. So let’s apply some of these basic concepts to the Moncton market:

Let’s get down to the basics

As your wholesaler in Moncton, I will conduct the Four Way to Win analysis for all of your off-market deals, so you can invest remotely with confidence:

  • Cashflow

As of Feb 2021:

Moncton rents for: 1-bedroom: $929, 2-bedroom: $1355; Average house price in 2020: $225,200;

Saint John: 1-bedroom: $873, 2-bedroom: $1060; Average house price: $212,578;

Fredericton: 1-bedroom: $1037, 2-bedroom: $1300; Average house price: $196,511.

Increase your cashflow potential by letting us find you off-market deals in Moncton!

  • Principal recapture from mortgage payments

Whether you spend your days working on Bay Street or living your best life on Sunset Boulevard, with proper property management in place (we highly recommend the property managers in our trusted network), the rental income from your tenants is paying down your mortgage every month.

  • Passive appreciation

Houses selling for over asking, getting multiple offers, selling sight-unseen. For New Brunswick’s sizzling real estate market, it’s all part of the new normal. According to the Canadian Real Estate Association:

Provincial

Average house price in 2020: $203,233
Average house in 2019: $180,145
Year-over-year increase: 12.8 per cent

Greater Moncton

Average house price in 2020: $225,200
Average house in 2019: $195,700
Year-over-year increase: 15.1 per cent

Saint John

Average house price in 2020: $212,578
Average house in 2019: $189,340
Year-over-year increase: 12.3 per cent

Fredericton

Average house price in 2020: $196,511
Average house in 2019: $186,585
Year-over-year increase: 5.3 per cent

  • Active or forced appreciation through strategic renovations

We understand how it might seem daunting to manage renovations remotely. As real estate investors ourselves, and active members of BiggerPockets and Cashflow Tribes in Canada, we spend a lot of time looking for local contractors to add to our trusted network and for our own projects.

As your dedicated wholesalers in Moncton, our relationship doesn’t end when we assign you a property – we share our valuable contacts with you (contractors, notary lawyers, etc., even real estate agents), and we are here to answer any questions you might have, so that you can do your due diligence, invest and manage remotely with a peace of mind.

Let’s grow together

Many wholesalers use the same template and copies from carrot.com for their websites, we felt it was important to write our own copy, and tell our story as investors and aspiring wholesalers. If you have any comments or feedback with our analysis above, or anything on this site, please do reach out to us – we absolutely love learning and hearing from experienced investors and future partners.

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