Best Places to Invest in Real Estate in Nova Scotia 2021

Best Places to Invest in Real Estate in Nova Scotia 2021

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Nova Scotia, nestled along the eastern coast of Canada, is the most populous Maritime province. It’s one of the smallest provinces in the country in terms of both population and size. Its land area is partially broken into chunks, thanks to the 3,800 coastal islands that dot its border. The province has a lower per capita GDP than the national average due to an economy that relies on more traditional industries, but there are still some great opportunities here for real estate investors to find some interesting properties. Here is a list of some of the most popular locations in Nova Scotia for you to look into when you’re ready to expand your portfolio.

Table of Contents - Best Places to Invest in Real Estate in Nova Scotia 2021

Halifax, Nova Scotia

The largest city in the province, Halifax is also its capital. It boasts a population of roughly 400,000 people across the entire municipality. The area’s labour force still participates heavily in extractive industries and agriculture, but Halifax is a cultural hotbed that’s also quite cosmopolitan.

The city is one of the biggest economic centers in the entire eastern part of the country and benefits from a concentration of both private employers and government agencies. The economy has seen fairly consistent growth over the last several years, which should help stem some of the interprovincial emigrations that have affected the Atlantic provinces over the past several decades. The city also deep roots in various primary industries, including agriculture, mining, fishing, forestry and fuel extraction (primarily natural gas). The province has a strong farming tradition in particular, with dozens of family farms still in existence as many others have been sold off across the country.

However, more modern industries are beginning to take hold as well, which can serve as a draw to new residents who will be hungry for the housing that real estate investors can help provide. Industries like healthcare and education are major employers, which means highly skilled workers are looking to move to the area.

When those workers arrive, they will find several wonderful cultural offerings. The Art Gallery of Nova Scotia is the largest of its kind in the Atlantic Provinces and houses many priceless works. There are also several festivals for residents to enjoy which reflect the vibrant population of the city. Places like The Khyber serve as multi-use facilities that host several different events.

The city is also beautiful, reflecting in many ways a culture that used to thrive all over the Atlantic Provinces before mass industrialization. Locations like Peggy’s Cove are beautiful rural communities and major tourist attractions, with both Canadian and international visitors drawn to its charm and nostalgia. Other sites like the Halifax Boardwalk take advantage of the splendid coastline and bring invaluable tourist dollars to the city.

When it comes to real estate, Halifax has not been immune to the pressures of the coronavirus pandemic. COVID-19 slowed down real estate across the country, and this city is no different. Inventory is starting to slowly climb back up even as the market has experienced the lowest levels of supply in a decade, but it remains a seller’s market due to a lack of properties for sale. While this might not make it easy for investors to find value, there’s one positive interpretation. This lack of inventory means that people who go to Halifax tend to stay there, so there is a great outlook for finding long-term tenants for rental housing.

As a result of the low inventory, prices are surging. Home costs have been jumping up all year, and some realtors project them to continue increasing by as much as 10% by the end of 2020. The outlook for home prices means that an investor could find the right deal here and feel confident that it will quickly appreciate.

Sydney, Nova Scotia

The community of Sydney represents an interesting look into how Canadian towns and cities have evolved as a result of amalgamation. It was formerly a city until 1995 when it was folded into the regional municipality. It was formerly the capital of the Cape Breton Island colony until that colony merged with Nova Scotia in 1820, so you can feel confident that there’s still a strong independent streak in this community.

The city’s economy used to rely primarily on a massive steel mill that was one of the largest in North America. The decline of the steel and coal industries across the continent has resulted in some economic stagnation that has resulted in emigration, particularly by younger people, but there has been some great news in recent years. A massive harbour dredging project has turned the city into a world-class docking facility, and cruise ships teeming with tourists (and their dollars) has resulted in the city rebounding. Also responsible for this resurgence is Cape Breton University, which boasts over 5,500 students.

These students all need a place to live, so a real estate investor who is interested in short-term rentals will find some opportunities here. Additionally, the market here is intriguing because the region has such a low cost of living compared to many parts of Canada. This is a beautiful area that can draw in retirees, and its stability is one of its most enticing aspects.

Other towns to consider in Nova Scotia

Cape Breton Island is also an area that we recommend exploring. It’s one of the larger population centers in the Atlantic Provinces, and its recreational opportunities are one of its biggest selling points. It’s a popular destination for those who don’t mind commuting as long as it means living in a beautiful area, so the market here is heating up as inventory remains low.

Investing in Nova Scotia real estate means taking on properties in one of the most beautiful parts of the country. The province is still proud of its roots in industries like fishing and agriculture but has an eye towards the 21st century as more service-oriented fields begin to increase their foothold. All of this adds up to a place that should see sustained growth, with a real estate market to match.

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Scott Dillingham

Scott Dillingham

I have been investing and lending to real estate investors for nearly 10 years now. After thousands of successful deals between flips, rent to owns, student properties and commercial assets I have developed a deep knowledge of real estate investments and have a passion of sharing this information with the world! If your looking for a lender who specializes in rental property financing you're going to want to connect with me at team@lendcity.ca.