Why it's wise to invest a fixer-upper In the West IslandPosted on June 01, 2018
We’ve all read the reports that suggest Montreal’s property market is “sizzling” at the moment, as sales in the city increased by nearly 15% in 2017. Property investors are flocking to the metropolis, and more homebuyers are turning their attention towards older homes, especially in the West Island. So today, we’re going to explore why it’s a wise investment to purchase a home in this suburban oasis.
Older Homes In The West
Take a drive through Pierrefonds, Pointe-Claire, or Dorval, and you’ll notice these suburbs boast older properties. Some homes were even built 100 years ago, yet still stand majestically and provide a dose of charm and elegance.
But how much is an old house going to cost you? Now each case is different, and it depends on a number of factors including the location and the current state of the property. We always recommend negotiating with the sellers to reduce the asking price, mainly because you’re going to be spending a lot of money down the line on renovations.
Work in tandem with a real estate agent who knows how much other listings sold for in the area. Statistics show that Canadians aren’t great negotiators; especially when it comes to big purchases like a house, so don’t be afraid to make a counteroffer.
The newest trend is to purchase a small house on a large plot of land one of these boroughs, and completely demolish the entire structure. In its place, developers build a new home that’s twice the size and still has plenty of yard space.
It’s important to note that a complete demolition is costly, although you get the opportunity to build the house of your dreams. Most financial institutions can help with the financing aspect as well, so you don’t have to worry about paying everything in one shot. To save a bit of money, homeowners can even choose a deconstruction project, which typically involves retaining the foundation.
If you’re on a tight budget, save your money and opt for a few small renovations. Every time you revitalize a space, it directly adds value to your property, meaning you’ll one day recuperate this investment. We always suggest redoing the main bathroom and the kitchen, as these areas tend to be high traffic.
According to MoneySense, the average home in Montreal appreciates by nearly 3.1% each year. Therefore if you bought a house for $300,000 at the beginning of 2018, by the end of the year, the value would be $315,500! Furthermore, the five-year return is approximately 11.9%, meaning you’ll make a decent profit if you decide to sell.
Many experts are also predicting that Montreal’s property market is expected to grow over the next decade, rivalling other Canadian cities like Toronto and Vancouver. So it’s important to invest now, especially in an older house, where there’s a lot of potential to renovate and create a modern living space.