Développements McGill inc.

Développements McGill inc.

August 19, 2010 06:00 ET

The Best Investment for Your Children? A Condo in Old Montreal!

DevMcGill's Family Investment Program is a great way to build family wealth

MONTREAL, QUEBEC--(Marketwire - Aug. 19, 2010) - Parents buying condos with their adult children is a growing trend in the real estate market that has been given added impetus by the current economic environment. In these times, families are looking for a safe bet to build wealth for their children. According to a national survey of Canadians contemplating a condo purchase, 10% are considering it for their adult children.(1) Développements McGill (DevMcGill), the developer of the M9-3 condo project in Old Montreal, has created the Family Investment Program to support this highly advantageous asset-building strategy.

"We have formed an partnership with the Royal Bank (RBC) to enable families with children aged over 18 studying or working in Montreal to enrich their family assets by buying a new condo in a booming neighbourhood with one of the highest value appreciation rates on the Island of Montreal," said Stéphane Côté, President of DevMcGill.

The partnership lets DevMcGill offer first-time buyers very advantageous terms, including:

  • joint mortgage application by parents and children, if desired, making it easier to get a pre-approved loan;

  • the child's name only on the property deed, qualifying the condo as a principal residence and exempting it from capital gains tax when it is resold;

  • very modest down payment (starting at 5% of the selling price);

  • guaranteed interest rate until construction is completed to shelter the buyer against any rate increases;

  • $1,000 rebate on notary's fees when the transaction closes.

A safe investment

With prices ranging from $150,000 to $1 million+ an M9-3 condo is a sound investment for families with a wide range of needs and budgets. Now is the right time to buy real estate for two compelling reasons: historically low interest rates and capital appreciation well above traditional investment instruments such as registered retirement savings plans (RRSPs) and registered education savings plans (RESPs). A recent study by Canada Mortgage and Housing Corporation (CMHC) found that the average price of a condo in Old Montreal increased by 21% in the first quarter of 2010, compared with an average 8% increase across the Island of Montreal during the same period. And real estate is a secure hedge against inflation: while it reduces consumers' buying power, it yields long-term asset appreciation.

"In addition to its attractive terms, the Family Investment Program supports customers from the beginning of the buying process, clearly defines their needs and offers them the best product, based on the family's financial position," said Manon Angers, Royal Bank mortgage officer.

Substantial savings

For families on a budget, the Family Investment Program is a boon. The City of Montreal's home ownership program offers buyers of homes under $235,000 a set of tax incentives including a one-time $4,500 rebate and 40% off the transfer tax (welcome tax). Revenue Quebec also grants buyers a tax rebate of up to 36%.

"We have always been committed to offering 'affordable luxury' and we are upholding that tradition with this program," said Stéphane Côté. "We want to offer people who may think they can't afford it a unique architectural and urban experience in the heart of Montréal and an attractive investment opportunity, particularly since Phase I of the transformation of the Bonaventure Autoroute into a boulevard with green space was officially confirmed last week."

Lifestyle

DevMcGill's Family Investment Program makes it possible for families to buy instead of renting at a loss and enjoy a superior quality of life at the same time. With as little as $8,000 down and monthly payments similar to rent, parents and their children can purchase a new property in the heart of Cité du Multimédia, a vibrant neighbourhood located near several institutions of higher education and well served by public transit. Buyers have been quick to see the advantages: in only three months, 50% of the condos in the M9-3 complex have been snapped up.

The apartments in the M9-3 project, designed by Sid Lee Architecture + Ædifica, combine beauty, originality and convenience, indoors and out. The 15th floor rooftop SkyTerrasse™ and the SkyLounge, intelligently designed common spaces open to all residents, afford spectacular views of the city and the Old Port. The SkyTerrasse™ boasts a swimming pool, Jacuzzi, BBQ and glass-walled gym. At the SkyLounge, condo owners can relax in a spacious glass-walled lounge with a fireplace, big screen TV and fully equipped kitchen.

For more information on the Family Investment Program and the M9-3 project, visit the sales gallery at 800 Wellington St. in Montreal or the www.habiter.com site.

About Développements McGill

For 10 years, Développements McGill has been building intelligent living spaces for tomorrow. Its award-winning projects, including Le Couvent Outremont at the base of Mount Royal, Le Caverhill, Le 777 and Le Orléans in Old Montreal, and Square Benny in Notre-Dame-de-Grâce, speak to the imagination.

(1) TD Canada Trust survey, May 2010. www.cnw.ca/en/releases/archive/May2010/05/c8758.html

Contact Information

  • Ping Communication
    Martine Nadeau
    514-843-4160, ext. 222
    C. 514-238-0568