Investment Property in Montreal

Investment Real Estate in Montreal

Investment Property in Montreal
Investment Property in Montreal

Montreal property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Montreal .

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Search Map of Montreal Investment Real Estate

Montreal ( MUN-tree-AWL; officially Montréal, French: [mɔ̃ʁeal] (About this soundlisten), is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as Ville-Marie, or “City of Mary”, it is named after Mount Royal, the triple-peaked hill in the heart of the city. The city is centred on the Island of Montreal, which got its name from the same origin as the city, and a few much smaller peripheral islands, the largest of which is Île Bizard. The city is situated 196 km (122 mi) east of the national capital Ottawa, and 258 km (160 mi) south-west of the provincial capital, Quebec City.

In 2016, the city had a population of 1,704,694, with a population of 1,942,247 in the urban agglomeration, including all of the other municipalities on the Island of Montreal. The broader metropolitan area had a population of 4,098,247. French is the city’s official language and in 2016 was the home language of 61.2% of the population, while 26.4% spoke non-official languages at home and English was spoken by 23.1% of the inhabitants (multi-language responses were included in these figures). In the larger Montreal Census Metropolitan Area, 71.2% of the population spoke at least French at home, compared to 19.0% who spoke English. Still in 2016, 87.4% of the population of the city of Montreal considered themselves fluent in French while 91.4% could speak it in the metropolitan area. Montreal is one of the most bilingual cities in Quebec and Canada, with 57.4% of the population able to speak both English and French. Montreal is the second-largest primarily French-speaking city in the developed world, after Paris.

Historically the commercial capital of Canada, Montreal was surpassed in population and in economic strength by Toronto in the 1970s. It remains an important centre of commerce, aerospace, transport, finance, pharmaceuticals, technology, design, education, art, culture, tourism, food, fashion, video game development, film, and world affairs. Montreal has the second-highest number of consulates in North America, serves as the location of the headquarters of the International Civil Aviation Organization, and was named a UNESCO City of Design in 2006. In 2017, Montreal was ranked the 12th-most liveable city in the world by the Economist Intelligence Unit in its annual Global Liveability Ranking, and the best city in the world to be a university student in the QS World University Rankings.

Montreal has hosted multiple international conferences and events, including the 1967 International and Universal Exposition and the 1976 Summer Olympics. It is the only Canadian city to have held the quadrennial Summer Olympics. In 2018, Montreal was ranked as an Alpha− world city. The city hosts the Canadian Grand Prix of Formula One since 1978, as well as the Montreal International Jazz Festival, the largest jazz festival in the world, the Just for Laughs festival and Les Francos de Montréal, which is the largest event devoted exclusively to French-language music anywhere in the world. It is also home to ice hockey team Montreal Canadiens, the franchise with the most Stanley Cup wins.

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The financial stability of Montreal has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Montreal

Renting out your Montreal buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Montreal are – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Montreal and be prepared to change your initial outlook.
  • Thoroughly research the Montreal location with a special emphasis on fringe areas outside the main Montreal metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Montreal.
  • Ensure that your target investment property in Montreal appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Montreal properties yourself is an easy option, but are these savings justifiable when you run into Montreal red tape? Physis Realty Montreal office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Montreal buy-to-rent sector.

With our expert guidance, investing in Montreal provides the secure knowledge that your money is working harder than it would in a local Montreal bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Montreal, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Montreal property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Montreal

Flipping property in Montreal

Flipping property is when we advise clients to buy a Montreal property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Montreal market has a time to react to the renovation.

The Flipping Strategy in Montreal

Investment property flipping in Montreal is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Montreal real estate investments are sometimes referred to by professionals as ‘distressed’ Montreal real estate.

What is distressed Montreal property:

  • Montreal property in need of renovation
  • Montreal real estate with a change of purpose and use
  • Oversold Montreal property
  • Bank repossessions in Montreal

Put simply, long term investors in Montreal purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Montreal investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Montreal property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Montreal use a minimum profit value of 22% when looking at potential Montreal projects. The reason for this is because there are lots that can go wrong in Montreal property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Montreal

For luxury property investors hoping to add a superb property in Montreal to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Montreal, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Montreal should be entrusted to only the highest-quality agency.

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