{"id":4096,"date":"2021-10-15T09:57:15","date_gmt":"2021-10-15T14:57:15","guid":{"rendered":"https:\/\/jessicadire.com\/blog\/buying-a-multiplex-what-you-need-to-know\/"},"modified":"2021-10-27T09:50:00","modified_gmt":"2021-10-27T14:50:00","slug":"buying-a-multiplex-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/jessicadire.com\/fr\/blog\/buying-a-multiplex-what-you-need-to-know\/","title":{"rendered":"Buying A Multiplex: What You Need To Know"},"content":{"rendered":"

Are you thinking about buying a multiplex? It could be a source of monthly income and a great investment\u2026 if you take the time to prepare.<\/p>\n

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Here’s what you need to know before buying a multiplex:<\/p>\n

Buying a multiplex is different from buying a home.\u00a0<\/strong>A building that has more than five units is considered a commercial building, which means you\u2019ll need to get a commercial mortgage to buy it. This type of loan follows different rules. The financial institution will evaluate the profitability of the building, as well as its location, condition, occupancy rate, etc. Your financial situation will also be taken into account.<\/p>\n

The down payment required is usually 25 per cent.\u00a0<\/strong>You can reduce this percentage by purchasing mortgage insurance.<\/p>\n

To evaluate the profitability of a multiplex, several factors must be included<\/strong>. You must take into account the price paid, the net income (rental income minus operating expenses) and the estimated value of the building. By dividing the amount paid by the net annual income, you get a ratio. To obtain a good return, this ratio must be between 10 and 16. The estimated value of the building is used as evidence when obtaining the loan.<\/p>\n

If you want to live there or house your children there,\u00a0<\/strong>you must pay compensation to any displaced tenant. You cannot evict a tenant to move yourself in without following the specific rules dictated by law. Also, if a company is the owner, it cannot evict a tenant for this reason. Be sure you are\u00a0fully informed<\/a>\u00a0.<\/p>\n

You will need to manage tenants.\u00a0<\/strong>Even if you take precautions, you will certainly have more demanding tenants than others. Do you have the time and desire to manage multiple tenants?<\/p>\n

If you do any work, you will be footing the bill.\u00a0<\/strong>Do not rely on rent increases to pay for your renovations: rent increases are regulated by the R\u00e9gie du logement.<\/p>\n

How to find the right multiplex for you<\/strong><\/p>\n

Don’t leave your search for a good multi-unit property to chance. Contact me to find multiplexes for sale. Search both residential and commercial properties, as this search depends on the number of units. I will do the research for you, based on your criteria, your objectives and your financial capacity.<\/p>\n

Before making a purchase<\/b><\/p>\n

If you want your purchase to be profitable, it is essential that you carry out the following checks:<\/p>\n