Buying vs. Renting in Yellowknife

There are roughly 1,200 new people moving to Yellowknife each year. When moving to a new city, people often think hard about whether it makes sense to buy or rent.

Renting offers greater flexibility and less to worry about in terms of maintenance and other costs, such as property taxes. That said, in our tight rental market, it’s almost impossible to find a good rental house or a reasonably priced apartment in Yellowknife. There’s also often a lack of privacy and outdoor space for children and pets.

On the other hand, after a few years of steady development, Yellowknife’s homeownership options are better than ever.

Here are a few reasons it makes sense to buy instead of rent in Yellowknife:

1. Renting is expensive – at $1,675 per month, according to the Canadian Mortgage and Housing Corp., the average rent for a two-bedroom apartment in Yellowknife is second in Canada only to Iqaluit in Nunavut. Talk about paying somebody else’s mortgage.

Pricing is in line with incomes – According to Money Sense Magazine, Yellowknife has one of Canada’s highest household incomes in Canada and the job and business opportunities here are fantastic. Given this, it’s actually surprising houses are so reasonably priced, especially when you compare the pricing and average income of other Canadian cities.

1. As an example, just under $400,000 will buy an average three bedroom, two bathroom home. See how Yellowknife stacks up against other Canadian cities in Money Sense’s 2014 listing of best places to live.
2. Prices appreciate – By not buying this year, you’re missing out on the 4-5% of yearly appreciation each Yellowknife home usually sees. What are you waiting for?
3. Keep more of your money – When you rent, all of that money goes straight to your landlord. But when you buy, even at the beginning of your mortgage, about half of the money goes to paying down the principal of your mortgage, which means you build up an investment that you will recover when you sell your home..
4. Own a piece of Yellowknife – There’s something to be said for owning your own piece of Yellowknife, painting the walls whatever colour you like and really making a place your own. In Yellowknife, you’d be surprised how purchasing a home really helps you put down roots in the community.
5. It’s easy to find a roommate – If you’re a single person worried about the monthly costs of owning a home, Yellowknife’s high rents make it easy to find roommates to help you pay the bills. Rooms often rent for $1,000 per month or more.

If after reading this, you’re still not convinced, Century 21 is still happy to point you in the right direction to find a rental that works for you. Some of the main areas include:

YK Trader – www.yktrader.com – Yellowknife’s buy and sell area often has posting for rooms, houses and apartments.

Polar Developments – www.polardevelopments.com – A Yellowknife-based developer with quality apartment rentals.

Midwest Rentals – www.rentmidwest.com – Midwest Properties – A large landlord with apartment holdings in Yellowknife.

Northern Property REIT – www.npreit.com – Yellowknife’s largest landlord.