Canada: rental yields are good in Montreal
January 31, 2018
|Last Updated: Jan. 31, 2018|
|TORONTO -DOWNTOWN condos||PRICE/SQ.M. (US$)||YIELD (p.a.)||PRICE/SQ.FT. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|Bay. St. Corridor||9,343||32.62||4.19%||868||3.03|
|St. Lawrence Market||7,309||31.86||5.23%||679||2.96|
|Mount Pleasant West||7,309||30.46||5.00%||679||2.83|
|West Point Grey||9,914||n.a.||n.a.||921||n.a.|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. |
Source: Condos.ca Definitions: Data FAQ See also: Update Schedule
Rental returns on apartments in Montreal tend to outpace those in Toronto. We´ve found in recent years that even on a largish 120 sq. m. apartment in Montreal, you are likely to earn a gross rental return over of 5 %. If you own a small apartment of 60 sq. m. in Montreal and rent it out, you are likely to make a return of around 7%. In this low-return era, in a low-risk country such as Canada, that is a really acceptable, not to say enticing, yield.
In Toronto, gross rental yields are lower, at between 4% to 6%, sometimes even lower. Taking account of the fact that we give gross figures - a guess might be that net yields would be 2% lower - then obviously the difference in returns between Montreal and Toronto is really significant.
If you are looking for rental returns, Montreal is the city that you want.
We continue to find it hard to collect yields figures for Vancouver, and this year we have not managed to get sufficient figures for reliable figures for Montreal. For reasons too complex to explain here, that´s because that strange habit, common in the Anglo-Saxon world, of classifying listings per number of rooms rather than by the size of the apartment, makes it really hard for us to present accurate yields figures.