The Montreal Real Estate Blog

À la recherche de Condos? L’important: Le prix, la superficie et les dimensions.

Deyanira Bautista — Tue, 23 Jun 2009 13:00:22 +0000

Dernièrement j’ai reçu beaucoup d’appels d’acheteurs recherchant des condos au centre-ville en dessous de 150.000$.
Bien que nous les ayons dans notre système, nombreuses de ces propriétés sont à rénover , petites en superficie ou situées au sous-sol et/ou au niveau terrasse.

Rappelez-vous que le prix est fixé par rapport à certains facteurs: Situation par rapport au voisinage (Centre-Ville, Vieux-Port, Le Plateau, NDG, Rosemont, etc.), le niveau de l’étage (par exemple: un condo au dernier étage sera plus cher que celui situé au premier étage) et s’il inclut un garage ou un parking entre autres.

Si votre prix maximum ne correspond pas à vos critères, vous devriez peut-être chercher dans un autre quartier qui offre plus d’espace pour un prix inférieur. Ou accorder vos critères pour rester vivre dans le quartier que vous avez choisi.

Revoyez la dimension de la propriété , si votre budget est de 120000$ et vous cherchez un condo de 1200 pc.
au centre ville……. je crois que ce sera difficile. Il faut choisir: Rester au centre-ville dans un condo moins spacieux, ou (à nouveau) changer de quartier.

N’oubliez pas, un garage ajoute de la valeur à la propriété, le prix moyen pour un parking extérieur se situe entre 10,000$ et 15,000$. Un garage intérieur entre 20,000 et 35,000$ dépendant du quartier.

Bien que la Chambre Immobilière de Montréal nous à communiqué les prix moyens pour les condos à Montréal, les chiffres ne sont qu’informatifs.

Prix moyens. Condos Vendus les derniers 6 mois.

Ces résultats sont pris dans la base de données MLS des condos vendus avec les critères suivant:
2 chambres, 1 salle de bain, étages: du rez-de-chaussée aux étages supérieurs.

Rosemont: 850-1000 pc. avec garage: 212,100$

Vieux-Montréal: 1000-1175 pc. avec garage 354,800$

NDG: 800-1000 pc. pas de garage: 219,000$

Ville-Marie: (excluant le Vieux-Montréal) 800-1000 pc. pas de garage : 241,000$

Plateau et Mile End: 800-1000 pc. pas de garage: 238,500$. Et un prix minimum de 180,000$

*Clause de non responsabilité: Les statistiques sont basées sur le prix moyen des condos vendus les derniers six mois.
Même si ces prix sont exacts ils ne sont pas garantis. Les chiffres publiés sont sujets à variation.

Soyez informé avant d’aller magasiner votre propriété. Inscrivez-vous au blog Montréal Immobilier.

Vous cherchex à acheter un condo prochainement? Contactez-moi pour vous assister dans votre recherche!

Posted By: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. She specializes in condos and revenue property in the metropolitan area of Montreal. For buying, selling or renting contact Deya at: 514.917.7889

Stuck between rain and construction.

Deyanira Bautista — Thu, 18 Jun 2009 18:58:28 +0000

Photo by Deya Bautista.

I don’ usually write posts about the traffic, but in this particular day (today) it seems that anywhere you go, there is always some kind of construction on the streets and sidewalk that makes traffic unbearable.

The city has countless of renovation sites, just a couple of blocks away from one another. Roads are being blocked, detours signs are everywhere. And with that: traffic, frustration and more delays. Green lights takes forever to appear, and by the time you get close to the intersection, it has already turned red. Again.

If your job takes you on the road often, like mine does, we must not forget to pack up a little extra patience before we get into our cars. And today, apart from patience, we need an umbrella and warm clothes. We’re getting close to the official Summer Day, yet it doesn’t feel like it.

Canadian Home Buyers Savvy and Optimistic

Deyanira Bautista — Mon, 15 Jun 2009 12:30:35 +0000

Canada Mortgage and Housing Corporation’s (CMHC) 2009 Mortgage Consumer Survey results were released last week, and indicate that nearly 90% of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70% think that now is a good time to purchase a home in their community.

Buyers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.

Recent buyers are prudent mortgage managers.
According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage.

“The survey results are encouraging and provide insightful information, indicating that Canadians feel positive about Canada’s housing market. As well, Canada’s Economic Action Plan’s home purchase and renovation incentives, and CMHC’s recent outreach campaign to help Canadians who may be facing difficulties with their mortgage payment, are clear actions to support homeowners and the housing market.” said Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC). “

Canadian mortgage consumers recognize the benefits associated with mortgage loan insurance (MLI). According to the survey, 80% of recent buyers believe that MLI provides an important benefit to the financial system. Similar to CMHC’s last Mortgage Consumer Survey, the 2009 survey also indicates that Canadians continue to be well served by the mortgage industry, with 77% of recent mortgage purchasers expressing satisfaction with the service received from their lender or broker.

Image of the day: Montreal from the edge of Griffintown

Deyanira Bautista — Sat, 13 Jun 2009 14:19:10 +0000

Photo by Michel Filion

While browsing through flickr, I came across this lovely picture taken by a talented young photographer.
This is the view of downtown taken from the outskirts of Griffintown. Lovely capture of the sky. Great lighting and composition!

The Montreal Real Estate Blog showcases outstanding images from talented local photographers. Images are licensed with Creative Commons 3.0 . If you’d like to submit your photography, please join our flickr pool.

CMHC: National rental vacancy rate slightly higher

Deyanira Bautista — Thu, 11 Jun 2009 17:17:15 +0000

According to this article, the CMCH found a slight increase on rental vacancy. It’s just 0.1% increase from last year, not a lot really. Montreal doesn’t appear in the list of cities with high vacancy rates. Also, the rental prices for 2 bedroom apartments have also increased accordingly. Here are the details:

The average rental apartment vacancy rate in Canada’s 35 major centres increased slightly to 2.7 per cent in April 2009, from 2.6 per cent in April 2008, according to the spring Rental Market Survey(2) released today by Canada Mortgage and Housing Corporation (CMHC).

“Completions of condominiums, which continue to attract renter households looking to move into homeownership are decreasing demand for rental housing. Also, some of the completed condos compete with rental units if they were purchased by investors who then rent them out. These two factors have put upward pressure on the vacancy rate,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “However, this has been balanced by higher levels of demand for rental housing.”

Major centres with the lowest vacancy rates
Québec City 0.6 %, Regina 0.7 %, Winnipeg 0.9 %, Saguenay 1.1 %, Trois-Rivières 1.1 %.

Major centres with the highest vacancy rates
Windsor 15.5 %, St. Catharines-Niagara 5.3 %, and Abbotsford 4.8%.

Average Monthly Rentals
“The highest average monthly rents for two-bedroom apartments in new and existing structures were in Vancouver ($1,154), Calgary ($1,106), Toronto ($1,093), Edmonton ($1,059), and Victoria ($1,043). Of all the major centres, these five were the only ones with average rents at or above $1,000. The lowest average monthly rents for two-bedroom apartments in new and existing structures were in Saguenay ($494), and Trois-Rivières ($512).

Overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased 2.9 per cent between April 2008 and April 2009.”

Source: CHMC via Newswire

Buying an Income Property to Live in

Deyanira Bautista — Mon, 08 Jun 2009 12:24:32 +0000

There is a fundamental difference between buying a property solely for investment purposes and buying it to live in it.
We all want to live rent-free. Having the revenues cover all of the expenses, including the unit we occupy. And while all of this is feasible, it is important to mention that certain factors affect this outcome: size of the building, revenues, etc. So let’s take a look at what we can expect when searching for a income property.

Buying a property as an investment alone

Your home is else where, but you want to buy as an investment. This is all a numbers game: a property that generates enough revenues to cover all the expenses and then some. The bigger the property (with larger units) the bigger the revenues, in this case you can expect to have expenses paid, plus a little extra at the end of the year. But this does not always occur with smaller properties such as duplexes or triplexes.

Buying an income property to live in it

You’re contemplating to buy, say, a triplex and you’re planing to live in it, your main concern does not go so much in:
After all expenses are paid; How much does this property gives at the end of the year? Chances are with smaller properties they would cover only the expenses.

If you’re living in it, and you only have one unit with tenants, it’s highly unlikely you’ll be making a surplus of money at the end of the year, much less going on vacation with property revenues.
Instead, ask yourself: How much does “your” portion of the mortgage represent?

For example:

Let’s say you’ve found a lovely triplex with 2 bedrooms on each unit, the asking price is $450,000. One unit is vacant and the two other units are rented at $850 (tenants pay their own utilities). Revenues of ($850×2) $1,700 a month OR $20,4000 (gross) a year.
Taxes, Insurance and other expenses a year = $4500. So the net revenues are: $15,900/year.

Your down payment is 20%, which translates into $90,000. Giving you a mortgage of $360,000 amortized over 35 years at 3.5%, your monthly payment is $1,482.58 OR $17,791.01 a year.

So far the revenues from the two units alone ($15,900) are not going to cover the mortgage ($17,791.01). BUT remember that we have not consider YOUR unit into the equation.

We know we’re missing 1891.01 at the end of the year to meet our costs. And that’s what your portion of the mortgage represents!.
After all the calculations, in this particular example, it will cost you $157.58 a month OR $1,891.01 a year, to live in this property. (Taken from $15, 900 – $17,791.01 = -1891.01)

How much are your comfortable with paying each month?

This is one of the questions I often ask to first time income property buyers. Having that amount in mind, and the max purchase price given by the lender, you can begin to do a search for a good property match.

Of course, we don’t always find such great properties with high revenues priced at the right amount. The condition of the building has a lot to do with your offer, and let’s not forget: your down-payment will affect the monthly and yearly mortgage expenses, and with that, the amount of money you will pay to live in your unit.

A while back, I wrote an article on Repossessing your income property, where it was discussed the terms and conditions when taking possession of one of the units, it’s full of useful information. I invite you to read it!

Fixed Rates Officially Going Up, Variable Rates going down.

Deyanira Bautista — Thu, 04 Jun 2009 12:43:12 +0000

Great deals only last for a limited time. We all knew it was coming, we just didn’t know how soon…
Canada’s biggest banks are increasing key mortgage rates. Royal Bank of Canada announced the change on five-year, fixed-rate mortgages to 5.45%, an increase of 0.2%.

Bank of Montreal, Toronto-Dominion Bank, Bank of Nova Scotia and Canadian Imperial Bank of Commerce are following. The changes at RBC and BMO took effect on Tuesday this week, while new rates at TD, Scotiabank and CIBC were to be posted yesterday. ( I haven’t checked the news yet)

And those “special offers” from RBC, BMO and Scotiabank on five-year closed mortgages at 4.15% will also be subject to change without notice, reflecting a 0.2% increase.

On the other hand, variable rates are decreasing from Prime+0.80% to Prime+0.40%.
More info on variable rates on Canadian Mortgage Trends

Investing in Montreal: What is the next trendy district ?

Deyanira Bautista — Wed, 03 Jun 2009 12:30:58 +0000

Another good video blog-post by McGill Real Estate Blog. Patrice Groleau explains the main differences between the East and West areas of Montreal, and why it is better to consider investing on the west side. Here is the video. Enjoy!

Home Ownership: Quality of Life Program

Deyanira Bautista — Tue, 02 Jun 2009 12:20:49 +0000

This morning I received the latest electronic bulletin from the Montreal Real Estate Board, and I was pleased to read about one more addition to the First Time Buyers Program, a new take on the RRSP maximum withdrawing amount as well as the possibility to have all RRSP holders (not just first time buyers) to invest in Real Estate. Here is a copy of the bulletin, that explains what the Quality of Life Program has to offer:

The Québec Federation of Real Estate Boards, through its Quality of Life program, is making access to home ownership a top priority in its government relations initiatives. Representatives of the Federation’s Government Relations Committee made a concerted effort to have the ceiling lifted on the maximum amount of money that can be withdrawn under the Home Buyers’ Plan (HBP). The maximum that can be withdrawn is now $25,000 for each RRSP-holder, so couples can now withdraw a combined total of $50,000 to buy their first home.

By the fall of 2009, the Federation will lobby the federal government for a new commitment – that of opening the Home Buyers’ Plan to all RRSP-holders. This would make the HBP available to first-time buyers, and to all people who want to use their RRSP to invest in real estate. Hopefully, the Government of Canada’s Department of Finance will grant the Federation’s request during its next economic update.

Finally, the Federation is preparing a position paper on home ownership that will aim to have all three levels of government implement measures that help first-time buyers. For example, the Federation would like the Canada Mortgage and Housing Corporation to use its surplus in order to establish a program that helps first-time buyers build up their initial down payment.

Helping first-time buyers purchase their first home not only benefits the economy – it also improves the quality of life of these people, and the quality of life of communities across the province. It is within this framework that the Federation will guide its political actions in order to help first-time buyers realize their dream.

About the Quality of Life Program

The goal of the Federation’s Quality of Life Program is to demonstrate the real estate industry’s commitment to improving the quality of life of communities across the province. The Program is based on five main principles that shape the political and public directions that a real estate organization should develop.

These principles are:

1. Ensuring Continuous Economic Development
2. Providing Opportunities for Suitable Housing
3. Preserving our Environment
4. Improving the Living Conditions of Québec Residents
5. Building Better Communities

Improving Life in Québec: The Federation’s First Quality of Life Summit

The Federation will be holding its first Québec Quality of Life Summit on November 25, in Montréal. The Quality of Life Summit is founded on the Quality of Life Program, which is shared by many Canadian and American real estate boards. Several conferences will be presented as part of the Summit, including one by Jean Lemire, biologist, award-winning filmmaker and mission leader aboard the Sedna IV. Recognized industry experts will also be participating in a panel discussion on home ownership. Additional Summit and registration details will be sent shortly.

Important factors for first-time homebuyers: Affordability and job security

Deyanira Bautista — Mon, 01 Jun 2009 13:19:43 +0000

According to a report released today by Royal LePage Real Estate Services, Canadians who are considering purchasing their first home are primarily motivated by lower home prices and very low interest rates, but some require confidence in the economy and their employment prospects before they will enter the market.

86% of potential first-time buyers say low interest rates make them more likely to purchase a home;
81% cite lower housing prices as a motivating factor;
76 % cite job security;
and 64% say a stable economy is an important factor in their decision to buy.

Potential buyers were asked to rank their top incentives for purchasing a first property. These are the top four incentives found, in this order:

Lower home prices
Lower interest rates
First-Time Home Buyers’ Tax Credit.
The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ’somewhat likely’ to impact their purchasing decision.

“Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.” Said Phil Soper, president and chief executive of Royal LePage Real Estate Services.

Across the country, potential first-time homebuyers agreed that affordability was their top consideration, however the survey also revealed differences amongst buyers in various regions of Canada. In provinces such as British Columbia where high housing prices have kept some buyers out of the market in recent years, 92 per cent of potential first-time buyers are now motivated by low interest rates and 96 per cent say lower home prices are likely to prompt them to buy.

In Atlantic Canada, where local economies have been resilient in the face of a worldwide recession and housing markets remain stable, 43 per cent of first-time buyers say they that job security is a factor in their decision to buy, while 84 per cent of buyers in British Columbia and Alberta said job security will influence them. Atlantic Canadians were less motivated than other Canadians by declining interest rates, with only 72 per cent saying it will likely prompt a buying decision, compared to 86 per cent of Canadians overall.

In Quebec
First-time buyers rated the Home Renovation Tax Credit as a bigger factor in their buying decision. Buyers continue to pursue the dream of home ownership in Montreal, as the number of entrants to the housing market has remained relatively stable. Low interest rates are contributing to increased market entry with 41 per cent of first-time buyers suggesting this is the key incentive driving the purchase of their first property, followed by 13 per cent who suggest lower housing prices might influence their buying decision. With 47 per cent of new buyers in Quebec planning to settle in urban areas, buyers are planning to invest and live in their first home for ten or more years. Fifty-six per cent of first-time buyers hope to purchase a property in the $150,000 to $300,000 price range.