Buying real estate isn’t just a matter of finding a place you can call home. It’s an investment, because the property you purchase could generate income and profit later on. While there are obviously many types of property and many great places in the world for real estate investments, one terrific option would be preconstruction condos in Montreal.
A quick look at the real estate situation in Montreal can quickly confirm this, but here are some facts as to why these pre-construction condominium units are terrific buys:
Lower Initial Value
The time-honored maxim in business is to buy low, sell high. In this case, you certainly can buy low compared to buying a unit that’s already completed.
Part of the reason why the prices are more affordable is that there’s a greater risk—you’re never really certain that you’ll end up with a terrific condo unit in reality afterwards. But then you can do your research on the developer to make sure you minimize the risk.
You may also get incentives, like appliances, furnishings, or upgrades on countertops. All these can increase the eventual value of your condominium unit. Other incentives may be contractual, such as having your taxes paid on your unit for a certain number of years.
Better Financing Terms
In general, you’re required to put down a 20% down payment for ready-to-move-in unit, and then the mortgage payments have to be made right away.
But with preconstruction units, you may have a year or two to prepare yourself so you can save up for that money. The percentage of the deposit may even be lower. There are also no mortgage payments yet, so you can really save up.
The Demand Is High
When you have a condo to rent, you won’t run out of applicants. That’s because the city of Montreal is a city of renters. About 63% of the residents here rent a unit. Many like to rent condominiums because they’re generally smaller than apartments, and thus more affordable.
People are flocking to Montreal for a variety of reasons. Many come here for the career opportunities. The city is a major hub for many industries, including software and video game development, telecommunications, biotech, aviation and aerospace, various art forms, and the tourism industry.
It’s a great city for single adults, as it’s ranked as one of the best, if not the best, cities for students. The festivals, nightlife, great food, and the low cost of living are all alluring draws for young adults.
It’s very easy to get around too. It’s a very walkable city, and it’s among the bike-friendliest cities in the world. It also has an accessible and extensive public transport system.
Families, on the other hand, will also appreciate how the crime rate in Montreal is very low compared to other major cities in the world. In the Safe Cities Index of The Economist, Montreal ranked 2nd among the safest cities in the world.
Since you don’t have to put up as much and the demand for housing in Montreal is increasing, you’re set to earn quite a lot for your investment. If you’re renting out your unit, you enjoy the low vacancy rates and the rental fees can cover your condo fees and most if not all of the mortgage. Basically, you can break even at the very least, and there’s a very good chance you can earn money just on your initial 20% deposit!
Deals like pre construction condos are excellent opportunities, which is why a lot of real estate investors are looking for them. It’s for you to do the same.