Stop Renting and Start Owning Your Winnipeg Condo
November 7, 2023 | Posted by: Ron Chan
URGENT NOTICE TO RENTERS
This is the first time that we’ve published an article with the word “urgent” in the introduction, or anywhere in the content for that matter. We like to think of our mortgage brokerage as opportunists (on behalf of buyers) and not alarmists. However, for condo renters in Winnipeg, a clear call-to-action must be heard. The time to stop renting and start owner is now.
Why? Let’s find out!
Why Condo Renters In or Near the Downtown Winnipeg Area Need to Immediately Stop Renting and Become an Owner Early in 2024
Average Condo Rental Prices Are About to Increase Significantly
Logically, most condo rentals in Winnipeg are located within or near the city’s downtown core. We’re sure that you’ve noticed what seems like an endless wave of construction in the area over the last few months and years. Typically, any new mixed commercial-residential development can lead to a gradual uptick in adjacent property values and subsequently property taxes along with insurance. These increases are passed down by multi-residential property owners to their renters.
Well, one new development is about to alter condo property values unlike any other in recent memory. In our November 2023 Winnipeg real estate news release, we reported on the completion and grand-opening of 300 Main. 300 Main is a luxury condo rental development in downtown Winnipeg. It is the city’s tallest residential tower and boasts almost 400 units in addition to a wide number on-site amenities. Rental rates at 300 Main begin at $1910/m for 1-bedroom units and at over $2125/m for 2-bedroom units. That may sound like a bargain for those who rent in Vancouver, Toronto, or Montreal, but when compared to Winnipeg’s existing average of $1,240/m it’s a huge jump. With nearly 400 units to count towards the overall inventory in downtown Winnipeg, the average cost per rental unit is about to rise. If economic law teaches anyone anything, it’s that Individual owners who rent out their investments, and multi-residential property owners in the area, will respond by raising their rental rates. While there is a 3-percent cap on rent increases for existing tenants, condo owners can raise rates as high as they like for new renters.
No matter how you look at it, it’s about to get more expensive to rent in downtown Winnipeg. Stop repaint and start owning accordingly.
Smart Time to Invest
Not only does “taking ownership” make sense for those who have been paying off someone else’s mortgage for years, it presents a smart investment opportunity. Knowing that rental rates will increase overtime, those who buy a condo with the eventual intent to place the property on the short term rental (STR) or longterm rental market (LTR) to earn monthly income will find peace of mind that they will see a greater return. However, the longer you wait, the more likely condo property values will increase. Act not by looking into a condo mortgage right away.
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