Are you trying to decide between buying a home or renting a home in Halifax? It can be a tough decision and there are many factors to consider. 2022 alone has brought an increased cost to both landlords and homeowners. Issues with supply chain constraints, a by-product of war and Covid closures have significantly increased costs to operate and own property. This has been felt in all faucets of ownership from heating, general maintenance, capital upgrades, labour costs and more. Additionally, increased Municipal property taxes and increased Provincial charges like carbon taxes also play a role.
Stepping back and analyzing the latest and projected interest rates hikes and pairing them to the increased cost to own and operate an asset. The result is that home ownership may very well be more costly in the present and near term.
While at first glance, renting may seem like the safest option in times of uncertainty… The issue and unfortunate reality is that there will likely be a direct correlation between the increased cost to home ownership and rent expenses in the near future. Landlords like homeowners will have inflated costs to operate their assets and naturally will have to increase rents to cushion these elevated costs. So, while you may experience lower monthly expenses in the immediate future with renting, these savings will likely become less and less over the course of time.
In addition to the monthly breakdown of expenses between buying and renting, there are a lot of additional factors that one should focus on. Many of these important questions are unique to the city and location in which you are looking to rent or buy in. Some examples of these factors are listed below:
- What are the current population projections for the location and city?
- What are the income and salary averages for a given area?
- What effect will the next rate hike have on one’s local real-estate value?
- Will there be a levelling of consumer costs with increased interest rates?
While you may not know the answers to these questions off the top of your head, a local and experienced real estate agent can help. They can provide you with the unique insights and projections for your area of interest and give you with the information you need to make an educated decision for yourself, your family, and your future goals.
The Real Estate Market in Halifax
It appears that locally in Halifax, we are seeing an issue of increased costs to purchase a home as well as a very tight rental market where costs are expected to rise in the medium to long-term future. If you are looking to live in Halifax for the foreseeable future, it would be beneficial for many to purchase a home now if it is within your financial means.
As we all know we are not building more land, so as demand and housing prices grow, your homes value will continue to grow as well. While the expenses may be slightly higher in the immediate future, you can benefit from the growing market and demand. Whereas, if you rent you will have increased costs in the medium to long term with no potential growth in assets.
If you would like to find out more about whether renting or buying is more appropriate for you and your future goals, reach out Jeremy Snider today. As an experienced, local real estate agent in Halifax, he has the unique insights and advice that can help you make the right decision.