As Average Rents Go Up, How Can Renters Find Relief?

An Urban Nation study found that the average rent a Greater Toronto Area average-sized (732 square feet) condo rose 11 percent in the second quarter of 2018 compared to the same period in the prior year.

Average monthly rent hit $2,302.

Here are several longer term ways renters may be able to find relief.

1. Save money with a roommate. If you are just starting out, a roommate is a great way to save money, as you can share expenses, and typically a two-bedroom apartment is not double the price of a one bedroom.  For example, in the study cited, an average one bedroom goes for $1,968, while an average two bedroom goes for $2,640.  The cost of two tenants renting two average one bedrooms is $3,936.  By sharing a two bedroom apartment, each tenant will save almost $650 per month, plus benefit from the ability to share other costs like any utilities and cable.

2. Write to your local member of Parliament, member of Provincial Parliament, and City Councillor and demand more affordable housing.  These three levels of government have worked together to find incentives to build new affordable housing (Full disclosure, BGS Homes Inc. has built affordable apartment housing in Toronto and Whitby in conjunction with all levels of government).

3. If you can work from home, consider moving out of the GTA and buying a home. For example, a family earning $70,000 a year can afford a home valued at $350,000 with a $100,000 down payment. While that may not get you a home in the GTA, there are homes within driving distance of the GTA within that price range.  Check out bgshomes.com for the latest communities we are building.

Things Not To Include With Your Home Offer

The Canadian Press reports that some potential resale home buyers in Canada are including notes and family photos with their offers.  The idea is that if there are multiple offers, perhaps a sentimental note attempting to connect with the seller may improve your chances of selling a home.

We will leave it to you and your real estate agent to decide whether this approach is right for you. If you do decide to take this sentimental approach here are some light-hearted:

Items Not To Add To Your Offer To Purchase A New Home

1.  Spilled red wine stains. In addition to looking sloppy, one might question whether you were even sober when you made the offer and should be taken seriously!

2.  A Post-It note with all of your internet and app login passwords.  The sellers could steal your identity. Worse, they could hire Uber drivers to move all of their furniture to their new home in Saskatchwan using your account. Say goodbye to your near perfect 4.8 Uber score!

3.  A photo of the random family that came with a picture frame you just bought. Especially if it is a random family of kittens. Kittens are notorious for walking away from counteroffers.