The Montreal Real Estate Blog

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 »»

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.

Usually, a deposit is required to secure or reserve, a condo unit in a new development.

Buying a new condo. The Good Side:

• 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.
• Newer buildings have less risk of having to undergo costly repairs and renovations.
• The purchase price could be lower than resale market condos. Especially in pre-sale phase of the construction.

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.
• Some banks may refuse to give you a mortgage if the condo corporation has not been registered.
• The construction of the units may not be completed by the expected date. And the delivery date can be a lot later than originally agreed.
• It’s possible that you may move into your unit while construction continues in others.
• Last but not least; More taxes. New constructions have to pay GST and QST. (Not the same as the Land Transfer Tax) But, the good news is: you might be eligible for a housing rebate.

So there you have it. The choice is yours.

Still want to buy a new condo? Send us an email. Perhaps we can help you.

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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.

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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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.

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 »»

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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333 Sherbrooke St., East: a luxury condominium project designed to appeal to a clientele with an eye for quality and location.

In the heart of Montreal’s trendy Plateau neighbourhood, the development consists of 83 units in Phase I, 67 units in Phase II, and 30 townhouses linked to the property. The second phase of construction at 333 Sherbrooke St. East, was officially launched on April 1st 2008 by Richard Homburg, President and Chief Executive Officer of Homburg Invest Inc., the occupancy is set for autumn 2008. The $35 million second phase increases Homburg Invest’s total commitment to its Montreal portfolio to more than $1 billion over the past three years.

“Phase I is effectively sold out, and Phase II sales have surpassed the critical level needed to ensure the success of the project. Once completed, 333 Sherbrooke St. East will be a reference for luxury condominium living in downtown Montreal.” Mr. Homburg said.

To date, the project has attracted buyers from all over Europe, the United States and Canada.

“Location, location, location. Montreal is ideally situated as a major crossroads for European and North American trade and business,” Mr. Homburg continued. “Montreal possesses all the qualities of a major real estate market, from a large, well educated population to a solid transportation infrastructure to a growing economy supported by healthy activity in several key sectors, like aerospace, life sciences and information technology”

Source: NewsWire.ca

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Oh yes, once again Boulevard St. Laurent is going through major repairs. This time though, the city has put up a sign with the details of the work. Thanks, that helps a lot.

Not having enough repairs done last year, the digging up started once again, this time it’s Gaz Métro turn. The city intends to add a few “cosmetic changes” to the boulevard by enlarging the sidewalks (aren’t those sidewalks brand spanking-new?): addition of lamps and trees, insertion of historic indicators (if this continues, there will be no one who’d care to read them!), taxi stands, bus stops and even the installation of parking for bicycles on the sidewalk.(Uh?). The good news, the bicycle parking is already done, at least on this side of the street:

Expect nothing but dust, noise and traffic jams in Blvd St Laurent between Sherbrooke and Mont-Royal. Hopefully, the local merchants will not go out of business. One more year of construction hell, then (crossing fingers) back to normal. Unless, of course, someone else decides to install a baby-stroller path, or something similar to it.

Media Coverage [Montreal Gazette]:

Pain on the Main: Work plans raise a stink
How city hall is killing St. Laurent Blvd. - one construction barrier at a time

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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’d like to submit your photography, please join our flickr pool.

• 10 Questions to Ask a Seller’s Agent Before You Hire Them - Vancouver Reflections
• Is a 40-Year Mortgage Hazardous for your Financial Health? - Move Smartly
• Underground contractors can cost you everything - St. John’s Real Estate Blog
• How long should it take to sell? - Toronto Real Estate Intelligence
• Variable rate versus fixed rate mortgages, what is the way to go? - Mississauga Real Estate

• Market Blog - Just bought a house? Don’t read this - Globe & Mail Market Blog.
• Homeless crisis grows while Canada prospers - The Vancouver Sun.
• ‘Cooling’ the watchword in Canadian real estate - CBC News.ca.
• Slide ends housing boom - National Post
• Has the housing boom gone bust? - Calgary Herald
• Low inflation gives Canada wiggle room on rates, analysts say - Canada.com
• A little mortgage savvy gets some big savings - Report on Business.

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When we saw the construction from this side of the building, the first thing that came to mind was “Yet another condo project.” But, as it turns out, it will be a new housing for the ETS students, located in the south-east corner of Rue Notre Dame and de la Montagne. According to the sign, it promises to deliver over 450 beds, food court on the first floor, etc. Not bad.

We found out from the workers, the project is expected to be ready by September 2008, although the sign says: Opening Summer 2008. They are only one month behind schedule, wow. Could this be the only project in Montreal that will open on time? We have to see it to believe it. We are keeping our eyes on it.

An interesting thing that will happen is the following: The project across the street Read more »»

Key Lot
A property that must be acquired because it is essential to the development of land, either because of its strategic location or the timing of the acquisition.

Kicker
Any benefit to a lender above ordinary fixed-interest payments such as an equity position in a property or a percentage participation in the income stream.

Photo:Splendeur du Matin by  Pierre Éthier

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.