5 reasons why you should invest in a pre-construction condo in Montreal.
This is a typical question when we talk to first-time condo buyer or investor “Why should I buy in pre-construction condo” and “why Montreal?”
Here are 5 reasons you should invest in a pre-construction condo in Montreal.
1. Better price
As an investor and even as first tome home buyer, everyone is looking for DEAL. One thing that defines a great investment in real estate is to make money when you buy, to do so people always want to buy under market value.
That’s what happening in pre-construction condo when the developer launch the sale, price are typically under market value to attract buyers and help them reach the smallest sales point they need to start the construction.
In 2016 for example, you could buy something at 2013 prices for a brand new unit you will get in 2018. People who bought at YUL condominium will then benefit this leverage.
2. Better resale value
The day your condo will be delivered, it will compete against 5-15 years old building and guess where the people will go if they want to buy a building for their son who goes to the University or for themselves. They will automatically go the brand new unit with new amenities, with technologies inside and not the one which was built 10 years before.
3. Progressive payment
This is a great benefit for people who have a plan to buy or invest but does not have the required down payment. If a couple wants to invest in a 2 bedroom condo now at 500K, they will need 100K down payment now (20%) if they want to close the deal and start putting a tenant inside. The reality is that not everyone has this type of money in their pocket while they could buy a pre-construction condo with a progressive payment structure like 20% in 2-4 years added to all the benefits we mentioned before.
4. Biggest student community in Canada
Why invest in a condo in Montreal ?
With surprise Montreal is the biggest student city in Canada with more than 170 000 students from all over the world with more than 11 Universities. What does that mean as investment? Studio should be one of your priority, you can now have great brand new studio at Le Peterson or Tom Condos.
People actually pay $1,300 for a 270 square feet studio in student residence, usually very old building. If you offer them a brand new and bigger studio (around 370 sq.f.) with brand new amenities, where do you think they will go?
5. Second economic pole in Canada
Montreal’s 2014 GDP is 165 Million representing near to 10% of Canada’s GDP in 2014 (source: Board of Trade of Metropolitan Montreal). This means that Montreal is first a safe investment but also offer growth on your investment.
Province of Quebec and City of Montreal are putting money to develop the city and you can see how Quartier des Spectacles is living a new renovation.