Montreal Housing Bubble / Bulle Immobiliere Montreal
Hi,
"Nearly 29 per cent of Greater Montreal condos are occupied by tenants, a higher rate than in Canada's two hottest real estate markets, Vancouver and Toronto, according to the 2011 National Household Survey."
"On the ground, we're seeing a lot of (condos being used as) rentals," said broker Raymond Singh, who's sold multiple units in the towers surrounding the Bell Centre, which have largely attracted investors. "
"Bindu Patel, president of the Montreal real estate agency Groupe Agents Élite, said about 60 per cent of her customers are investors who are looking to buy and rent properties."
As I shown in a previous post, it is becoming very difficult to be cash flow positive by renting your property.
So why investors are buying properties???
- To flip it and make a short term profit on the sale. Be careful with speculation (see the link section)
- If #1 fail (seller can't sale his property for the price he wants), it goes on the rental market.
- If #1 and #2 fail, the selling and renting price is cut.
Speculators are everywhere; worse than Vancouver and Toronto!
On the graph, we are at "Return to normal" phase -> Next, it is the "Fear" phase.
Prepare you Pepsi and your popcorn, it is going to be an interesting movie.
Is Montreal immune to an housing bubble??? The answer is obvious.
For those in Denial or in their "bubble", remember what happen in the past.
Links
"A Toronto tax lawyer is warning realtors — and people who’ve bought and sold new condos over the past seven years — that they could become unwitting victims of what he calls “abusive audit practices” by the Canada Revenue Agency."
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