With the cost of living soaring, many Canadians are looking for ways to save.
The latest trend involves renting out a home or condo, which means it is becoming more and more expensive to buy.
The Calgary Real Estate Board recently released its 2015-16 Housing Price Survey which found that prices are climbing, with average home prices increasing by almost 4 per cent from the previous year.
The average monthly rent for a one-bedroom apartment is now $1,000, and that for condos, $1.5 million.
For the average one- and two-bedroom homes in Calgary, average rent is $2,000.
In fact, prices are rising by more than 30 per cent over the past year.
According to the real estate board, Calgary’s average monthly home price jumped 7.8 per cent to $8,200, while average monthly rents went up 5.2 per cent.
The survey also revealed that Calgary’s median income, which is now about $45,000 per year, was the highest in Canada.
It also revealed Calgary’s housing affordability was a concern.
“It is becoming increasingly difficult for Canadians to save for a down payment and it is also becoming more difficult to find a place to live when they have no other option,” said John Jervis, president and CEO of the Calgary Real Property Board.
“As home prices continue to rise, many are turning to rent and mortgage finance as a way to pay for a place.”
This means renting a home, but it also means getting out of the house.
This is because many people have mortgages that they are paying off.
“The typical homeowner is going to pay about 20 per cent of their income to pay off their mortgage,” said Chris Sorensen, an economist with CIBC Capital Markets.
“That’s a lot of money, and it doesn’t come cheap.”
Many people with mortgages aren’t saving for a rainy day, and they also don’t have the time or resources to go out and look for a new place to buy, especially in an age when most people are working longer hours.
“If you don’t want to pay rent, you’re not going to be able to find anywhere else to live,” said Sorenson.
“And if you want to move out, you need to move in, or your mortgage is going up again.”
But many homeowners with existing mortgages, such as the ones with mortgages that are paid off, have the option of repaying their loans by making a downpayment of up to 20 per 100,000 by the end of the year.
If you do decide to rent, Sorentson recommends doing it at the right time.
“A lot of people are buying properties at the beginning of the new year.
They’re buying for the summer and the holidays, but if they’re buying in the middle of a downturn, then they may be going into the rental market in a different way,” he said.
According a study by the Canadian Real Estate Association, the average rent in Calgary was $2.33 per square foot in the fourth quarter of 2015, and the average monthly rental price was $1 $2 million, which was the lowest in the country.
The median rent for condos in Calgary is $1 million.
“People need to be thinking about the long-term picture of what they’re doing in their homes, but they also need to have a better understanding of what’s coming with the prices of things like furniture and appliances,” said Dan Davenport, an associate professor at the University of Calgary’s Sauder School of Business.
“They also need some kind of plan for getting out, especially if they want to live in a place with some type of amenity, which could be something like a backyard.”
One way to save $100 A couple who has the right financial plan can save $1-million by purchasing a house with a mortgage.
“When you buy a home with a house loan, the amount of the interest you’ll be paying is capped at 10 per cent, and you can get a 20 per-cent down payment, and then you can have as little as three years on your mortgage,” Sorendsen said.
“So that’s one of the best ways to do it.
If someone is willing to put down $100, it’s a great way to start, because the interest rate is capped, and if you’re paying 10 per per cent interest, then you have to pay the same for 20 per percent interest.”
Another option is to buy a condo or house and rent it out.
“There’s a number of ways you can do this,” said Jervs.
“One is to rent out your place, and another is to get an apartment that you can live in, which can be a one bedroom or a two bedroom.”
But you don,t have to buy your own home to save some money.
If, for example, you own a