Pros & Cons of Investing in Barrie Real Estate

Posted by Emilye on October 19th, 2023

If executed correctly, real estate investment strategies can help lower the overall risk associated with your investment portfolio. It offers the benefits of living near a city with a strong economy, reasonable returns over time and various healthcare benefits.

However, like any other asset class, real estate investments in Barrie have both advantages and disadvantages. Investors should understand both sides of this investment option and estimate if it suits their financial requirements.

The following are the pros of investing in Barrie

1. Barrie offers a cottage-like lifestyle close to the city

Barrie is often called “the gateway to cottage country”. Resting on the shores of beautiful Lake Simcoe, Barrie offers all the benefits of cottage life including boating, fishing and sandy beaches, while conveniently located only 45 minutes from Toronto. For enthusiasts of winter sports, Barrie is home to several ski resorts including Snow Valley and Horseshoe.

2. Barrie is highly connected to the GTA

Home to two GO Stations, Barrie residents can hop on the train and have direct access to the entire GTA from Niagara Falls to Oshawa. The GO Train also makes it easy for people to live in Barrie and work in downtown Toronto since it directly links Barrie with Union Station. Barrie is also easily accessible by car as it is located directly on Highway 400, making it a short 30-minute drive from Vaughan and a 45-minute drive from Toronto.

3. The cost of living is lower

Real estate in Barrie offers proximity and easy access to Toronto at a much lower price point. Currently, the average price of a single-family home for sale in Barrie is 770,090 dollar according to CREA. Compare that to the average price of a Toronto detached home which costs,1,380,447 dollar for the same time period. Your dollar goes much further in Barrie, allowing you to buy a more spacious home on a larger property, for less money. Having a smaller mortgage means you have more disposable income to spend on the things you enjoy doing.

4. Barrie has a strong economy and a diverse job market.

Contrary to popular belief, Barrie is not just a bedroom community for Toronto. In fact, over 65% of the residents of Barrie work locally in Simcoe County, an area represented by employers spanning a wide variety of sectors including education, health care, manufacturing, technology and financial services. Some of the county’s most notable employers include Simcoe County District School Board (6600 employees), Canadian Forces Base Borden (5000 employees), Honda Canada (4200 employees), Georgian College (2000 employees) and Napoleon Grills (800 employees). Barrie has one of the lowest unemployment rates in the Province of Ontario at 5%.

5. The Population of Barrie is growing.

The City of Barrie which has 153,215 residents as of 2023 is implementing a growth strategy with the goal of increasing the city’s population to 210,000 by 2031. City plans project Barrie reaching 298,000 residents by 2051. Investing in Barrie real estate today will allow you to get in ahead of the planned exponential growth.

6. Barrie has amazing healthcare.

Barrie is home to the state-of-the-art Royal Victoria Regional Health Centre, which is the largest hospital in Simcoe County and the Muskoka District. In 2022, RVH received the prestigious Green Hospital of the Year award for its commitment to environmental stewardship and carbon footprint reduction efforts.

Now let’s talk about the cons:

1. Owners Need to Maintain the Real Estate

Maintaining a property in Barrie can be laborious and costly. The high capital requirement for supporting overhead costs and repaying a home loan is one of the major disadvantages of property investment. In addition, one may have to pay for unexpected maintenance issues like a leaky roof or broken pipes. Repair charges can be substantial. But this can happen to anyone, anywhere.

2. Property Market Research is a Time-Consuming Process

Looking for homes for sale in Barrie demands sufficient time and experience. One needs to visit a location and check whether or not the builders are providing all the promised amenities upon buying real estate. Before locking in a deal, you must evaluate the reasonable price range and conduct background checks to ensure the value of your investment.

3. Liquidity is Low

Not even the most skilled brokers can expect to secure a lucrative deal for your property holdings within a few weeks of listing it. When studying the advantages and disadvantages of real estate investments in Barrie, budding investors usually find the documentation and legal processes to be a hindrance. Therefore, consider real estate investment a long-term commitment if you hope to fetch good returns.

4. Rental Yield May Decline with Time

After 10-12 years of leasing out your property, there will be a time when significant depreciation may happen due to the market’s inefficiency. Misinterpreting market conditions or sudden rush in purchasing a property without expert assistance can lead to massive losses.

Therefore, managing real estate and meeting all the legal liabilities should be your primary concern to maintain the asset’s value.

Investing in Real Estate in Barrie can indeed be a smart move, offering a picturesque lifestyle by the lakeside, excellent connectivity to the Greater Toronto Area, and a lower cost of living compared to the big city. With a robust job market, a growing population, and top-notch healthcare facilities, Barrie has a lot going for it.

However, it's not all smooth sailing. Property maintenance and market research can be time-consuming, and liquidity may not be as high as other investment options. Plus, rental yields can fluctuate over time.

So, if you're thinking about buying a home in Barrie, keep your eyes on the prize, and consider it a long-term commitment. With the right strategy and a keen eye on the market, you might find yourself enjoying the benefits of this charming city for years to come.