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25 January 2022,
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Real estate investment has always been one of the best ways to build wealth.  If you are wondering whether you can buy an income property to grow your capital, the answer is YES!

In the Island of Montreal, prices of real estate are on the rise and this makes it very advantageous to homeowners.

Income properties of 2 to 5 units are extremely popular. They provide a steady and stable income to small investors.  Buying a plex is also not very difficult to do as long as you have a good strategy in place.

So how can you acquire a plex in Montreal to start growing your investment portfolio?

We can show you how if you read on and fill out the short online form to receive FREE and NO-OBLIGATION quotes from our partner real estate brokers!

Benefits of owning a Multiplex

 

Build capital and save on housing costs with a plex

 

A multiplex, also called plex, is a rental building consisting of 2 or more units (duplex, triplex, quadruplex).  In Quebec, some owners buy a plex to live in one unit and rent out the other units to pay for the mortgage. Other owners simply rent out all of the units for additional income.

Purchasing a plex is a real estate investment and has a secure value compared to other types of investments.  Especially now that we are in a crisis, diversifying assets is really important.

Your real estate investment can be your lifesaver in the future because the value of real estate generally increases over time.

As you wait for the value of your property to increase, you can now earn MONEY from rental income for many years.

Long-term benefits from buying a plex

You can gain long-term benefits from buying a plex. You can live in one of the units to reduce your housing costs and earn money from the other units.

In the meantime, the resale value of the property goes up year after year.  You can hold on to your plex for as long as you want and sell it for a higher price in the future.

Create leverage

Did you know that you can live in one of the units of your multiplex for a few years then move to a single-family house? Yes, you can build equity and create leverage so you can reinvest in another property. This is how many Quebecers build wealth.

Use Tax Benefits

Buying a plex can have tax advantages. Your accountant will be better able to explain them to you. However, maintenance expenses can be deducted from your taxes.

High rental demand in Quebec

The demand for rental properties in Quebec, especially in Montreal, is very high. The market is quite active and rental properties are selling like hotcakes.  As long as you choose a good rental property, you are guaranteed to enjoy rental income for many, many years.

Financial Freedom

If you don’t want to work for someone else, being a real estate investor is one way to go. You can have financial freedom without working for an employer if you become a landlord.

 

As you can see, investing in a multiplex provides many benefits, too. If you are looking for a great way to start building your wealth, speak to our partner brokers about buying a multiplex property.

 

The challenges in buying a multiplex in Montreal

 

Understand the challenges of buying a plex in Montreal

 

At the moment, real estate prices in Montreal have risen significantly. So if the only reason you want to buy a plex now is to sell it for a higher price in a few years, it may not be so profitable.

Long-term gains are more profitable for small real estate investors.

When you are buying an existing property, some renovations may be necessary. Ensure that you will have adequate funds for repairs and maintenance.

You will also need to put in some time in managing your property (unless you plan on hiring a property manager). Landlords need to take care of the units to keep the tenants happy and maintain the value of the property.

Lastly, the profitability of your plex will largely depend on the quality of your tenants. Choose tenants wisely and execute contracts to protect your interests and respect the rights of your tenants.

If you want to know more about buying a plex for investment, speak to our partner real estate brokers. Just fill out the short online form on this page, free of charge!

 

The median price of a PLEX on the Island of Montreal in 2022

 

Are you wondering what the cost of a plex on the Island of Montreal is right now? It is not cheap. As of 7 January 2022, the median price for a plex is $740,000.

Before you gasp in disbelief, this figure is just the median price which means some properties may be worth much more.  It all depends on factors such as the size and age of the property and the location.

Some investors work with partners to come up with the funds needed for their purchase. Most people, though, take out a mortgage with reputable lenders to finance their purchase.

The median price of a plex in the Island of Montreal is the highest in all of Quebec. This means your investment can enjoy significant growth in value in the shortest possible time.

Because of the enormity of the investment you are about to make, it is important to think about it carefully and to plan well.

If you are interested in buying a triplex or 4-plex, you need to pay a minimum down-payment of 10% based on the purchase price. If you will not live in one of the units but want to buy it purely for investment purposes, the minimum down payment is 20% of the selling price, regardless of whether it has 3, 4, or 5 units.

It helps a lot to have the best professionals by your side to guide you in this project. You must look for an experienced and reliable real estate broker to help you find the best available plex.

Your real estate broker can also refer to you other real estate professionals including a mortgage broker to assist with your financing requirements.

 

Is it still profitable to invest in a multiplex in Montreal?

 

Get a real estate broker to help you buy a plex in Montreal

 

Absolutely.  At the moment, there is a limited number of properties for sale in the market but the demand is still high. Real estate forecasts by the end of 2020 state that real estate prices could continue to soar this year.

In Greater Montreal, the median price for a home in 2021 rose to as much as $514,000 while a 2-story home cost around $656,200 while a condo costs about $382,600.

Since interest rates are still low, people with money to invest are eager to buy real estate properties.

Surveys also indicated that only a minority of home sellers were motivated to sell because of the pandemic. More homeowners were motivated to renovate their homes or to look for homes with bigger spaces.

Thus, the real estate market is expected to continue to be a seller’s market in the next few years, and demand for rental properties will continue to be strong and steady.

How to buy a plex in 2022

 

Save time and money with help from a good real estate broker

 

As explained earlier, the number of plexes being sold has dropped and new projects are few and far between.

With plunging supply but rising demand, it is not that easy to get your hands on a plex.  Sellers receive multiple offers and the highest bid wins.

There is a way, however, to help you successfully buy a plex in Montreal.

Find a reputable real estate broker to be your partner to facilitate your purchase. An experienced broker has a network of brokers selling income properties and can find a suitable property faster than you can.

If you are serious about your purchase, don’t forget to work on your financing requirements even before you find a property to buy. You can also work with a mortgage broker who can help you apply with lenders. In this way, your financing is ready to go as soon as you make an offer.

The best news is that you don’t pay any fees to your real estate broker and mortgage broker. Thus, you get the services of an expert at no expense!

In the meantime, you need to do the following:

  • Determine your investment goals. Will you be satisfied with a regular monthly rental income? Are you expecting a quick turnaround or can you hold on to the property for 10 years or more to maximize its value?
  • Calculate your expected income vs. the expenses of a property that you plan on buying to see if you are happy with the return on your investment. Don’t forget to budget for repairs and maintenance and to factor in losses when you have no tenant yet or a tenant fails to pay rent.
  • Read and educate yourself about the rental market, tenants’ rights, leases, and so forth. Being a knowledgeable landlord will play a big part in your success.
  • Don’t make the mistake of thinking that the cheapest plex is the best buy. Make sure to get a property inspection and check the roof, HVAC system, foundation, etc. New buildings may be more expensive but they are also in better condition.
  • When you are ready to rent out your property, vet tenants carefully and wisely.

Many real estate buyers want a dream home and they know it when they see it. If you are buying an investment property, however, it is critical to look at the numbers to know if it will be profitable.

 

Buy a PLEX with a real estate broker in Montreal

Now that you know the secret to building wealth, don’t lose any more time! You can grab the opportunity to own a plex and earn rental income in 2022.

Our network consists of reliable and experienced real estate brokers in the Island of Montreal and throughout Quebec.

Whether you want to buy a condo, single-family home, or a multiplex (duplex, triplex, etc.), our partners will be happy to give you advice.

Fill out the form on this page to connect with our partner real estate brokers to get started. Don’t worry; this service is absolutely free and NO-COMMITMENT!

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