Value Bin (Weekly Specials)

Hello everyone, Friday's back!

If you ever been to a discount or vintage store and skimmed through the value rack, that is exactly what you will find in this email. Items that are imperfect, but depending on who is looking at them might be exactly what you are looking for.
I'm going to explain the qualities that these 4 properties offer, and maybe one will peak your interest. First of all, I haven't seen these properties in person, and I'm basing my selection purely on the information found in the listing. Please don't suit me.
Click the following link to view the listings:
1st property is 1427 Bennet. This fully rented property is selling at 16X gross revenues (50k in rents) and relatively close to the subway (20 min. walk).
2nd property is 2670 rue Davidson. This a 4plex on the island of Montreal and only 4 min. walk from subway, selling at less than 800k.
3rd is 1825 Av. d'Orléans. This is a triplex selling at 599k and is only a 13 min. walk from the subway.
4th is a 3569 Cuvillier. This property is ideal for someone who is looking for a home to move into . This property is located in Rosemont Petite-Patrie neighbourhood and is a 7 minute walk from the subway. The average price for a condo in this area is about $400,000.00. So $538,000.00 looks like a steal. I would move into the apartment that has the lower rent  and have the revenue from the higher rent apartment payoff my mortgage. 

The Bidding War Conundrum. What Can Buyers Do?

Hello all,

With the week almost behind us, I'm going to delve into a matter of great frustration to many buyers and many real estate brokers alike. I'm talking about bidding wars. And yes, not all brokers love them, because in many ways the pricing strategy is not transparent. 
I'm quickly going to give an example of how a listing broker prices a property in the hopes of creating a bidding war, and at the end, I'm going to leave you with a few questions that you can answer for yourself.
Last November an article came out in the Montreal Gazette informing us that nearly 1 in 3 properties in Rosemont, Plateau and Verdun went into a bidding war. Just recently, a colleague of mine entered a bidding war for an 8 plex in the Mile-End. He was informed that his bid was one out of nearly forty, and in the end the seller invited the 10 highest all cash offers to revisit the property in order to cast another bid. If you are truly interested in buying in these markets, please read the following article in the Montreal Gazette : Bidding Wars/Montreal Gazette
So how would a broker start a bidding war? Here are the steps.
1) What kind of property are we listing? The 3 main types are as follows:
A) Tear downs or Gutters (Land value)
B) Statement pieces (New construction cost + Land value)
C) Liveables (More complicated)
Liveables are the most common properties. Imagine your mother's duplex with bathrooms renovated in the 90's, a kitchen renovated in the early 2000's, but has a new roof and 5 year old windows. That's a little more difficult to price perfectly.
2) What is our market? Steps to figuring out the market:
A) Look up all the listings in the area where your client's property resides (active/recently sold)
B) Look up recent statistics on comparables (delay to sell/price)
C) Make sure pricing strategy is not too high. If it is, you will only be helping your competitors sell their house
D) Make it seem like an exclusive listing (limit buyer's offers to specific days)
 The stats that you see on your left will only be used for this example. The stats I use are property specific and more recent.
Our property is situated in the NDG, Cote-Des-Neiges, Montreal Ouest area and is a Statement property (Equivalent to a new construction). As we can see, the average price increased from $743,000.00 in 2018 to $820,000.00 in 2019. Let's say, my client desires to receive $900,000.00. That should convince me to list closer to $950k or above. Right?
But before doing so, let's look at the comparables:
1) Only 5 comparables (extremely tight market)
2) Demand for such properties is extremely high
3) Cheapest comparable is a tear down at $650k
4) Most expensive liveable property at  $888k
5) Most expensive property is a brand new construction at 949k
In this case, the safest bet for my client would be to price slightly more than the most expensive liveable property, and significantly less than the brand new construction. My suggested price would be $899k.
This is great for sellers, but can be frustrating for potential buyers who get constantly out bid, even though they offer over asking. I ask who ever is interested in buying on the island; Can you pick an area that will be tomorrow's next Plateau, Rosemont or Verdun? Just five years ago, Ahuntsic was synonymous with leprosy. Today Fleury street in Ahuntsic is talked about in the same breath as Laurier, Masson, Wellington, Notre-Dame Ouest  and even Monkland.
Is Ontario street in HOMA (Hochelaga Maisonneuve) the next one? As of last month, Hochelaga Maisonneuve/Mercier and a portion of Ville Marie were the only balanced markets (neither sellers market or buyers market) on the island. But as of today, all the listings I have been keeping my eye on in HOMA have been sold. My experiences are not official stats, but I wouldn't be surprised if that area leans towards the sellers very shortly. The housing inventory on the island of Montreal is down to 4 months, which is the lowest it has ever been.   
If your looking at buying, you should also be looking outside the bidding war infested areas.
Have a great weekend,

Bargain shopping for a Chalet? Consider Waterloo

Hello and Happy New Year!

Before starting, I would like to wish all of you all health, happiness and success in 2020. Everything else is secondary!
Last month, I fell upon an article in the Gazette titled "Shopping for a Chalet? Best bets for Budget Minded Buyers". To my surprise, I discovered the vacation second property/chalet market was burning red hot. The median price in Tremblant skyrocketed 34% last year. I've never heard of anything like that within the borders of this province. Here is the article in question Best Bets for Budget Friendly Buyers
This led me to do some reconnaissance. Most buyers that contacted me looking for a chalet, were looking mainly for 3 things:
1) Proximity to Montreal (max 1h30)
2) Lake access
3) Close to Ski hills
Luckily, I have a family cottage that meets all those criteria, so I based myself there over the holidays. Driving through the townships, I came upon a sign for a town called Waterloo. As a child, my father used to mention that town to me. When I was acting out, he would threaten to send me to the prison that once resided there. It no longer does. It has been closed for over twenty years, and with that has come high unemployment.
In many ways it has benefited the town, because prisons do not usually increase real estate values. Lakes do...check. Ski hills do...check. And proximity to Montreal does...check.
Last year, the second most expensive ski town in Quebec was Bromont. Bromont is 11 km or 9 minutes away with the help of highway 10. As well, Waterloo has its own lake (motor sports permitted). Then why is this town selling at a discount? 
It's still has relatively high unemployment and it's not recognized as a vacation town. Waterloo is to the Eastern Townships what Verdun was to Montreal 10 years ago. With that comes a whole lot of architectural charm.
I haven't found a lakefront property that's worth sharing yet, but If you're looking for a chalet that meets those 3 criteria. Please do not overlook Waterloo. 
Happy New Year again!

Is Hochelaga Undervalued?

After spending hours contacting listing agents this week to set up visits for myself and a client, I came to the conclusion that most of the areas I are overheating. All the properties that I called to inquire about, had multiple offers within days of listing on centris.
I also read in the Gazette, that over a quarter of the sales in the following neighborhoods; Rosemount, Plateau, Verdun and even Ahuntsic, are selling for over asking price.
I'm not saying that these areas are going to cool down, but comparably speaking Hochelaga is much cooler. Actually, it's the only area near downtown that experienced an average price drop of 2% from the same period last year.
Taking that into consideration, I followed the same criteria as I followed before.
1) A kilometre or less from subway 
2) Priced less than 20 times gross revenues
3) Well maintained (determined based on pictures)
4) Proximity to one or more of the following: university/cegep, hospital, downtown
Here are the properties of found. 3 out 4 are in Hochelaga and they all respect the 4 main criteria.
Click the following link to view the listings:

Ville Émard pick of the week: A working class slum? or The next yuppy paradise?

Happy Friday,
This week I decided to give you  information on an up and coming neighborhood in Montreal. Ville Émard is situated in between Point St-Charles and Lasalle. The Lachine canal separates it from St-Henri and it's a stone's throw away from Verdun .
As of last year the median price of a triplex has increased by over 16%, but the prices are about 10% cheaper than its other south-west neighbors; Point St-Charles and Verdun. The reason for this is its yet fully gentrified. There are few good restaurants and hip coffee shops residing on its main boulevard named Monk. In comparison to Verdun's Wellington street and St-Henri's Notre Dame Ouest it looks undesired. The best coffee you can get is probably at Tim Hortons.
But there is more than meets the eye. First of all, the same working class architecture and industrial buildings found in Point-St Charles that make is so sought after, exist in Ville-Émard.

Point St-Charles and Ville Émard, 40 years ago were the poorest areas in all of Canada. Nearly 50% of their residents were on welfare. Consider Ville Émard like the Points younger brother, who has yet to fully shake off all of its grunginess.
As well, Ville Émard ticks all of the essential boxes except for one. 
1) It has 2 metros servicing it, which are Monk Metro and Jolicoeur Metro. 
2) The MUHC super hospital is less than 5km away on the other side of the Lachine Canal. 
3) On average, it's 10% cheaper than Point-St Charles and Verdun.
The only thing going against it, is that on average its walking score is about 60%. There are no cool restaurants, organic grocery stores or hip coffee shops to walk to ....yet.
Here is my pick of the week:
Click the following link to view the listing:

Weekly Centris Findings for Revenue Properties

Every week I search through Montreal's listing service (Centris) for revenue properties that respect the following 3 criteria:

1) A kilometre or less from subway 
2) Priced less than 20 times gross revenues
3) Well maintained (determined based on pictures)
4) Walking score above 80%

Here are this weeks findings: