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Recent research has revealed that it’s financially better to own a property in Canada than to rent one. House prices in Canada have risen sharply throughout 2021 and are expected to hit $680,000 by the end of year. Next year, prices will likely surge further as it’s predicted they will go up by more than 9%. Regardless of this, experts say now is a good time to buy a property in Canada.
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Financially better
A study earlier this year found that Canadians who buy a property with a minimum 20% down payment are financially better off than renters. On average, a homeowner’s housing costs are $769 less per month than the typical renter’s expenses. Property owners also inadvertently save money and build equity which sets them up for retirement. In May, Newswire reported that 28% of Canadians planned to use the equity from their home to help cover the cost of their retirement. As renters do not own their own home, they do not have the luxury of tapping into equity in their later years, so have to rely on savings.
Rising prices
The average house price of a property in Canada is up by almost 20% compared to this time last year, according to Global News. They’ll grow again next year by 9.2% and, most likely, even higher in 2023. Property inventory is also expected to decrease in 2022 which is positive news for potential buyers. It’s expected that sales will fall by 12.1%. This makes it the ideal time to buy as less demand for property means buyers will be keener to sell and more likely to reduce their asking price for you. Finding a property in Canada these days is a simple process. Online tools cut out the need to hunt for properties in person. While, online showing guides give you help with asking the right questions before committing to buying a home.
A sound investment
Around 70% of Canadians are homeowners, according to IBIS World. 10% of these people currently own more than one property. The majority of investors use the equity in their main home to buy further properties which they let out as rental homes or vacation homes. Their main aim is to sell the property at a later date for a significant profit. If you already own a residence in Canada, now is a good time to buy a further one. There is a shortage of homes in Canada, especially good quality rental options. So, if you snap up a property and rent it out for a good price in a great condition, you’re sure to make a decent immediate return. If real estate prices continue to rise as they have been over the past few years, when you go on to sell the property in a decade’s time, you’re likely to make a nice profit.
Canada’s property market is growing fast right now. Despite house prices continuing to rise, now is a good time to invest in property. Thankfully, there are plenty of opportunities to do this, so if you’re in a position to buy, consider doing so now.
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