No Escrow in Montreal

We don’t hear about Escrows in Montreal. Believe it or not, my fellow Real Estaters (I think I just created a new word) from other provinces and countries.

The first time I heard, actually I didn’t hear it, I READ the word Escrow it was in a Condo Buyer’s Guide I picked up for my clients, and right next to the glossary description of escrow there was a note: Not applicable in Quebec.

Naturally I didn’t take interest on that word, up until I had to work with someone who demanded a escrow company Read more >>

What’s Included on the Closing Costs?

To first time buyers, closing costs are always sort of a mystery: They have a slight idea of what it is, but don’t know what’s specifically involved or how much it will cost. Many people think it is just the notary fee and that’s all.

Sorry folks, that’s not just it.

In addition to the mortgage down-payment, you (the buyer) will need to put aside some money for the costs related a home purchase. What are these closing costs?

Here is a short list of the basic expenses you can anticipate: Read more >>

2009 December’s Market: Looking Good

December’s market seem to be very active this year. No need for the monthly sales stats to confirm that. Normally it is a slow month, because of the Holidays. Most people are into Christmas shopping, Christmas dinner parties, and little time to seriously visit homes. But there are still buyers calling for information and getting their finances ready for the next year – which is only a few weeks away. Many people are waiting for the new year to seriously start looking at homes.

There are still plenty of agents working over the holidays, as most take their vacation in the summer. I skipped my summer vacation this year (well, partially), and decided to go away for the holidays instead – Don’t hate me for it. Sheila is staying to cover for me while I’m away, and several blog posts have been schedule for when I’m gone.

Back to this month’s market…

There should be activity right after Christmas Day. I find it amazing how people can be so dedicated to finding a home right after the customary family and social (and/or religious) responsibilities such as Christmas. From the 26th on, the phones shall be constantly ringing.

If you’re selling your home, that is good news. Although you will not get the same amount of prospective buyers as, say for example in February. But you can rest assure that those few people who are visiting during the holidays are seriously looking to buy a home. Otherwise, they’ll be staying in, eating the leftover turkey and drinking eggnog.

Buying an Income Property to Live in

There is a fundamental difference between buying a property solely for investment purposes and buying it to live in it.
We all want to live rent-free. Having the revenues cover all of the expenses, including the unit we occupy. And while all of this is feasible, it is important to mention that certain factors affect this outcome: size of the building, revenues, etc. So let’s take a look at what we can expect when searching for a income property.

Buying a property as an investment alone

Your home is else where, but you want to buy as an investment. This is all a numbers game: a property that generates enough revenues to cover all the expenses and then some. The bigger the property (with larger units) the bigger the revenues, in this case you can expect to have expenses paid, plus a little extra at the end of the year. But this does not always occur with smaller properties such as duplexes or triplexes.

Buying an income property to live in it

You’re contemplating to buy, say, a triplex and you’re planing to live in it, your main concern does not go so much in:
After all expenses are paid; How much does this property gives at the end of the year? Chances are with smaller properties they would cover only the expenses.

If you’re living in it, and you only have one unit with tenants, it’s highly unlikely you’ll be making a surplus of money at the end of the year, much less going on vacation with property revenues.
Instead, ask yourself: How much does “your” portion of the mortgage represent?

For example: Read more >>

Investing in Montreal: What is the next trendy district ?

Another good video blog-post by McGill Real Estate Blog. Patrice Groleau explains the main differences between the East and West areas of Montreal, and why it is better to consider investing on the west side. Here is the video. Enjoy!

Home Ownership: Quality of Life Program

This morning I received the latest electronic bulletin from the Montreal Real Estate Board, and I was pleased to read about one more addition to the First Time Buyers Program, a new take on the RRSP maximum withdrawing amount as well as the possibility to have all RRSP holders (not just first time buyers) to invest in Real Estate. Here is a copy of the bulletin, that explains what the Quality of Life Program has to offer:

The Québec Federation of Real Estate Boards, through its Quality of Life program, is making access to home ownership a top priority in its government relations initiatives. Representatives of the Federation’s Government Relations Committee made a concerted effort to have the ceiling lifted on the maximum amount of money that can be withdrawn under the Home Buyers’ Plan (HBP). The maximum that can be withdrawn is now $25,000 for each RRSP-holder, so couples can now withdraw a combined total of $50,000 to buy their first home.

By the fall of 2009, the Federation will lobby the federal government for a new commitment – that of opening the Home Buyers’ Plan to all RRSP-holders. This would make the HBP available to first-time buyers, and to all people who want to use their RRSP to invest in real estate. Hopefully, the Government of Canada’s Department of Finance will grant the Federation’s request during its next economic update. Read more >>

Condos for less than 100K?

Recently one of my readers asked me if there was still condos available for less than $100,000.
I don’t often come across properties within this price range, but for the sake of knowing what you can get for that price, I did a quick search and found that:

• Homes for less than 100k are often mobile homes.
• Condos are still available, but they are quite small and in need of major renovations.

The condos found under this criteria were mostly found on the east end (R.D.P/ P.A.T), some others in Ahuntsic and one in Côte-des-Neiges. Here is a compiled list of the properties available (PDF file), these properties are listed with different brokers.
Not all the properties have many images, but it gives you an idea of what you can get for that amount of money in today’s market.

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