Montreal is one of the most vibrant cities in Canada. With plenty of green open spaces, an excellent nightlife and lots of great restaurants, it is a very popular place to live and work. This makes Montreal a good location to invest in rental property. So if you are considering buying investment property in Montreal, here are a few hints and tips.
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Now is a Good Time to Buy
Now is a good time to buy a property in Montreal. There are plenty of existing homes for sale on the re-sale market, so buyers have a lot of options to choose from. There has been a decrease in the development of new housing, in particular condos, but for the purposes of rental housing investment, condos in Montreal remain a good buy .
Increase in Montreal Rental Market
The rental market is expected to pick up in 2015/16 due to the relatively high number of immigrants moving into the city and surrounding areas. Young people in the 24 and under age bracket represent a significant share of the rental market in Montreal, mainly because the current job climate is proving favourable to them. This in turn will support a rise in demand for rental housing, especially in central locations.
Job Market Growing
The economy in Montreal remained fairly weak during 2014, but the signs indicate that employment prospects are picking up and key areas such as finance, communications and production services are showing signs of recovery. Experts predict that the job market in Montreal will grow by around 1.4% in 2015, so demand for rental housing looks set to increase, particularly in the youth employment sector. The growth in the employment market looks likely to continue well into 2016, so the prospects for long-term rental demand is good.
Immigration is also on the rise, which is also good for the rental market. Ethnic communities are expanding in the city and certain areas such as the Island of Montreal have seen significant growth in recent years.
A Good Investment
All of these factors mean that rental housing is a good investment in Montreal. However, if you are new to the property investment market, it is very important that you do your research to find out which area is likely to best suit your aspirations. Montreal, like other North American cities is made up of several distinct areas . These areas will all attract a different type of tenant, so the type of property you buy will very much depend on what type of tenant you are hoping to attract.
Talk to local real estate agents and find out what they recommend. These guys are in the best position to know the current market trends, so use it to your advantage. This is also true if you are after a property in a popular area – if you have a few real estate agents on side, you can get a heads up when something suitable comes on to the market.
Real estate is a great investment, but only if you buy the right property and you know the market well.