Montreal people - let's introduce ourselves

[Alexandra Hollenbeck]

Hello!

My name is Alexandra and I am new to BP and to Montreal! I am originally from Florida but moved here in Hope's to enter the real estate market and make use of the 1% rental vacancy rate... it still shocks me...

Anyway, how did you guys enter the Montreal rental game? What kind of properties are most valuable in Montreal? My goal is buy a multiplex, but I think I will start with condos first, as they still have a good ROI in MTL and will give me a backbone in my investment portfolio.

Let's start a convo! I'd love to learn, meet, or even help out somehow. 🙌

[Victor Menasce]

The problem with rentals in Montreal is that the properties are relatively expensive, rents are relatively low, and the legal environment heavily favours tenants. The low vacancy rate is a reflection of the fact that there is very little new product entering the market. Demand has exceeded supply, but rental prices have not risen to match the increase in demand. If it was a great opportunity, investors would be flocking to the market and building new apartments. We have a very similar situation in Ottawa. Only select segments of the market make sense financially. You will find that older condo's are selling at much lower prices than new ones. They can make a good rental. But the lower prices are a reflection of the fact that they weren't selling. If you do the analysis properly and include all the expenses including maintenance, reserves, you will find that the cash flow is weak unless you borrow a very low ratio.