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Betty Humphrey

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Real Estate

How Quebec Came Up on Top of the Canadian Real Estate Market

It may come as a surprise to some, but Quebec is now leading the Canadian real estate market. In some cities like Toronto, home sales dropped dramatically – but not in Quebec. Both sales and prices are growing in the city, and it’s not looking like they are slowing down any time soon. Because of this development in the province’s housing market, the landscape of Canada real estate is seeing a significant transformation.

How Montreal’s Housing Market Differs From Other Canadian Cities

There are major structural differences in Montreal’s real estate market that distinguish it from other Canadian cities. First of all, the dominant housing type involves low-rise multiplexes instead of larger family homes. On top of that, there are many more renters than there are homeowners in the city. Therefore, there is an increased demand for condos, apartments, and other smaller living quarters than can be seen in other Canada real estate markets.

Living in Montreal and other areas in Quebec is comparably less expensive than residing in other large Canadian cities. These low prices have more room for appreciation than in Toronto, for example. Young people are currently taking advantage of these housing prices; they’re moving to Quebec’s large cities in droves. That has made Quebec one of the most interesting Canada real estate markets this year.

Rising Interest Rates

A new regulation, called the stress test, has significantly raised interest rates on mortgages. Higher federally mandated interest rates mean that fewer people living in Quebec qualify for mortgages. This has spurred demand for cheaper housing, which investors are now exploring in 2019. These developments are leading to exciting new changes within the Canada real estate market, and there’s no doubt that Quebec is taking the lead.

However, just because less expensive housing is more in demand doesn’t mean that house prices won’t continue to rise. It is predicted that the price of homes will increase in 2019 more than it did the previous years. Home prices have steadily grown by around 2.5 percent. Many experts expect that the price hike will start to level off by 2020, perhaps making Quebec a long-term top choice for young people looking for cities with good employment opportunities, public transport, and other urban requirements.

More Disposable Income

As the millennial population ages, there has also been an increase in disposable income. This large generation is starting to be able to afford more not only in terms of goods but also when it comes to housing, which is having a very real effect on the Canada real estate market. However, it remains to be seen how these changes will play out in the long run.

Investors, buyers, and sellers alike are all keeping their eyes on the Canada real estate market, particularly Quebec’s housing market. As more people moving into the city become interested in buying homes and their home preferences continue to shift, more changes to the market can be expected.

Real Estate Investment

A Beginner’s Guide to Real Estate Investing

If you’ve decided to invest in real estate, make sure you’re aware that it’s nothing like investing in financial markets such as the stock market. Having a good understanding on what you’re about to get into will enable you to know what to expect. Here is a beginner’s guide on investing in real estate.

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Know Your Market

If your main goal is to make lots of cash through investing in real estate, it’s beneficial to study the market as thoroughly as you can. There are various aspects that you should consider such as property values. To get a great deal on a certain property, you should have an understanding of the values in that area. To get access to listing prices, you will need to obtain a real estate license and partner up with a local broker. Most importantly, remember that market values are determined by closing sale prices and not from the asking price.

Investment Capital

To be successful in real estate, you will need to be armed with more money going into the sale than what you would if you were buying a house to reside in. Make sure to put down a payment of at least 20% at the absolute minimum. If you’re wanting properties for a bargain price, it’s more than likely that there will be some hefty repairs that you need to carry out. Having as much cash as possible is essential in bringing the property up to an acceptable standard where tenants can occupy your building.

Knowing the Laws

When becoming an investor in real estate, there are several laws that you must know that are based around the landlord and tenant relationship. Regardless of whether you own the property, the options you have are likely to be constrained by local law and state. Having an understanding of how an eviction process works as well as conducting background checks on potential tenants is key in keeping yourself protected. Also, be aware of rent security deposits and the several types of insurance coverage that could be useful for you and your property.

Making Money

Before purchasing your first property, you should know how it is that you plan to make money from the venture, eventually turning over a profit. Buying for income is when you purchase a property for the main goal of renting it out to tenants to provide you with a monthly income.

Additional Information

There are other factors that you need to consider before investing in real estate. You will need to be aware of how much the property you plan to purchase will cost. Bringing it up to an acceptable standard will take time and money, so consider reaching out to a consulting company like Chicago Engineers who specialize in electrical design, plumbing and heating, especially when you have more than one property to upgrade.

Although investing in real estate property can be incredibly profitable, you need to go into it with your eyes wide open. The last thing you want is to be naïve about the situation. Go in with a realistic expectation and attitude, and most importantly, be prepared for hard work!

House For Sale

Things to Consider When Purchasing Your Second Home

If you can afford it, there are so many good reasons why you should get a second home. It can be a good investment by turning it into a rental. It can also be an amazing second home if you have the luxury to regularly spend weeks away from where you primary residence.

However, purchasing another property is a bigger decision than buying your first one. If you’ve already bought a property, you’ll know just how major of an undertaking it is. While you might be willing to go through it again just so you can have another property, make sure to keep these things in mind:

Do Not Buy on an Impulse

Again, if you have the money for it, it can be tempting to buy a second house. You did it before and there’s a good chance that you can do it again if you’re in a better financial status. However, this doesn’t mean that you should just go for it willy-nilly.

Even if you can really afford it, you should still ask yourself a lot of questions before deciding to buy a second home. Are you willing to go through the same things you did when you purchased your first home? Are you sure a second home is the best investment for you? Your money will be tied into this property while you pay for its mortgage, so it’s crucial for you to be 100% sure that you’re ready to for this purchase.

Additional Upkeep & Maintenance

A major reason why you should rethink buying a second home is the fact that an additional property means more maintenance tasks. A house constantly requires upkeep, so if you have two of them, you’re doubling the chores you have to do to keep the property in top shape.

Failing to do so can turn into an expensive problem, so you really have to consider this point. If your second home will only be a time and cash funnel with all of the repairs it will require, maybe you’re better off renting rest houses or investing your money elsewhere.

Keep Insurance Considerations in Mind

Taking out insurance for a second home is trickier than getting one for your primary residence. Insurers have stricter policies and requirements for such cases mostly because of the lack of geographical proximity and the high likelihood that the property won’t be properly maintained.

Aside from this, you should also remember to take special types of insurance depending on the location of the property. Flood insurance is recommended for beach houses, lake houses, and other properties near the water. A rent loss insurance policy can also prove to be beneficial if you’re buying a second home to rent it out. Getting supplemental policies to extend the coverage of your plan can also help further protect you from financial ruin in case something happens to your property.

All of these can cost a good amount of money, however. So if you’re really going to purchase a second home, remember to add the insurance costs into your budget.

Research the Local Housing Laws

If you’re planning on buying a second home in a different town or province, you should also make sure to look up the local real estate laws. This can help you learn whether your intended purpose for the property is not deemed illegal in the area. It can also help you better navigate their real estate market.

Hiring a local real estate agent and even a real estate lawyer can also be a good idea. As they know the local real estate market well, they can help you cover all your bases when purchasing a property in a different location.

Looking for the perfect place where you can buy a second home? Dubbed as the new hot housing market in Canada, the real estate listings in Ottawa are certainly worth looking into. It’s also hailed as the best place to live in Canada in 2017, so it makes an amazing choice for a residence – may it be for permanent use or for vacations.