Foreign investors can take one of three strategy’s based on any of the three types of investment properties available for purchase in Montreal. While these strategies may vary in execution, most will follow the similar patterns.
- Diversification: diversify your real estate portfolio by finding 2 or 3 different properties. In most cases this means buying a few condos in different locations to mitigate against rising and falling trends as the real estate market changes. This same diversification can be done using a combination of condos and plexes, or only plexes spread across different strategically selected locations. (Condos remain the popular choice for foreign investors because of the low maintenance requirements and simplicity of selection).
- Single unique property: Finding a single higher end property which is unique in its characteristics and can be easily leased out. The suggestion we make to all our clients is to diversify their portfolios rather than having everything invested in the one property. When the time comes to sell in the future, you might only want to sell a portion of your portfolio. If you are a first time foreign investor with a long term plan, then this can be an attractive approach as you get a feel for the market.
- New development projects: The third strategy is buying into new development/construction projects. While this can be more lucrative, it comes with its own risks as the building has not yet been constructed. When choosing these buildings we would refine our search down to those projects which have reputable builders only and maintain realistic construction deadlines.