Buying a duplex, triplex or a building with more than 3 doors is a popular way of generating passive income on a rental property, for those who can afford the higher closing costs. Some investors choose to live in one of the units while renting out the rest to help supplement their mortgage payments, and in other cases the entire building can be leased out short or long term. When choosing a revenue property, it’s important to select a neighbourhood where tenants are easy to come by (generally, areas that are as close as possible to the Downtown core), as well as areas that provide good resale value when the time comes to liquidate the investment.
We’ve ranked Montreal’s boroughs according to appreciation rates from the latest Centris statistics (over the last four quarters of 2017), to determine the safest areas for a duplex, triplex or multiplex purchase. Along with appreciation rates, “average selling time” is a good indicator of how “hot” a market it – a low selling time points to the high demand / low supply conditions of a seller’s market.
Montreal Island Averages – Revenue Properties
- Average appreciation rate: 7%
- Average price: $517,250
- Average selling time (days): 70
|Area||Appreciation Rate||Average Price||Average Selling Time (Days)|
|Montreal Island Average||7%||$517,250||77|
|Verdun / Nun’s Island||7%||$547,500||54|
|RDP / PAT||5%||$390,000||95|
|Rosemont / Petite Patrie||5%||$568,000||62|
|Villeray / Park Ex||5%||$475,000||77|
|CDN / NDG||3%||$615,000||77|
|Ville Saint Laurent||3%||$555,000||96|
Highest Appreciation Area: Plateau
Popular amongst families, students and tourists alike, Montreal’s Plateau is home to beautiful duplexes in the classic Montreal style- with sweeping staircases, colourful windows and vivid rooftops. In the Plateau, the average revenue property costs $775,000 and takes 76 days to sell.
Above-Average Appreciation Rates: Lachine and Saint Leonard
Lachine and Saint Leonard are two residential neighbourhoods performing particularly well when it comes to their duplex and multiplex markets. Of the two, Lachine is significantly more affordable with an average price of $385,500.
Excellent Appreciation Rates: Verdun and Nun’s Island
Verdun and Nun’s Island showed an appreciation rate on par with Montreal’s average rates, with prices growing at by 7% year over year. The average selling time was well below average at 54 days on market.
Good Appreciation Rates: Villeray, Little Italy, Rosemont
Rosemont is sometimes referred to as the “new Plateau-” with a convenient location and many parks, it isn’t surprising that revenue properties in Rosemont and surrounding areas are performing well.
Lowest Appreciation Rate: Lasalle
Although single family homes performed extremely well in 2017, with an average appreciation of 9%, the duplex and multiplex market showed very little growth.
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