Prices Are Going Up
As we welcome 2016, it’s no surprise that condo prices in Mississauga continue to increase at around 3% per year. The major drivers of this force are freehold homes, which have increased in some places by nearly 60% in the past decade. Condos have become the norm for all first-time home buyers and investors.
Investors continue to enjoy the low 1.2% rental vacancy rates that Mississauga has to offer.
First-time-buyers might be surprised to see certain buildings such as City Gate, list one bedroom + dens for around $300k and sell. Similar units 2-3 years ago were selling in the $270’s range.
Local Buyers Compete Against International Buyers
One of the key factors driving Mississauga Condo prices up; are international buyers. Although the exact number of foreign and overseas ownership is not available for public, experts estimate this number to be as high as 15-20%. With the falling Canadian dollar (around $0.68 at the time of writing this article), Mississauga real estate looks like a “good buy” for many people abroad.
This makes it hard for some first time home buyers to break into the market. It’s not uncommon for nice re-sale condo units to still attract multiple offers.
Pre-construction Condos have Inventory
If you are looking to get a brand new unit and you wish to take possession within one and a half years maximum, a few builders are offering interesting incentives which only require up to 5% total down-payment.
The standard down-payment with any pre-construction condominium is usually 20%. With this type of aggressive down-payment structure, I still encourage buyers to have a minimal of 10% down. We will release a blog shortly highlighting these projects but in the meantime please feel free to contact us.
P.S. Investor clients still need a minimal of 20% down regardless.
Do not buy Units with no Parking Spots
In order to keep prices lower for entry-level condo units, some condo builders in Mississauga have decided not to include parking spots. This move reduces the overall purchase price of any unit by around $25k.
My strong recommendation to anyone considering to purchase such a unit is NOT to do it.
Even though the savings might seem nice for any buyer not planning to have a car, the resale value of the condo eventually suffers. Mississauga is not yet recognized as a super accessible by public transportation city. Unlike cities such as Toronto or even more so Manhattan, where most people living in these metropolitans rely on public transportation.
2 Bed, 2 Bath is a Best Buy
If you are a buyer who is debating between buying a one bedroom and two bedroom condo, my advice would be to go for the two-bedroom condo. There have been 20% more 2 bedroom/2 bedroom + den transactions, over 1 bedroom/ 1 bedroom + den transactions, in 2015. The prices for two bedrooms have also been appreciating at a higher percentage over the smaller condos.
Cities like Toronto, also paint a good picture of what is to come. The gap between a one bedroom and similar two bedroom condos in Toronto can be as high as $150-175k. In Mississauga, this price gap is currently on average around $100k.
Exciting New Condo Launches
The parcel of land on the corner of Karyia Drive and Burnhamthorpe (right in front of Square One shopping mall) was recently purchased by a residential condo developer. The builder “Baif Developments” plans to build a mixture of townhomes and condos on this land (180 & 190 Webb Dr). Although exact details are yet to be confirmed, from what we understand there should be at least one 25 storey tower with 3 storey townhomes units. This project should launch later on in 2016, and probably be finished around 2019. More info is to come.
New Condo Act
Last December, an amendment of Ontario’s current Condominium Act, from 1998, was introduced. Named the Protecting Condominium Owners Act, this piece of legislation was put into place to give more rights to condo owners and to bring more transparency to the way condos are managed. We recently also blogged about some of the issues residents are facing with regards to property management companies.
It will take up to three years for this act to be fully implemented, but we are happy with this decision.
The reputation of Building Matters More than Ever
The reputation of any building has a huge effect on how potential buyers view and understand the condo in terms of “value”. Every buyer who works with us wants to know that they are not necessarily getting the lowest price, but the best value for their money. After all, who would want a condo for cheap that they will hate to live in?!?
Building reputation comes from how the building is run by the property management, how the security interacts and treats its residents and visitors alike, and the overall satisfaction of its residents.
One of the core values of our MySqaureOneCondo.ca is transparency. For this reason, we allow all legitimate reviews to be posted on our site.
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