Montreal Real Estate

Dec 4th, 2019 2:27 pm

#1

oasis2002 [OP]: Sr. Member; Sep 16, 2009; 677 posts; 459 upvotes

Dec 4th, 2019 2:27 pm

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?

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Dec 4th, 2019 3:16 pm

#2

TorontoHSTRebates: Newbie; Nov 15, 2019; 70 posts; 27 upvotes

Dec 4th, 2019 3:16 pm

Personally, I'm not interested investing in Montreal because the political situation could become unstable.

Dec 4th, 2019 4:26 pm

#3

oasis2002 [OP]: Sr. Member; Sep 16, 2009; 677 posts; 459 upvotes

Dec 4th, 2019 4:26 pm

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...

Dec 4th, 2019 5:43 pm

#4

Tadalafil: Sr. Member; Nov 10, 2014; 547 posts; 938 upvotes; Ottawa, ON

Dec 4th, 2019 5:43 pm

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.

+5

Dec 4th, 2019 9:49 pm

#5

cyberfreak123: Sr. Member; Aug 6, 2011; 593 posts; 266 upvotes

Dec 4th, 2019 9:49 pm

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.

Dec 5th, 2019 12:28 am

#6

lovestock: Banned; Oct 30, 2019; 193 posts; 248 upvotes; Toronto

Dec 5th, 2019 12:28 am

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.

Dec 5th, 2019 8:29 am

#7

cyberfreak123: Sr. Member; Aug 6, 2011; 593 posts; 266 upvotes

Dec 5th, 2019 8:29 am

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.

Dec 5th, 2019 10:21 am

#8

Tadalafil: Sr. Member; Nov 10, 2014; 547 posts; 938 upvotes; Ottawa, ON

Dec 5th, 2019 10:21 am

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.

+1

Dec 5th, 2019 11:23 am

#9

yasben: Newbie; Feb 4, 2014; 60 posts; 42 upvotes; Montréal

Dec 5th, 2019 11:23 am

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

+4

Dec 5th, 2019 11:25 am

#10

yasben: Newbie; Feb 4, 2014; 60 posts; 42 upvotes; Montréal

Dec 5th, 2019 11:25 am

Oh and downtown new construction condo prices are now very near Toronto prices (over $1,000/sft excluding taxes)

+4

Dec 5th, 2019 1:01 pm

#11

oasis2002 [OP]: Sr. Member; Sep 16, 2009; 677 posts; 459 upvotes

Dec 5th, 2019 1:01 pm

yasben wrote: ↑ Oh and downtown new construction condo prices are now very near Toronto prices (over $1,000/sft excluding taxes)

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!

Dec 5th, 2019 2:19 pm

#12

yasben: Newbie; Feb 4, 2014; 60 posts; 42 upvotes; Montréal

Dec 5th, 2019 2:19 pm

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.

Dec 5th, 2019 3:17 pm

#13

oasis2002 [OP]: Sr. Member; Sep 16, 2009; 677 posts; 459 upvotes

Dec 5th, 2019 3:17 pm

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?

Dec 5th, 2019 7:26 pm

#14

yasben: Newbie; Feb 4, 2014; 60 posts; 42 upvotes; Montréal

Dec 5th, 2019 7:26 pm

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...)?

Dec 10th, 2019 11:11 am

#15

MoDealz: Newbie; Jun 21, 2015; 82 posts; 9 upvotes; Montreal

Dec 10th, 2019 11:11 am

OP what areas are you looking in ?

Dec 11th, 2019 9:48 am

#16

oasis2002 [OP]: Sr. Member; Sep 16, 2009; 677 posts; 459 upvotes

Dec 11th, 2019 9:48 am

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.

Jun 5th, 2020 12:03 pm

#17

MoDealz: Newbie; Jun 21, 2015; 82 posts; 9 upvotes; Montreal

Jun 5th, 2020 12:03 pm

Did you make a move? Still looking in Montreal?

Jun 8th, 2020 2:04 am

#18

Ghost_Deini: Jr. Member; Aug 7, 2010; 126 posts; 12 upvotes

Jun 8th, 2020 2:04 am

im always looking in montreal

Jun 8th, 2020 2:16 am

#19

hockeyfan1990: Sr. Member; Apr 18, 2017; 675 posts; 545 upvotes

Jun 8th, 2020 2:16 am

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.

Jun 8th, 2020 4:53 am

#20

cristianosham: Deal Addict; Sep 6, 2017; 3525 posts; 2183 upvotes

Jun 8th, 2020 4:53 am

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.