What should you know before you start investing in Monteral real estate?
A few lines about the Montreal real estate market
Montreal real estate rebounded after a sluggish time in 2016, agents say. For many years, the market had been depressed. Low interest rates, a shift in local politics and a rise in consumer confidence have helped improve the market, according to Louise Remillard, president of Profusion Realty, a Christie’s International Real Estate affiliate. However, she added that Montreal rates are unbelievably low as compared to Toronto and Vancouver.
In Vancouver, where foreign buyers have fueled a price increase, the average price for a detached home is close to $1.5 million; Toronto’s average selling price in 2016 was about $730,000. According to the Quebec Federation of Real Estate Boards, however, on Montreal’s island the median sales price for a single-family home in 2016 was $415,000.
Montreal has always been a more stable market than others, according to Dominic St-Pierre, Quebec Region Senior director for Royal LePage real estate company.
The upper end was, as agents claim, the most competitive segment on the market. The number of properties that sold for more than $500,000 increased 20 percent in 2016, compared to a year earlier, the Quebec Federation reported, and the average price of a single-family home in the Center district, which includes Westmount, was $1.32 million in 2016, an 11 percent increase from the previous year.
Agents forecast a continuation of the trend. In the last two years they’ve seen a strong recovery, Mr. St-Pierre believes, and the fundamentals are still strong in the real estate industry.
Is it a good time to invest in Montreal?
The market outlook for housing in Montreal in the coming years is positive. Housing construction are beginning, while resale market transactions will be on an upward trend, too, according to CMHC predictions. That said, there may be investors and landlords in for some hiccups. The CMHC expects rent rates to be slightly lower due to an increase in housing supply. There are still red hot rental markets which investors can turn to, however. These are localised and show no slowing signs.
Top 3 property spots to check out Montreal
Ville-Marie is primarily situated in downtown Montreal, featuring excellent Victorian houses near a central business district. This makes for easier establishment of businesses or brands for young professionals on a variety of commercial streets that exist in this community.
This area also contains Mount-Royal Park along with two islands, Saint-Helen’s Island and Ile-Notre-Dame. Ideal for professionals, since it is seen as the corporate headquarters centre. It’s fit for big employment activities and everybody can find work.
It includes an impressive 23 museums and 6 water parks that make it ideal for individuals to enjoy these facilities whenever they wish. Young professionals will benefit from universities that are world-renown, such as McGill and Concordia University. Quiet back streets and tall apartment buildings contribute to this area’s appeal.
Despite its reputation for European elegance, this place is considered to be a crowd-pleaser. Because of its buildings dating from the 17th century, it is considered a major tourist attraction. The riverbank of the town was converted into a port providing maritime facilities. A variety of museums and attractions exist around the area. The city center is within walking distance, and the orange metro lines make it much easier to travel to various locations in Montreal.
Rent can be very costly and thus more appropriate for young professionals rather than families. The driving force behind the prices are the history and exquisite architecture of the area.
This neighborhood is predominantly 20 percent a Jewish community with a population of approximately 10358. Seeing its variety of trendy restaurants and shops, the location is perfect for singles. The sentence, “quality of life,” is often accompanied by Outremont.
High rents due to amenities such as rooftop swimming pools and terraces can only be endured by young professionals and families do not prefer to choose transportation to downtown Montreal through the rail network. Along with that, there are little to no schools here and that further deteriorates interest for families. Here real estate prices are high but it can also be reasonable to have a monthly rental agreement. When it comes to sightseeing points, it includes the Mount-Royal Cemetery and the University de Montreal, along with other attractions.
Can foreigners buy real estate in Montreal?
No limits are imposed on foreigners purchasing property in Montreal. The procedure is transparent and identical to that of the United States, with both sellers and buyers getting a notary handling the paperwork. Yet securing a mortgage can be difficult for foreigners, with most lenders demanding a minimum down payment of 35 percent. And any non-resident who stays longer than six months will need a residency visa.
Still can’t make up your mind?
The “most European city” in Canada is going through a real estate boom. Real estate prices have risen by 5 percent in the last 5 years. With rates still beyond the means of most, families will go on looking for home ownership.
Montreal is a great investment option for investors and landlords, with untapped potential. Some communities however offer better growth opportunities.