Newsletter June 2018

Newsletter June 2018 1024 480 Guardian Financing

Welcome to the Guardian Financing June, 2018 monthly newsletter. This month’s issue is about some of the impact the real estate boom is having in downtown Montreal, other than the economic effects.

Condoville: What is the Real Estate Boom Doing to Downtown Montreal?

The real estate boom in Montreal has been nothing but phenomenal. Amidst speculation of it being a bubble, the market, especially the condo market, has sustained strong growth, and if recent stats are anything to go by, then this market is not slowing down anytime soon. But, in as much as the boom is great for the industry, and the economy in general, there are certain aspects of it, which are undesirable to the residents of Montreal, and the city as a whole. If projects are not completed within a reasonable period, there may be very little to celebrate regarding these magnificent structures, since construction may continue to drag on for years to come.

Affordability

A few years ago, there was great concern throughout the country concerning the affordability of housing units and private loans, as well as an influx of foreign buyers. But following 2015, this seems to be less of a problem, since the market is witnessing a near-maximum occupancy rate and politicians have also discovered a way to deal with the influx of foreign buyers, especially through foreign buyers’ tax. So for now, issues relating to demand and ownership seem to have been dealt with appropriately. But still, there are other serious concerns.

Architectural Concerns

It is a fact that these residential skyscrapers have completely reshaped Montreal’s skyline, but they have also dramatically altered the pedestrian experience throughout the region. For example, it is no longer the same experience walking around in places such as Griffintown or Rene Levesque Boulevard, compared to a few years before the structures came up.

It should be noted that the importance of such developments will always be insignificant if they end up degrading the quality of life in those areas. People developed mega structures to enhance the quality of life, and if this is ignored, then what is being done could be considered quite counter-productive.

No more natural light in some sections of the city

With all the skyscrapers in downtown Montreal, it is sad to note that the quality of natural light has been degraded, and so is the flow of natural currents. You may actually need to use lead shoes to stay on the ground due to the wind vortex in some sections of the city, and this is certainly not what the planners had envisioned.

If people do not enjoy walking by the condos, the Montreal we all know and love may be in jeopardy. Montreal used to be a place where you would spot high-rise buildings surrounded with plenty of space, light and air, and you would enjoy taking a leisurely stroll.

Hampered accessibility

Other than the “strollability” of downtown being affected, accessibility has also been a huge victim of the wanton development in the condo market throughout the city. Downtown has now become significantly less accessible for families than it used to be, just a few years ago. This is a valid concern for the city’s administration, and it is imperative that the city’s priorities are reset so as to address these emerging issues that have the potential to truly diminish Montreal’s former charm.

Yes, it is good to develop condos so that residents can have fine living spaces, but not at the expense of genuine neighborhoods surrounded by a positive energy and vigor, resulting in a depreciating city lifestyle due to a lack of room for families, then it is time for authorities to head back to the drawing board to consider long term gains for the city, rather than the short term gains for the investors.

Guardian Financing is a direct private mortgage lender. We serve the greater Montreal area providing short term residential mortgage loans, typically ranging from $50,000 to $750,000. Contact us today to discuss your file at 514-700-3121 or by email at files@guardianfinancing.ca