A lot of people get confused about the status of real estate in the capital city of Canada. In this article, I will tell you all about the real estate market of Ottawa. It will mention the kind of homes you can get on rent or purchase with minimum and maximum prices.
Hintonburg which is a 10 minute drive to Ottawa’s downtown is becoming the new real estate hub in Canada. You can get different type of houses with a reasonable price range. Same is the case with Westboro which is getting really really popular. It wasn’t that popular in the past but it’s getting attention nowadays.
Prices of single homes in Ottawa:
Real estate is very expensive and like in these locations to get a well updated detached three bedroom home, you have to pay around CA$800,000. Again the prices depend on the lot size and how nicely updated the home is. Places a little away from the city centre offer single homes with cheaper prices. Stittsville is such a suburban community which is approximately 20 kilometers away from the city centre. Single homes here are a lot cheaper. Single home prices range from CA$550,000 to 600,000 here. The interior design and appliances such as microwave, cupboards, fridge and some other kitchen stuff are included in the price.
It usually takes about nine to fourteen months for a single home to be built. The delivery date is never late and the builder finishes the house on the given time.
Prices of condominiums/apartments in ottawa:
Condos in these areas cost around CA$400,000 or maybe less depending on the building where the condo is situated. Each building is different. It depends on what they include and what amenities they have. So if there’s a pool, its price will be more expensive and if the building has an elevator, it will cost even more. Older and less modern condos cost around CA$200,000-250,000. Apartments or condos also have maintenance fees which is charged every month. So, the maintenance fees of some of the buildings can be as high as CA$900 per month. The maintenance fees also include heat, water and electricity in some of the apartments, but not all of them. The cheapest maintenance for some of the condos can be around CA$400-500.
You might know that North Americans nowadays prefer Scandinavian or minimalistic color designs. Most people nowadays who are looking to sell properties renovate them beforehand in hopes to get a higher price. Obviously, anywhere over the world, the same thing applies. This gives them a better selling price. Appliances are usually sold with the apartments. People sell appliances with the property.
Rent of a condominium in Ottawa:
The renovated two bedroom apartments are rented for around CA$2,400 a month. For more basic and less modern apartments, the rent can be around CA$1800. The rental apartments or condos don’t include the maintenance fees. The owner has to pay this fee.
Insurance policy of condos/apartments:
For a condo, there are two types of insurance. The owner of the building has its own special insurance and the tenant has its own. Tenant’s insurance is somewhat around CA$50 a month which is just for the interior of the apartment. It’s for the fire, theft and everything that occurs inside of the condo. The exterior of the condo is covered by the condo fee which is paid every month to the owner of the building. If you are planning to purchase a condo, you will have special insurance as a tenant and the owner will have insurance as well.
How can a person be a realtor in Canada:
To become a realtor in Canada, you have to go through proper tests and procedures. It’s about a year-long course. The Canadian government recently changed it to a proper college course. With the brokerage fees and other fees included, it costs close to CA$400 a month just to hold a real estate license and it costs another 400 dollar to maintain the agent status. Overall with the initiation fees, insurance and others included, the course costs around CA$5,000.
The realtor profession pays off well. Since the real estate market is boosting up in Canada, it’s like a 50% success rate. After facing a lot of condition and paying so much money, there’s still a 50% chance that people are successful as agents.
The commission that realtor get after a deal is done:
Commission is 2.5 per cent of the purchase amount and is paid to the realtor by the seller. Buyer doesn’t pay commission. It’s always recommended to purchase a house via a realtor agent because the agent will help you select house with a reasonable price. The owners sometimes don’t play fair and demand high prices.
House Tax in Canada:
House tax is another expense that comes with purchasing a house. House tax in Canada is 1.02 percent of the purchase price. Let’s say, for a CA$350,000 house in Ottawa, you have to pay around CA$ 3,500 per year as house tax.
How much you have to earn every month to afford a renovated apartment in Ottawa?
If you calculate $350,000 plus 1 per cent lease transfer, plus yearly house tax, plus $750 monthly maintenance, you would need to earn about $5,000 per month as salary at least to afford a well maintained and modern apartment in Ottawa.