It's that time of year again where parents struggle to make the decision on whether they should buy or rent a condo while their child is living in Montreal over the next 4 years attending university. Montreal, being somewhat of a college town with it's numerous world renown universities like, McGill University, Concordia University, HEC, Universite de Montreal, Universite du Quebec a Montreal, Ecole de Technologie Superieure (ETS), and LaSalle College, have attracted thousands of students from all over the world.
With interest rates at an all time low since 2010 and the large inventory of condos on the market it would be wise to consider buying a condo instead of renting for investment purposes. As we now sit in a buyers market caused by the rising of so many new condo developments going up around the city, many are opting to invest in a property that will give them a good return on their investment instead of putting money into someone else's pocket.
You could look at it like this;
The Average rental costs $700 per month.
($700 x 12) x 4 years = $33,600
If you purchase a condo in Montreal for $250,000-$350,000, putting 20% down to avoid the CMHC insurance premiums, and obtaining a 4 year fixed mortgage rate of 2.77% (today's rate), your average monthly mortgage cost would be approximately $850-$1200. You can also factor in taxes, condo fees, utilities, home insurance, phone, cable and internet totaling $1800-$2200 per month. Also consider if your son or daughter gets a roommate, the roommate pays for 50% of that. It is, in my opinion, well worth buying instead of renting.
Many people do not know this but as first time home owners you are also entitled to federal and provincial incentives (otherwise known as rebates). Canada’s Economic Action Plan introduced the First-Time Home Buyers’ (FTHB) Tax Credit and the expansion of the Home Buyers’ Plan (HBP) to provide you with additional benefits.
Born and raised right here in Montreal, who better to help you with your real estate needs? It would be my pleasure to introduce you and your family to this wonderful city that I call home, and provide you with a step by step plan on how to proceed with the purchase of your new condo.