When it comes to real estate investment, Montreal offers a wide range of options. Residential opportunities are always around, plus there are commercial properties that would make ideal investments. However, for people who are unsure of what type of investments to make, real estate may not be the first option that comes to mind. Some people invest well in stocks, but those are always risky to some degree. When it comes to a lower-risk investment, real estate is often the way to go.
Real Estate Typically Offers a Great Return on Investment
One of the main reasons that so many people opt to invest in real estate is the potential for high returns on their investments. As time goes on, the values of most properties increase. Plus, since many properties can be rented out, there is the option of income. This means that the investor not only gets more money when the property sells but also earns money that may cover the cost of the property in the meantime. When looking at this on paper, many real estate investors get paid to invest without losing any of their own money in the process.
Why Do Some Investors Shy Away from Real Estate Investing?
Real estate investment in Montreal is an excellent choice for many, but some choose to avoid this option. That is often because of the hiccups that can occur as a property owner. For example, if you are making money from renters, they may leave, and you may not be able to pay the mortgage without that income. Also, they could cause damages, leaving your property in ruins and unable to be rented. However, many of these issues are negated by hiring an experienced property management company in Montreal to do those odd jobs or keep an eye on the tenants.
Some people believe that investing in real estate in Montreal is not a quick enough way to make money. Investors with this mindset are often looking for ways to get rich in little time and with little effort. Real estate investing is a slower way to make money, but it also comes with fewer risks than those investment options that can bring in money quicker. For a more sure-fire way to make money over the long term, real estate is the best choice for most people.
Real Estate Investing Can Be Done Safely
Thankfully, when it comes to real estate, Montreal investors have options to remain safe with their money. The Ottawa Business Journal even noted a few steps to help people stay as safe as possible when opting to invest in Montreal real estate. These steps include:
- Always do your due diligence, no matter what type of property or how it was acquired.
- Use properties as a way of deducting from your taxes whenever possible, especially the interest paid on the mortgages.
- Buy real estate that has long-term tenants whenever possible. This way, you avoid having to renew old leases or find new tenants.
- Look at what work needs to be done on the property yourself before investing. This can make investing a lot less costly down the line.
- Research before putting in a bid. That way, your bid on the property is in line with similar ones on the area.
- Compare income potential with expense potential before even considering putting a bid in on a property. That way, you can ensure the property pays for itself while still allowing money to be set aside just in case of an emergency.
- Always diversify your investments. Having them all in one place could come back to haunt you later if the market fails in any way.
The Numbers Are on the Rise
While some investors thought real estate was going downhill in 2018, by the time 2019 started, the market was already showing a rebound. Today, the numbers are still on the rise, indicating that real estate is still a great investment option. In fact, the market is growing so well that there is an expectation for further national sales growth of as much as 7.5 percent in 2020.
Currently, Montreal real estate investments are looking favorable to those who want to begin learning about the market. While it may not be on the fast track, it is still showing a steady incline. People who invest in real estate in Montreal often opt for buildings that house multiple families, senior housing, and office spaces.
Montreal Real Estate Investors Can Focus on Several Areas
Not all of Montreal is going to have the same positive return on investment, as some neighborhoods are more sought after than others. However, for anyone looking into real estate investing, Montreal has four neighborhoods that are incredibly desirable right now. They include:
- Griffintown: This area is getting a lot of attention from the young professionals in the market, especially those that like industrial condos.
- La Prairie: This part of Montreal is getting lots of attention from homebuilders. Nearly as quickly as a new home is built, it is purchased.
- Rosemont-Petite Patrie: This part of Montreal is considered a more affordable option for those that want the amenities of the Plateau.
- Verdun: This area in Montreal is great for young, urban singles and couples. The prices are reasonable, and the options are vast.
Montreal real estate investments show the potential for a few years of steady growth. While the growth may not be quite as significant as in other parts of Canada, the fact that the growth patterns are steadily increasing shows many in the investment community that the markets will remain strong.