Investing in a condo is never something that should be done lightly. For many, buying a condominium is quite the milestone, being the first time they’ve ever bought property as opposed to renting it. Montreal’s condo market is booming and looks to continue down that path, especially with a potential overhaul to the city’s transportation network on the horizon, giving more and more projects direct access to the recently announced light rail transit network, which kicks off in the summer of 2021. However, you need to make sure your condo investment is well-timed in order to gain the most benefit from buying your new home, especially if you’re a first-time buyer.
What is the health of the market?
The real estate market in Montreal is booming, with condo sales in particular on the upswing, with sales overall for 2017 up 13% from 2016. According to a survey by Shupilov Real Estate, condos represented the highest volume of sales, with more people buying them than detached homes or duplexes/triplexes. This trend is expected to continue into 2018, and may, in fact, grow due to the new Canadian Mortgage Stress test, limiting the size of mortgages. As a result, more people will be opting for the smaller mortgages that come with condos. Foreign investment is also growing, while millennials are also investing in real estate, helping drive the market. All this helps to make property more valuable.
Can you afford it?
There are many advantages to owning a home, but before jumping in it’s wise to consider the financial stakes as well. The best thing about owning a home is that you’ll no longer be wasting money on rent. Instead, you’re paying down a mortgage. Quicken also notes that home ownership costs are often more stable. Landlords can increase rent, but if you’re paying a fixed rate mortgage with predictable other costs, you can budget more appropriately. However, when you buy, you’re responsible for maintaining the property. When it comes to condos that means buying condo insurance, as you never know what could happen as you’re sharing a building with other people you don’t know. It’s worth doing a careful budget before jumping in and making sure that you can afford all the various costs that go into buying a condo. It’s a great investment, but you shouldn’t rush into it.
Is the neighbourhood right for you?
When you buy a condo, you want to make sure it’s located in the right kind of neighbourhood. Depending on your needs, the neighbourhood you move into should be in close proximity to things like schools, as well as grocery stores, shops, and anything else that adds to the value of your property. One important thing to consider is ease of access to the downtown core. In that vein, consider buying a property close to a station on either the metro or RTM (Réseau de transport Métropolitain) lines, as this kind of access could help boost property values.
If you’re looking to buy a condo, consider one of DevMcGill’s innovative construction projects. Whether you’re a first-time buyer or not we have something to suit your needs. View our current Montreal condo projects here to find your next home or call at 514-288-4737.
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