Canadian REI - is the east coast desirable?

Question

Hello! I'm new to this forum and am looking to make my first REI this year.

A little bit about me: I am currently renting a room in North Vancouver for $1200/mo (yikes!) to lead the lifestyle that I love. Although expensive, I find this cheaper than buying my own condo in North Van, especially when I factor in strata fees, insurance, taxes, etc in with the mortgage payment. I’m now thinking of putting my savings in to my first rental property and get some cashflow, or just leave it in my current ETFs.

Based on previous threads, NS and NB sound great for REI! But is there a reason why properties there are so much cheaper (in fact, somebody had said they’re underpriced)? Here in Greater Vancouver, I can see why properties are so high in demand: job opportunities (IT, trades, year-round tourism, etc.), colleges/universities, lifestyle (skiing, mountain biking, rock climbing), mild weather (rarely ever have to shovel snow!), nature, etc etc. I’m just trying to determine whether it is worth sinking my savings in to an area that may not be a very desirable place to live. Sorry for this ignorant remark but I’ve never been to the east coast of Canada! I also want to mention that there are so many people that moved from the east coast to BC, so it’s not particularly encouraging to want to invest on the east coast.

Thanks for reading!

Roy Cleeves · Answer

Hi Maysa

I live in Ontario and sell real estate in Kitchener yet I buy in Halifax, NOva Scotia

Things seem to be underpriced there.

And it is a great place to have a more relaxed type of lifestyle and less expensive overall so I am a very well move there in the future especially as a retirement option.

I can share some different investment options as I have a partner who is living there that is analyzing options for us all the time. If you have some interest feel free to direct message me.

Julie Toh · Answer

@Maysa Tsang Welcome to BP! I hope you find the forums and resources here helpful in your journey as a real estate investor. You asked a good question regarding NB and NS prices. It's smart to ask questions and plan for long-term financial success. The first property I purchased in Vancouver was my home (read the story in my profile). I became a homeowner and landlady at 21. Before I pulled the tigger, I talked to people who have million $ real estate portfolios, hoping to find out how they did it. What's their secret sauce? What was it, you asked? Every single investor knew his/her 'w h y'. As Simon Sinek says, start with why.

Jordan Perry · Answer

Hey Maysa,

I would argue that the east coast is a very desirable place to live. Anybody that has traveled or lives there I'm sure would agree with me that the people, the landscape, and the culture is unparalleled in Canada. It is a beautiful part of our country that is very attractive place for many to live. Historically there has not been much interest in Atlantic Canada, but that is finally starting to change. This year there has been what I like to call a "mass migration" of people moving from provinces that have become much too expensive to live and purchase housing. I personally think that everyone is just tired of the craziness of the real estate markets in provinces such as Ontario and B.C (myself included).

The investment real estate market is also booming in AC right now and prices are rising, where historically the prices have been very stagnant. It has been a buyers market for a long time, and things are just now starting to shift to be a sellers market. There are still deals to be had, but I believe they will not last for forever.

I hope that helps you in your quest to figure out where to invest Maysa. I have gathered quite a bit of knowledge on Atlantic Canada through family that lives there and my own investment properties, and am always willing to share what I have learned. P.M me if there is any way I can help!

Account Closed · Answer

@Maysa Tsang the east coast has all the same recreational and nature options that the west coast has, and comes with the added bonus that people are generally very friendly and community minded. You trade lower cost of living for more snow. You should really do you homework and learn more about the rest of the country that you live in; its an easy cure for ignorance (I'm not saying this to be mean, but more as a matter of fact).

As mentioned by @Jordan Perry the REI market in bigger centres has become a seller's market of late. If you are considering investing there, you really need to visit, explore, and identify whether opportunities exist that match your needs.

Maysa Tsang · Answer

Thank you for your response, everyone! It really helps.

I’m currently waiting for mortgage pre-approval so pretty soon I’ll have a better idea of my financial options. In the meantime I will do some research about AC, read books, listen to podcasts, and lurk BP forums.

I will definitely make a trip out east as soon as the whole Covid situation settles down!

Zachary Fucale · Answer

I lived 3 and a half year in Halifax, NS and can’t say enough great things about it. Its not as big as Vancouver, but all the things you me tioned in your post, nature, lifestyle, tourism it’s all there. It’s a different pace and people are great there. I think i’ll end up investing in rental property there eventually! Don’t sleep on NS it’s an awesome place to live.

Canadian REI - is the east coast desirable?

Canadian REI - is the east coast desirable?

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