Quebec and why not live what Americans have experienced?

By Patrice Groleau

The profile of buyers has changed in Montreal court in recent years. The American wave with their strong dollar and then the Europeans with their Euro is definitely over.

Yes there are still Americans and Europeans who buy but their number is much lower.

Although Montreal is still the city’s most affordable major cities of the G8 and the international interest in Canada continues to grow our strong dollar for many plays.

There are now more foreign buyers wishing to be residents rather than investors / speculators.

Rather Quebecers who arrive today in the United States to invest their strong Canadian dollar in U.S. property prices which are at the floor.

There was no housing bubble in Quebec I think for two main reasons, although investors were on a bubble can only exist if local residents are also investing heavily.

But these are baby boomers who come from large families and peasant workers rather poor always have a cautious relationship with money. They are not speculators to the database.

Although their children are somewhat more inclined to take risks, having been confronted with this caution, they remain speculators calculated risks.

With the collapse of stock they were to prefer to invest more in stone but it is new to us.

We were one of the last economy to be affected by the crisis and one of the first economy to not get out.

People have been waiting to see whether the crisis would be severe for us, once the danger passed they bought heavily.

The Canadian banking system is currently one of the strongest in the world. With rising rates announced people have rushed their property purchases, we had a better start to the year of our history.

In Montreal, prices increase, properties sell quickly not because of speculation but by a scarcity of supply, a shortage of land and rising construction costs.

The growth of urbanization in the city of Montreal is explainable by the fact that Montreal is an island, its geographical expansion is limited, as Manhattan.

The land is increasingly scarce, property prices will rise more quickly in cities than in suburbs.

In suburban fashion and interest in the “old” industries and cities change regularly to begin new projects in new homes built in nearby fields, and no scarcity of land!

Renovated a house in Montreal vs. the suburbs is the same price but the value of property is exponentially higher in Montreal, so best return on investment in renovation.

Young professionals are beginning to see that there are other models that the bungalow in the suburbs where they grew up and baby boomers whose children have left home are back in town.

They look for a good quality of life, services within walking distance, a reduced circulation and more. Montreal meets the needs of daily life while limiting costs.

Over the next few years, people will forsake the suburbs to return to live in Montreal the government can support the schools, hospitals, road infrastructure outside major centers.

Quebec’s population is too small for the size of the territory. Montreal is a city of knowledge, the most European of the Americas, people like Montreal, is the real estate benefits.

Montreal is the economic center of Quebec. In the U.S. the major economic centers (New York, Boston, etc..) Vs. not bailed. their suburbs for the same reasons!

www.mcgillrealestate.com

Some basic principles in real estate …

By Patrice Groleau

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Regardless of the principle always remember … there are no bad properties but only bad price … fair price of the worst properties can be a bargain!

The key sectors that will not fade fashion Outremont, Westmount, Downtown, Old Montreal, etc..

Recognizing the potential of bases and interesting properties.

Do not buy anything at any cost and think about making money.

Invest in properties with distinctive both for its location, waterfront, near the park, unique soil, location, unique architecture, distinctive domestic …

Smaller home of a large sector of residence rather than the reverse, the fact that the environment is upscale push your values on the rise …

Principle of scarcity such as a condo vs. Outremont. a condo at the junction of Highways 10/30 on the South Shore building in fields of sight.

The condo has emerged to allow people to live at lower prices, an area of interest for which a house is exponentially more expensive therefore not financially feasible.

Buy properties with good foundations foundations, windows, roof, electrical / plumbing vs. only judge the aesthetics.

Be aware that a new sector is not growing as fast as we think but gradually, starting with the areas adjacent to established neighborhoods.

At McGill we select real estate brokers real estate except through hundreds of applications so if you want to do business with the specialty retailer of real estate projects in Montreal, the individual begins its real estate developer to experience the renowned McGill real estate advisors to find another level of expertise in real estate.

Follow our blog on real estate www.mcgillrealestate.com

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Published July 2, 2010 at 6:33 | Updated July 2, 2010 at 6:40

You should know that when an individual sells a house, the profit he makes can be considered either as capital gains or as business income. Everything depends on his intention.

Stephanie Grammond

Press

(Montreal) For 10 years, home prices have more than doubled in the Greater Montreal. Owners who have enriched themselves without paying tax, could be visited by the tax authorities. Primary residence, cottage, plex … What are the pitfalls to avoid and tips to use to pay as little tax as possible?

The Inland Revenue launched a warning shot for home builders and speculators who got rich thanks to the explosion in housing prices.

More and more individuals are building or renovating a house, condo or income property in order to sell quickly for cash a juicy profit. But few realize that the gain may be regarded as business income, which costs more tax.

For the pin, the Canada Revenue Agency has implemented special programs for checking the resale home for speculation.

Over the last two years, the Agency has done 287 audits that have allowed him to recover $ 2.85 million of taxes evaded, across Canada. This represents a sum of about $ 10,000 per taxpayer. And it is likely that these individuals do also audited provincial tax.

“There is a mechanism for sharing information that will allow us to contribute cases assessed by Revenue Canada, but not audited by Revenue Quebec,” says spokeswoman Revenu Québec, Valérie Savard.

Since June 2006, Revenue Quebec is also conducting its own testing program targeting the speculators: the project “Real estate”. “The tax recovery associated with this type of file is several million dollars in unpaid taxes,” said Dr. Savard.

Audits up

“There are many checks on the ground. I see a lot of records now, “said Jean-Francois Thuot, a partner at Raymond Chabot Grant Thornton.

“Rising property values in recent years has attracted investors, says the tax. There are taxpayers who have embarked on activities, not necessarily speculative at first, but who have turned a bit later. ”

Indeed, the price of homes has more than doubled in the Greater Montreal in a decade.

The price of plexes exploded by 161% from $ 145,000 in 2000 to $ 348,000 in early 2010. The single-family home prices jumped 129% in 10 years, from $ 108,000 to $ 248,000. And the price of condominiums has ballooned 118%, from $ 94,000 to $ 205,000, according to the Federation of Quebec Real Estate Board.

In this context, the tax is on the lookout and maintains audit programs. “It is still valid for this year, has since discovered that there was a non-compliance in the construction and renovation of the house,” warned the spokesperson of the Agency, Kareen Dionne.

The thought that counts

To understand the source of the problem, you should know that when an individual sells a house, the profit he makes can be regarded as either capital gains or as business income. Everything depends on his intention.

If his goal was to survive long term in the House, the Inland Revenue considers that this is a capital gain, taxable only half. For example, a gain of $ 100,000, only $ 50,000 is taxable.

This can cause a tax bill of up to $ 24,100 for a taxpayer who already earns $ 127,000 and is taxed at a maximum rate of 24%. For a taxpayer who earns $ 50,000, the tax would amount to about $ 20,800, said Sylvain Chartier, consultant to National Bank Private Banking 1859.

However, the surplus will be completely exempt from tax if the individual identifies the house as his principal residence.

But the situation may be quite different when an individual decides to buy, build or renovate a house for the purpose of reselling at a profit. “He goes to a status where the manufacturer is no longer the capital gain, but rather the business income,” says Chartier.

Having lived temporary home with his family will not change. If the goal was initially to sell the house at the earliest opportunity, it is business income … fully taxable. A gain of $ 100,000, the tax bill may reach $ 48,200 so the maximum tax rate, or $ 44,200 for a taxpayer earning $ 50,000.

In short, the tax bill is at least twice as high.

Grey area

Between capital gains and business income, the line is not always easy to draw. “The more business or occupation of the individual approaches the real estate, more likely it is that the gain from the sale or business income,” reads an information sheet which found on the website of the Canada Revenue Agency.

Or when financing arrangements. “Have you got a short-term funding or funding does not provide for penalties in the event of early repayment?” Asked the treasury.

Have you kept the house for a short time? Have made several other similar transactions over the years? There are other elements that will put the chip in the ear of the treasury.

But beware! “An individual is not working in the field of residential construction to have a business income from the sale of a home and selling a home can only give rise to business income” shows the Revenue.

The tax bill on the sale of a house

Tax treatment of a gain of $ 100,000 depending on the circumstances

Primary residence (tax free) $ 0

Second home (taxable capital gain half)

- For a taxpayer who earns $ 127,000: $ 24,100

- For a taxpayer earning $ 50,000: $ 20,800

Buy speculative (fully taxable business income)

- For a taxpayer who earns more than $ 127,000: $ 48,200

- For a taxpayer earning $ 50,000: $ 44,200

http://lapresseaffaires.cyberpresse.ca/finances-personnelles/201007/02/01-4294861-le-fisc-cogne-a-la-porte-des-speculateurs-immobiliers.php?utm_categorieinterne=trafficdrivers&utm_contenuinterne=envoyer_lpa

Parents owners, beware of tax!

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Published July 2, 2010 at 6:41 | Updated July 2, 2010 at 6:46

It is crucial to be well documented … otherwise the tax authorities could treat the transaction at fair market value, rather than the value of parent-child transfer.

Stephanie Grammond

Press

(Montreal) Parents generous station in taxes! In recent years, some have bought a house with their child who did not pass the test of the financial institution.

This is the case of Peter and Denise who helped their son Julian to buy a triplex $ 145,000 in 2001. They have lent him $ 45,000. But instead of making him a loan, they became co-owners, as banks often required when the financial situation or credit is too brittle.

Since then Julian has repaid his parents and he has strong enough to be the owner of the building itself. The parents would simply withdraw, without making a profit, even if the house is valued at $ 300,000. “We learn that this operation involves a capital gain. Is there a way to avoid it? “Asks the couple.

The answer would have been easier if this delicate question had been raised at the outset. In such a situation, we must write a letter-cons and submit to the Treasury, ideally at the time of purchase, “says financial planner and tax expert Michel Lavoie. The document will state that the parent has bought the house for and on behalf of her child, only for funding purposes, without intent to be co-owner and the child is the sole owner.

“This must be done properly, at the very beginning. Otherwise, we run the risk of small problems later, “said Jean-Francois Thuot. For families who have not sent a letter-cons, other signs may indicate the unwillingness of ownership: Who paid for the maintenance of the building? Who paid the taxes, utilities? What name appears on the lease? Who paid the tax on rental income over the years?

It is crucial to be well documented … otherwise the tax authorities could treat the transaction at fair market value, rather than the value of parent-child transfer.

http://lapresseaffaires.cyberpresse.ca/finances-personnelles/201007/02/01-4294864-parents-coproprietaires-gare-au-fisc.php

How to reduce the tax on the cottage?

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Published July 2, 2010 at 6:47 | Updated July 2, 2010 at 6:51

It may be advantageous for couples to include the cottage on behalf of the spouse who has the lowest incomes.

Stephanie Grammond

Press

(Montreal), Gilles and Claudette have built their cabin in the sweat of their brow in 1995. The project has cost them $ 80,000 in materials. Today, the couple is on the cusp of retirement and is considering selling his second home that is worth about $ 250,000. The transaction raises a number of tax issues.

The materials cost $ 80,000, but how our workforce is it considered?

“Unfortunately, people who build themselves can not include their time in the calculation of the cost,” says Sylvain Chartier, consultant to National Bank Private Banking 1859.

In the case of Gilles and Claudette, the gain will be calculated between the construction cost ($ 80,000) and the sale price ($ 250,000).

All costs of renovation (expansion, pool, cabana, etc..) And transaction costs (transfer taxes, notary fees, commissions paid to brokers, etc..) Also reduce the taxable capital gain.

Owners should therefore always keep their bills even for their primary residence, because you never know in advance how property will be most advantageous to designate as your principal residence.

“Often people do not keep their documents when it comes to a home they do not lease. But it can be problematic in the context of a tax audit, “says Jean-Francois Thuot, tax specialist at Raymond Chabot Grant Thornton.

Which house should I designate as your principal residence: the cottage or house in town?

Firstly, we must know that every family is entitled to one “principal residence” is exempt from tax. It may be a house in town, a cottage, part of a plex inhabited by the owners, or even a “mobile home”. The important thing is that the family lived there part of the year, not even a week.

The decision is made at the time of sale. To make the best decision is to compare the gain on the two homes, taking into account the duration of detention. In the case of Gilles and Claudette, the cottage has appreciated $ 170,000 in 15 years, or about $ 11,000 per year. The value of their house in town, built 25 years ago, jumped $ 80,000 to $ 350,000, a gain of $ 270,000, slightly less than $ 11,000 per year.

Since there is little difference, it may be advantageous to designate the cottage as a principal residence to avoid paying an immediate tax bill. Later, the couple may designate his home town as a principal residence for the period he was not the cottage (from 1985 to 1995 and years following the sale of the cottage).

But we must also take into account the rate of taxation of both spouses …

Who will pay the tax bill: Gilles, Claudette, the two?

Claudette has annual revenues of $ 15,000, while Gilles earns about $ 40,000. As she pays less tax than her husband, she can add the capital gain of the cottage on his statement? Yes, because it is the sole owner of the cottage.

This shows that it may be advantageous for couples to include the cottage on behalf of the spouse who has the lowest incomes. But beware: “We see situations where one spouse owns the cottage, without having ever worked in his life,” says Chartier. The tax could be considered the richest spouse who actually bought the house … and pass it a part of the tax bill.

Should we wait to take our retirement to sell the cottage?

Soon, Claudette will retire and his tax rate will decrease even more. But that does not necessarily bother to postpone the sale of the cottage to limit the tax bill. If interest rates go up, if the housing market is slowing down, the couple could have more trouble getting his price. And within two years, paying all maintenance costs, taxes, etc.. Overall, the shift of the sale is perhaps not so paid. “The advice I give: stop thinking about the tax! Be practical! “Said Chartier.

Is it beneficial to leave the cottage to our daughter for her to sell it for us?

When giving the cottage to her children, one is deemed to have disposed of at fair market value, exactly as if we had bequeathed a legacy. So you have to pay tax on capital gains anyway. There is no way out.

For example, if Claudette gives the cottage to his daughter, the mother should pay tax as if it had sold $ 250,000. If the cottage is assessed thereafter and that the girl sells, say, $ 350,000, will be deemed to have acquired from his mother for $ 250,000 and must pay tax on the gain of $ 100,000 , unless it is his principal residence.

Can I sell my daughter to a ridiculously low price?

Make a friendly price, it can always happen. “But selling at $ 1 is the worst scenario,” warns Mr. Chartier. The Inland Revenue will impose the mother according to the fair market value ($ 250,000). But when the girl will sell the cottage in turn, its gain will be calculated based on a purchase price of $ 1. In other words, the family will pay tax twice!

http://lapresseaffaires.cyberpresse.ca/finances-personnelles/201007/02/01-4294865-comment-reduire-limpot-sur-le-chalet.php

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Published June 26, 2010 05:00 AM | Updated June 26, 2010 05:00 AM

Maxime Bergeron

Press

The price of rental properties has almost tripled over the past 10 years in Montreal. The multiple used to calculate the profitability of “plexes” have followed a similar pattern. With higher mortgage rates, is it still time to invest? Yes … provided very well make its calculations. And finding the rare pearl.

Nerestant Schiller, a computer consultant in his thirties, was launched in earnest in real estate five years ago. He bought a triplex, then another, and then a 14-unit building in Rosemont and the Plateau Mont-Royal. A “heavy” task, he admits.

“Sure there are bad payers and unexpected breaks, but I knew already throwing me in there that I have some surprises,” said the Montrealer. It is well to prepare for departure, having sufficient liquidity. ”

Mr. Nerestant could count on the experience of his family, already owns several apartment buildings in the region. And on an adequate working capital. But for many novice investors, the dream of buying an income property is now more elusive than ever.

The median price of “plex” of two to five homes has exploded in the Island since 2000. It went from $ 148,000 to $ 395,000, a jump of 167% in one short decade. In the central areas of Plateau and Rosemont-La Petite-Patrie, the increase is even greater and the median value is around half a million.

Rents, meanwhile, grew at a much slower pace: 34% in 10 years for a two bedroom apartment in Montreal. So that the reports used to calculate the return on investment in rental housing-especially the multiple of gross income-reach these days of record highs.

Traditionally, the “magic number” to calculate the multiple of gross income was around 10, said Denis Doucet, Director General of Multi-broker mortgage loans on the South Shore. Basically this means that it would take 10 years to pay off the property in calculating the annual income generated by the buildings, before expenses. The report is theoretical, but it gives a good idea of the profitability of the building coveted.

“Last spring, I saw passing records when people wanted to pay amounts equal to 19 times earnings,” says Doucet. These are files that you’ve never been able to fund. ”

Prices have soared so much that it is not uncommon to see properties for sale showing even higher multiples of 20, 25 or even 30 times the gross income. Reports that can be acceptable to a homeowner (which pays part of his mortgage through its rental income), but are extraordinarily high in the case of pure investment, highlight several experts consulted by The Business Press.

“In plexes, profitability is not there, slice Jean-Francois Bigras, investor and former chairman of the Corporation of property owners in Quebec. If we talk about investment, when you look at the prices that are paid today is very long term it will be profitable. ”

‘No logic’

Mr. Bigras, like many others, advocated the greatest caution when signing a purchase.

“Today, many people buy property without any mathematical logic” (…) He studied several settings before you plump for a property, especially a multiple of net income, the number of years to pay property based on annual income after expenses except the mortgage.

“At 12 times the standard operating revenue, you make an extraordinary bargain at 15 times is good, and above that, you start paying a bit expensive,” he said. Me, I never pay above 16.5. Never, never, never. ”

What to buy?

The plex market is overheated, as evidenced by outbidding several tens of thousands of dollars often observed for a year. But good deals do exist, says Jacques Lepine. As found? The expert recommends that owners look for in need, including monitoring exercise notice in the land register.

“We need to find motivated sellers: those who pay too much, those who are under-capitalized and that fund too high, ahead there. When you look at the price people pay today, there will be a percentage that can not hold up, unless they put a lot of cash. ”

(…) Advise him as to expand its geographical horizons. The site, designed for investors, lets you search for rental properties based on several criteria, such as the multiple of the lowest gross income. “It is between 5 and 30 times earnings, it gives an idea of the range!”

Not surprisingly, the properties offer the best profit potential are often located in the regions outside major centers. This should not discourage buyers on the lookout for a bargain, says (…)

“There is no geographical barrier to property investment,” he said. People in Toronto can see a duplex in Trois-Rivieres and say the report is good, I buy. There will always be a trusted local to service and collect revenue. ”

(…) Recommends also avoid too small to optimize building performance. “If you do not intend to occupy it, I recommend at least one building of four units, if not six.”

Finally, the investor Jean-François Bigras launching this warning to all prospective buyers, they intend to live in their building or not: “Be careful, and do not make your calculations based on the current interest rate! Must be realistic. ”

http://lapresseaffaires.cyberpresse.ca/economie/immobilier/201006/25/01-4293323-trop-tard-pour-les-plex.php?utm_source=bulletinLPA&utm_medium=email&utm_campaign=retention

Residential Statistics MLS ®

Metropolitan Montreal

June 2010 vs. June 2009

Median Price Single Family 8%

Condominiums 8%

Plexes (2-5 units) 8%

Here to help you, some principles to start thinking real estate.

Video Blog featuring: Patrice Groleau, real estate broker for the agency McGill real estate specialist sales and marketing real estate projects.

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House prices rose 8.5% in Canada in May

The Canadian Press, Ottawa

House sales fell 4.3% in May in Canada, but the national average price of home sales rose 8.5%, said Wednesday the Canadian Real Estate Association (CREA).

Even though activity has declined over 70% of local markets, “said ACI, the results downward recorded nationally were attributable mainly to sales made at least in Toronto, Vancouver and Ottawa.L ‘ Association said it is unusual to see sales fall in May compared to April, a situation she attributed to changes in mortgage regulations, coupled with rising mortgage rates – which have prompted some buyers to realize their transactions in April.

The chief economist of the AIT, Gregory Klump said that the gap between supply and demand has narrowed further in several major markets, giving potential buyers more time and more choice .

http://lapresseaffaires.cyberpresse.ca/economie/immobilier/201006/16/01-4290547-le-prix-des-maisons-a-grimpe-de-85-au-canada-en-mai.php?utm_source = bulletinTN & utm_medium = email & utm_campaign = retention

Green light from Montreal Griffintown

JENNIFER GUTHRIE

METRO

April 15, 2010

The first phase of housing project Griffintown 2, a revised draft report by the megaproject announced in 2008, was approved by the City of Montreal Wednesday night. This first step, which is estimated to cost $ 475 million, should lead to the construction of 1 375 homes and a hotel of 150 rooms.

Large commercial spaces, which were feared to several borough residents of Southwest onset of a huge shopping mall on their territory, have been abandoned. Only small shops will be included in the first phase of the project.

“The revised draft is much more focused on housing, said yesterday the head of the Planning Committee and Chief Executive Project Montreal, Richard Bergeron. I myself have criticized the first draft Griffintown, but I think that what was presented this time is quite satisfactory. It’ll be a great project. ”

The Devimco committed to provide 226 units of social housing. This follows the 15% threshold required by the City. Mr. Bergeron said that in addition, at least 15% of the units will meet the criteria of “affordable housing”. The construction of the first phase should begin before the end of the year.

Griffintown http://www.journalmetro.com/linfo/article/504366–feu-vert-de-montreal-a-griffintown

Griffintown – The district will revive as before

April 15, 2010

The model of the project Griffintown

The original draft Griffintown

The Griffintown project back to life … And the head of planning at the executive committee of the City of Montreal, Richard Bergeron, rejoiced. According to Richard Bergeron, who is also the leader of Projet Montréal, the revised draft redevelopment of Griffintown to restore this area’s heritage value.

The City of Montreal on Wednesday approved a less ambitious project than originally planned to revive Griffintown. Valued at $ 450 million, the new project will be led by the developer Devimco.

The first phase of the project Griffintown start within a year at the corner of Peel and Wellington, west of the Bonaventure. This phase will give rise to a thousand homes, a hotel, offices and shops.

The entire project will be an important contribution for Montreal, said Richard Bergeron, who cites as examples the fact that the contractor will recreate the grid of streets Griffintown of yesteryear, which will effectively protect the heritage.

Richard Bergeron welcomes the fact that the new Griffintown will not include shopping at supermarkets as Devimco had anticipated originally. “So there is more competition with downtown. It will be convenience stores, “said Richard Bergeron.

Announced in 2008, the first version included more than 4,000 homes and investments of more than one billion dollars. The new project was approved Wednesday would be worth about 450 million.

The area to be developed would be located between Shannon and Murray Streets, south of Wellington. The territory borders to redevelop the Lachine Canal and the Bonaventure Expressway, to be transformed within a few years.

The first phase of work would be launched next fall.

Montreal should not be forced to hold public hearings for this new project, since it corresponds to the Planned Unit Development that was approved by Montreal in 2008.

Several other large-scale projects, such as the redevelopment of the silos in the Old Port and the land of the old sorting office, should be created in this area.

From Davide Gentile

Griffintown http://www.radio-canada.ca/regions/Montreal/2010/04/15/004-Griffintown-Bergeron-patrimoin.shtml

To SELL, BUY or RENT properties in Griffintown, Montreal; Thank you for choosing McGill real estate.

Présentation à la ville de Montréal Projet Griffintown

LES BASSINS DU NOUVEAU HAVRE

Les Bassins du Nouveau Havre Montreal – Site of 9.6 hectares (24 acres) located on the Lachine Canal, within walking distance of downtown Montreal. Zoning provides a multifunctional urban complex, including seven lots for urban residential development (approximately 1,600 units). Les Bassins du Nouveau Havre Montreal.

www.lesbassins.ca

VIDEO – LES BASSINS DU HAVRE MONTREAL

Plan directeur – Les Bassins du Nouveau Havre Montreal

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Real estate: luxury explodes in Montreal

Published April 14, 2010

Maxime Bergeron, La Presse

“Many people were reluctant to buy because of the crisis in 2009, out of prudence, but this year, this retention was défoulée »(…)

The market for luxury homes is booming in Montreal. The number of properties sold over $ 500 000 has doubled since a year and jumped nearly 200% in some areas of the island. (…)

According to data obtained by La Presse Affaires, transactions rose 97% in the first quarter to the homes of more than half a million. During the same period, total sales rose 37% in the island of Montreal.

Demand for luxury condominiums has also exploded. The number of resales rose by 100% in the first quarter, against 50% for the condo sector in general, reveal statistics from the Real Estate Board of Greater Montreal (GMREB).

The segment of high end homes – sold over 1 million – has also experienced a “buzz »(…)

In the most exclusive areas of the city, 64 houses of more than 1 million have changed hands during the first three months of the year, against only 27 in the same period of 2009. The average price of these transactions is 1.5 million, compared to 1.3 million last year.

Trust Return

The reason for this explosion has nothing to do with historically low mortgage rates. Most buyers in this price range pay cash (…) The explanation is rather summarizes in one word: confidence.

“Many people were reluctant to buy because of the crisis in 2009, out of prudence, but this year, this retention was défoulée” (…)

Michel Beausejour, CEO of the GMREB, shares this view. “The Quebec economy is going well, job creation is good, so the long-term confidence is good. This means that people who have means are now on the market to make transactions. ”

Also, the decline last year is not solely responsible for the impressive increase in the percentage of transactions this year. In fact, sales were up sharply compared to 2008 – ie before the financial crisis.

It sold 304 homes of more than $ 500 000 in the island of Montreal for the first three of 2010 (19% of transactions), against 202 two years ago (14% of total).

In the condominium, the number of transactions of more than half a million stood at 114 in the first quarter (5% of total), compared to 67 in 2008 (3% of total).

The expensive properties are found mainly in central areas of the island. Most condos have been sold in Old Montreal, Westmount, Outremont, Mont Royal, Hampstead and L’Ile des Soeurs.

The homes of more than $ 500 000 – a price that is less and less rare – are more geographically dispersed. Of the 407 sold in the first quarter in the Greater Montreal, 304 were in the island, 101 on the South Shore and Laval and 70 in the northern suburbs.

The largest increase in the number of transactions – 193% – was observed in the Saint-Laurent-Ahuntsic.

And who are the buyers of these large houses? (…) they are 95% of “premises” of Montreal and its suburbs, entrepreneurs, doctors or lawyers.

The luxury segment is doing very well but remains accessible to a tiny minority, in fact. “To buy a condo for $ 500 000, it takes at least that you make $ 150 000 or $ 200 000 in annual revenue and $ 200 000, is 1% of the population,” said Michel Beausejour GMREB . It speaks of a niche very, very selective. ”

THE LUXURY MARKET EXPLODES IN THE ISLAND OF MONTREAL

First quarter 2010

QUANTITY SOLD / VAR. ONE YEAR ON

Homes more than $ 500 000 / 304 / 97%

Entire housing market / 1581 / 37%

Condominiums over $ 500 000 / 118 / 100%

Entire condo market / 2282 / 50%

Source: Greater Montreal Real Estate Board

http://lapresseaffaires.cyberpresse.ca/economie/immobilier/201004/14/01-4270200-immobilier-le-haut-de-gamme-explose-a-montreal.php

McGill immobilier, courtier immobilier Montreal

(2) WESTMOUNT

(3) VIEUX MONTREAL – OLD MONTREAL

(4) CENTRE VILLE – DOWNTOWN

(5) MONT-ROYAL & HAMPSTEAD