Real Estate Talk:
Second home market opportunities
Now is the time to acquire a country property at a reasonable price
By Joseph Marovitch
Between January 1, 2019, and September 4, 2019, there were 109 lakefront properties sold in the Laurentians between the price range of $300,000 and $2 million.
Of those 109 properties, 28 were sold below their municipal evaluation. It means a quarter of them, 25%, sold below evaluation. This tells us that there are opportunities out there to acquire a decent lakefront property at a reasonable price.
During the last Quebec referendum in which the Charter of rights was on the table, many Quebec residents and corporations were in a holding pattern, waiting to see who would win. At that time, second homes “For Sale” signs in the Laurentians suddenly grew like flowers. As one drove up the road, there were signs posted everywhere, and a few buyers took advantage of the situation and purchased a property at a low price.
City property prices remain on the rise, and country home prices are rising as well but not nearly as quickly.
After the referendum, the signs were removed, and a correction in pricing seemed to take place, but selling prices did not appear to recover their pre-referendum value. At the same time, a recession arose and the second home market slowed down to almost nothing.
Years have passed now and the Quebec economy is now in a better place. Interest rates are low and household income has risen. City property prices remain on the rise, and country home prices are rising as well but not nearly as quickly.
There are 240 lakefront homes between $300,000 and $2 million currently for sale in the Laurentians, of which 15 or 6.25%, are asking below their evaluations. The rest are asking slightly above their evaluations. The second home or country-home market is a buyer’s market with plenty of opportunities to purchase at good prices.
Buyers of second homes are in no rush since a second home is a leisure product. The buyer already has a place to live in. The 2second home is a place to escape and enjoy peace and tranquillity. Therefore, the property must be right.
From the sellers’ point of view, they are moving on to other experiences or the kids no longer visit. The second home is an inconvenience that requires upkeep and cost. Sellers of country homes want to sell.
‘The second home or country-home market is a buyer’s market with plenty of opportunity to purchase at good prices.’
A second home still requires an inspection, water tests, and a guarantee that the septic tank is empty, but overall, a country home is usually less costly and has lower maintenance costs than a city home. It is also very enjoyable. Friday night, kicking the shoes off, cracking open a bottle of wine or bourbon and allowing the stress to fall off one’s shoulders is the best feeling in the world.
For more information on 2nd home opportunities, you can contact me by email.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, go to the search link and type in Joseph Marovitch.
Have a great week!
Next article: A look at commercial leasing – what is involved?
State of the market
In a recent Gazette article, it is stated that the price per square foot of condos in Montreal is outpacing the price per square foot of single homes. The article states that the reason for increased prices in condos is due to seniors wanting to downsize and younger buyers seeing advantages to condo living.
It should be noted that while the price per square foot of condos is rising higher than single homes, the condo units are considerably smaller which means buyers are getting less space for more money. Another reason condo demand is high, causing prices to rise, is that Montreal is running out of space to build, new construction is decreasing, and single home prices are rising due to less supply.
The increase in condominium prices is also caused by the fact that there are no restrictions on foreign investment in Quebec, one of the safest places to invest money in a growing real estate market. Once one sees the whole picture, then investors can look north, south, east and west to invest off-island.
Image: Leonardo Rossatti from Pexels
Read also: Other articles by Joseph Marovitch
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org