Renting vs Buying in North Delta, BC – Which Is Better?

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Renting vs Buying in North Delta, BC – Which Is Better?

Choosing to rent or buy a home isn’t an easy decision to make, even in the best of times. Answering this question also requires a bit of understanding about the housing market in a particular area, and deciding whether or not the risks outweigh the advantages.

If you are considering buying or renting a house in North Delta, we have you covered. In this in-depth guide, we’ll break down everything you need to know about the cost of living in North Delta, mortgage rates, pros and cons, and a few reviews of homes on the market. Let’s start by breaking down the cost of living in the North Delta.

The Cost of Living in North Delta

Best realtor in Delta Picture Source: indoindians.com

With a population of just over 102,000, the average household in North Delta earns $92,300. The cost of living is 4% higher than the national average and Delta is considered the 9th most expensive city in Greater Vancouver. It’s also the fifth fastest-growing city as well. 

Transportation and healthcare are considered to be very affordable in Delta. However, food and housing are significantly more expensive than surrounding areas in British Columbia. 

Mortgage rates in North Delta vary significantly. We’ll offer an example: Since the average house cost in North Delta is $1,200,000, let’s say that you want to finance an owner-occupied house at that price. The down payment for this home would be 20%, or $240,000 and you want to choose a fixed rate. Your mortgage term is 10 years. Mortgage rates in this area for such a scenario will vary from 2.79% to 4.44%

[Sources: https://www.salaryexpert.com/cost-of-living/canada/british-columbia/delta, https://townfolio.co/bc/delta/demographics, https://www.zolo.ca/delta-real-estate/trends]

A Review of Homes Listed on the Market in North Delta

To get a better idea of what housing looks like in North Delta, let’s review a few homes that are listed on the market currently.

Best realtor in Delta

5 Bedroom / 2 Bathroom Single Family Home

This lovely home in Delta is currently listed for $1,249,000 and spans 2,672 square feet. This home was recently renovated with an open concept kitchen. The title for this home is freehold and the annual property taxes are about $2,867.55. Built-in 1969, this home sits on about 6,351 square feet of land. As a Central Ladner home, this property is close to Maple Crescent Park, a number of schools, and plenty of shops and restaurants.

4 Bedroom / 2 Bathroom Single Family Home

This contemporary home in Delta is currently listed for $1,149,000 and spans 2,248 square feet. This home also faces farmland in southern Ladner, offering up very pleasant views and a tranquil atmosphere. The title for this home is freehold and the annual property taxes are about $3,762.34. Built-in 1969, this home sits on about 6,243 square feet of land. This home is slightly more isolated than the previous example, making it ideal for homeowners who want some quiet and privacy.

3 Bedroom / 3 bathroom Condo

This modern condo in Delta is currently listed for $849,900 and spans 1,500 square feet. This condo also features a large flex room with a walkout patio. The title for this home is strata and the annual property taxes are about $3,288.66. Built-in 2017, this condo features a large patio and limited parking, as well as walking access to Ladner Village, parks, amenities, etc.

Is North Delta a Good Place to Live?

This British Columbian city is an excellent place to live, though the main downside of the city is its priciness. Located south of the city of Richmond, Delta is bordered by the Fraser River and the United States to the south. Surrey sits at the east of Delta.

The weather in North Delta is quite good, though it is known for raining much of the year and having very cold winters. However, North Delta is considered a very dry city compared to other areas of British Columbia.

North Delta is a very pleasant and safe place to live, but it is also a very expensive place to live in. Delta is known for its high real estate prices, which is common for many areas in the lower mainland. Property taxes are reasonable on average. Just as well, many people are buying homes in this area right now. In February of 2020, only about 37 homes were purchased in the area. This year, that number rose to 62.

In a local news report for Surrey Now-Leader, James Smith noted that Delta had ranked the 59th best place in Canada to live in 2019, making it the highest ranking in the lower mainland area.

“The city ranked higher than all other Lower Mainland communities with the exception of West Vancouver, which came in 42nd,” Smith noted, “Delta ranked 41st among places in Canada to retire, 5th in the Lower Mainland behind the City of North Vancouver (8), Vancouver (11), West Vancouver (23) and New Westminster (40). Delta also placed 12th in Canada (5th in B.C.) for new Canadians. The only Lower Mainland community to score higher was West Vancouver (5).”

Just as well, the economy in North Delta is excellent. In a guide to moving to Canada by PrepareForCanada.com, it was noted that North Delta is one of the biggest farming areas in Vancouver.

“Because of its fertile soil Delta is one of the most important agricultural areas in Metro Vancouver,” the guide reads, “The regulations of the Agricultural Land Reserve prevent Delta’s land from conversion to suburban housing. One of Delta’s communities, Ladner, is traditionally a farming and fishing village. Nevertheless, North Delta, the community located in the north-east of Delta, is a suburban area with more than 51,623 residents. It is largely a middle-class bedroom community, which means that most of the workforce has their homes in Delta but commutes daily to work in the nearby cities and industrial areas.”

To put it simply, North Delta is a wonderful place to live with limited but quality housing options, a stable agricultural economy, and a high standard of living.

Renting vs Buying in North Delta, BC – Which Is Better?

Top north delta realtor

Picture Source: realtor.com

There are a number of advantages and disadvantages to buying or renting a home in North Delta.

Pros of Renting in North Delta, BC

  • You’ll have more mobility and freedom to move around.
  • There will be no need to save up a fund or worry about maintenance issues, as your landlord will be taking care of such issues. This is particularly useful in North Delta and British Columbia in general, as the long and cold winters with lots of snow can result in higher maintenance costs.
  • Purchasing a home in Delta can be quite expensive, as the city’s housing costs are well above the provincial average. Renting could possibly save you a lot of money.
  • You won’t have to deal with sometimes expensive closing costs.
  • You won’t experience fluctuations in monthly housing expenses, as this is the responsibility of the landlord.
  • You can move freely from lease end to lease end in order to test out different living spaces. North Delta is a very diverse city housing-wise, so this could be beneficial.

Cons of Renting in North Delta, BC

  • Because you do not own the home, you won’t be able to build any equity.
  • There will likely be a few options available for customizing your living space. For example, many landlords will not permit tenants to paint their spaces or add on any type of feature. Whatever you decide to rent is essentially the final sell.
  • Rental costs can go up over time, especially when it comes to renewing your lease.
  • There’s always the chance that your landlord wants to stop renting or sell their property, which can be quite a risk if you are looking for a long-term home.

Pros of Buying in North Delta, BC

  • You’ll be able to build equity over time. Equity is essentially the difference between the amount of money you owe on your mortgage and what your home is worth. The benchmark price of houses in North Delta has steadily risen quite significantly, so the house you buy could very well build substantial equity. However, it’s worth noting that the housing market is always a bit unpredictable.
  • As with equity, your home value could increase over time in your purchase the property.
  • By purchasing a home, you could benefit from a number of Canadian tax credits. If you’re a first-time homeowner, you could take advantage of the first-time home buyers’ tax credit. This tax credit is worth $5,000 and could easily add $750 to your tax refund. Just as well, you could also use the Goods and Services Tax or Harmonized Sales Tax rebate on a home that was newly built. If you have a disability and purchase a home, there are a few other tax benefits you could take advantage of as well.
  • You have (almost) complete control over customizing your living space, meaning you can paint your home’s interior and exterior to your heart’s content and add additional structures to the home if needed. However, it’s important to know whether the area you move into in North Delta has a Homeowner’s Association. Your HOA may prohibit certain changes to your home’s outward appearance.
  • You’ll be able to enjoy the sense of home stability and permanence that you simply can’t get with a rental home.

Cons of Buying in North Delta, BC

  • Closing costs can be quite expensive. These include things like property transfer tax, goods and services tax, property tax, appraisal fees, survey fees, mortgage application fees, mortgage default insurance, legal fees, and more. On top of these, you’ll also have to account for your moving expenses and new home inspection fees. With renting, you really only need to consider your security deposit and moving costs.
  • North Delta, in particular, has very expensive housing that is higher than average.
  • As the owner of the home, you will be responsible for maintaining and repairing things around the property. Depending on the quality or age of the home you have purchased, this can be extremely expensive and require a lot of time and effort. If you do not buy a newer or high-quality well-built North Delta home, you may have to deal with frozen or burst pipes and other weather-related problems in the winter.
  • You won’t have as much flexibility if you decide that North Delta isn’t for you. Moving would be much more difficult and expensive.
  • There is always the chance that your home value could decrease.

Conclusion: Should You Rent or Buy a Home in North Delta, BC?

When it comes down to it, North Delta is quite an expensive city to live in when it comes to housing. But if you can afford it, purchasing a home could result in substantial equity. Renting a home, on the other hand, could save you a lot of money on real estate costs and serve as an excellent alternative if you simply don’t have about a million dollars on hand to spend.

When deciding whether you should buy or rent a home in North Delta, consider a few additional things. To start, decide exactly how long you want to live in the North Delta area. Many families or individuals who decide to move to the area plan to stay for a very long time, at least five years. If that sounds like you, buying a home could be a better idea. If you don’t plan to be in North Delta long, we’d recommend renting a space.

How was our guide to buying or renting a home in North Delta, British Columbia? Tell us what your experience has been like in the comments below.


Picture Source: John smith

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