Real Estate

Montreal Real Estate

  • Last Updated:
  • Mar 6th, 2021 9:16 am
[OP]
Sr. Member
Sep 16, 2009
677 posts
459 upvotes

Montreal Real Estate

Anyone here have any experience with Montreal real estate? Even now you can find multi res in / around the core with net cap rates of ~ 5%. Why are they not getting snapped up?
28 replies
Newbie
Nov 15, 2019
70 posts
27 upvotes
Personally, I'm not interested investing in Montreal because the political situation could become unstable.
[OP]
Sr. Member
Sep 16, 2009
677 posts
459 upvotes
TorontoHSTRebates wrote: Personally, I'm not interested investing in Montreal because the political situation could become unstable.
yeah well thats a global issue. I suppose it puts a lid on immigrants but the ship has sailed on the separation story. I think the real reason is its not exactly super business friendly and somewhat socialist to say the least and job market is lukewarm. Which keeps a cap on appreciation. But annuity like real estate...
Sr. Member
Nov 10, 2014
547 posts
938 upvotes
Ottawa, ON
I briefly considered investing in Gatineau as RE there is dirt cheap.
I decided against it as I don't have the time and patience to learn all the Quebec landlord tenant laws (based on little I know, Ontario laws actually seem pro landlord in comparison lol), and figure out taxes for income generated on the Quebec side.
Lastly, my French is awful. I have no confidence in navigating legal documents, dealing with Francaphone tenants, and dealing with LTB in French.
Sr. Member
Aug 6, 2011
593 posts
266 upvotes
Tadalafil wrote: I briefly considered investing in Gatineau as RE there is dirt cheap.
I decided against it as I don't have the time and patience to learn all the Quebec landlord tenant laws (based on little I know, Ontario laws actually seem pro landlord in comparison lol), and figure out taxes for income generated on the Quebec side.
Lastly, my French is awful. I have no confidence in navigating legal documents, dealing with Francaphone tenants, and dealing with LTB in French.
Downtown Hull attracts a significant number of English speaking people from Ottawa looking for affordable rentals. One of the landlords I know own a significant number of rentals in Hull seem to rent only to anglophones, as his French is probably bad (Asian), and he seems never have had a hard time to find tenants. You can easily request legal documents to be written in English, starting from the agreement of purchase to the official notary documents. City of Gatineau has bilingual staff. Maybe the only time you'll need some French is when you'll deal with the Regie du logement.
Banned
User avatar
Oct 30, 2019
193 posts
248 upvotes
Toronto
It could be an interesting idea as the GTA and GVA are devoid of cash flowing opportunities. I will consider some ideas in the future for real estate once I have my new GTA condos closed, rented out, and have my HELOC paid off.

Despite the language and political barriers, it could still make sense. And it’s a good diversifier if you already own some GTA properties.
Sr. Member
Aug 6, 2011
593 posts
266 upvotes
there’re tons of anglophones living in montreal. they probably know only ome basic french. Some of them own investment properties too. if they can do it.
Sr. Member
Nov 10, 2014
547 posts
938 upvotes
Ottawa, ON
cyberfreak123 wrote: Downtown Hull attracts a significant number of English speaking people from Ottawa looking for affordable rentals. One of the landlords I know own a significant number of rentals in Hull seem to rent only to anglophones, as his French is probably bad (Asian), and he seems never have had a hard time to find tenants. You can easily request legal documents to be written in English, starting from the agreement of purchase to the official notary documents. City of Gatineau has bilingual staff. Maybe the only time you'll need some French is when you'll deal with the Regie du logement.
Excluding Francaphones from housing in Quebec... I shudder at the risk of getting butt f*cked by the Quebecois LTB and the language police en Francais.

I agree with the general points. Many investors will shy away from Quebec for various reasons, and this creates an opportunity for investors who are willing. One has a far better potential in setting up cash cow investment properties in Montreal and Quebec.
Newbie
Feb 4, 2014
60 posts
42 upvotes
Montréal
OP, mtl is not what it used to be. Hottest real estate market in Canada at the moment. Overbidding wars and 10+ offers on any decent listing... Also, the core is full of 100+ yr old buldings with tons of maintenance issues/costs
Newbie
Feb 4, 2014
60 posts
42 upvotes
Montréal
Oh and downtown new construction condo prices are now very near Toronto prices (over $1,000/sft excluding taxes)
Newbie
Feb 4, 2014
60 posts
42 upvotes
Montréal
oasis2002 wrote: Not looking at condos tbh. More like properties like this.
https://www.realtor.ca/real-estate/2108 ... -extension
5% unlevered net yield. Hamilton is more expensive!
I see you’re looking at commercial properties. In that case my comments above don’t apply, you can still find good deals for commercial properties. Just keep in mind the extra risk (commercial units have a lower occupancy rate than residential) and bigger down payment required.
[OP]
Sr. Member
Sep 16, 2009
677 posts
459 upvotes
yasben wrote: I see you’re looking at commercial properties. In that case my comments above don’t apply, you can still find good deals for commercial properties. Just keep in mind the extra risk (commercial units have a lower occupancy rate than residential) and bigger down payment required.
Well that was an example - but yes - Multi Res - basically 6/8 plex residential or so. Why would occupancy on a multiplex with 6 apartments be higher though? I mean i suppose higher than a condo building but not generally, no?
Newbie
Feb 4, 2014
60 posts
42 upvotes
Montréal
oasis2002 wrote: Well that was an example - but yes - Multi Res - basically 6/8 plex residential or so. Why would occupancy on a multiplex with 6 apartments be higher though? I mean i suppose higher than a condo building but not generally, no?
I just meant for the commercial part, i.e the main floor commercial unit will be potentially harder to rent than any other residential unit. If you’re a first time investor, might be better to buy an all-residential building. What are your objectives (monthly income, long term appreciation, diversify your investments...)?
Newbie
Jun 21, 2015
82 posts
9 upvotes
Montreal
OP what areas are you looking in ?
[OP]
Sr. Member
Sep 16, 2009
677 posts
459 upvotes
MoDealz wrote: OP what areas are you looking in ?
Just started looking tbh - i am GTA based and feel my RE investment yield is now deminimis - (lot of appreciation; which is a good thing). Trying to find something with 6-7% cap rate - and that doesnt exist in GTA anymore. Montreal is the next closest metro area if you can believe it.
Newbie
Jun 21, 2015
82 posts
9 upvotes
Montreal
Did you make a move? Still looking in Montreal?
Sr. Member
Apr 18, 2017
675 posts
545 upvotes
Not worth the trouble. Montreal has had bad tenants over the years. Grew up in Montreal, parents lived there. We bought a duplex back in 1999 for 120k in Ville Saint Laurent now worth 700-800k.

We rented the basement out in the past to some French people. They didn’t pay rent, flooded the basement and ran off. My uncle has commercial apartments across the city and he has couple of bad tenants that can’t pay rent.
Deal Addict
Sep 6, 2017
3525 posts
2183 upvotes
hockeyfan1990 wrote: Not worth the trouble. Montreal has had bad tenants over the years. Grew up in Montreal, parents lived there. We bought a duplex back in 1999 for 120k in Ville Saint Laurent now worth 700-800k.

We rented the basement out in the past to some French people. They didn’t pay rent, flooded the basement and ran off. My uncle has commercial apartments across the city and he has couple of bad tenants that can’t pay rent.
Welcome to the club friend.

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