Investing in Montreal real estate offers plenty of advantages, as the real estate market is booming these days. Plenty of Montreal condos are fetching much higher prices, so those who have invested a few years back can expect a tidy profit. At the same time, it’s not exactly risk-free either. You also have some work to do to make sure your investment pays off.
Here are some benefits to investing in real estate in Montreal:
- Prices keep getting higher. That’s true for single-family homes and Montreal condos. This isn’t a temporary trend either. It’s the 22nd year in a row in which the prices of real estate have risen in the Montreal area. Experts forecast also higher prices for 2019. It’s as if you can’t lose money with Montreal real estate.
- You get plenty of advice from experts. Newbies are getting into the action with the help of property management companies and mortgage and real estate brokers.
- Condos are especially great investments. Not only do these condo units generally increase in value over time, but also they don’t have to sit idle while you wait for the prices to go up. You can rent out the unit and recoup some of investment right away.
- Plenty of people are coming to Montreal. These include large groups of empty nesters and students, along with the usual professionals looking for available jobs in Montreal plus immigrants.
- Furnished apartments are also cash cows. Some units that normally go for $1,500 a month can easily attract renters willing to pay $3,000 a month when you’ve furnished the place with appliances and furniture. These are often short-term rentals, but the constant demand means that you won’t lack for applying renters.
All in all, the Montreal real estate scene is booming. With 22 years of continuous growth, putting your money in Montreal real estate is certainly more profitable than just letting your money sit still in a savings account.
However, there are some challenges to consider.
- The price to get into the Montreal real estate market is high. That’s the result of these continuously increasing prices. You have to make sure you can really afford it, though if you wait longer the price just keeps on increasing.
- You need patience to make your investment work out. It’s not going to be an overnight money-maker for you. It’s not like you can put down money today and then a month from now you double your money. That can happen in a casino, but not in the real estate market.
- It can take a lot of effort. Every time a tenant moves out, you will have to do some maintenance work like cleaning and painting the place to make the condo or apartment more presentable for the next tenant. In many cases, you may have to upgrade the place to compete in the market.
- You still need to be careful about the properties you buy. In general, the main factor you need to consider is location to get the highest rent possible. It’s best if your condo is near transportation hubs, parks, grocery stores, and schools.
- There’s the risk of market saturation. This is when even though the demand is high the available supply of real estate is higher. That can happen when too many people are lured into buying into the Montreal real estate market. The greater supply can lower prices, which is why the median price of single-family homes only rose by 3.2% in 2018. In 2017, the median price rose by 7%.
Either way, the pros tend to outweigh the cons so lots of people are confident about the state of the Montreal real estate market.