Montreal Investment Property Comparison

Montreal Investment Property Comparison

Montreal investment property comparison, determining which is the best type of property for you. Buying investment property is very personalized as each investor has their unique needs, budget and comfort level with renovations and maintenance. We’ll have a look at the four different types of investment property, revenue properties (duplexes triplex etc), condos, townhouses and single family homes. Multifamily is a specialized asset class that will be covered in it’s own blog post.

Let’s look at the Pros & Cons of each type of property:

Single Family Homes

Pros

Highest potential for appreciation,

Private form of ownership with freedom to do what you want with your property,

Larger green space such as a backyard and / or garden,

Spaciousness with multi bedrooms,

Great option for families and thus potential to receive high rent yields.

Cons

Expensive asset class to get into, especially in some of the more desirable neighborhoods

Likely to need some renovations which mean extra time and cost

Extensive maintenance and upkeep required

Repairs such a new roof or furnace system can be costly.

*  As an investor, if you live in Quebec and are not averse to the high maintenance demands of a home, especially with our Montreal winters, then this might be a great investment. If you’re a non resident, this type of investment would require some property management. My recommendations would be to buy in a thriving and high demand neighborhood, close to transportation and some great school options.

Townhouses

Pros

More affordable than a single family home

Although it may not be as large as a detached home, they are still quite a bit more spacious than a traditonal condo apartment

Great option for families and will yield higher rent values than traditional condos.

Less maintenance than a detached house, some townhouses are classified as condos, making some of the common areas a shareable expense.

Private backyard area

Cons

More maintenance than a traditional apartment condo,

Higher repair costs than traditional condos

*  Super option to consider with the same recommendations as listed above in the single family homes category. If you live in Quebec and are not averse to maintenance especially with our Montreal winters, then this could be a great investment. If you’re a non resident, this type of investment would require some property management. Buy in a thriving and high demand neighborhood, close to transportation and great schools.

Revenue Property

Pros

Depending on the cap rate and rental yields, ideally your tenants can be paying off the property and you cash flow positive

If you’re living in your investment, the rent from your tenant can be substantially subsidizing your mortgage payment.

Good opportunity for appreciating over time, especially while the asset is ideally paying for itself

Cons

As a landlord, you’re responsible for the maintenance and repairs

Can require renovations to actualize it’s revenue potential

*   Plexes are an extremely popular investment here in Montreal. They’re in high demand and Montreal is strong in this type of property option. If you’re looking to live in the property, the advantage is having your tenant (s) pay off  a portion of your mortgage. Again, buy in an desirable, in demand neighborhood like the Mcgill Ghetto, Le Plateau, Rosemont Le Petit Patrie, etc. These neighborhoods also have micro sections with some areas performing better…much will depend on your budget. If you’re not comfortable with renovations and maintenance, this may not be the right type of investment for you.

Condos

Pros

Most affordable and accessible option. It’s possible to purchase a nice one bedroom condo for 350k, depending on the area

Least amount of maintenance, as the building and it’s common areas are most often professionally managed and overseen by a board of co-owners, depending on the size of the building.

Easy to rent, (ensure that the building rules allow and match your rental needs)

Makes a great pied a terre.

Profitable if held for a minimum of at least 5 years and more

Cons

Can have high condo fees

Less living space and storage

Indoor parking, if available, is not automatically included and often has an extra cost.

*  Location, Location, Location! Buy in a fantastic neighborhood where there is a more limited supply. Thankfully, there are many great quartiers to choose from, some up and coming. One of my personal favorites is Old Montreal also known as Vieux Montréal or the Old Port. Bustling areas like Downtown, Old Montreal or Le Plateau are highly walkable and filled with wonderful shops, restaurants, bakeries and fun things to do. Very high condo fees will reduce your return your investment and resale opportunities. If you are a non resident investor or someone who travels alot, it may be prudent to invest in a larger condo building where there is strong and excellent management in place.

 

 

 

 

Canada’s Best Value Real Estate Markets

Canada’s Best Value Real Estate Markets

Story Via CTV – Realtor Monte Burris appears on CTV’s Your Morning, Monday, July 10, 2017.

Canada’s best value real estate markets according to Toronto broker Monte Burris, owner of Trust Realty Group, as he told CTV, are not blanketed across Canada, but are to be found in distinct towns and cities.  These are his top choices, based on average sale prices across all housing types in the first quarter of 2017:

1. VICTORIA, B.C. – $585,745 – Fantastic climate, waterfront, huge appreciation potential but much less expensive than Vancouver

2. VERNON, B.C. – $466,678 – All the benefits of the Okanagan but more than $150,000 cheaper than Kelowna, double digit growth rates, great year-round recreation

3. REGINA – $313,903 – Turnaround is underway, growing population, a young city with great energy and affordable lifestyle

4. MONTREAL – $349,549 – A city that is now in a new renaissance when it comes to real estate, great culture, food, nightlife, architecture, double-digit growth

5. THUNDER BAY, Ont.– $219,249 – A great retirement community offering the best bang for a buck, northern Ontario lifestyle and recreation, very affordable when compared to average income

6. GUELPH, Ont. – $441,880 – High-water mark of growth at 26 per cent year over year, Toronto at its doorstep but without Toronto pricing

7. BARRIE, Ont. – $469,700 – Small and affordable community with more northern lifestyle, close to amenities of Toronto, about 10 per cent growth year over year

8. MONCTON, N.B. – $168,300 – Active business community with a lot of culture, extremely affordable compared to incomes

9. CHARLOTTETOWN, P.E.I. – $178,489 – A hidden treasure and so inexpensive, great beauty, ocean living

As far as Montreal Real Estate goes, the numbers don’t lie. Here are some articles about why Montreal is currently one of Canada’s best value real estate markets.

Interest-rate increase unlikely to slow Montreal's real-estate market: QFREB

The 0.25 per cent increase in the Bank of Canada’s key interest rate, announced on Wednesday, is unlikely to slow gains in Montreal’s real-estate market, according to Paul Cardinal, the manager of Market Analysis for the Quebec Federation of Real Estate Boards.

Housing prices continue to rise in Montreal: Royal LePage

Housing prices in Montreal were up across the board during the second quarter of 2017 compared with the year-earlier period, according to a report released by real-estate company Royal LePage on Thursday. However, there were declines in some areas from the previous three-month period.

Featured photo © By Bonnie Meisels, all rights reserved

Discover The Best Montreal Neighborhoods To Invest

 Discover The Best Montreal Neighborhoods To Invest

 

The best Montreal neigborhoods to invest in are sprinkled across the city. There are several things to take into consideration before investing.  After taking the decision to to buy a Montreal property, it’s most important to review your primary investment objective.  Is your investment strategy a long term buy and hold over the next 20 years, or is it short term where you’ll buy, hold and sell, and look for high rental yields. Ideally, it’s smart to purchase a solid property with a great location that will only appreciate in value over the years. If the potental rental yield is high, then you end up with the best of both worlds.

A Nice Selection Of Neighborhoods To Invest In!

 

Thankfully we have a nice selection of Montreal neighborhoods to choose from. The neighborhoods I find are strong are Old Montreal, Le Plateau Mont Royal, including Mile End. Parts of downtown Montreal. Rosemont Le Petit Patrie, St Henri, Pointe Saint Charles, Griffintown. Each quartier has it’s own style, demographic, price point and clientelle.

In general, rents for a one bedroom in these neighborhoods run the gamut from between $1400 – $1800, two bedrooms, from $1600 – $2400, of course this depends on the size, amenities, level of luxury, parking, furnished or not, and proximity to local transportation. We also can’t forget that the golden three rules of real estate still ring true;

1)Location

2)Location

3)Remember rule number one and two!

Information Source Via GlobalPropertyGuide.com

Rental incomes in Canada Montreal yields 5.4% to 7%, Toronto yields from 4.4% to 5%

 

“If you are looking for rental returns, Montreal is the city that you want.”

 

Last Updated: Jan. 27, 2017
TORONTO PRICE/SQ.M. (US$) YIELD (p.a.) PRICE/SQ.FT. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Casa Loma condos 7,073 26.81 4.55% 657 2.49
Forest Hill condos 5,774 29.44 6.12% 536 2.74
Lawrence Park South condos 7,600 27.14 4.29% 706 2.52
Rosedale-Moore Park condos 12,181 24.51 2.41% 1,132 2.28
The Annex condos 7,986 27.72 4.16% 742 2.57
Yorkville condos 9,409 31.17 3.98% 874 2.90
VANCOUVER
Coal Harbour condos 11,909 n.a. n.a. 1,106 n.a.
Davie Village condos 8,784 n.a. n.a. 816 n.a.
Downtown condos 9,615 n.a. n.a. 893 n.a.
Gastown condos 7,583 n.a. n.a. 704 n.a.
Kitsilano condos 8,077 n.a. n.a. 750 n.a.
West End condos 10,552 n.a. n.a. 980 n.a.
West Point Grey condos 6,999 n.a. n.a. 650 n.a.
Yaletown condos 9,549 n.a. n.a. 887 n.a.
Source: Condos.ca Definitions: Data FAQ See also: Update Schedule

“Situation normal” for rental returns in Canada – returns on apartments in Montreal outpace those in Toronto. What is perhaps more surprising is how well these rental yields are holding up, remaining firmly in the satisfactory range. If you own a small apartment of 60 sq. m. in Montreal and rent it out, you are likely to make a return of around 7%. In this low-return era, in a low-risk country such as Canada, that is a really acceptable, not to say enticing, yield.

Even on a largish 120 sq. m. apartment in Montreal, you are likely to earn a gross rental return of 5.4%.

In Toronto, gross rental yields are lower, at between 4.4% to 5%. Taking account of the fact that we give gross figures – a guess might be that net yields would be 2% lower – then obviously the difference in returns between Montreal and Toronto is really significant.

 

For more detailed information on the numbers and Montreal neighborhoods to invest, drop me an email, I look forward to hear from you!

Montreal Real Estate A Golden Opportunity For Foreign Investors

Montreal Real Estate A Golden Opportunity For Foreign Investors

Montreal Real Estate is a golden opportunity for foreign investors with U.S. or stronger currency! This beautiful city of Montreal, my home and birthplace has witnessed many  roller coaster rides as far as the real estate market is concerned.  Our steaming hot real estate market came to an end in 2012, only to find it roar back and on pace to meet or beat it’s pre-market records of 2012.

Our city has always been like a best kept secret. With fantastic food and restaurants, boutique shops, European flavor, incredible diversity of peoples, neighborhoods, and culture, Montreal is and remains a wonderful place to live or just hangout for lengthy periods of time.  You can say that I’m not objective, but that wouldn’t be true. After living in the U.S. for more than eight years, in two great citys, NY and LA, which are both quite spectacular for different reasons, I can honestly say, Montreal has it’s own unique things on offer.

I must confess I’m a girl whose heart lies in her stomach, so generally I’m happy whereever there’s a celebration of great food.

Check out some of Anthony Bourdain’s Montreal travel tips or watch the layover episode here.

 

” Best Places to Eat

“Unapologetically over the top. This place is where you want to be: sucking down oysters and good wine at Joe Beef.”A visit to Schwartz’s (beef) is a must. “You can’t not do this when you come to Montreal.”You don’t come to Montreal to eat French food. Food is, however, a major reason to come to Montreal.
Old Montreal
“It’s old. It’s pretty. Nowadays it’s a magnet for tourists.”
Montreal’s “Underground City”
A collection of cheap clothing stores, drug stores, metro stations, etc. — it’s a shopping mall. Enough said.
Getting Around
“Modeled after the Paris Metro, the Montreal metro is not bad. Ride the train for about $3 for a trip, or $8 for a 24-hour pass.”Information Source: Anthony Bourdain #noreservationsFor the full list of restaurants, watch the episode!

Now aside from all the fabulous food Montreal has on offer, the investment opportunity for those with U.S. or stronger currency to invest, is spectacular. Whether you’re investment objectives are to get a great return on your dollar over time, or a vacation pied-a-terre, the investment numbers don’t lie. To illustrate the point, let’s for example take a property purchase price of $400k, which by the way would buy you a teepee in Toronto or outhouse in Vancouver….. 400k in Montreal would buy you a nice one bedroom condo in a desirable Montreal neighborhood.  In U.S. funds, 400k, according to todays exchange rate becomes $292815.06 U.S. dollars. A discount of over $100k. If you know of another product or investment with anything close to that kind of discount, please let me know!

Of course it’s still important to get proper advice in selecting a great property and neighborhood. I would encourage anyone whose wondering what to do with their available investment funds to take advantage of this golden opportunity in our current Montreal real estate market! Be smart and in the know, while Montreal still remains one of the best kept secrets, for now.

 

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