Southwestern Ontario
London Real Estate Investment Calculator
A mid-sized market with institutional employment and a meaningful student rental component.
London's rental demand is influenced by post-secondary institutions and healthcare employment, creating both stable and highly seasonal segments depending on location.
Older housing stock in central neighbourhoods means capital condition and legal unit status are primary diligence items.
Entry prices are typically lower than in the GTA, which often produces higher current yields alongside a narrower tenant pool.
London market data
Municipal benchmarks, shown with their source and vintage. They are the starting assumptions a first pass should use — not property-level facts.
Small multifamily purchase price
- Duplex
- $590,000$295,000/unit
- Triplex
- $720,000$240,000/unit
- Fourplex
- $880,000$220,000/unit
- Blended price per unit
- $251,667
Source: PropertyEdge compiled small-multifamily benchmark range, 2025. Medium confidence — verify against active listings and recent sales for the specific property type and condition.
Typical achievable rent
- Bachelor
- $1,050/mo
- 1 bedroom
- $1,300/mo
- 2 bedroom
- $1,600/mo
- 3 bedroom
- $1,900/mo
- Benchmark vacancy
- 1.9%
Source: CMHC Rental Market Survey (latest published municipal averages), 2025. Medium confidence.
Property tax
1.35%
About 0.10% above the provincial reference rate of 1.25% — on a $590,000 purchase that's roughly $590 more tax a year than a provincially average municipality.
Estimated annual tax at $590,000: $7,965
Source: Municipal published final residential tax rate, 2025. Tax is levied on assessed value, not purchase price — underwrite from the actual tax bill.
Land transfer tax at $590,000
- Ontario LTT
- $8,275
- Municipal LTT
- None
- Total at closing
- $8,275
Only the provincial land transfer tax applies in London. First-time buyer rebates, where eligible, reduce the amount payable.
Calculated from the published Ontario Land Transfer Tax brackets. Confirm the final amount with your lawyer.
What changes your numbers here
Higher stated yields need harder verification
Confirm that the NOI behind an attractive cap rate includes management, vacancy and reserves.
Location determines tenant segment
A few blocks can change the tenant profile entirely, and with it turnover, wear and vacancy assumptions.
Watch conversion legality
Converted units in older homes require confirmed permits and fire separation to be financeable and insurable.
Legal units and secondary suites in London — what to verify
This is a diligence checklist, not legal advice. Municipal rules change, and site-specific zoning overrides the general case. Confirm each item with the municipality before you underwrite a unit's income.
- London requires residential rental unit licensing for many low-rise rentals — confirm the licence class for the property
- Converted-house units near Western University are frequently non-conforming; legal status drives value
- Additional residential units are permitted subject to zoning, parking and Building Code compliance
- Student-oriented submarkets carry lease-cycle vacancy risk that belongs in the vacancy assumption
What a typical London deal looks like
A duplex at the London benchmark price, with one one-bedroom and one two-bedroom unit rented at the benchmark rents above. Every input is a benchmark, so treat the output as a first pass, not a valuation.
The math, line by line
- Purchase price: $590,000 (duplex benchmark)
- Gross rent: $1,300 + $1,600 per month = $34,800 a year
- Vacancy at 1.9%: −$661
- Property tax at 1.35%: −$7,965
- Insurance, utilities, repairs and management: −$9,576
- NOI: $16,598
- Cap rate: $16,598 ÷ $590,000 = 2.8%
- Financing: 20% down, 5.25% over 30 years → $2,606/mo = $31,277 a year
- DSCR: $16,598 ÷ $31,277 = 0.53×
- Annual cash flow: -$14,679
- Cash to close: $118,000 down + $11,775 land transfer tax and legal
How to read it
At benchmark rents the NOI does not cover debt service at all, so a purchase at this price in London needs more down payment, higher rents or a lower price to be financeable.
Change any one of price, rent, tax or rate and the verdict moves. That's the whole point of underwriting the specific property rather than the market.
Run these numbers on a real London property →Verify locally before you offer
- City of London tax rate and assessment
- Rental licensing requirements where applicable
- Neighbourhood rental comps by unit type
- Permit and conversion history for multi-unit conversions
- Insurance quote reflecting building age
Submarkets investors watch
- Old North
- Old South
- Downtown
- Masonville
- Hyde Park
Frequently asked — London
What does a duplex cost in London?
Our London benchmark for duplex stock is $590,000, with triplexes around $720,000 and fourplexes around $880,000 — roughly $251,667 per unit. These are municipal benchmark ranges compiled from public sources, not a valuation of a specific property.
What rent can I expect in London?
Typical achievable rents are about $1,300 for a one-bedroom, $1,600 for a two-bedroom and $1,900 for a three-bedroom, based on CMHC Rental Market Survey averages carried forward with the Statistics Canada Ontario rent CPI. Verify against live comparable listings before underwriting.
What is the property tax rate in London?
London publishes a residential rate of about 1.35%, versus a provincial reference of roughly 1.25%. Always underwrite from the actual tax bill or assessment, since assessed value and rate both matter.
How much land transfer tax will I pay in London?
On a $590,000 purchase, Ontario land transfer tax is about $8,275. No municipal land transfer tax applies in London. First-time buyer rebates may reduce this.
Can I add a legal second unit in London?
London requires residential rental unit licensing for many low-rise rentals — confirm the licence class for the property. Treat every unit's income as unusable until zoning, permits and Fire Code separation are confirmed with the municipality.
Run a real London underwriting file in minutes.
NOI, valuation, financing, risk register, stress tests and a maximum offer — with every assumption labelled sourced or estimated.
Other Ontario markets
PropertyEdge provides analysis and estimates for informational purposes only. It is not investment, tax, legal or appraisal advice, and no return or investment outcome is guaranteed. Estimates are modelled from the assumptions shown and must be verified against leases, inspections, tax bills and municipal records before you make an offer.