New condo project

[Refresh]

I
might be making an Investment in the new Montreal downtown project
called the "Tour des Canadiens" I did some reasearch and it looks like a
very attractive buy the location is amazing attached to the bell center
where the Montreal Canadiens play. Metro, university, stores all
connected and walking distance. What I would want to know is if this is
great investment. The condo that im looking at is 1 bedroom and 1 main
room which is the only thing I can afford right now 544sqft and it's
going for around 283.000$ before tax and their asking for 20 percent
downpayment within 1 year. The project is due for 2016 so i'm expecting
and hoping maybe to sell it or rent it out but this will be my first
purchase so I need to some input on what you guys think!?

 

[TodorYordanov]

A good investment ONLY if you know for a fact that the price for this condo in 2016 will be 35-40,000 more, it will be easy to sell at that price and it will rent for $2,000 +.

Anything less will make it a sub-par investment in my opinion.

Putting 50,000 to sit for two years without significant upside is not a good idea. Money has to work hard.

I love condos and what they do to bring life, excitement and young people to downtown core. But unless they provide significant increase in price and are easily sellable they may not be such a great investment.

 

[Refresh]

That's the thing how will I know for a fact?

 

[Rickson9]

99% chance that it isn't a good investment.

 

[Refresh]

wow 99%...why would you say that?

 

[Thomas Beyer]

over $500 per sq ft ?



Hopefully the currency they will take by then is still called the Canadian $ !



Deduct condo fees of 35 cents a sq ft or $200/month, $100 PM fee and property taxes of another $150 or so ... with 20% down a mortgage of around $225,000 @ 3% with a 25 year amortization is about $1200/month. Can you rent this for over $1650 to break even at least, i.e. $3/foot ? I would think that is high for Toronto or Vancouver, thus too high for Montreal.



So, it likely makes no sense as a rental property.



Although Montreal is a hip city it seems to me the ONLY way this may make sense is if you really love this location and associated life style and don't mind paying $1550/month for it yourself, as eventually, maybe in 2025 this property will be worth more if Montreal develops a more pro-business, anti-corruption, smaller-government, lower-taxes & pro-Canada attitude.



Will it ?

 

[Refresh]

The building will be up in 2016 so anything can happen in 4 years from now why think all the way to 2025?

 

[Rickson9]

If it won't make sense in 2025 it won't make sense in 4 years.

 

[Refresh]

So I guess is not a good idea then.. So what would be considered a good investment?

 

[TodorYordanov]

[quote user=Refresh] So I guess is not a good idea then.. So what would be considered a good investment?





Something that makes money