Here’s why it’s such a great time to sell investment property in Montreal.
A question I’m often hearing from investors lately is, “Is now a good time to sell my investment property?” The short answer is yes.
Values are at an all-time high, and one of the things increasing home values is the very compressed cap rates. The cap rate is the ratio between the net operating income divided by the current market value. Historically low interest rates and more interested parties jumping into real estate investing are pushing values even higher. We’re seeing many all-cash players buying buildings left and right.
In the Greater Montreal real estate market, smaller buildings between six and 11 units represent about 70% of the transactions taking place. The owners of these smaller buildings are buying up to larger buildings, so it’s pushing the entire market upwards.
We just sold a property in Codines for just below a 3.5% cap rate, which was excellent for that asset. It was a brick and wood construction located steps away from a Metro station, and one of the reasons we were able to get such a great price was because there was massive potential for the buyer. That’s just one example of how we were able to get top dollar when selling an investment property.
It’s an outstanding time to sell an investment property. If you own investment properties and aren’t sure what to do right now or just have some questions, don’t hesitate to reach out via text or email. I would love to help you.