Halifax Real Estate Market Report Multi Unit Buildings(4 units or less) based on MLS® data.
Today I figured I would look at something a little different. I have many clients who have and are actively looking for multi unit buildings as another way to enhance cash flow. There are things you need to look for when thinking of purchasing a multi unit rental. Firstly you have to make sure that the building generates income, a lot of multi units on the market today just won’t carry themselves and they are better served as an owner occupied so someone will help with the mortgage. I always advise my clients to look at the net income(rent minus heating, maintenance, and other expenses associated with the property). A general rule of thumb is if the net income is 10% of the purchase price it is definitely a building worth taking a closer look at. Secondly, what a lot of my clients look for and I recommend is electric heat and separate electrical meters. This way the heating and electricity of the units can be passed off onto the tenant. Obviously there are many other factors to look at but these are the main ones to keep in mind.
Lets take a look at the numbers over the years.
From Aug 20,2006 – Aug 20,2008 for area 1-40 which encompass all of HRM for multi unit buildings, 4 units or less.
number of sales – 330
average sale price – $274,920
number of days on market – 72 days
From Aug 20,2004 – Aug 20,2006 for area 1-40 which encompass all of HRM for multi unit buildings, 4 units or less.
number of sales – 282
average sale price – $247,671
number of days on market - 66 days
Looking at these numbers we can see that the same trend continues throughout the Halifax Real Estate Market. Average price continues to rise, an 11% increase. Number of sales are up 17% from the same period 2 years ago which goes against the trend in residential unit sales. Average days on market are up slightly.
What does all this mean? Well if you are in the market for rental units it may now be the best time as I don’t see the market going down anytime soon. Also the rental vacancy rate in Halifax is very low so there are a lot of prospective tenants out there. Rents continue to rise. If you would like more info on rental units or would like a market analysis done specific to your area, let me know.
Andrew Perkins
Your Halifax Real Estate Expert
