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Renting vs. Buying in Victoria BC


If you’re considering a move to Victoria, buying your first home, or simply looking to relocate, you may be asking yourself.. is it the right move to rent or buy?

The first and most obvious consideration when it comes to relocating is - how long are you planning on staying?


The rule of thumb is, if you are planning on staying any longer than two or three years, buying may be the better option. In the span of two to three years, there is a good chance your property may gain enough equity to make a profit when it comes time to sell.


That being said, renting does tend to come with lower carrying costs.


As a renter, you may only have to worry about, rent (clearly), and utilities in terms of expenses.


As a buyer, your expenses include home inspection fees, deposits, appraisals, lands survey feeds, legal fees, mortgage fees, and home insurance (just to name a few) (RatesDotCa, 2020)


However, being the buyer, there is a good chance you will be able to get these costly expenses back out of your home when it comes time to sell.


Renting versus buying might be slightly different depending on what type of market you are in. (Victoria Homes and Properties, 2019)


“Overall, buying a home is typically 30% cheaper than renting, but that’s not the case in Victoria. Use this method to determine which is better financially. Take the house price and divide it by what it costs to rent for a year to get the price-to-rent ratio: Price divided by (Monthly rent x 12) = X.


If the number is higher than 15, it’s generally not a good time to buy.


If the ratio is less than 15, buying is a better deal than renting, if you plan on living there for at least five years to offset moving and closing costs.


By the time the number hits 20, renting is apparently the way to go” (Should We Buy or Rent in Victoria?, 2019)


For a quick briefing on Renting vs. Buying, follow this guideline below:


When to Rent

  • Your long term plans do not include setting down in one city. (eg. you may take a job promotion elsewhere, you are going back to school, you aren’t currently close to family/friends.)

  • You can’t afford the monthly carrying costs of being a homeowner

  • You are in the midst of paying off a current debt


When to Buy

  • Your plans are to stay in your location for a minimum of 3-5 years.

  • You are in the financial position to become a homeowner

  • You are ready to make financial sacrifices

If you are on the hunt for the perfect rental property, you may not have to look any further!


Here at Urban Core, we are currently renting out our most recent Cook Street project, as well as the picturesque condos at Southgate!


Check out our current residential and commercial leasing opportunities - https://www.urbancoreventures.com/

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ABOUT URBAN CORE

The President of Urban Core Ventures is Leonard Cole, a third generation Victorian with a passion for housing. Together with our partnerships, I build our team and we build homes for everyone.

 

From in-fill housing, long-term rentals and securing below market housing, we create and design homes for everyone. 

 

Urban Core Ventures has been recognized for its work in the community and has received many awards.

 

Three of the most lauded projects include our current Cook St Village building being built right now and ready next year.

 

Latitude Living-Urban Core Ventures is providing below market housing in partnership with Island Health and the CRD by providing homes to 32 adults struggling with mental health and substance abuse challenges. 

 

And as a major heritage restoration, The Moderne-an art moderne home originally built by PL James and reclaimed and re-imagined by Urban Core Ventures. The Moderne was recognized with a Hallmark Heritage Award and 5 CARE Awards in 2015.

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