Buying a home in the suburbs can save Canadian homebuyers thousands of dollars according to a new analysis.
Comparison website Finder has compared the price of a square metre of city centre homes with those in the suburbs – and found an average 33% difference.
Of course, there is a large variation across individual markets with the greatest out-of-town saving in Nova Scotia’s capital Halifax where a suburban home costs 51% less than a city centre one comparison - $2,511 less per square metre.
The lowest difference is in London, Ontario, but even there the gap is 12% or $261 per square metre.
“You can save a considerable amount by buying property outside of the city centre. Those in Halifax, Ottawa, and Montreal will see the biggest savings by buying in the suburbs, while folk in London, Ontario will likely pay more for the privilege,” said Finder’s global editor-in-chief, Angus Kidman.
He added that choosing to live outside the city core is a lifestyle choice and there is a compromise to be weighed between lower costs in the suburbs and convenience of city centre living.
Investors may be better staying central
Kidman also noted that for real estate investors the returns factor will be key.
“Those looking to make capital gains from their purchase will also need to consider whether something more central will appreciate faster than a property outside of the city centre,” he said.
When compared to other major global cities, Toronto actually has the second lowest price difference between the city and the suburbs.
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