The condo market in Montreal seems not to be interested in slowing down. With so many condo construction projects coming up, a debate still rages on as to whether it is a sound financial decision to invest in condos, knowing very well that it is becoming a saturated segment in the luxury Montreal real estate. Some are also regretting the fact that they took too long to jump onboard since prices have continued to head north, and they are not about to slow down anytime soon.
An array of factors come to play when investing in a luxury piece of property like condos in Montreal, and the decision should always be well thought out because it will have an impact on one’s financial and overall future. But those notwithstanding, why would one consider investing in a luxury condo in Montreal?
A buyer’s market happens when there is a surplus of property for sale in that particular market. This is what is currently being witnessed in the Montreal luxury real estate market, and though it comes with a myriad of dynamics, most buyer markets will always work to the advantage of buyers, and this is why NOW is always the best time to buy a condo in Montreal.
This simply means that there are a lot of condos for sale in Montreal at the moment, and since not so many people are grabbing them, they tend to stay on the market for a long time, and this is likely to lead to a price drop as sellers will attempt to move their units by undercutting the competition. In such a market, with the exception of a few areas downtown and in surrounding areas, buyers tend to have more bargaining power since sellers are often eager to sell their properties and depending on the price, specs, and the area, oftentimes few people are actually willing to buy.
Even though Montreal is generally still a buyer’s market, potential buyers should still do their due diligence and ensure that investing in a condo will be the right decision.
The real estate trends in Montreal show strong indications that both property and sales prices in the condo market are still poised for more growth. For instance, the sale of condos went up by 11% more at the beginning of the year, compared to the same period last year. Prices also increased by an average of 5% in most hot neighborhoods.
This means two things for a potential buyer: either this is the right time to jump in and purchase a luxury condo while rates are still within reach, or wait for prices to continue going up until you can no longer afford a unit. Therefore, if you had the ability, it would make economic and investment sense to go ahead and secure a unit now, before it is too late.
Buying a condo in Montreal is relatively cheaper than buying a comparable single-family house for sale in Montreal. Though the actual cost will still depend on factors such as the specific neighborhood, the size of the home, and the cost of living, most experts opine and agree that condominiums are usually cheaper, though single-family homes are known to increase in value faster than the condos.
The Canadian dollar hasn’t been strong in recent years, and this is one of the reasons why a lot of foreign investors have been heading to Montreal to get a piece of its real estate, leading to the high condo sales we are currently witnessing. The Canadian dollar is relatively weaker than the major currencies, including the British pound, and the US dollar. This has propelled a lot of foreign buyers to grab condo units in Canada, especially in hot markets like Montreal, where units are certain to appreciate over time.
Though most of the prospective condo buyers in Montreal are upbeat about owning a piece of real estate right in the heart of a world-class city like Montreal, the increase in demand has also been necessitated by the fear of overbuilding. As it stands, a good number of new developments are struggling to find buyers and there are also thousands of condos that have been listed unsuccessfully, which have sat on the market for more than a year. It seems condos are also taking very long to be sold in the current market, and this phenomenon has created a surplus of units in the market, and it is working to the advantage of the buyer. Buyers not only have a range of options to consider but also, there is some room for bargaining and cashing in on the seller’s fears of being unable to sell their units.
If you are working downtown Montreal, you will save a lot of time, especially if you are lucky enough to find a unit closer to your workplace.
A condo is a low maintenance, and you won’t have to worry about taking care of exteriors or the land, because the condo association will do that at a minimal fee. You won’t even have to worry about snow removal or mowing the lawn.
Lots of amenities including swimming pools, and parking garages for the residents.
Condos often allow you to be located right at the heart of various sought out communities in Montreal. There are always building meetings to enhance interactions and improve communication among the neighbors.
Good security – it is not easy for burglars to access condos as they normally would with other kinds of properties. There is generally a locked entrance that is secured by a special kind of door and a Medico key or equivalent, and there are often added security measures such as video cameras, and sometimes even a live 24/7 security guard.
Investing in a condo in Montreal is indeed investing in a profitable asset, which you can always sell at a future date, following appreciation. If you are contemplating buying one in Montreal, take time to consider your choices so that you end up with a unit you will enjoy owning and living in.
I am committed to co-creating moments of life that will allow you to live luxury, on your own terms. Because freedom to choose is true prosperity.
Home never tasted so sweet.
Melissa Masella is committed to providing clients with luxury condos & real-estate in Montreal. If you want to buy a condo or a house, she will find the best Montreal homes for sale ; Laval & Outremont real estate.