埃德蒙顿华人社区-Edmonton China

 找回密码
 注册
查看: 2007|回复: 0

Rentals cheaper as mortgages climb, study finds

[复制链接]
鲜花(5) 鸡蛋(0)
发表于 2006-10-18 10:29 | 显示全部楼层 |阅读模式
老杨团队,追求完美;客户至上,服务到位!
Rentals cheaper as mortgages climb, study finds
( Y& m2 A# e1 U, NAffordability gap grows  
6 t& Y# N6 K0 ~" X9 J, _/ l% S9 [& Y3 Q% ?
Financial Post
  q! v" g$ I, D- H0 w8 H: Z# C, b- TPublished: Wednesday, October 18, 2006
9 W. }4 T' M  u- U3 G' j7 J7 e) d& b! g" R2 Q- {
Why own a house when you can rent the same property for a lot less?
7 E; |: w7 P3 @) B1 k
- i4 A2 @( l7 B- k( `A new study from Bank of Nova Scotia says the pendulum has swung back in favour of tenants.% ^4 M+ x) f% F; {

6 X) L  s2 G2 r2 V0 ?"The affordability gap between renting and owning is at its highest level since 1990," said Adrienne Warren, senior economist with the bank.3 o+ _1 R$ B1 g6 `; u

2 V& M# m* m9 GThe study found the average monthly mortgage payment in Canada in 2005 was $1,304 based on a $250,000 house with 10% down payment. That compares with an average rent of $731 for a typical two-bedroom apartment last year. That $573 gap is projected to climb to $800 in 2006.# `( }0 |/ ?) c
7 n$ N3 J4 w9 g+ [4 w
"This is a fairly typical pattern that you see in housing. As house prices move up, affordability becomes an issue for first-time buyers," said Ms. Warren, adding renting becomes a more viable option.
5 r+ x' q' b9 {6 a  h. R  @. O6 n6 H+ V2 l2 b* P  [
The current gap between owning versus renting would be even wider if the Scotiabank report took into consideration home ownership issues such as taxes and general upkeep.
% H  n7 @- X, e  M* ], y, o+ B8 x6 d5 }, E4 c$ b) m
Ms. Warren predicts a slowdown in the housing market with a tighter rental market leading to increased rents. "We will see a levelling off of vacancy rates. I don't think we will see landlords offering the same incentives, like free rent for a month," she said.
) q' c8 y. I8 w6 R1 I
! P  K- L3 h& K5 OOne problem with the national number is it masks major regional differences, she said. The gap between owning and renting varied wildly across the country from a $31 monthly premium in Winnipeg in 2005 to $1,220 in Vancouver.. Z( x4 F0 p1 b! l" b0 Z

5 D, G- v4 K+ s- YGenerally though, the trend across the country is home ownership costs are rising faster than rental rates./ P+ {$ P5 @* }7 |
6 u' h# w8 d3 e: q, Y- M
Between 2000 and 2005, rental costs have increased nationwide at a 1.3% annual pace. During the same period, home ownership costs nationwide increased 2.7% annually.6 c. A* A" T7 N( R  |4 A
  l& F: [$ v/ G& w' S- q& C
One side affect of declining affordability has been a slew of new mortgage products that have had the effect of lowering the monthly carrying costs of a loan. More and more consumers are buying products that allow them to pay off their mortgage based on a 35-year payment plan as opposed to a 25-year plan, which had been the norm for years.0 L2 G2 B1 o6 X, e& ?  N1 L
6 I( t& N) z! C" W1 R8 X- j
Ms. Warren noted that the $1,304 monthly mortgage costs for a $250,000 home with a $25,000 down payment would go down to $1,073 per month under a 35-year plan.9 h1 G9 J6 Y# M( J
  Y7 V7 B; |; D/ }( s; ~  ^8 p; M
Real estate author Don Campbell said there is no question renting has become a better deal for consumers over the last few years. "When interest rates come back down, the pendulum will swing back to the homeowner," he said.  ^# x" C' `. p8 v$ p/ D
6 V. m% ~* N& `, a3 M
However, Mr. Campbell said apartments are affected by rent controls in many markets.7 H0 d" A; g% P6 s, Y: S% c

  V! Q, X) g1 o2 m4 B"In markets in the West, where it is not as controlled, rental rates are starting to take off. A two-bedroom unit in a 1970 building in Fort McMurray is $1,500, and that's in the middle of nowhere. Even basic townhouses in Edmonton that rented for $800 last year are up over $1,000," he said.! D" q2 b# |% d" M
0 V2 A# B7 J' R6 n1 u
& S* D' d. t! v
Disclaimer: This is just published research data and do not express my position.
您需要登录后才可以回帖 登录 | 注册

本版积分规则

联系我们|小黑屋|手机版|Archiver|埃德蒙顿中文网

GMT-7, 2026-4-13 08:57 , Processed in 0.105716 second(s), 11 queries , Gzip On, APC On.

Powered by Discuz! X3.4

Copyright © 2001-2021, Tencent Cloud.

快速回复 返回顶部 返回列表