Cost of Rent in Edmonton Good Reason to Buy a Home
With the average cost of renting a two-bedroom apartment in Alberta at about $1,029, it makes good sense to consider purchasing a home. According to Lai Sing Louie, Canada Mortgage and Housing Corporation regional economist, rates on rental properties began rising in 2006 due to a healthy economy and increased demand for housing, and rental rates have remained high ever since.
Louie also stated that as migrants start returning to Alberta, incentives that have been offered by landlords (such as free rent for one month) are on their way out because of a substantial increase in demand for housing.
While demand for apartments and rental homes continues to soar because of a strengthened economy, it is getting harder to find apartments and a bit more costly. While the average cost of renting an apartment in Edmonton during the month of April was $1,029, the average rent for a two bedroom apartment in Canada was $864.
Many people who rent feel that they cannot afford a home, but there are ways that you can become an Edmonton homeowner and stop throwing your money away. When residents make the decision to purchase Edmonton houses, they are contributing to their own financial future instead of that of the landlord.
How can you become a homeowner? Here are a few tips:
Programs exist that assist first-time buyers as long as you have never owned your own home before. This means that you may not have to pay as much down to purchase an Edmonton home as you think. There are still no money down programs.
A seller may participate in a "seller take-back" program in which you essentially obtain a loan from the seller instead of a financial institution.
You may be able to borrow the money to purchase a home against savings in an RRSP. There are also other options that may be right for you. For example, you may enjoy a significant tax return by borrowing against certain investments up to a specified amount.
Know your budget and what you can afford. This will make the search for an Edmonton home easier and quicker, as you won't spend time looking at properties that are not within your means. A realtor will often be able to help you narrow down the search to those homes that are within your budget.
Be aware that with a little creativity you can become a homeowner instead of a renter, allowing you to invest in your own financial future rather than someone else's!