Is it better to rent or buy a home when immigrating to Winnipeg?

BY Phil Gear, REALTOR

One of the first questions that faces new immigrants when they immigrate to Winnipeg is whether to rent or buy a home. If I gave you an analysis from the principles of economics, you would not want to continue reading this article; however, I am down to the earth!

Often new immigrants aren’t sure about their future plans— and aren’t sure if they will stay in Winnipeg once the immigration process is complete. If you come to Manitoba for immigration, the answer is a definitely to buy, especially in Winnipeg.

First of all, the rent/buy ratio is very good in Winnipeg. The price to purchase housing in Winnipeg is reasonably cheap compared with big cities like Vancouver or Toronto, however, the rental rates are similar to those big cities. So when a property is rented, the owner is always the person who benefits the most.

Second, purchasing lets you take advantage of the appreciation in value that occurs over time. The whole process of immigration will take minimum two to three years, but it could also be more than five years. Over the last 5 years homes in Winnipeg appreciated by 20%, which would mean that a $400,000 purchase in 2018 would have been a $500,000 sale in 2023. By purchasing, you are accumulating assets for yourselves.

Last but not least, there are other benefits to buying rather than renting, for example you have the freedom to anything to your own house, you don’t need to worry about the landlord raising the rent, or not renewing the lease, there is also a tax deduction for your mortgage.

Based on all the above, buying a home is always better than renting!