Real Estate in Sherbrooke, Québec

[Account Closed]

Hey guys,

I’m in Montreal which is a real tough market to find good multi family deals in. Even the outskirts are starting to be overpriced. That’s what got me looking even further out and i landed on Sherbrooke as a pretty attractive place to purchase some multi family.

So i’m wondering, has anyone looked into investing in the Sherbrooke area or has some properties in Sherbrooke? If yes, any thoughts and tips?

[Marysa Diadelfo]

Hey Alex

I am also from Montreal and have come to the same conclusion as you. I have been looking at the Sherbrooke market for years ( long before i was in a position to purchase). Now we are looking to buy and have found that Sherbrooke seems to be a pretty good place for rental units. They will still cashflow and have good rentability. The market has also gone up quite a bit in just the last 2 years. I also know of a few people with buildings in the area and are very happy with their investment. Im currently trying to find a good agent to help me with my search as we are now ready to buy when the right property presents itself.

I was also looking in the trois rivieres area and they also have decent prices still. I feel like the tenant quality in that area is lacking though and the rents are one of the lowest in Quebec. I think Sherbrooke is still a much better area to invest.

[Account Closed]

i'm in sherbrooke. market is pretty hot right now (good multi family deals are sold within days if not hours of listing). most people use centris.ca to list

appreciation hasn't happened yet like it has in montreal/toronto/ottawa/vancouver, so its still possible to get good deals approaching the 1% rule (monthly rent = 1% of purchase price) but these properties tend to go quickly. 

also there's quite a bit of new development happening around the outskirts of sherbrooke, population is growing but maybe not as fast as new dwellings are being constructed. i've seen rental listings where the tenants are offered a free month's rent to sign.

i've been renting for the past 5 years in sherbrooke. i payed $420/month (nothing included) for a 3 1/2 from 2014-2017 for a property in murray st. (fleurimont, which is the eastern part of sherbrooke). right now i'm paying 875$/month (nothing included) for a large 4 1/2 (new building) on thibault st. which is further from downtown but the property is much nicer. before that i was paying 675$ (heating, electricity included) for a 4 1/2 on rue Grand Monts. 

so to summarize yes the market is good for rentals and more people are starting to notice. triplex, quad, and 5-plex are especially attractive if you can get the right deal. 

there's a large ($100 million) project currently underway to transform wellington street's downtown core (link below). something to keep in mind, if you plan on buying near that area (can probably expect some good appreciation as the project progresses).

https://www.sherbrookerecord.com/well-sud-project-gets-the-go-ahead/

feel free to message me if you have any more questions about sherbrooke, i'm currently closing on a duplex (in sherbrooke) that i'll be living in next year, i'm actually just getting started in the real estate market here but i grew up in the area so i know it quite well. 
 

[Marysa Diadelfo]

Do you have an agent you could recommend ? I have been looking but havn't found one yet

[Lu Bien-Aimé]

@Russell Butler Hi Russell, very cool that you are investing in Sherbrooke and also helping others that are not familiar with the intricacies of the market.

I am also looking at Sherbrooke to invest but I also live in Montréal. So the distance is one of the things that make me hesitant.

I assume that since you are present you are not using property management for your property, which is one of the things I'd have to look into. I am looking at markets closer to me for that reason, but none are as solid, "city wise" as Sherbrooke.

As you said inflation of the housing market in the Estrie region has not happened yet but it will within the next decade or so which means that it's definitely a good time to buy and hold.

[Asia Nebesnaia]

I just purchased a house with a great BRRRR potential there, Max Messier was my agent and did an amazing job! Now looking for decent contractors, can anyone share contacts? =)

[Michael Gorley]

I'm an investor from Ottawa and I would love to connect with all of you investors looking at Sherbrooke, we are targeting medium to larger-sized value add multi-units. I would love to get to know you!

[Pezaan Sham Patrawala]

Hi all, I too am looking into Sherbrooke rental investments and would be open to partnering up with someone with experience in the segment.

I have recently moved to Sherbrooke and see a big boom in rental property demand, the market is ripe for investment.

[Van Ha]

Quote from @Account Closed:

i'm in sherbrooke. market is pretty hot right now (good multi family deals are sold within days if not hours of listing). most people use centris.ca to list

appreciation hasn't happened yet like it has in montreal/toronto/ottawa/vancouver, so its still possible to get good deals approaching the 1% rule (monthly rent = 1% of purchase price) but these properties tend to go quickly. 

also there's quite a bit of new development happening around the outskirts of sherbrooke, population is growing but maybe not as fast as new dwellings are being constructed. i've seen rental listings where the tenants are offered a free month's rent to sign.

i've been renting for the past 5 years in sherbrooke. i payed $420/month (nothing included) for a 3 1/2 from 2014-2017 for a property in murray st. (fleurimont, which is the eastern part of sherbrooke). right now i'm paying 875$/month (nothing included) for a large 4 1/2 (new building) on thibault st. which is further from downtown but the property is much nicer. before that i was paying 675$ (heating, electricity included) for a 4 1/2 on rue Grand Monts. 

so to summarize yes the market is good for rentals and more people are starting to notice. triplex, quad, and 5-plex are especially attractive if you can get the right deal. 

there's a large ($100 million) project currently underway to transform wellington street's downtown core (link below). something to keep in mind, if you plan on buying near that area (can probably expect some good appreciation as the project progresses).

https://www.sherbrookerecord.com/well-sud-project-gets-the-go-ahead/

feel free to message me if you have any more questions about sherbrooke, i'm currently closing on a duplex (in sherbrooke) that i'll be living in next year, i'm actually just getting started in the real estate market here but i grew up in the area so i know it quite well. 
 

Hi, I am also in Montreal looking towards the Sherbrooke market. What neighbourhood/area would you say is best for appreciation with some cash flow? Which school districts would you recommend that I look at? Thanks a bunch. 

[Van Ha]

Quote from @Michael Gorley:

I'm an investor from Ottawa and I would love to connect with all of you investors looking at Sherbrooke, we are targeting medium to larger-sized value add multi-units. I would love to get to know you!

Hi, I read that you are an investor in Ottawa and I have been interested in the secondary markets in the outskirts of the city but am unfamiliar with them. What neighborhoods or schools would you recommend? Any advice would be appreciated. I really appreciate any help you can provide. Thanks in advance.