Any real estate purchase anywhere, whether intended as a primary
residence, a holiday home, or as a buy-to-rent is an investment.
In some cases, the investment part is the main focus, and in
others, it being a good investment is preferred, but secondary
to liking the property.
Either way, as buyers and clients
of the Downtown Realty Team, you will be informed of the market
value of the property you wish to purchase. Sometimes, the
nicests property isn't the best investment, and thats fine, but
it is only fair that you should be an informed buyer.
This page is to focus on the value aspect of a real estate
purchase in Downtown Montreal regardless of its intended use.
1. Shop smart: New construction prices are
usually set between $1,000 and $3,000 more per floor but this
rarely reflects market value. Buy shortly after the building is
finished on the lower floors to increase the odds of a higher
profit when you re-sell.
2. Think 'family': A
primary residence is not taxed in Quebec, so if you already own
a home, try to put someone else on the deed to ensure they don't
pay any capital gains taxes when they re-sell the property.
3. Be
informed: Request that you see what the latest sales
for similar properties are in the area and preferably in the
same
building.
4. Be investor savvy: Don't
assume any property is the same. Its always better to not
purchase at the highest price per square foot in the city. New
construction is selling for between $900-$1200 per square foot
for high-end condos whereas resale condos that are just 2-4
years old are selling for $700-$800 with no significant
difference in terms of quality, layout or feel.
5. Get help: Being confident one can do one's own
research is fine but its probably not confidence acquired by
experience. I would ask for help in a market I'm not familiar
with and I would recommend everyone do likewise. I have met too
many dissappointed buyers to believe otherwise. Sure,
buying at the right time will protect you against any bad
decision, but we can all do better than that.
|
Downtown Montreal
Market report 2020
The Downtown Montreal market
has grown 20% between November 2019 and November 2020 in
spite of a 30% drop in the number of sales.
This
is not an exception. The drop in sales is entirely due
to the restrictions enforced by both federal and
provincial governements to deal with the COVID19 crisis.
During the recession in 2008-2009, property
values increased slightly in spite of a 20% drop in the
number of sales in the city and an average drop of 35%
in the Greater Montreal area.
The Downtown
Montreal market is extremely affordable by international
standards and even to the local market. With record
sales in the Greater Montreal Area, the city has been
able to weather the crisis in spite of a significant
drop in the number of sales which suggests demand
remains high.
People who live in the city spend
considerably less money on their primary home as a
percentage of their income. |
INTEREST RATES IN
CANADA
It
is currently possible to get rates as low as
1.3% with reputable banks. Generally one should
expect a variable rate of between 1.6%
and 1.9% and a 5 year fixed rates
between 1.7% and 1.9%.
For Citizens, permanent
residents or temporary visa holders, it is possible to
take up to 95% loan to value with
insured mortagages. Standard mortages are usually 80%
loan to value.
For non-residents, it is possible
to purchase a property with a mortgage of up to
65% loan to value (35% down payment). |
|
