Montreal QC · Member since 2019 · 7 posts · 0 votes
Hi guys,
It looks like quebec forum is very inactive. Is anyone out there doing deals in quebec these days? how is the cashflow working for you? I want start doing "buy and hold" in the greater montreal area. What are your thoughts?
Rental Property Investor · Québec, QC · Member since 2015 · 28 posts · 22 votes
7y
Nothing like 1031 exchange from what I know actually. But if you refi a building, keep the money for real estate or the interests of your refi will be "contaminated"
For rental laws, we actually have to be creative. If you follow the laws, it's very bad for landlords. They allow us 0.5% increase every year. We don't know on which planet they live in, but it also take 40 years to get back your money on renovation you put in. So we have to actually negociate with the clients BEFORE putting money in or we never see it back. Evictions are also really tough, it can take up to 6 months unpaid before you can get them out. It's different but we can work around it.
Our government instance will need to change their mindset about landlords or we will all move to platforms like AirBNB, and they will create a big problem (lack of units). It's not a surprise that airbnb is not allowed pretty much everywhere in big cities.
Rental Property Investor · Québec, QC · Member since 2015 · 28 posts · 22 votes
7y
@Rodrigo Parada It's because your interests won't be deductible from your taxes anymore as they have been used for something not related to your real estate. Maybe a few things I don't know that can be done but to keep it simple, if I want to pay myself something like vacations, I use the cashflow.
It's based on a building to your personnal name. In a Quebec inc. it's different for sure but I'm not an expert, that's why I have an accountant to ask questions before doing any move I'm not sure. Build a Dream Team!
Quebec City, QC · Member since 2017 · 17 posts · 6 votes
7y
Hello all,
I am also living in Quebec (Levis) and am looking to buy and hold rental properties.
It's great to see others here with similar interests. I hope to buy my first multiplex apartment this year.
@Kevin Labonte - Can you recommend a good investor friendly realtor (who speaks English) to help find good deals?
Also, can anyone point me to where I can find info about the real estate market trends in Quebec/Levis over the last 10 years? Are property prices increasing/decreasing ??
Rental Property Investor · Québec, QC · Member since 2015 · 28 posts · 22 votes
7y
Dave Harvey can help you for sure
For Pricing, in multifamily it's another world, there is no speculation, it's all a numbers game. Same building with different numbers are not worth the same.
There is a lot of movement all across the city, Limoilou, St-Roch, Giffard.....lot of big projects coming so depending on what is actually going to be built, it will change a lot of things
Hey everyone :) nice to see a few people from Quebec. Currently living in the montreal area. looking to invest in the next few months if i can find the right property. Im currently interested in areas that are actually cashflowing and that is not montreal at the moment from what im seeing. Been looking in the Sherbrooke area as well as Gatineau. Anyone investing in these areas and have any advice or tips. Im looking to start around the 200k range. I own my own home but this would be my first investment property. All my family has invested but all of them on the island of montreal before the prices went crazy so i dont have much knowledge about investing from a distance.
Rental Property Investor · Toronto, ON · Member since 2019 · 9 posts · 2 votes
6y
@Marysa Diadelfo
Hi All,
I am relatively new to BP and newbie investor. Nothing purchased yet but have been taking a close look at the Sherbrooke and Trois Rivière markets as potential.
Although I am based in Toronto, we frequently go to Quebec to visit friends and vacation there. Love the province.
Thats great. Ive contacted an agent in the area and hope to start seeing a few properties. I read an article recently that rated sherbrooke as the top place in Canada to invest. Property value went up over 20% last year. Ive actually been eyeing the area for years now, always talking about it. Then i read this article and have decided its enough watching and i need to do more doing haha. Toronto, much like Montreal is a difficult area to invest for cashflow..the numbers just dont work
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Marysa Diadelfo Even though I’m based in Montreal, I mostly invest in real estate internationally because I can make much higher returns than in Montreal or Canada for that matter.
Yet, I’m still looking at investing here since I have investors who want to do just that.
I understand the idea of looking at Sherbrooke as a cheaper alternative to Montreal but Sherbrooke isn’t Montreal and doesn’t have the same appreciation potential.
Most importantly, past performance isn't indicative of future performance. It's not normal for a real estate market in a stable country like Canada to appreciate 20% a year (did prices in Sherbrooke really appreciated that much?). Resident real estate prices depend on the affordability of mortgages, which depend on incomes and wages. As far as I know, those are not increasing by much and certainly by far less than 20%. Commercial real estate values are dependent on CAP rates and therefore NOI, which in turn depends on the rents and the ability of renters to pay for them, which in turns depend again on wages and income.
Therefore, a market with prices growing at 20% is either playing catch up or in a bubble. Regardless, that cannot continue indefinitely and eventually price growth would have to drop substantially to revert to the mean.
I definitely think sherbrooke is playing catch up as you said. I dont expect it to continue to appreciate at that rate for sure. I believe that the market in sherbrooke has been extremely low and has finally started to gain value. properties are selling at 8 to 9x revenue which is completely unheard of here in montreal. I think while prices are still low it is a good opportunity to purchase as this would allow for decent cashflow that i would not see in the bigger cities. Sherbrooke isnt montreal thats for sure but there is alot of renters as it has a huge student population for the multiple universities and colleges. although im not so sure what i think about student renters.. likely not the best tenants and big turnover. Its something to think about anyway
also being a first time investor i prefer to have a property closer to home so that i can manage it myself and learn the ins and outs of it. I may look into international later on when i have gained more experience and confidence
I have been mostly looking at triplex and quadraplex listings. not sure about apartment buildings honestly, although i would assume apartment buildings are usually a bit more. Either way montreal is like 20x (im just making up numbers here but i wouldnt be surprised if its close to that). Its very difficult to find anything that would cashflow. You mentioned you are investing internationally, im curious about how you find that working for you? have you already acquired many properties? how are you liking managing remotely?
@Marysa Diadelfo Even though I’m based in Montreal, I mostly invest in real estate internationally because I can make much higher returns than in Montreal or Canada for that matter.
Yet, I’m still looking at investing here since I have investors who want to do just that.
I understand the idea of looking at Sherbrooke as a cheaper alternative to Montreal but Sherbrooke isn’t Montreal and doesn’t have the same appreciation potential.
Most importantly, past performance isn't indicative of future performance. It's not normal for a real estate market in a stable country like Canada to appreciate 20% a year (did prices in Sherbrooke really appreciated that much?). Resident real estate prices depend on the affordability of mortgages, which depend on incomes and wages. As far as I know, those are not increasing by much and certainly by far less than 20%. Commercial real estate values are dependent on CAP rates and therefore NOI, which in turn depends on the rents and the ability of renters to pay for them, which in turns depend again on wages and income.
Therefore, a market with prices growing at 20% is either playing catch up or in a bubble. Regardless, that cannot continue indefinitely and eventually price growth would have to drop substantially to revert to the mean.
I agree with Mike, I own my properties in Mexico. In my experience, property taxes, utilities and maintainance is cheaper.here is a higher return on investment.
Rental Property Investor · Ottawa, ON · Member since 2019 · 6 posts · 1 vote
6y
Thank you for answering
Im actually looking at couple of STR units in Old Quebec City. And its my first time venturing into STR. I know in Quebec City there is certain areas where STR is allowed. Just trying to figure out if the units im looking at fall in that criteria.
Hi Everyone, Glad I found a Quebec thread here lol
I'm ready to invest but cannot seem to find any deals that are worth it right now near where I live therefore looking at secondary markets. Any markets anyone recommends right now for me to start analyzing?
Hey guys, can anyone recommend a good general contractor in Sherbrooke? I need someone to help me with my new purchase and since i am from Ontario, I dont know anyone in QC
Québec City · Member since 2019 · 9 posts · 2 votes
5y
@Lineker Tomazeli Hi ! I'm from Québec City. This forum is not really active you're right :P I'm doing also buy and hold but in Québec City on Multi. Montreal seams to be very expensive for now. Maybe looking around would be more attractive ? In a less expensive area