Destination rental properties are exceptional income boosters if they’re in the right locale—places like Prince Edward County, which has emerged as a popular weekend getaway in recent years.
FLC Group is developing Vine Ridge Boutique Towns in Picton, the heart of Prince Edward County, on a 31-acre site. The 560 stacked and traditional townhomes will be built in nine phases, the first of which will bring homes to market that are between 780 and 1,150 square feet.
Because prices start at $275,000, rental returns will be above average for the area. Using a 30-year amortization at 1.99%, a four-bedroom unit, which costs $499,900 to purchase, would earn investors $22,385 of net income after two years, which is a 22.39% return on their investment. The two-bedroom units cost $319,900 and would bring in a 31.74% return on investment, or $20,305 of net income, after a couple of years.
Vine Ridge is also only 48 minutes from Kingston, two hours from Toronto and Ottawa, and under half an hour removed from Hwy 401. According to Debbie Cosic, president and CEO of In2ition Realty, the project involves full leasing and property management for investors.
“Everything from having groceries and wine purchased for and delivered to the tenant to having the place cleaned before they show up, there will be a service to accommodate them,” Cosic told CREW. “You don’t want to come up for the weekend and then spend a full day doing groceries and cleaning the place. We want to make it as turnkey as possible for the clientele.
“The concierge service will add massive appreciation to Vine Ridge. With cottage prices shooting up in recent years, especially now with COVID-19, if someone wants to rent a place from you and you have a concierge service, you can charge a premium. If someone is going out for the weekend to Prince Edward County and they’re looking at a few different places, they will choose the one with the most conveniences.”
Prince Edward County has become a remarkably popular vacation destination in recent years, averaging about 600,000 tourists annually who take in its 37 wineries, Sandbanks Provincial Park and all its fine, white sand, and nearby Thousand Islands.
Prince Edward County had become an Airbnb hotspot in recent years, much to the chagrin of locals, however, Vine Ridge will be anything but. A recent trend in the GTA in which people have sold their homes and moved to cottage country, including to Prince Edward County, ensures a heavy contingent of year-round end users at Vine Ridge, which won’t dilute rental returns.
“In the Toronto marketplace, people want larger homes outside of the city and to be able to move around more, and because of the pandemic, some of them have chosen to leave the city,” said Cosic.”The phones have been ringing off the hook about this place because prices start at $275,000, and with today’s interest rates, that’s unheard of.”
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