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Rent to Own Homes in Red Deer, Alberta
Red Deer is the third largest city in Alberta, behind Calgary and Edmonton. Red Deer is becoming a popular destination for individuals and families relocating to Canada. Known for its beautiful landscapes, abundance of urban amenities, and welcoming community, Red Deer offers an attractive option for those seeking a place to call home.
Browse homes in Alberta and view the latest rent-to-own properties in Red Deer.
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Real Estate Trends in Red Deer, Alberta
Unlike other major Alberta cities, Red Deer has more affordable housing prices while enjoying strong growth in demand and sales year-over-year.
In April 2024, the average price of a home in Red Deer reached an all-time high of $378,775. Detached homes averaged $429,256 while townhouse prices averaged $282,173.
Compare the housing market in Red Deer to that of Calgary and Edmonton. In April 2024, the average home prices in Calgary was $608,415. The average Edmonton home price in the same month was $431,387.
Economy
Known for being one of Canada's most entrepreneurial cities, Red Deer is competitive with all large cities in Western Canada, particularly in industries such as agriculture, manufacturing, and energy.
Red Deer plays a crucial role in Alberta's economic landscape. The city's proximity to major transportation routes and natural resources has assisted its growth as a key player in many sectors.
Even after the challenges posed by the COVID-19 pandemic, Red Deer has demonstrated resilience, maintaining a comparatively low unemployment rate within the province. Residents of Red Deer also have access to a wide range of job options and opportunities thanks to its close proximity to both Edmonton and Calgary.
Education
Alberta is known for having one of the best education systems in the world. Red Deer is primarily served by two publicly funded school boards: the Red Deer Public School District and the Red Deer Catholic Regional Division. These boards oversee the education of students from kindergarten to grade 12, ensuring a comprehensive and inclusive learning environment for all residents of Red Deer.
A top-5 school in Canada, the University of Alberta (U of A) boasts the second-largest research library system in the country and generates revenue of more than a billion dollars per annum. More than 40,000 students attend U of A from over 150 different countries.
Additionally, Red Deer is home to Red Deer College, a prominent institution offering a diverse range of programs and opportunities for higher education.
How to Buy a Home in Red Deer?
When it comes to buying a home in Red Deer, there are two primary options available to prospective homeowners: traditional mortgages and rent-to-own programs.
The common path to purchasing a home is through a traditional mortgage, where the buyer secures a loan from a financial institution such as a bank to purchase the property. However, this route requires a significant down payment, typically 20% of the home's value, and a strong credit score to qualify for favourable interest rates.
An alternative to the traditional mortgage is the rent-to-own model, which has been gaining popularity in recent years. With rent-to-own, also known as lease-to-own, you can move into your dream home with no down payment, while simultaneously saving up for the future purchase of the home. This approach is especially attractive for individuals who may not have the immediate financial means or a credit score required to secure a traditional mortgage.
What is Rent to Own in Red Deer?
Rent to own is a program that helps you buy a home, even if you're not ready for a traditional mortgage. The Requity Homes option of rent to buy homes allows you to select your dream home, rent it for 2-3 years, and then purchase it at a predetermined price.
How Does Rent to Own Work in Red Deer?
- Estimate your budget: Use Requity Homes’ rent-to-own calculator to estimate how much you can afford through the rent to own program.
- Get pre-qualified: Apply for rent-to-own homes online to find out your eligibility and budget. It's free and won't impact your credit score.
- Get full approval: Verify your application by submitting documents and get fully approved with a personalized budget.
- Find your dream home: Choose the home you'd like Requity Homes to purchase for you. View rent-to-own listings in Canada.
- Requity Homes purchases the home: We purchase the home and cover closing costs, including land transfer tax and legal fees.
- Move in and save: Rent your dream home while a portion of your monthly payments goes towards your future down payment.
- Purchase your home: When you're mortgage-ready (typically after 2-3 years), buy the home from Requity Homes at the predetermined price.
To learn more, read our article on how does rent to own work in Canada.
The Benefits of Rent to Own a Home in Red Deer
With housing prices increasing every year, it makes it very difficult to save up for a down payment while renting. Wouldn’t it be nice to find a home you love at a price you can afford and lock in the value until you are ready to take on a mortgage?
Let’s say that you have found the perfect home in Red Deer for $380,000.
You have two options:
Rent for Two Years Then Purchase the Home
Using a base formula of 10% appreciation annually, your $380,000 Red Deer home would be valued at roughly $460,000 after two years.
Rent to Own with Requity Homes
Requity Homes offers a low 5% price increase per year, much lower than the average growth rate. Therefore, when you rent to own a home in Red Deer with Requity Homes, you can lock in the price of your new home and know exactly what it will be valued at in two years.
For example, with Requity Homes a growth rate of 5% means that you can buy your new home in two years for $419,000 instead of $460,000, a savings of $41,000.
The Requity Homes rent to own homes program is made to help get you and your family into your dream home in Red Deer while saving you a great deal of money in the process.
Achieve homeownership sooner than you could have ever imagined when you rent to own in Red Deer with Requity Homes.
