Montreal, Quebec · Member since 2013 · 21 posts · 0 votes
A motivated seller in the suburbs of the west island in Montreal has a property valued at about 650k with slightly less than 0% equity. If I were to take a lease option, what discount would I have to get in order to compensate for the expected depreciation in property value over the next few years, and what characteristics would the property have to have in order to make it a liable investment?
What discount would I have to get in order to compensate for the expected depreciation in property value over the next few years?
How do you know it will depreciate? Have talked to an expert in the area, like a broker w 30 years experience? Would you take a new appraisal price in the future?
What characteristics would the property have to have in order to make it a liable investment?
I look for great schools, low crime, 4 B 2 B+, 2 car garage, not the best house, not the worst on the street. That is MHO.
You want to look at market rent vs PITI. Why is this a good deal for the seller?
How do you know it will depreciate? Have talked to an expert in the area, like a broker w 30 years experience? Would you take a new appraisal price in the future?
My thoughts on depreciation come from literature by the government of Canada which says, "Demand for new and existing homes will decrease in 2013... for a second year straight in the Montreal CMA" And 'cause that opinion was agreed with by a local real estate agent.
(I haven't seen the property and don't know the details of the mortgage) but I have consulted with a real estate investor in my area about the deal and he feels that with a mortgage payment of ~3500$ there is no money to be made with a lease option. Do you agree?
How far out on the West Island: NDG / Côte-des-Neiges; Lachine / Saint-Laurent or Beaconsfield / Pierrefond?
What is the property? A tenement, a du/tri-plex, more?
Its been quite a few years since I lived in MTL, but I still try to follow the City and much of what you read shows stagnation for the west island - the garment district of the east island is even worse off.
If you are talking a single {semi}detached home or duplex, then unless you are right on the edge of the City core (say NDG), 650K sounds steep.
Regardless, if it is underwater, I would get CMAs and derive my offer from the current market. How far underwater is the vendor and how motivated s/he? If your CMAs come back in the $500K range, are they motivated enough to take a 20% loss?
It's a single family home in DDO. It's very unlikely that the owner's willing to except 20% off when he won't get paid for years. Maybe i can do something with him in a few years when he's paid down his mortgage or stopped paying his mortgage all together.
It would be my first deal if I went with it. And it sounds complicated right off the bat. I don't think it would be wise to start with something so risky.
I spent my day off today acting like Robert Langdon trying to get my hands on a list of folks who inherited property lately. I was directed to the municipal court. Maybe you have some advice? I'm trying to do what's known as probate investing.
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y
Matthew,
You will want to look in l'inventaire après décès (literally: inventory of the estates of deceased persons). These are Québec's equivalent to probate records. These records should also contain les Partages (settlement or share-out papers) - the list of those (family members) who received a share of the estate.
Once upon a time, les minutes du notaire were only sent to the protonotaire of the judicial district when the notary retired. I do not know if that is still the practice or if estates that are not probated through the courts are now publicly available.