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Investing in Canadian real estate, as with investing in real estate anywhere, requires a significant amount of planning, research and analysis. One of the first steps that you’re going to want to take is tracking down which area you’d like to invest in. You will eventually narrow this down by city, neighbourhood and even street, but first of all, you’re going to need to pick a province.
The provinces of Canada of course differ in many different ways, but you’ve probably never thought of these differences in the context of your investment options. You want to make sure that you’ve done the appropriate legwork to make an informed and educated decision, so we are going to take you on a quick overview of one of Canada’s smallest provinces – New Brunswick – and give you some insight into what makes investing in New Brunswick real estate here so potentially attractive.
One of the Atlantic provinces that stands along Canada’s eastern seaboard, New Brunswick is a small but proud area. It is one of the smallest of all of the Canadian provinces and is unique among the Maritime Provinces in that its landscape is heavily forested as opposed to the agriculture-heavy lands that mark most of its neighbours.
Originally founded as one of the first European settled areas due to its proximity to the continent, New Brunswick quickly became a critical part of the area. It was one of the first four provinces to form the Canadian Confederation, so national pride and the roots of the country run deep here. Investing in New Brunswick can be a great opportunity for the right investor.
But first, if you would like to learn how to finance New Brunswick real estate investments, click the link below for a free strategy call with us today.
Key demographics of New Brunswick
One interesting thing to note about New Brunswick is that it’s Canada’s only bilingual province, with both French and English standing as the official languages. Many people might assume that Quebec has two official languages as well, but this is not the case.
Quebec has more French speakers to be certain, but New Brunswick stands out as an even split between French and English speakers. Around 9 percent of New Brunswick residents only speak French, while just over a third can fluently speak both. For this reason, if you’re considering investing in New Brunswick it could prove to be quite helpful if you’re bilingual or can enlist the help of someone who can, as this can drastically increase the pool of potential renters, business partners and so forth.
Most residents of New Brunswick trace their ancestry through European roots, namely France, England, Ireland, Scotland, Germany and others. There is also a significant population of Aboriginal peoples here who bring ties to Canada’s earliest human history. Additionally, a significant immigrant population exists here, with most coming from the United States or Western Europe.
Furthermore, even though the province is one of the country’s smallest and Canada’s smaller provinces have typically borne the brunt of economic changes in recent decades, interprovincial emigration is fairly minimal here. This is due to several reasons, but primarily to the fact that its francophone population has deep roots and does not leave all that often. This suggests that investing in New Brunswick could be an attractive option if you’re interested in putting down real roots in a community and finding true value in this type of setting.
New Brunswick’s economy
New Brunswick’s economic picture is a big part of deciding whether or not to invest in New Brunswick real estate, and its dynamism and diversity in this area can be attractive. Many New Brunswickers work in agriculture, with about 13,000 working in food production. Potatoes are far and away from the biggest crop, with apples, cranberries, and maple syrup behind spuds (as well as wild blueberries). Since the province is so heavily forested, the paper and pulp industry can also thrive here, while mining is also starting to become more and more of a factor after not being a traditional pillar of the economy.
With all that said, most New Brunswickers are involved in the service part of the economy. Social assistance, trades, and health care all count themselves among the biggest employers of residents, and tourism brings in hundreds of millions of dollars annually as non-residents are drawn by the natural beauty and cultural sights of the province.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Income statistics of New Brunswick
If you’re considering investing in New Brunswick, one thing that you should keep in mind is that the province has typically had a struggling economy over the past years. Although statistics typically change from year to year, it has most recently had the lowest per capita income of any of the Canadian provinces.
This means that New Brunswick real estate investors who have their eyes on luxury properties, especially those that they wish to then rent out, should probably look elsewhere. New Brunswick’s renter profile is far more likely to be someone looking for an affordable housing unit that they can still afford even if they fall on hard times.
So, when you are looking at expensive real estate listings New Brunswick is probably not the place to buy.
New Brunswick Real Estate Snapshot
As with virtually every other real estate market in the world, New Brunswick took a hit during the COVID-19 pandemic. As a result, the New Brunswick real estate market slowed down, but did not come to a standstilll. Since life never truly comes to a halt, there are still real estate transactions happening across the province and the pandemic proved that, so investing in New Brunswick could still be a very real possibility even during the most uncertain of times.
Let’s take a quick look at some numbers that can start to tell the story of New Brunswick real estate. On average, at the time of writing this article, homes in the New Brunswick real estate market are selling for about $299,000 according to data from the New Brunswick Real Estate Association.
This demonstrates that even though the pandemic did massively slow the market down, the truth is that real estate still primarily trends upwards, making it a great investment for almost any circumstance.
Best Places to Buy New Brunswick Real Estate
Saint John, New Brunswick
This seaport town is the oldest incorporated city in all of Canada and was the largest one in the province until it was overtaken by Moncton in 2016. It’s a remarkably busy port for being a city of only about 68,000 and a metro region of 126,000 – the third-busiest port in Canada when measured by tonnage. This speaks to the city’s legacy and continuing status as a blue-collar town driven largely by heavy industry.
The largest dry dock in Canada and the biggest oil refinery in the country both call New Brunswick home, and the Irving companies continue to ensure that primary sector industries (and adjacent industries) like paper mills, pulp mills, shipbuilding, forestry and oil maintain a strong presence here.
The real estate outlook in Saint John is promising, even though it was temporarily slowed down by the threat of COVID-19. For example, almost 14 percent more units were sold in July 2020 than in July 2019, which represents a record for that month and, in fact, represented the most for any month in Saint John’s history. Even with the coronavirus pandemic, the first seven months of 2020 saw an uptick of around 3 percent in total when compared to that period from 2019. Ever since, the market has continued to climb.
When you are looking at an investment market, it can help to look at times like today to see how things are doing, but if you want to make a long term plan using New Brunswick real estate, the truth is you need to learn to assess markets based on the hard times. That way you know your money is safe.
Moncton, New Brunswick
The largest city in New Brunswick has a diversified economy that is frequently studied by national observers and exceeds expectations. It frequently has a lower unemployment rate than many surrounding and comparable cities, so it represents a city where real estate investing could be attractive thanks to this stability.
Moncton’s economy is traditionally anchored on its status as a hub of transportation, retail and distribution. It’s centrally located within the Maritime Provinces, which gives it a great opportunity to draw in tens of thousands of people and also function as this centerpiece of distribution. The city is also the home of many regional and national companies as a result of this catchment and is a hotbed for federal service employment.
Fredericton, New Brunswick
New Brunswick’s capital city is home to two universities and several other rich cultural institutions. It’s historically been a hotbed of fine arts and is one of the most educated populations of any city in Canada. The province’s government is a major employer, and IT infrastructure ensures that the city is viewed as a forward-looking place thanks to the installation of free municipal WIFI.
Summary of investing in New Brunswick Real Estate
The New Brunswick real estate market has proven itself to be resilient in these past few years, not only continuing to thrive and succeed throughout the pandemic, but also managing to rebound and genuinely grow in the years that followed.
This is especially impressive because this is not a province known for expensive real estate prices and luxury rentals. It is home to primarily hard working, average Canadians who want and need access to the affordable rentals and real estate market that the province provides.
However, that is not to say that you should not invest in New Brunswick real estate. Moreso that when you do, you need to structure your investments to cater to the community and meet their needs. After all, rental real estate is not about what you want to own, its about what the community wants to rent.
New Brunswick Real Estate Professionals
We have searched high and low for real estate investing professionals in New Brunswick. Below, you can find professionals we have researched and can confirm they specialize in working with New Brunswick Real Estate Investors.
To ensure the maximum success in New Brunswick real estate, or any city, you should always use professionals who understand and work with investors, your income depends on it.
This list may not fully list all the professionals in the area, but the ones we have personally investigated and that we would refer our clients to.
If you’re a New Brunswick real estate professional and would like us to consider adding you to the list, please contact us.
Alternatively, if you would like to discuss financing options for New Brunswick real estate investing, click the link below for a free strategy call with our team.