Montreal Real Estate Blog » condo buying

Video Blog, Episode Two: Affordable Downtown Condos

Deya Bautista — Thu, 25 Aug 2011 11:12:54 +0000

[Transcript]
Hi Deya Bautista here.
A lot of people ask me by email what are the areas that I recommend investing in. It will depend on your budget but if you’re looking for an apartment near downtown, very close to old Montreal and you have a budget within $250,000 to $400,000, you can have a really nice apartment in this area.

There is a mix of construction in this area. We have building that were built about 20 years ago to. They are in the price range of $300,000 and $350,000 for 2 bedrooms, then you have the newest construction which is right behind me. Buildings that were done about 6 years ago. The units are a bit smaller, but they are still very interesting. There are 2 bedrooms with different layout, they’re going for $300,000 and $315,000. Some of them come with a parking, some of them don’t, it depends on what your needs are.

Over here what’s interesting is that if you’re working downtown, you probably won’t need a car because you have two close metros around here. One you can access by walking is Lucien L’Allier, and then there’s also another one you can access with a 5 minute ride with the bus, that is Metro Guy. Also walking distance to Old Montreal, it’s about 5 to 6 blocks from here.

The area is booming right now. There is university students, young couples, young professionals are moving in the area. Its pretty dynamic area. You have all the amenities that you need. For example, a new grocery store (a huge one) in the corner, restaurants, cafe, dry cleaning services, access to the highway.

All that we need to live downtown, you have it right here.
Take a look at it. If you have any questions or if you’d like to visit some of the properties that are available here you can always contact me at deya at mcgillrealestate dot com.
Thank you very much and I will see you next time.

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

Condo Sales Increase: Not Only in The Metropolis

Deya Bautista — Wed, 06 Jul 2011 18:42:34 +0000

Interesting information in one of the FCIQ articles called: “Condominiums: No Longer Restricted to Large Urban Centres”

It mentions that over the past 10 years (from 2000 to 2010), the condo market in Quebec has rapidly increased with sales that grew by 124% compared to that of single family homes which only went up to 41%. So more condos were sold than family homes.

You’d think that condos were only heading the market on urban areas, but they are saying: “Saint-Hyacinthe, Saint-Jean-sur-Richelieu and Granby, condominium sales accounted respectively for 20, 14 and 12 per cent of all residential sales.”

Smaller urban centers are taking up condo living, it isn’t a downtown thing any more. And with some many options, prices and styles for condos, it doesn’t surprise you that young buyers are deciding for a more practical living quarters, such as a condo over purchasing a house.

If you’re in the market for condo buying or would like to sell your condo, contact me for more information on all our Real Estate services.

How to Protect Yourself When Buying New Construction

Deya Bautista — Thu, 02 Jun 2011 13:20:51 +0000

Following up with the article: New Condo Building Collapsing. Another great article by William Marsden from the Gazette, on how to protect yourself when buying new construction. The tips are quite interesting, I will add my own comments between the square brackets [ ]

The New Home Guarantee covers new condos that are part of small, one-to-fourstorey condo buildings. Highrise condo buildings are covered by private insurance plans.

Like all insurance policies, it’s important to understand fully the conditions of the Quebec government’s plan so you can protect yourself at every step during and after the construction process.

HERE ARE SOME TIPS:

1. Check with the Régie du bâtiment that the contractor is properly licensed and check his experience. Just because he holds a licence to install a foundation doesn’t necessarily mean he knows what he’s doing. [ Very Important!! - also check for any awards won by them, written articles and reviews about their company etc]

2. Make sure you read the entire condo purchase agreement so that you know exactly what you are buying and so that you understand your rights and liabilities relating to your condo and your building’s common spaces. This will help you make sure that at the end of construction, you get exactly what you were promised and that you are not liable for unforeseen payments to, for example, unpaid subcontractors.

3. The warranty covers up to $39,000 as a down payment. So don’t pay more than that. If the contractor goes bankrupt, you will probably lose anything above that amount. [ Again, do your homework about the previous work from the company to establish their credibility, financial strength, etc. Some units, depending their price, will require more than 39K as a downpayment ]

4. Get to know your fellow condo owners as soon as possible. Don’t wait until after construction is finished to form a condo association. Hire your own inspector to assure the work is done properly while the building is still under construction. Get the inspectors to supply written reports on the progress. If you can’t afford an inspector, call the city and get them to inspect the construction progress.

5. At the end of construction, your association must hire an inspector to inspect the entire building. Make sure that you get everything you paid for and that the work conforms with the building code. If the inspector finds any problems, make sure they are repaired before the condo association accepts ownership. DON’T make your final payment until all the work is completed to your satisfaction. Contractors might make empty promises and harass you for the money. If you give in, you’ll might never see them again.

6. Make sure that any communication with the contractor is done by registered mail so that you have an official record. You must make any claims on the warranty within six months of finding the problem, so you have to have a record of all communications. And make sure you send notification of faults immediately after they are discovered by registered mail to the administrators of the New Home Guarantee program. According to the Régie, many owners find they are not covered because they allowed a contractor to delay the work past the six-month period and then had no record of communications to prove their claim. [ Email will also work. Keep records of all of the messages sent and received ]

7. The guarantee lasts only five years.

8. Remember, in the end, only you can look after your interests. [ I could not agree more.]

New Condo Building Collapsing – The Gazette

Deya Bautista — Mon, 30 May 2011 12:55:29 +0000

“It was a new condo building.
A construction flaw was making it collapse under its own weight.
The city condemned it as unsafe. The residents had to move out.
The turned to the new home owners warranty to pay for the massive repairs.
But there was a loophole.”

This was the first paragraph on the front page of Montreal Gazette’s on Saturday. Anyone, buyer or not- will become extremely wary of buying new construction after reading the entire story.

The builders have not been held accountable for the damages, nor they have repaired (or offer to do so) the disaster of construction they created. The administrators of the New Home Guarantee Program refused to cover the repair costs to the building because the (five year) warranty had expired at the time all the faults were discovered.

The warranty program requires that when construction is completed, the contractor must inform the condo association that it has to hire an independent, professional building engineer to assure the work meets the building code and the specifications of the purchase agreements. The inspector’s report is then given to each condo owner. If more work is required, the owners can hold back their final payment until the faults are repaired. When the construction is deemed to be finished, all parties sign an end-of-construction document and ownership of the building is turned over to the condo association. That’s when the five-year guarantee begins.

The dispute is over the end-of-construction agreement, whether it was legally executed by the contractor.

By now you might be wondering, how can you protect yourself from a situation like the one above?
There are several steps you can take. We will discuss it in the following article. Stay tuned!

Commute is driving Montrealers into condos downtown

Deya Bautista — Tue, 17 May 2011 14:00:55 +0000

- TD Canada Trust Condo Poll suggests condo affordability is key for young homeowners -

MONTREAL, May 10 /CNW/ – Many Montrealers are attracted to condos because they want to live downtown and cut down their commute. In the 2011 TD Canada Trust Condo Poll, which surveyed Canadians who are thinking of buying, or recently bought a condo, more Montrealers named these two reasons as the main motivation for their condo purchase than respondents in any other city. The poll found affordability to be another main reason for Montrealers’ interest in condos (42%). Across all cities surveyed, affordability was most important for respondents under 35-years-old (62% versus 46% for other age groups). This age group seems to view condos as a stepping stone into homeownership, with many planning to move in the not too distant future. But, is this a good strategy?

“The convenience of living downtown and cutting down the commute time is making condos an attractive option for many Montrealers who view them as an affordable alternative to a house,” says Christine Marchildon, Senior Vice President, Quebec Region, TD Canada Trust. “However, if you ultimately hope to own a house and plan to move from your condo in a few short years, I strongly encourage you to calculate the costs that you will incur, such as condo fees, parking fees and moving expenses. Depending on how soon you plan to move, these costs could outweigh the equity you’ll build and receive from the eventual sale of your condo.”

What do Montrealers say are the most important features in a condo?

The top feature Montrealers look for in a condo is a balcony (92%). They also say low condo fees are important (91%) and nine-in-ten Montrealers (89%) said they wouldn’t pay more than $400 in monthly condo fees. These figures remain consistent with findings from a similar poll conducted by TD Canada Trust in 2010. Attractive interior design features (89%) were also important. Nationally, those over 50 are more likely to say attractive exterior design is an important consideration (88%), whereas younger respondents were more concerned about being close to public transit (85%) and near theatres, restaurants and shopping (85%).

Home Sweet Home – but for how long?

Four-in-ten (41%) Montreal respondents expect to live in their condo for three years or less (14%) or four to six years (27%). Nationally, the number planning for a short stay jumps even higher amongst respondents under 35. In fact, across cities surveyed, nearly one-quarter (22%) of respondents in this age group said they don’t plan to spend more than three years in their condo and another 45% plan to move after four to six years.

Has the tightening of mortgage rules affected the condo market?

As the TD Canada Trust Condo poll found young Canadians to be most concerned about affordability, it is not surprising that many in this age group said the new amortization change to 30 years for new mortgages had a significant impact on their decision to choose a condo over other types of homes (63%). Lending law changes didn’t influence Canadians over 50; three-quarters say the changes to lending rules had no effect on their decision to consider a condo.

Somewhat alarmingly, the poll found that more than one-quarter of Montrealers who intend to buy a condo (26%) were not aware of the recent changes to lending rules. Nationally, this number was even higher (39%) among those under 35. “If you’re planning to apply for a mortgage, it’s essential that you understand the lending rules and the options you have. This allows you to weigh the pros and cons of different mortgage options and make well informed decisions about the type of mortgage you choose and the size of down payment you can afford. This can save you a lot of money in the long run,” says Marchildon. “There are experts at the bank who can walk you through different mortgage options and help you find the right solution for you, including a variety of flexible mortgage payment features, which can give you the choice to manage your mortgage payments, which is something that you may need in the future.”

Condos popular with boomers but for different reasons than young Canadians

Those over 50 are attracted to condos because they fit into their plans to downsize their home. Not surprisingly, when those over 50 move into a condo, 31% don’t plan to move again. Since they plan to stay put, many over 50 are making their condos as comfortable as possible, with 53% planning to spend more than$10,000 on upgrades (compared to only 15% of those under 35).

“Moving to a smaller, less expensive home can sometimes be called ‘right-sizing’ and allows many pre-retirees to afford a bit more luxury in their new space,” says Marchildon. “If homebuyers plan to make upgrades, I recommend they make a budget and stick to it. Especially for those who are selling their home and downsizing as part of their retirement strategy, it’s important not to get carried away and spend all the extra money you earned with the sale of your previous home.”

http://www.canadianbusiness.com/article/24500–commute-is-driving-montrealers-into-condos-downtown

Interesting: Développements McGill Family Investment Program

Deya Bautista — Thu, 16 Sep 2010 17:00:08 +0000

I came across this great new program for young buyers in Old Montreal, specifically for students (and their parents) wanting to purchase a condo with low downpayment. Développements McGill created a new Family Investment Program that offers a fantastic purchase options. Here are the details:

“We have formed an partnership with the Royal Bank (RBC) to enable families with children aged over 18 studying or working in Montreal to enrich their family assets by buying a new condo in a booming neighbourhood with one of the highest value appreciation rates on the Island of Montreal,” said Stéphane Côté, President of DevMcGill.

The partnership lets DevMcGill offer first-time buyers very advantageous terms, including:

joint mortgage application by parents and children, if desired, making it easier to get a pre-approved loan;
the child’s name only on the property deed, qualifying the condo as a principal residence and exempting it from capital gains tax when it is resold;
very modest down payment (starting at 5% of the selling price);
guaranteed interest rate until construction is completed to shelter the buyer against any rate increases;
$1,000 rebate on notary’s fees when the transaction closes.

To read the full press release visit their website: English version. Version Français

For more information on the Family Investment Program and the M9-3 project, visit the sales gallery at 800 Wellington St. in Montreal or the DevMcGill.com site.

About Développements McGill: For 10 years, Développements McGill has been building intelligent living spaces for tomorrow. Its award-winning projects, including Le Couvent Outremont at the base of Mount Royal, Le Caverhill, Le 777 and Le Orléans in Old Montreal, and Square Benny in Notre-Dame-de-Grâce, speak to the imagination.

No Escrow in Montreal

Deya Bautista — Mon, 18 Jan 2010 11:22:32 +0000

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 and their contact number.

“A what? Escrow ??….Hmm, I think I’ve heard that before. Not sure where. Let me look into it.”

I’ve called two friends in the industry that have been in the business for about 20 years, and then I talked to my broker and there it was, the same answer: “A what? Never heard of it.”

Apparently, and up until today, there are no escrows companies in Montreal. Not it is used in the real estate transactions here. Maybe they are listed under a different name? If so, please enlighten us in the comments section.
So far, we haven’t have a demand for it. Good news for litigation lawyers.

PS: If you’re itching to know what escrow is, here is the wiki definition.