Real Estate Glossary: M

Maintenance Fee
A periodic assessment or charge that residents pay to their homeowner’s or condo association to pay for the maintenance and repairs of common areas.

Market Conditions
Factors that can affect the sale of homes in a certain area. Such factors include interest rates, the unemployment rate, home appreciation, weather, time of year, etc.

Market Value
The highest price in terms of money, which the property will bring to a willing seller if exposed for sale on the open market allowing a reasonable time to find a willing purchaser, buying with the knowledge of all the uses to which it is adapted and for which it is legally capable of being used, and with neither party acting under necessity, compulsion or peculiar and special circumstances. Read more >>

Buying a New Condo: The Pros and Cons

You can buy a new condo from the developer before or during its construction and also before the condo corporation is formed. A developer may have some unsold units available after the condominium has been completed and registered.

In some markets, the developer may wait to sell a large percentage of the units before registering the condo corporation or even starting construction, in the latter case it’s what we refers as: Pre-sale phase.

Keep in mind that a deposit is required to secure or reserve a condo unit in a new development.

Buying a new condo. The Good Side:

• The purchase price could be lower than resale market (used) condos. Especially in pre-sale phase of the construction.
• Your property will gain value; from the time you purchase the pre-sale unit to the time that it’s delivered. This, of course, it’s subject to the current market conditions.
• New home warranty protection. (Up to five years)
• You have more choice of locations within the building; floor level, different views, etc.
• Customized design (in some cases); more options and upgrades to choose from, such as: material, color of the floors/ cupboards, etc.
• Newer buildings have less risk of having to undergo costly repairs and renovations.

Buying a new condo. The Bad Side:

• If the constructions have not started, you cannot physically see what you are buying and have to rely on floor plans and sketches that are subject to change.
• Your initial deposit will be locked up for the duration of construction
• The construction may not be completed by the expected date. The delivery date can be later than originally agreed.
• It’s possible that you may move into your unit while construction continues in others: it could be noisy.
• Taxes. New constructions have to pay GST and QST. (Not the same as the Welcome tax ) The good news for first time buyers: you might be eligible for a housing rebate.

Basically it comes down to this:

If you’re not in a rush to move in, then a new condo might be a good choice. New construction can be unpredictable when it comes to delivery dates, some do deliver in time, others can take a few months more than speculated. For buyers who don’t want to do renovations themselves; a new condo construction offers you a “key in hand”, no headaches type of solution. All you have to worry about is decorating to your own taste.
Apart from the above mentioned facts, there are also several government refunds for those who purchase in Eco-Friendly Projects.

So there you have it. The choice is yours.

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Today’s photo: Montreal Trust Building

Photo: Johpor

The Montreal Real Estate Blog showcases outstanding images from talented local photographers. Images are licensed with Creative Commons 3.0 . If you’d like to submit your photography, please join our flickr pool.

Hot Development: Le Amherst

Don’t let the ugly angle and raggedy looks fool you. This little project is selling like hot cakes.

Recently found by one of our readers who happened to pass by the area. As he explained: “it was like a flash appearance, one day the lot is empty and next thing you know..WHAM! the building is almost done”

I have to admit, I didn’t see it coming either. And after looking at it in person, didn’t think much of it. Until I checked out their website and took a good look at the number of units sold. Impressive to say the least.
Out of 40 units, only 8 are currently available. A blue light sale?

With the location they have: Amherst and de la Gauchetière; two steps to Old Montreal, Gay Village, Downtown; they are asking a pretty decent price. But enough of the generalities…let’s get to the nitty gritty:

Where: Amherst corner of de la Gauchetière
Size: 1 and 2 bedroom apartments. 40 units in total
How much: Between $151,900 – $199,900
Developer: Mondev Construction
Incentive: “Benefit from our New Access Co-Ownership Program and receive a Cash Deposit toward your purchase of up to 20,000 $ ” (from their CraigsList ad)

Cash deposit of $20,000? Where do I sign?

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Today’s Image: Rue Durocher

Photo: Deyanira Bautista

The Montreal Real Estate Blog showcases outstanding images from talented local photographers. Images are licensed with Creative Commons 3.0 . If you would like to submit your photography, please join our flickr pool.

Real Estate Glossary: L

Land Contract
A legal contract or agreement for the sale of property where the buyer takes possession while making payments, but the seller holds the title until full payment is received.

Land Title
The legal document conveying title to a property.

Land Titles System
A system used for the registration of land. Under this system, the registrar or master of titles passes on the validity of the instrument and determines its legal effect with the Government’s guarantee of the title.

Land transfer tax
A provincial tax payable on any property that changes hands. First time buyers may be eligible for a rebate.

Latent Defect
A deficiency or fault within a property that is not easy to see or visibly detectable, such as termite damage or traces of radon above safe levels. Read more >>

Canadian Interest Rates Morning Recap

Interest rates drop half a point – The Star.com
“Bank of Canada governor Mark Carney has signalled the need for lower consumer borrowing costs and hinted further interest rate cuts may be required to shield Canada from a worse-than-expected slowdown in the United States. For the second time in eight weeks, the Bank of Canada slashed its policy-setting overnight interest rate by half a percentage point, to 3 per cent.”
Read the complete article

Big banks slow to react to Bank of Canada rate cut – The Vancouver sun.
“The Bank of Canada slashed its key interest rate a further half point, and hinted at more rate relief to come in an effort to keep Canada from being dragged into recession by a deeper and more protracted than expected downturn in the United States.”
Read the complete article

Canadian Mortgages Getting Cheaper, Variable Rates Gaining Popularity - CEP News
“With the Bank of Canada’s easing of interest rates over the last several months, including the most recent half-point reduction Tuesday, variable rate mortgages are gaining in popularity as Canadians try to take advantage of lower credit.”
Read the complete article

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