Regardless if you are a first time home buyer, an experienced investor, or someone who is just simply interested in the Mississauga condo real estate market, you have come to the right place. This website is your one stop destination for everything you need to know about downtown Mississauga condos, also known as Square One condos or City Center condos. Using state of the art technology, we have engineered the ultimate all-in-one condo website. At www.MySquareOneCondo.ca we believe in educating people about Mississauga condo real estate by providing as much relevant information as possible. This includes, having a thorough Mississauga condos for sale MLS listings section, an interactive Square One condo real estate blog, and an opportunity to review Mississauga condos.
When designing the website we had one goal in mind – how can we make shopping for a condominium in Mississauga as easy as possible? We believe the answer lies in giving clients the accessibility and freedom to shop for a condo from their home computer, without the immediate need of a real estate agent. Once the person is familiarized with Square One condos for sale, and is ready to contact a condo realtor, we are ready to help.
Many find our real estate blog helpful as it keeps the public informed about the newest pre-construction condo projects in Mississauga, latest price trends and it also provides tips for both sellers and buyers. We update this blog on a weekly basis with all exciting Mississauga condo news.
Finally, our Mississauga condo review section lets property owners, apartment renters and potential buyers give feedback and state their opinions on various Square One condos.
We hope you will enjoy your stay.
One of the main factors, when choosing a new home, for many new home buyers is deciding which city is the right fit. Most people will choose a location close to their work. Others may pick a location associated with higher social status. Which ever factors go into your decision, property tax is something you should consider. Property and land transfer taxes are required to be paid to the owner on your Closing Date. The money is split between the city, region, and province. In this article, we will outline the property tax and land transfer taxes associated with purchasing a property in the Square One region of Mississauga.
When deciding which house to purchase, property tax should play a role in your decision. Mississauga has one of the lowest property tax rates in the Peel region. This makes it especially attractive for real estate investors who wish to invest in the GTA, to invest in properties near Square One.
In the Peel region, residential property tax is calculated using the following formula:
Assessed value x City residential tax rate
Assessed value x Peel residential tax rate
Assessed value x Provincial residential education tax rate
Your total residential property tax bill
Both the Peel and education rates are fixed rates at 0.424% and 0.212% respectively. Between Mississauga, Caledon, and Brampton; Mississauga has the lowest city tax rate.
The total property tax in Mississauga for a condo priced at $269,000 would be $2,492.68 in 2013.
A one bedroom apartment in the Marilyn Monroe Condos across from the Square One shopping centre is selling for $269,000. Let’s look at the property tax between this condo and a similarly priced condo in Brampton.
The total property tax for a condo in Brampton listed at $269,000 would be $3,110.53. As shown in the charts above, property taxes are significantly higher in Brampton as opposed to Mississauga. This makes it more attractive for investors to purchase a home in the Square One region of Peel.
Land Transfer Taxes
Another common tax which is associated with purchasing a new home is land transfer taxes. These costs are added to the purchase price of the home under the closing costs. In Ontario, land transfer taxes remain the same in every city except for Toronto, where additional costs are added. In Ontario land transfer taxes are:
- Up to $55,000 X 0.5 % of total property value
- From $55,000 to $250,000 X 1 % of total property value, less $275
- From $250,000 to $400,000 X 1.5 % of total property value, less $1525
- From $400,000 up X 2 % of total property value, less $ 3525
If we use the example above on a Mississauga condo, than the land transfer tax would be $269,000 x 1.5% – 1525 = $2,510. This cost will be included in the purchase price of the property. If however, the condo was located in Toronto, than an additional transfer tax will have to be included. Toronto home buyers will have additional taxes which are:
- 0.5% on first $55,000,
- 1% on next $345,000, and
+ 2% on portion over $400,000
Purchasing a $269,000 condo in Toronto will now have a Land transfer tax of:
0.5% x 55,000 = $275
0.01% x (269,000-55,000) = $2,140
$2,510 + $275 + $2,140 = $4,925
This may explain why Toronto homes are pricier than other homes in the GTA.
When deciding where you want to purchase a property and at what location you should purchase; the property and land transfer taxes should play a role in your decision as well. Mississauga has the lowest property tax rates in the Peel region, which is something to keep in mind when deciding on where to purchase your property.
About the Author
Allan is an experienced Chartered Accountant, CPA and tax expert. He has extensive experience in handling tax matters and has helped many business owners and individuals save on taxes. He continuously shares his expertise through presentations and other educational venues, whilst coming up with unique tax saving strategies.
It is no secret that many of the condo units around the Square One area are rented out to tenants. In fact, in 2013, there were over 1746 recorded lease transactions on the MLS system in the City Centre area alone. This does not take into account any privately conducted leases, or lease renewals. Although leasing is a viable option for some, most tenants aspire to be owners one day. Over the years, we have helped many tenants transition from renting to owning a condo in Mississauga. In this blog post, we will break down the cost relating to renting and owning a condo in downtown Mississauga.
The Cost Of Renting Vs Owning
In the chart below, we compared the monthly carrying costs of an average priced one bedroom condo in downtown Mississauga. Rent is based on market average of $1,450 per month, and owing is based on a purchase price of $260,000, with $52,000 (20%) down, and at a 3.5% fixed rate amortized over 25 years.
The above chart indicates that owning a one bedroom condo, would typically cost about $163 more per month as opposed to renting it.
The next chart uses the same metrics as above, and calculates the amount of equity which would be accumulated over a 5 year term.
The chart indicates that after 5 years, the owner would pay off over $28,000 in principle, while the renter would build $0 equity.
Anyone who is currently renting, knows that rent rates have been going up steadily over the years. The chart below, on the left, shows the year to year increase of market rent (the amount landlords charge tenants monthly). The second chart, on the right, predicts the capital appreciation (the amount that the property will appreciate in value) over a 5 year period. In our calculation, we have used a variable of 1% yearly for rental increases, and 2% yearly for market average price increases.
Based on historical data, it is safe to assume that a person who is currently paying rent of $1450 per month on their one bedroom condominium in Mississauga, can expect that that amount will increase by around $60 in the next five years. At the same time, a person who is paying off a mortgage for a similar property, would acquire roughly $26,000 in property appreciation over the next five years.
In this blog post we went over the basic costs associated with renting and owning a condo. Based on the figures presented, we saw that owning a condo could cost only $163 more per month than renting it. At the same time, the owner can build equity by paying off their mortgage, and building equity through market appreciation. It’s likely that in less than five years, the owner would have already made back the $52,000 ( $28,000 in principle + $26,000 in capital appreciation) that they have originally put down as a down-payment.
Then why do some people still continue to rent? For some, they are renting because it’s a short term solution and for others it is a temporary solution, in order to save money for a larger down payment.
For anyone who is currently leasing a condo, and is on the fence about buying, I encourage you to check out our rent vs buy calculator. If you are ready to take the next step and see if you qualify, please do contact us and we would be more than happy to help you become a condo owner.
The well known builder in Mississauga who brought you condos such as One Park Tower, Chicago and Limelight, will be releasing new condos; “Daniels Erin Mills Condos”. They will be located at 2550 Eglinton Ave W in Mississauga next to Erin Mills Town Centre (Erin Mills Parkway and Eglinton Ave). Daniels has acquired about 6 acres of land on the south west corner of that intersection. They have planned to build three high rise condos, starting with the West tower, which will have 25 storeys and 300 units. The units will feature 1 Bedrooms, 1+1 Bedrooms, 2 Bedrooms and 2+1 Bedrooms. This community will also have 2 and 3 Bedroom, 2 level Townhomes.
This new community by Daniels is conveniently located in the heart of Erin Mills. It is steps away from Credit Valley Hospital, Erin Mills Town Centre, all the shops, transportation, restaurants, schools, parks and more! Everything that the heart desires is right at your doorstep. Daniels vision was to create a community where one can play, dine, work, shop, and call home.
The amenities will feature: a grand lobby with a ground level café, fitness room, party room, an outdoor terrace with BBQs, garden plots and much more!
Prices start at the low 200,000s
If this is your first pre-construction condo please read these two articles: What you need to know before you buy a pre-construction condo and the process of buying a pre-construction condo.
Register here with ES Team now for VIP Promotions, which will NOT be offered by Daniels directly.
As a condo owner you do have the luxury of living a nearly worry free lifestyle, as the condo corporation takes care of most repairs for the building complex. In return, you as the owner pay a monthly “condo fee”, also known as “maintenance fee”. Typically speaking, the condo corporation takes care of maintaining the common areas, whereas you have the responsibility of maintaining everything inside your condo unit. Although, there are not many things to maintain inside a condo, owners often forget about the few items which are part of their responsibility.
In this short blog post, I want to cover three of the most overlooked, and often neglected, responsibilities of being a condo owner.
Cleaning Clothes Dryer Vents
All condos in Square One come equipped with ensuite laundry. This means the installed dryers do require ventilation. Most of the ventilation systems have two lint traps; one inside the dryer and one in the ceiling above the dryer. The lint trap inside the dryer should be cleaned every laundry load and the one above the dryer should be changed every 2-3 months. Failing to do this, could result in an overheated dryer or even worse a house fire. In fact, in America clothes dryers are responsible for over 15,000 fires every single year!
Changing Air Filters
This is also referred to as fan coil maintenance. It may be a shock to some condo owners, but typically speaking the owner of the condo, not the condo corporation, is responsible for maintaining the AC / Heating unit within the condo. The system is relatively simple, as it works on re-circulating air that is already in the room. For it to work properly, it requires that a) there are no objects (such as furniture) blocking the in-vent at the bottom, and 2) for the air filters inside the in-vent to be changed at least 3 times a year. Improper maintenance of fan coils can result in weak AC/Heat, poor air quality or even worse mold.
Cleaning Bathroom Exhausts
The Ontario building code requires every bathroom to have a ventilation system installed. It’s not uncommon for two bathrooms to share one fan or to be installed on a three-way-switch. Every time you use the bathroom the exhaust fan should be turned on to ensure the humidity levels are controlled. Over time, the dust ends up getting build up which can clog the grill (of the fan) and even worse prevent the fan from operating properly. The easiest way to see if your bathroom exhaust system is working properly is to do the tissue paper test. Improper maintenance of bathroom ventilation systems can result in poor air quality and mold.
Maintaining the above will not only improve your quality of life inside your unit, but will also help with the resale value of your unit should you ever decide to sell it!
Having the chance to work with many condo buyers in the Square One area, I have noted that the majority of condo shoppers have balconies on their “wishlist”. Buyers believe that balconies are an essential part of any condo because it allows them to be outside without having to leave their units. However, are balconies really that important? Or are they simply an overrated feature of a condo?
The Advantages Of Balconies
The good news is that pretty much every condo in Mississauga built after 2004 does come with a balcony. Unless you are buying an older condo, there is not much need to have balconies on your “wishlist” as it’s a standard feature. Some older condos also have balconies, however most of them have solariums, which are in essence ( den like rooms with large windows, positioned next to the living room).
As stated earlier, having a balcony allows the condo owner the convenience of going outside without having to leave the unit, in order to get some fresh air, enjoy the view, have coffee or even eat. Another advantage of balconies, is that the owner feels like they are sitting outside, where they can smoke and entertain, have some flowers and patio furniture (minus the backyard feel of a house). The last advantage that many see is that balconies seem to open up the indoor space. The unit feels much larger and there is also more natural light coming in.
The Disadvantages of Balconies
Balconies are surprisingly expensive for condo builders to built, and later on even more costly for the condo corporation to maintain. After some time, the cold winter weather we have in Canada does take a toll on the concrete slab floor, and the balconies do need repairs. Hypothetically speaking, if builders started to build condos without balconies, like they did for many condos prior to 2004, condos would in fact be larger in square footage. The 50-100 square foot of concrete used to create the balcony, could potentially be used to add additional living space. Wouldn’t that be nice?
Many condo buyers picture themselves buying a condo with a nice balcony in order to grill on the BBQ in the summer time. Unfortunately, the Ontario Fire Code prevents all high-rise condos in Mississauga to have propane BBQs on their balconies. Some buyers believe that the rule varies from building to building, yet, I need to stress that this law is not part of the condo declaration (condo rules), but rather part of the Ontario Fire Code. Some owners disregard these laws and still continue to have BBQs on their balconies, at their own risk.
The biggest disadvantage that I have found among some of the condo buyers who were considering units with balconies, is that some buyers with children feared balconies and how easy accessible they are. Some condo units have two exits and others have a small lock that is easy to open by young children.
Some buyers on the other hand believed that the concrete floor on the balcony looked unfinished. I was told in different parts of the world, most balconies have tile finishes and almost look as if they are part of the living space of the condo. What is important to note is that in Mississauga some condo corporations will actually allow you to finish your balcony while others do not.
The final disadvantage of balconies are the neighbors you may have to deal with. This includes nosy neighbors, to loud neighbors and the worse, to the neighbors which throw cigarette buts of their balconies.
Balconies are a funny thing, because most buyers insist on having them, but they rarely end up using them. Although it would be difficult to put an exact figure on how much premium a balcony would have, I would estimate it to be in the $15-20k range, over a unit which does not have a balcony. Terraces; which in some condos can be 400 or more square feet, are even more expensive, costing the buyer anywhere between $25-35k depending on the unit.
In my opinion, despite the disadvantages, having a balcony is a great thing! However, to get the most out of your balcony you have to have a great view. It’s like real estate – its comes down to location, location location!