Ask a Wahi REALTOR®: What Makes a Neighbourhood a Good Fit for First-time Buyers Looking to Invest Long-Term?

Wahi Broker of Record Anne Alkok shows how first-time homebuyers can step on the property ladder today while investing in tomorrow.

By Josh Sherman | 2 minute read

Canadians buy homes for a variety of reasons. Some are looking to put down roots for the foreseeable future, while others want a secondary property to escape the hustle and bustle of daily life on weekends. Unsurprisingly, investment potential is also a top motivator.

For nearly two-thirds of Canadians, owning a home is a key part of their retirement strategy, according to the Healthcare of Ontario Pension Plan’s 2025 Canadian Retirement Survey. Among unretired homeowners, half intend to sell their home to fund retirement.

But what can a first-time homebuyer do if they’re looking to step on the property ladder today while investing for tomorrow?

Here are three neighbourhood characteristics first-time homebuyers should prioritize when considering their purchase as a longer-term investment.

1. Transit-Oriented Communities

“In urban areas, neighbourhoods near subway or commuter-train lines typically hold their value and remain in high demand, making them a smart choice for first-time buyers,” Alkok explains.

There’s a vast body of research that suggests property located proximate to transit tends to command a premium on the open market, particularly in cities. One 2023 research paper from the academic journal Research in Transportation Economics estimated that homes within walking distance of a stop on the Redline, a bus rapid transit route in Vancouver, WA, earned a 5-to-7% price premium.

2. Property-Type Flexibility

Nobody has a crystal ball, but when purchasing a primary dwelling based at least partly on future investment potential, don’t limit your search to immediate needs. “First-time buyers may also want to think ahead — depending on their long-term plans — about whether the property could work as an investment if they eventually move to a larger home,” says Alkok.

Check local zoning rules to see whether you could one day legally construct a laneway or garden suite on a single-family home property. Know the local bylaws concerning basement apartments and rooming houses, which can vary from ward to ward within the same city.

For condos, find out whether short-term rentals are allowed. Choosing a unit close to a post-secondary institution may make it easier to lease out — and at a higher rent.

3. Room for Price Appreciation

Buy low, sell high. Popular advice for the stock market is regularly applied to real estate, although it’s not as simple as finding the lowest price and waiting around to cash out.

Below-market home prices could signal a neighbourhood is undervalued and poised to play catch-up. However, depressed pricing might also foreshadow less fortuitous developments. For instance, a subdivision could be located beside an expressway — or in the path of one that’s being proposed. (More than one study has found proximity to highways, unlike transit stops, has been shown to have an adverse effect on certain home values in North America.)

Research up-and-coming neighbourhoods in your city or town to see if any of them appeal to you. Don’t forget that up-and-coming neighbourhoods sometimes require compromise. They may not currently have all of the amenities of a more established neighbourhood.