Pre-Con Condo - South Shore Montreal - Yeh or Neh

[George Vans]

Hi,

I am looking to buy the 1st high rise condo build in the south shore of Montreal, along highway 10 and 30 in the new Solar Uniquartier, next to Dix30 and right next to the new Montreal light rail train station (Montreal REM). Why I believe this is an attractive investment

Pros

I. New transit system coming by 2021. The condo will be the only one which will have a built in walking pathway to DT

II. First of kind luxury condo in south shore of Montreal (10 min train ride to core downtown montreal)

III. Similar condos are selling for $500 in outskirts of Montreal, and $600-800 sqft. in core DT.

IV. Attractive financing package 

Cons

I. Most likely a negative CF property (-$100-150 / mo.) negated by the fact that Brossard housing is on fire (SFH + 15% YoY, condos + 2% YoY)

II. Missed opportunity cost. Can invest in REITs or other rentals in DT

III. South shore of Montreal is not a rental market. No universities. No colleges nearby. 

The price I am looking at is $400-420 sq.ft. (say $370-400K with parking), 2 bedroom, when luxury condos are selling for $300-$350 sq.ft. in the vicinity (3-6 Km away) (2011-2015 make) and new townhouses/condos are going for $240-250 sq.ft 3-4KM from this new high rise so will be 20-30 min walking distance to the REM. 

Property I am looking at is 2 bedroom: prices range from $380-440K with parking (800-930sq.ft.) ($380K for the 800sq. ft. 440K for the 930 sq ft.)

Rents in the area are for $1500-1600 for similar luxury condo at today's price. (I expect this to go up to $2000 in 3 years once the Solar Uniquartier is developed). The Solar Uniquartier will be one of Quebecs largest residential area. Right now there is nothing there. But across the street is DIX30 which was developed 8 years ago (a mega-shopping mall).

The project is called Nobel Condominium. Delivery is set for 2022.

Decisions... decisions... You guys think this is a good investment