You have a couple of bucks stacked away, and you are being encouraged to invest in a rental property in Montreal. You are hesitant to take the first step because you don’t want to waste the money you worked so hard to save. You start going online and researching about buying your first rental property and you get more confused because you are not familiar with the terms or what they can lead to, so you get frustrated and shut down your laptop.
First things first, you must find a profitable rental property.
Here are some tips on how you can identify the “wanna be” profitable rental property.
- Find the Right Neighbourhood.
Find a neighborhood with a low vacancy rate.
A low vacancy rate simply means, that you must find a neighbourhood that doesn’t have many free units. To calculate that you must multiply the units that are free by 100 and then dividing that by the number of units in the building. In order to know that your vacancy rate is low, you’ll just have to compare it with nearby neighborhoods. Have a look at Dezert Properties to find what you might like and what suits your taste.
- The top neighbourhoods with low vacancy rates in Montreal are,Sud-Ouest and Verdun: 3 bedrooms and more apartments/condos/houses are the most wanted with a vacancy as low as 0.5%. (CBC, 2020)
- Lachine, Rosemont & Parc-Ex, and Old Port. Refer to Agrasoy Realty’s article about neighbourhoods : https://www.agrasoyrealty.com/blog/2018/04/02/in-which-neighbourhoods-in-montreal-to-invest/
Find a Neighbourhood with Great Livability
A great livability neighbourhood means, that you should be surrounded by many parks, open spaces, shopping facilities, restaurants, bars, supermarkets, good quality schools, hospitals, clinics, near public transport, gyms, safe etc. Briefly whatever makes your life easier and are in sync with your needs and wants. (Beattie, 2020)
Fun fact: The value of a single home or a condo would increase drastically by 38.9% and 19.1% successively if they were 1500m or less away from a metro station. (Niedoba, 2018).
- Calculate Total Expenses
It is important to know how much taxes/fees you will have to pay for the dwelling you will purchase and then possibly rent out. If you can’t figure it out yourself, better hire byui housing so that they can help you without making a mistake. For example, investing in a multiplex or a block apartment building is different than investing in a condo. Usually condos have different aspects to consider. Refer to this website for more information : https://condo.capital/buying-a-condo-in-montreal. It is important to keep in mind that high property taxes are not always negative. If you are in the right neighbourhood, and you are looking for a specific target market, it means you will attract more long-term tenants. (Beattie,2020)
Be mindful of the neighbourhood. It is key. The best way to know more information about property taxes in different regions, is to go to this website: https://montreal.ca/en/municipal-taxes
- Look AROUND or even better, ASK a Property Manager or a Rental Agent
The best way to know the value of the property you want to purchase, is to look at the properties around, find out their value in the market, talk to the homeowners themselves and ask questions! That also applies to when you want to rent out your dwelling, you always must compare other similar properties. You can do that by going by going on certain websites, or you can contact an experienced property manager and rental agent in Montreal, Quebec and consult them!
Tip: When you want to rent out your property, you will have to put in mind that you want the renters to cover your mortgage payment, taxes, and other expenses like condo fees, and financial health budget of condominium boards!
For more information about profitable rentals, property management or investment consultation, you can contact Agrasoy Realty by email : info@agrasoyrealty.com or by phone numbers : Emre (514) 476-7281 ; Katherine (514) 592-4061; Tania (438) 526 7368. You can also visit our website https://www.agrasoyrealty.com
References:
- King, R., & Romana King on April 18. (2018, April 18). Montreal real estate: Where to buy in the city’s inner suburbs 2018. Retrieved from https://www.moneysense.ca/spend/real-estate/montreal-real-estate-inner-suburbs-2018/
- ‘Now is the time for action,’ says Mayor Valérie Plante, as Montreal vacancy rate hits 15-year low | CBC News. (2020, January 16). Retrieved from https://www.cbc.ca/news/canada/montreal/montreal-low-rental-housing-rates-1.5428726
- Beattie, A. (2020, April 13). Top 10 Features of a Profitable Rental Property. Retrieved from https://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp
- Niedoba, S. (2018, February 15). A new transportation network could mean a huge boost for the Montreal real estate market. Retrieved from https://www.livabl.com/2018/02/new-transportation-network-mean-huge-boost-montreal-real-estate-market.html