VP TreePad Property Management
The Atlantic Bubble is considered one of the safest places to be in North America during the COVID-19 Pandemic (National Post, 2020). Nova Scotia is one of four provinces currently included in the Atlantic Bubble. The Atlantic Travel Bubble refers to travel within the four Atlantic Provinces by residents of these provinces. Atlantic Bubble residents do not need to self-isolate for 14 days as long as their travel remains within the bubble (novascotia.ca, 2020).
Nova Scotia isn’t only safe, with its low case numbers of COVID-19, it is also attractive to many out of province investors for its lower home prices and higher rental prices than many other provinces.
The average home price in Nova Scotia in September of 2020 was $305,599 (CREA, 2020) compared to the average home price in Ontario in September of 2020 of $741,395 (CREA, 2020). Despite the lower purchase price of a home in Nova Scotia, the average rental price for a two-bedroom apartment remains $1200 before utilities in Halifax Regional Municipality (HRM) (CMHC, 2019). Currently, Nova Scotia does not have a government regulated rent control program, this means that the setting of rental prices is ultimately the decision of the landlord.
HRM has a less than 1% vacancy rate (0.9% in 2019) (CMHC, 2019) for two-bedroom apartments. Rental units are in high demand as HRM and Nova Scotia as a whole faces an increasing population, with a lack of available rental properties on the market. Renters in Nova Scotia are often faced with less-than-ideal options as there simply is not enough housing available.
Investors looking to purchase rental properties in Nova Scotia are looking at a lower out-of-pocket upfront cost for a property; -$303,612 less than the average home price in Canada overall (CREA, 2020). New or expanding landlords are also faced with an extremely low vacancy rate in Nova Scotia, meaning that one of the largest concerns of new landlords – carrying vacant units, is almost non-existent in this province.
Now is a great time to invest in Nova Scotia, while people from other parts of Canada turn their eye toward the Atlantic Bubble as a safe and affordable place to call home. The province needs more investors to purchase income properties here in order to add to the availability of rental units that currently are lacking. Investing here means a lower entry cost to the market and a stable stream of tenants looking for a rental even in a market where rental prices are some of the highest we’ve seen in this province.
TreePad Property Management is a full-service property management company, we manage your property as if it is our own. TreePad has experience in working with out of provinces investors who own property in Nova Scotia. TreePad is a sister company of Air Realty, who has a team of licensed agents that are ready to help you find your perfect investment property. Contact us today to begin the process of investing in this lucrative market!