Deciding to embark on a new life in Canada is the easy part. Deciding whether you should buy or rent your first Canadian home is another matter.
Once you have decided to move to Canada you will soon be faced with many other smaller, but no less important decisions. One of the most pressing is regarding your new home – should you rent, at least for a little while, or take the leap and buy a property?
There is no easy answer to this question, and what is good for one family may not be the best solution for another. All you can do is weigh up the options, and implications, and make an informed decision.
We are no longer in a ‘seller’s market’ and are entering a much more balanced environment.
Buying a Property
Canada has a large and varied property market, but in general, right now the market is softening and we are a seeing a drop in the number of sales. Furthermore, the average price of a home is steady, without the sharp increases in value seen over the past couple of years. This means we are no longer in a ‘seller’s market’ and are entering a much more balanced environment. This is great news for anyone who takes the ‘buy’ route upon landing in Canada. Not only are you taking advantage of positive market forces, but you will be benefitting from the traditional arguments in favour of buying – the security home-ownership brings, and the fact that you can start to build equity as soon as you arrive in Canada.
The benefits of renting
One of the main benefits of renting is the flexibility it affords. By entering into a fixed term lease you can ensure that the particular corner of Canada you decided to call home is actually right for you. If for any reason – such as a work posting – you want to re-evaluate your location, you can move on without significant cost or time spent listing a property for sale. The structure of rental agreements in Canada is also worth noting. Typically, a term runs for 12 months and then converts to a month-by-month agreement, so at any time after the first year you can simply provide one month’s notice and then move on to your next location.
One of the main benefits of renting is the flexibility it affords.
Renting would also provide time to assess the current market conditions, if the aforementioned softening trend continues we could well see prices dropping. By biding your time and renting you could actually save money in the long run as inflated property prices (particularly in cities like Toronto and Vancouver) start to drop.
The Canada Buying Guide takes you through each stage of the property buying process, with practical recommendations from our experts who have been through the process themselves. The guide will help you to: