Montreal, Quebec

[Joel]

Reading the book real estate investing in canada, and looking around a bit on discussions on myreinspace, i realize that investing in Quebec is almost not discussed, What is the reason to this? I leave in montreal and the real estate market is very high here, 2 bedroom condos are selling for 300,000 or more in some areas (interesting even in areas where the average income is less that the province), is anybody familiar with investing in montreal?



2nd question, I have done a small condo conversion on a 6 plex, and looking to do more but i feel i would need more step by step guidance, like Dons book, but he is focusing rather on buy and hold investment. is anybody familiar in this line?

 

[MaximeValmont]

I know tons or Real Estate investors in Montreal.



I was living here one year ago too.



What do you want to know?



It's "hard" to find cashflowing properties on the island right now. It depends what kind of investor you are and your knowledge.





An undervaluated property is an undervaluated property... It doesn't matter where it is. If the price is right, buy it and re-sell it. The way I see real Estate is that I make my profit when I buy. What comes afteris almost like a bonus.





By the way, where exaclty have you done that condo conversion?

 

[Joel]

What i am wondering about real estate in montreal is that most towns i looked on have lower average income then the province and same to population increase, and still prices are going up and up, so maybe there is a different way how to look on real estate in this area.



Also there are almost no properties with positive cash flow, thats why i looked in to condo conversion, the one i mentioned is actually still in process, its in the plateau mont royal, but because of the rental board regulations i still have 2 tenants there that are not willing to leave for no money, and that keeps all my profit, and of course they are paying pennies.



Also i was not sure if the same fundamentals that don is discussing in his book also apply when looking for a property to convert to condos, figure out if the area has a demand for condos? figure out how to look on sold comparable to see how much i will able to sell? and more...

 

[Sherilynn]

[quote user=Joel]

Also i was not sure if the same fundamentals that don is discussing in his book also apply when looking for a property to convert to condos, figure out if the area has a demand for condos? figure out how to look on sold comparable to see how much i will able to sell? and more...





REIN has a home study course on Condo Conversions. If you click on the "Shop" tab at the very top of the page, you'll find them in the "Home Study Systems." Unfortunately, I don't think they have one specific to Quebec, but the same fundamentals should still apply. Also, I should mention that I haven't purchased this program, but I have been satisfied with the other programs that I have purchased.

 

[MaximeValmont]

As Sherilynn said, REIN offer a program on condo conversion.







Also, Have you done a market analysis for your condo conversion? Is there a demand for this? Is there alot of offer on the Plateau? A condo conversion is a big project.



By the way, are the two tenants living together? Or is it two different tenants? Because in Quebec the law make it possible for you to "kick them out" for alot of reasons. One of them is if you want to go live there, if someone from your family go live there... And renovations might even be one of them, I can't remember.





Valmont.

 

[Joel]

Well I called it a condo conversion but actually I didn't convert the lot to seperate titles, I did something that is very common here, its undivided Co-Ownership, which is much more simple then a Condo Conversion, I just had a land survayor do a Undivided Co-Op certificate of location, and drafted with a Notary a Co-Op Agreement, and of course done the renovations to upgrade it from a rental apartment to condo style.



The but is, that there is no way to kick out the tanent's without their agreement, I cant say I wanna move in because its already a Co-op and the renatl board does not allow to take possession in co-op's, and about renovations, I asked a big lawyer and he told me that they have the right to come back after renovations are done.



About market analysis, I didn't do really, but i knew its a very hot area, so i looked on sold comparable's, and i based on this how much i can sell it for, Well this was a hot area so i knew i cant go to wrong, but i understand the right way is to do first a market analysis, but i don't know exactly how to do it, and where to do the research for it.

 

[MaximeValmont]

[quote user=Joel] I asked a big lawyer and he told me that they have the right to come back after renovations are done.







I learned something today! Can you at least raise the rent after the renovations?

 

[bizaro86]

Would it be legal to offer them some money to leave? If you have lots of profit tied up in these units, it might be worth paying a few thousand dollars to unlock that money.



Regards,



Michae