Post Brexit Move To Canada – Here Is The Lowdown On Canadian Property.
After Brexit and the results of the recent US presidential election, more people than ever are considering a permanent move to Canada. With this new trend gaining momentum, the UK’s largest property classified site, TheHouseShop.com, have decided to investigate what a British expat can expect from the property market in Vancouver, British Columbia – one of Canada’s most popular places to live.
Average house prices in Vancouver
Due to the weather being the mildest in British Columbia, house prices in the largest cities are comparatively much higher than in the surrounding towns and rural areas, not only of the region, but of the country as a whole. When you combine this with the steady rise of the Canadian dollar in recent years, this results in immigrants having less purchasing power than in previous years. However, if you’re seriously considering a move to Canada, don’t let a small decrease in purchasing power put you off. Now is definitely the right time to make your move and relocate as property prices across the country are on a steady rise and the market continues to be a popular area for investment.
The cheapest areas to buy a home in Canada can be found in locations where the weather is more extreme and in more remote locations which are not easily accessible. For instance, property prices are very low in Manitoba and Prince Edward Island. In recent years the Canadian housing market has seen certain locations experiencing significant price rises, with a boom in Alberta and Calgary which then gave way to a boom in Ontario and Toronto. However, the house prices in Vancouver and British Columbia as a region, have consistently risen at a rate well above the national average and continue to dominate the market, as they have done since 2015.
Figures from July 2016, show that Vancouver came first for the highest average house price in Canada at $1,008,000. This is the equivalent of £605,567.64 GBP, which is slightly less than the average 3 bedroom house in Tower Hamlets, currently priced at £632,884.
The property prices in Vancouver have increased in the last year by 16%, and with the local property market still booming, this only looks to continue.
The next most expensive place is Toronto, at $710,000 with an increase of 17% in the last 12 months and coming in at £426,540.70 for the British immigrant.
At the bottom end of the property scale, Fredericton, New Brunswick’s average house price is $182,000 which is £109,338.60.
If you are still tempted to move to Vancouver, then be aware of the new initiative the Canadian authorities have recently implemented on all foreign property transactions. A 15% tax on property sales has been added to buyers who are not Canadian citizens or permanent residents.
Already results from August this year, are showing that deals have been falling through at the last minute, and foreign buyers have surrendered their deposits rather than submit to the new tax.
This has been implemented in an effort to curb the house price bubble which has been steadily increasing in Vancouver over the last five years.
Average rents in Vancouver.
The rates of rent prices in the Vancouver region, usually increase in line with the British Columbia imposed cap on yearly rent increases which are set at 2.9%. However, last year rents rose in Metro Vancouver by 6.4%, the steepest rise recorded by the Canada Mortgage and Housing Corporation.
Due to the house market boom in 2015, the average rents in Vancouver rose to a rate of 3.9% overtaking their imposed cap. Unfortunately the trend is set to continue, as the rents in the City of Vancouver rose to their highest recorded level of 7% this year, in comparison to rents in Toronto which only increased at 3.1%.
To put this into perspective, the average price of a 1 bedroom apartment in the City of Vancouver is $1,268 which translates to £761.77 a month, compared to $1,175, £705.89 in 2015. Whereas the average rent of a two bedroom is $1,757, £1,055.54 compared to $1,643, £987.05 in 2015.
In comparison to renting in London, the average rent per person in a 4 bed flat in London is £1,216.50.