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Rent to Own a Home in Ottawa, Ontario
Ottawa is the capital city of Canada, found on the southern bank of the Ottawa river on the border with Quebec. According to the 2016 census, the population of Ottawa City was 934,243, a figure estimated to have crossed over one million in 2021.
Multiple publications have recognized Ottawa as one of the best cities to live in. Known as a green city, Ottawa has many scenic trails with fitness-friendly bike lanes to promote activity and traffic-free commuting options. Not to mention the picturesque landscapes that can be found throughout the city. The festival and nightlife opportunities in Ottawa are another great feature of living in the city. Being a tourist attraction, there are also many dining experiences for all preferences and budgets.
On top of these features, Ottawa also happens to have one of the lowest housing price averages among the big cities in the country, making it an excellent relocation option for people seeking rent to own homes in great neighbourhoods at budget-friendly prices.
Real Estate Trends
In December 2021, the average selling price of a home in Ottawa was $615,858. This was a 16% year-over-year increase. But, the average price was also lower than that of November 2021, when houses were sold at an average of $644,158.
Condo homes in the city sold at an average of $399,000, representing a 12% year-over-year increase. Single-family homes went for an average of $710,000, increasing 18% year-over-year. At the end of the year, house prices in Ottawa were more stable than at the beginning of 2021, when the highest average price of $677,129 was seen in March.
While house prices in Ottawa continue rising year-over-year, they're lower than other major cities like Toronto and Vancouver, where the average costs are above the $1 million mark. This means it's easier for more people to own a home in Ottawa than in other big cities in the country.
Transportation
Transport-wise, Ottawa is one of the most connected cities in the country. Three main airports serve it: the Ottawa-Macdonald-Cartier International Airport, Gatineau-Ottawa Executive Airport, and Ottawa/Carp Airport.
It also has an intricate network of inter-city trains and buses, making commuting within the city and to and from the suburbs a breeze. An extensive system of over 190 buses, for instance, connects the inner city to the suburbs. There are two freeway corridors in Ottawa city, one that's east-west and the other north-south.
Economy
Ottawa has benefited from many economic activities due to its status as Canada's capital city. Several industries thrive here, employing hundreds of thousands of people.
Significant employers in Ottawa are the tech industry, public service, the health sector, and tourism. Ottawa is nicknamed 'Silicon Valley North' due to a massive high-tech industry that employs more than 60,000 people in over 1,800 companies.
Data from the 2016 census showed that Ottawa-Gatineau had the sixth-highest total median household income among Canadian metropolitan areas at $82,800. After taxes, the median household income was $74,131. The national median during the same period was $61,348, indicating that most households in Ottawa make more on average than others throughout the country.
While the national unemployment rate in 2016 stood at 7.7%, Ottawa's was 7.2%, which again points to the city's strong economy. The high household income average, low employment rate, and career opportunities across many industries have made Ottawa the ideal settling place for many.
Education
Ottawa is a highly-educated city, with more than half of its population graduating from college or university. It has two prominent public universities: Carleton University and The University of Ottawa.
Carleton University is situated between Old Ottawa South and Dow's Lake, while Ottawa University has its campus in Sandy Hill. The city also has two main Catholic universities, Saint Paul University and Dominican University College. The main public colleges in Ottawa are La Cité Collégiale and Algonquin College.
Ottawa has four main school boards, which include:
● Ottawa-Carleton District School Board (English-Language)
● Ottawa Catholic School Board (English-Catholic)
● Conseil des Écoles Catholiques du CentreEst (French-Catholic)
● Conseil des Écoles Publiques de l’Est de L’Ontario (French)
The largest school board is the English-Language, with about 147 schools. The French board has the least, with 37. There are also many private schools in the city which don't belong to any board. With all of these options for schooling, you can ensure you find the right fit for you or your family.
How Rent to Own Could be Beneficial
The Rent-to-own model can come to your rescue if you're unable to buy an Ottawa home the traditional way. To meet the minimum requirements to attain a mortgage, many Canadians save on the down payment or work on their credit scores for years. If you're having trouble getting a mortgage because of either of these two reasons, you have two options.
Option 1: Renting for Now and Wait Until Two Years Later to Purchase the Home
Spend the next two years paying rent while trying to save up for a down payment or improve your credit score. Assume that the price of the Ottawa house you desire is $600,000 at the moment. With an annual appreciation of 10%, it'll cost you $726,000 at the end of the two years when you're finally able to get a mortgage.
Option 2: Rent-to-Own with Requity Homes
With Requity Homes, you'll know what you'll pay for the house from the moment you enter the Rent-to-own home agreement. This means that the price after two years will not be dependent on future market rates.
Requity Homes places a fixed 5% rate on the house; hence, you'll buy the $600,000 home back for 630,000 after two years. This equals to savings of $96,000. Requity Homes also sets up a savings plan alongside the monthly rent payments to make it easier for you to put aside money for the down-payment.
About Requity Homes
The longer you wait to meet mortgage requirements, the higher the house prices go, making it harder for you to buy your dream home.
Requity Homes offers a solution that allows Canadians to start living in their dream house while saving on their down payment and knowing the final price they'll pay to attain ownership. Our aim is that by the end of the two years, our clients will be in a position to get a mortgage to buy their dream house.
