Rental returns in Montreal outpace those in other Canadian cities
Last Updated: 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 4.5%. 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 6%. In this low-return era, in a low-risk country such as Canada, that is a really acceptable yield. However unfortunately this year we don´t have yields data for Montreal, so in saying this we are relying on an extrapolation of previous years´ figures.
In Toronto, gross rental yields are lower, at between 3.5% to 5.3%, 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.
We continue to find it hard to collect yields figures for Vancouver.