Montreal Real Estate Trends to Expect in 2019

montreal real estate

The Montreal real estate market is one of the major markets in the entire country, alongside that of Toronto and Vancouver. Right now the market for Montreal is on a hot streak, and that predicted by experts to continue well into 2019 and beyond. In fact, many see the Montreal real estate price growth to exceed to that of other cities in the whole of Canada.

montreal real estate

Here are some trends to look forward to in the real estate market of Montreal in 2019:

Home Prices Will Still Rise

This is also predicted for many other cities, but the confidence that experts have for the Montreal market is quite strong. In fact, the median prices for homes in the Greater Montreal Area are expected to go up by 3%. In contrast, the increase in the median prices for homes in the Greater Toronto Area is only expected at 1.3%, while it’s only 0.6% for the Greater Vancouver Area. Nationally, median prices in Canada as a whole are expected to rise by 1.2%.

It does seem like the growth rate is decreasing all around, even with the prices climbing up. That is due to certain factors, such as regulatory real estate intervention, the consistently low price of Canadian export oil, rising interest rates, and the inherent risks of global trade.

Demand Will Remain Strong

What’s fuelling the rise in prices is the constant demand for homes from potential buyers with the budget to afford them. The demand is partly due to increasing population growth along with the strong migration, and so these new immigrants to Montreal will certainly need new homes.

The huge peak millennial group consists of the 25 to 31-years old buying a home for the first time, and most of them plan to own their homes instead of just renting. Baby boomers are also planning to sell their empty nest oversized family homes for more suitable smaller houses.

The unemployment rate has also reached historically low numbers. This means more people in the city have jobs and are saving money to buy a home, while new professionals come in to meet the demands for more workers.

There is still high consumer confidence, and economic growth in Montreal is steady. The new Canada-US-Mexico Agreement has also renewed confidence in trade south of the Canadian border.

Finally, it helps that prices on the whole in Montreal are comparatively more affordable than the homes in Toronto and Vancouver. The median prices for the Greater Toronto area are expected to rise to $854,552 in 2019. For the Greater Vancouver area, these prices will be even higher, with forecasts predicting median prices of up to $1,291,144 in 2019.

In contrast, the median prices for homes on Montreal are downright cheap even with the largest jump in prices. Experts say that these median home prices in the greater Montreal area will still be only $421,306 in 2019. That’s less than half the price in Toronto, and less than a third the price in Vancouver!

Continuing Interest from Foreign Investors

When Montreal real estate professionals talk about “foreign investors”, they’re actually referring to Chinese investors. The Chinese economy is still booming, and it’s predicted that the upper-middle and affluent class in China will reach 220 million by 2022. So far, the number of individuals with high net worth has increased by a factor of 9 over the last 10 years.

About two-thirds of these affluent Chinese have international real estate investments. In 2010, Chinese investment in international property was only $5 billion. By 2017, this has increased to almost $120 billion.

Canada has been one of their favourite real estate targets, but lately this interest has been waning. Chinese investment in Canadian residential real estate decreased by 55% in 2017, while interest for commercial property it went down by 61%.

Montreal is the most notable exception to this trend. More Chinese investors are becoming interested in the Montreal real estate market. Experts attribute this to the lower prices of homes in the area, and the taxes imposed by Vancouver and Toronto on foreign buyers surely didn’t help.

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What Does it Take to Make a Great Landlord

As someone who has been both tenant and landlord, I wanted to write this piece for anyone who is considering letting out property to ensure that you are doing the best for yourself, your property and ultimately, your tenants. There are a lot of landlords out there who simply don’t do the best by their tenants and this can not only make your and their lives more difficult, but can also prevent you from finding tenants who are happy to stay long term which is the best solution for any landlord. Let’s take a look then at what makes a truly great landlord.

Business First

It is vital to remember that renting out property is a business and should be treated as such, it is not a hobby or something you do in your spare time. Because of this you need to ensure that you are professional at all times, the tenants are your clients and they should be treated as such. Make sure that you have secured both the property and the tenants with great landlord insurance, I like to use homelet.co.uk/landlord-insurance/, the choice is yours but make sure that you have sufficient insurance.

When it comes to payments and information that you need to give your tenants, ensure that they receive them in a timely manner, doing so will make it clear that you expect the same in return when it comes to paying rent.

Be Responsive

You are letting out your property as it has been shown to your tenants and if anything should go wrong with the property then you need to be on hand to find a solution. So many landlords that I have either worked with or that my friends have worked with have been painfully slow when it comes to responding to problems. If you want to be  a great landlord then you need to fix problems as soon as they arise.

Screening Process

The one thing that costs landlords more money than anything else is unpaid rent, trashed properties and midnight disappearing acts. You can never totally avoid the possibility that this could happen but you can reduce the chances by following a thorough screening process and use due diligence. Ensure that your prospective tenant has no recent evictions, no recent felonies and has good references from previous landlords, you should also be asking for 3 months rent up front to give yourself some peace of mind.

Be Respectful

You don’t have to like your tenants, you don’t have to be chummy with them or condone of their decoration choices, you do however have to be respectful. Many landlords see their tenants as though they are some kind of problem, this is not the case and as mentioned before, these are your clients. In order to have the best possible relationship with your tenants, ensure that you give them the respect that they deserve.

Be Ready

As a landlord you are going to need the help of several professional services and it is important that you are ready with contact details when the time comes. An emergency plumber, a heating engineer, steam cleaners or indeed, a letting agent are all numbers that will come in handy and you should try to strike up a bond with them so that they can come to your need when it’s required. You may also need to find out how to protect a vacant property for times when you don’t have a tenant.

 

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