Top tax-friendly towns: Saint John

To many, Saint John is a coastal city located along the Bay of Fundy, rich in history and tradition. But to the more business-minded set, the New Brunswick town is a thriving real estate market, with low prices and a varied residential inventory.

With an average price well under $200,000 and attractive property tax rates, Saint John is proving all the more enticing for investors.

According to data from the provincial government, residents are charged approximately $1.79 per $100 of their property’s value, which makes for a property tax rate of 0.01785 per cent [in June 2014].

Tax factors

“New development and neighbouring properties have a big effect on property taxes,” says Barry McDonald, broker for EXIT Realty Specialists. “The government is always looking to increase its revenue, and that is also a factor.”

The property tax increased slightly in 2013, and as MacDonald explains, “it was due to the City of Saint John wanting to increase its revenue source.”

Market performance

Saint John’s market is attractively priced, with the Canadian Real Estate Association reporting an average price of $165,622 for April 2015.

In terms of the best buy in the market, MacDonald advises investors to consider multi-family properties, specifically those with four or more rental units.

“Most people who are investing in Saint John are investing in multi-family properties,” he says. “This is because they want to earn an income.”

Unfurnished units tend to rent out for about $600 a month, says MacDonald. This amount increases to $800 if the landlord provides the tenant with utilities.

Looking ahead

Stability is one of many elements that buyers consider before parking their money somewhere, and Saint John offers that for those looking to invest. The market and its tax rates are expected to remain relatively stable, and that trend could continue going forward.

“I expect [the tax rates] to stay the same in the immediate future, just because our economy is not performing well at the moment,” adds MacDonald.

“Any increase, in my opinion, would not be a benefit to attract new people here.”

The real estate market may follow the same trend as the tax rates, but a slight increase to the average prices could occur. If this does happen, it likely won’t serve as a deterrent to the interest of investors.

Population: 70,063 (2011)
Property tax rate: 0.01785%
Average price: $165,622
Average rent: $800 (four-plex)
Vacancy rate: 12%

Find out more about the Saint John market using CREW's free online investment hotspot tool

This article was originally published in the June 2014 issue of Canadian Real Estate Wealth magazine

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

  • by NB resident 2016-04-18 8:47:34 PM

    This article doesn't mention the non-owner occupied tax which essentially doubles the amount.

  • by Non Resident 2017-01-03 2:48:51 PM

    This doesn't seem to be a very well researched article. With the high vacancy rates and the nonresident taxes you will have to search to find the right buildings. Most for sale have not been maintained. That coupled with the low rents because of vacancy, cost of property management and the incredibly HIGH taxes for out of province owners make this only attractive as stated for NB residents.

  • by Left NB in 1970 2017-01-27 9:36:24 PM

    I completely agree with "Non Resident". I wanted to return to New Brunswick for my retirement. I looked into buying a house last year, before returning there to enjoy my retirement, thinking that it would be less expensive than Ontario. The actual house might be less expensive, but to my surprise, unless one has lived in N.B. for at least 6 months, residential taxes are double the already very high mil rates, if a person buys a house before that time. So, how is a retired person supposed to prepare to move their furniture and belongings to a new house, when doing so would mean $6000.00 in residential taxes for the first year, when they would be $3000.00 for a New Brunswicker, in a city like Moncton, for example. Does that encourage people to return to their home province? It is short sighted and in the long run reduces tax revenue for the province.

    A nephew of mine has a two story, 6 year old house in a nice neighbourhood in Moncton. He pays about $3600.00 per year in taxes on that house. That is a higher tax rate than Toronto, Ontario ! Not the best way of welcoming back New Brunswickers. The NB gov't bureaucracy is actually harming their own provinces financial welfare with policies such as these.

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Are you worried about Canada's capital gains reporting?