It often makes sense to rent a home before buying when moving to a long-haul destination.
Article written by The Overseas Guides Company
It’s precisely what expat Stewart Buchanan, author of the CanadaBuyingGuide.com, is doing in Vancouver, so here he offers some first-hand advice…
“Expats tend to flock towards the larger cities when they first arrive in Canada, namely Toronto, Montreal and Vancouver. This partly accounts for the high demand for rental properties in these environments, so if you do find something you like, you have to move quickly. Likewise the aforementioned softening of the housing market has further increased the demand on rentals as Canadians and expats alike bide their time before jumping onto the property ladder.
“There could also be employment concerns and renting a property will mean it is easier to move to a new city or province if the work takes them there. Further, the Canadian housing market is softening somewhat and prices are slowly coming down across most property types and geographical areas, renting is an ideal way to bide your time in order to wait and see how low the prices will drop and in the long run could save you money.
“When it comes to selecting a property to rent there are a number of resources at your disposal that can indicate the type of property available in certain areas and give an indication of how much they will cost. If you are still in the UK you will probably rely on the Internet for your searches but if you are already in Canada there are also local newspapers that can help as well as bulletin boards in local libraries and community centres etc.
“Once you have decided on a property you can enter into negotiations with the landlord (or realtor if they have employed one). At this stage it is important to establish a number of aspects that will affect the rental contract. You will need to clearly define what, if any, utilities are included in the rent, for instance in Canadian condominiums water, and the costs incurred in heating water, is often included in your monthly rental fee. You should also establish if there are any restrictions regarding making changes to the property, as you may want to redecorate. If there is outside space you need to identify whose responsibility it is to maintain it. If there are any unexpected terms or requirements contained in the lease you may want to consult a local solicitor to review the lease for you.
“Once an agreement has been reached the landlord will most probably run a credit check to ensure you are able to afford the rental payments. This can sometimes be problematic for newcomers to a country i.e. if you have not had a chance to build a Canadian credit file. However, any problems can normally be negated by providing bank statements and/or offers of employment and employment contracts to demonstrate to the landlord that you will not be living above your means. Typically the damage deposit you will be required to pay is equal to one month’s rent, but if you do not pass a credit check another alternative to ensure you can move in as planned would be to pay a higher deposit, or even pay several month’s rent up front. If you have or intend to own a pet you again may be required to place a slightly higher deposit to insure the landlord against any pet related damage, however the amount of landlords that operate a no-pet policy is very low as Canada, like the UK, is a national of animal lovers.
“Your tenancy agreement will establish who is responsible for minor and major repairs, so if something does go wrong in the property you will know who to contact. Generally, rentals will be for a fixed term of one year, meaning you will not be able to give notice and leave the property before 12 months. However, depending on the province, once the initial term is over the lease could become a month-by-month agreement so you would only need to provide a month’s notice should you want to move on and take the big step of buying your first Canadian property.
To research properties for sale in Canada, visit the Canada listings on Rightmove Overseas. Preparation for anyone considering a move to Canada should include planning for the transfer of your pounds into Canadian dollars. For information on how to do this safely and save money when doing so, speak to currency exchange specialist Smart Currency Exchange.
To understand the full step-by-step process to buying a property in Canada, collect The Overseas Guides Company’s ‘Canada Property Buying Guide’
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc