11/23/2022
https://youtu.be/XGKF0Stk5n4
I want to introduce a new video series call Hey, did you know!? this is where I'm going to share updates and news about the Canadian real estate market and financial in Canada. In the first episode, we're gonna go over the current average rent across Canada.
Now, the first question probably a lot of people want to ask is why anyone would rent instead of own properties in Canada. Depends on the market. But a lot of people choose to rent because they want to have the big lump sum amount to go and invest in something else that has cash flow, return on investment or also a lot of people just cannot afford to buy properties and make down payments again, depends on where you located. Trying to make ends meet and saving up for a downpayment at the same time. Also qualification for mortgage is a challenge for a lot of people. That is why a lot of people choose to stay rented as in owning a property.
June and July of 2020 to rent across the market when up compared to ran in 2021 when in BC were not from 1900 to $2,500 a month. Rent in Alberta actually only went up almost $100 from $1,200 a month to $1,300 a month. Compare 2021 to 2022. I also want to bring up that rent in Newfoundland is also went from $900 a month to $1,057 a month. In BC rent went from 12 to $2,000 a month on average in 2021 has gone up to $2,682 a month in 2022. in Newfoundland for example, rents went from $932 a month to $1,200 a month in 2022. In Alberta, surprisingly only went up by about 100 bucks again $1,200 A month in 2021 to $1,300 a month in 2022. However, you might or might not remember, but in the early of 2021 rent actually went down about 200 doors per month per unit across Canada. But after that it went up sharply and now sitting on $1,900 a month on average per unit per month across Canada. Right so rent has went up significantly. And this is across the market.
The average rent for Alberta average rent right now for a three bedroom is going for $1,900 a month. These see three bedroom is $3,200 a month. Right New Brunswick three bedroom is $2,000 a month. New Brunswick is actually more expensive than Alberta now for three bedroom. Right and then in Newfoundland, three bedroom is not applicable because there's not enough supplies but based on what I see on the market, a property go for about 1900 as well for three bedroom. So, rent has increased across the market.
Number one, now you're gonna start seeing less and less move in incentives and promotions. Right it's harder to find and less people are offering them. Next, the only three markets that still have some incentive to move in are Calgary, Edmonton and Winnipeg right now and what happened with all of this is when rents go up. More money from a family is going into rent instead of going into saving for a down payment. Right. And because interest rate went up, there's less buyers, that means there's more renters and when rents when renters not moving out of their property to own property. They now occupy potential rentals supply. And a lot of people are now also adopting the mindset of more expensive markets such as London in Manhattan is that they are now saying I should just be okay with renting. There's no point of purchasing or owning properties anymore in today's market. So, those are a few ways that people are adopting to the rent increase or not able to purchase property, right.
So what does all this means as an investor, myself as an investor, I think this is a good thing for investors because we will worry about mortgage when up which will be difficult for us to make mortgage payments. But however because of that rents are going up across the market is more demand than ever and pricing is going up that means we will not be into negative and we might actually still cashflow depends on the situation you are in but most of my property are invested in provinces that allow us to increase rent with no cap. But as a renter, things might not look very good. So but there's also a few ways to adopt adapt to this As I shared earlier.
Don't forget to check out our social media pages for more info about Long Distance REI in Canada.Facebook Group: https://m.facebook.com/groups/11551707685903...
