Bying a house, is it to throw one’s money down the drain? That is what currently thinks certified accountant Pierre-Yves McSween.
Mr. McSween has published in the newspaper “
According to him, the worst purchase to be made is the building with rental residences. For example, a duplex to be renovated in Rosemont, built in 1950, can cost as much as 540.000 $.
“That is a lot of money, deplores the accountant. It is more expensive than the price of two new condos of the same size and condos are already expensive. ”
“When you buy a revenue creating building in Montreal, he adds, that will cost you more. The rents are too low to cover your building. I put you to the test to find a building that pays itself if you do not live in it. Your output on the invested capital is negative.”
However, Mr. McSween will not go as far as saying that to buy is a bad idea at any time.
“It is necessary to listen to the signal of the price, he exclaims. Why have house prices gone up? It is because interest rates have dropped. People will pay more expensive until they are not able any more. We have reached that limit, which is like saying that the rates are very low. One cannot put oneself in debt any more. One cannot make the market go up any more as quickly as between 2000 and
All in all, Mr. McSween suggests to choose one’s moment like at the Stock Exchange, while waiting until an overestimated market goes down again before entering in there.
One can agree or not, but it is interesting to take note of the reflexions of the others.