The Montreal real estate market has good news for parents considering investing in a condo while their child pursues university studies. Historically low interest rates combined with a large inventory of new condo construction has recently created a buyer's market in Montreal. Supply now exceeds demand providing plenty of appealing inventory from which to choose. This is the ideal situation for parents whose children are coming from outside Montreal in order to attend one of the many reputable universities the city has to offer, including McGill, Concordia, Université de Montréal, Université du Québec a Montréal, École de Technique Supérieur, Polytechnique and HEC.
Montreal is considered to be the most affordable city in Canada. A parent who will be covering housing costs for the student may consider a condo purchase as a more financially advantageous alternative. Rather than contributing to a landlord's mortgage, many parents opt to invest in a property that will provide a return on their investment when their son or daughter completes their studies.
As an example, the average rental cost for a student living with a room mate is $500 per month.
($500 x 12 months) x 4 years = $24,000
One could purchase a two bedroom condo in Montreal for $250,000 - $350,000. Considering 20% down payment at a 2.99% interest rate, the monthly mortgage fee would be approximately $850 - $1200. Factoring in taxes, condo fees and insurance totals about $1300 - $1600 per month. A roommate could be responsible for 50% of this cost.
Having worked with several families from Ottawa, Toronto and the USA who have purchased property for their son or daughter in Montreal, I am confident that this is a wise financial decision. As a graduate of McGill University, I have relevant knowledge of the student housing market. I would be pleased to introduce you to the city while providing guidance throughout the process of buying a condo. There is no doubt that it is a solid investment with a guaranteed tenant: your child.