Investing in property is one of the most surefire means of increasing your wealth in Canada. However, with so many choices—condominiums, houses, duplexes—how do you select the best one for optimal return on investment (ROI)?
In this article, we’ll break down each property type, discuss 2025 trends, and help you figure out which option best meets your investment goals.
🏢 Condos: Compact, Handytastic, and in Demand
Overview:
Condos are typically the go-to choice for the novice investor, urban dweller, or purchaser seeking hassle-free homes. They are separate units in a multi-unit structure with common amenities.
Pros:
- Lower initial cost compared to detached houses
- Appealing to young professionals and downsizers
- Located in high-demand city areas
- Often quicker to lease out
- Less maintenance responsibilities (covered by condo fees)
Disadvantages:
- Monthly condo fees may chip into ROI
- Typical bylaws or rental restrictions
- Less potential for appreciation compared to land-based homes
2025 Trends:
In Toronto, Vancouver, and Montreal, condos remain popular due to location and price. Condo fee hikes and oversupply in some markets can impact profit, however.
Rental Yield: 3% – 5%
Suitable For: Investors seeking easily maintained homes in metropolises
🏡 Detached Houses: Long-Term Appreciation with Land Value
Overview:
Detached houses offer sole ownership of the house and land. They’re good for families, long-stay tenants, and investors seeking appreciation in capital.
Advantages:
- Large appreciation in the long term due to land value
- Maximum rental demand in suburbs
- Greater control over renovation, expansion, or conversion
- No condo fees
Disadvantages:
- Disadvantage of higher initial and maintenance cost
- Insurance premiums and property tax are higher
- May stay vacant for longer periods between tenants
2025 Trends:
With remote work still a reality, suburban single-detached homes in city centers like Calgary, Halifax, and Ottawa are becoming more desirable. Space, backyards, and more peaceful environments are what families desire.
ROI Snapshot:
Rental Yield: 3% – 6%
Best For: Long-term appreciation-seeking investors and stable tenants
🏘️ Duplexes: Twice the Units, Twice the Opportunity
Overview:
A duplex is a house divided into two separate living spaces. You can rent out both sides, or you can live in one and rent the other—a strategy known as “house hacking.”
Benefits:
- Two streams of income from one property
- Easier to finance than two separate units
- Lower aggregate vacancy risk
- Excellent cash flow potential
Drawbacks:
- More personal management involved
- Tenant disputes can be common
- Limited availability in urban areas
2025 Trends:
Duplexes are growing popular in mid-market cities like Winnipeg, Regina, and Hamilton. Investors love the cash flow, and many municipalities now have duplex zoning approval.
ROI Snapshot:
Rental Yield: 5% – 8%
Best For: Cash flow-focused investors and investors who are comfortable with multi-tenant management
✨ Which Property Type is Right for You?
Here’s a quick comparison table to help you decide based on what matters most to you:
| Property Type | Rental Yield | Appreciation | Management Level | Best Suited For |
|---|---|---|---|---|
| Condo | 3% – 5% | Moderate | Low | First-time investors, urban markets |
| Detached House | 3% – 6% | High | Medium | Long-term appreciation, renters like family |
| Duplex | 5% – 8% | Moderate | High | Cash flow investors, hands-on investors |
📝 Last Words
There is no one-size-fits-all answer to the perfect type of property for ROI in Canada. It depends on your investment goals, budget range, risk tolerance, and preferred level of involvement.
If you want worry-free ownership and city tenants, condos are a fine start. If you want appreciation and long-term equity, detached homes are your friend. And if you want top cash flow and don’t mind extra work, duplexes can be enormously lucrative.
Whatever you choose, don’t neglect to:
- Do your due diligence
- Work with local real estate experts
- Keep current with local zoning and rental regulations
Ready to get your hands dirty with your next investment? Contact our real estate advisors today and discover opportunities suitable for your approach.
