Investment

Eric Skicki

Parents Helping Their Kids Buy Condos

Written by Eric Skicki Friday, September 5th, 2014
  • HelpingKidsBuyCondos

    Will parent-investors become the new type of condo investors?

    Over the past year, we have seen more and more parents buying condos for their kids to enjoy in the future. The most common purchase is a pre-construction one bedroom/ one bedroom plus den condo, which typically goes for about $270,000-290,000 depending on the size, floor and layout.

    What makes the parent investor different from your traditional condo investor, is that they are in it for the long term. Typically this means anywhere from 5-10 years.

    When the parents initially purchase these pre-construction condos, the kids are sometimes as young as 14-16 years. Once the pre-construction condos are ready, parents hope to rent them out for a few years and have their kids move in once they have finished school and land a good job.

    If the parents, for whatever reason, decide that the kids should not move in, then they can continue to rent out the condo (so that it pays itself off), or sell it for an anticipated profit. Parents see this as a “win-win” situation.

     

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    • This entry was posted on Friday, September 5th, 2014 and is filed under ALL Articles, Articles for Buyers, Investment. Tags: , , , ,

    Eric Skicki

    Landlords Satisfied With Mississauga Rental Condo Market

    Written by Eric Skicki Friday, August 23rd, 2013
    • condo-for-lease

       

      “My Square One Condo” has an entire rental team dedicated exclusively to working with rentals in the Square One area.  We continuously aid tenants looking to secure properties, as well as landlords looking to lease out their properties. Over the last few months, I started monitoring rental properties closely and how they ended up getting leased out. I decided to publish a short blog based on these observations.

      5 cool facts about Square One condo rentals

      – The most common request from a tenant is for us to find them a “clean unit with an open concept layout”

      -Young people tend to go for newer stylish condos such as The Onyx or One Park Tower, while families prefer older spacious condos such as The Phoenix

      – About 75% of potential tenants ask if the hydro is included

       

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      • This entry was posted on Friday, August 23rd, 2013 and is filed under ALL Articles, Articles for Buyers, Investment. Tags: , , , , ,

      Eric Skicki

      Is There A Market For Studio Condos In The City Centre Area?

      Written by Eric Skicki Friday, July 19th, 2013
      • NO DEADLINE DATE SUBMITTED

         

        This is something that I have wondered for a very long time, but not until recently have I decided to dig a little deeper, in order to find out. By my definition, a “bachelor pad” or “studio” is any condo which is less than 499 square feet and which does not have a dedicated bedroom. Interestingly enough, in Toronto there are many condos which are less than 499 square feet that have a separate bedroom, making them not count under my definition. However, here in Mississauga, we are still fortunate enough to have condos relatively decent in size as compared to other cities such as Tokyo and New York.

         

        The Data

        – Currently, Daniel’s is the only builder in the Mississauga area, who has recently built studio condos, and there are no pre-construction studio condos planned for the near future

        – Around Square One, studios can only be found in 2 condos: Limelight and Chicago

         

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        • This entry was posted on Friday, July 19th, 2013 and is filed under ALL Articles, Investment. Tags: , , , ,

        Eric Skicki

        Downtown 21 Master Plan – The Future Of Mississauga Condo Living

        Written by Eric Skicki Tuesday, May 28th, 2013
        • downtown21-mississauga

          Who would have ever thought, that Mississauga would eventually have one of the most active condo real estate markets in the country; with over forty existing condominiums and 15 proposed for the near future? Mississauga has grown substantially in population and, improvements to infrastructure and design are required to sustain this rapid growth.

          The solution offered by the city of Mississauga is called the “Downtown21 Master Plan”. The goal behind the Downtown21 Master Plan is to make downtown Mississauga, also known as the City Centre area, more pedestrian friendly. At the same time, this plan hopes to set out specific strategies for economic development, new transportation systems, and overall environmental improvement.

          In this blog post, I will cover some of the fundamental changes offered by the Downtown21 Master Plan, and its influence on the future of the Mississauga condo market.

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          The Plan In Detail

          Mississauga has always strived to have a well-balanced downtown core. The Downtown21 Master Plan will undergo some changes that are reflected in areas such as the employment, retail, commercial and civic sphere. This, in turn, will be balanced by residential development, entertainment, and facilities used by business visitors and tourists. Some of the changes which are to be implemented include:

           

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          • This entry was posted on Tuesday, May 28th, 2013 and is filed under ALL Articles, Articles for Buyers, First Time Home Buyer, Investment. Tags: , , ,

          Eric Skicki

          Condo Assignments Explained

          Written by Eric Skicki Saturday, April 20th, 2013
          • Condo Assignments

            What is an Assignment?

            An assignment condo sale refers to buying a condo off of a previous buyer before it is officially registered in the Land Registry System. To illustrate the most common type of example in today’s market, please see the following scenario:

            A buyer purchases a pre-construction condo through the condo sales office. His or her intention is to live in that condo once it’s completed in a few years. However, plans change after about a year or so, and that buyer decides they want to sell their pre-construction condo prior to taking occupancy or ownership of the unit. This can be accomplished using an assignment sale, where the original buyer finds a new buyer for their condo. This new buyer assumes the responsibilities and enjoys all the benefits which were offered to the original buyer.

             

             

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            • This entry was posted on Saturday, April 20th, 2013 and is filed under ALL Articles, Investment, Pre-Construction Condos. Tags: , , , , ,

            Eric Skicki

            Tax Basics For Mississauga Condos

            Written by Eric Skicki Friday, April 5th, 2013
            • Mississauga Condo Taxes

              As many of you already know, in Canada, taxes are due each year on the last day of April. Now I know that for many, taxes are one of the least favourite things to talk about, yet lots of people seem to be misinformed about tax basics and the implications they have on real estate. By no means am I a tax expert, but in this blog post, I want to clear up some of the basic tax questions I get asked.

              Capital Gains Tax–  Capital gains occur when you sell a property at a higher price than you paid for it. The difference is known as your “capital gain”. Any property (with exception to your primary residence) is subject to a capital gains tax.

              Calculating Capital Gains Tax – The formula for calculating capital gains tax on real estate is: Capital gain x 50.00% x marginal tax rate = capital gain tax.  This can be best illustrated through the following example.

               

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              • This entry was posted on Friday, April 5th, 2013 and is filed under ALL Articles, Articles for Buyers, Investment. Tags: , , ,

              Eric Skicki

              Losing $23,000 On A Pre-Construction Condo

              Written by Eric Skicki Sunday, August 26th, 2012
              • pre-construction condo money lost

                 

                Over the past eight years or so, many pre-construction condos in Mississauga served as great investment tools for investors. As previously mentioned on this blog, I personally know clients who made $30k, $40k or even $50,000 on a single condo investment venture. Many of these clients have bought and sold several condos and each time they have managed to come out with substantial profits.

                However, this is not to say that all condo projects are great investments. To illustrate this, I decided to use a real-life case study to show how one person managed to come out financially negative when trying to sell their condo investment. For privacy reasons, the person’s name and the builder’s name are not disclosed in this post. I hope this case study will help some first-time home buyers and first-time condo investors overcome some of the biggest mistakes made by amateurs.

                 

                The Case Study

                Last week I met with a client who was interested in selling her pre-construction condo which she took possession of less than a year ago. Her initial plan was to buy a pre-construction condo, live in it for a year, sell it and then move out east to a smaller town in Ontario. Her search for a condo started in late 2010 when she began looking for a condo by herself, without the assistance of a Realtor. The clients’ requirements were as follows:

                 

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                • This entry was posted on Sunday, August 26th, 2012 and is filed under ALL Articles, Investment. Tags: , , , , ,

                Eric Skicki

                An Investor’s Guide To Flipping A Condo In Mississauga

                Written by Eric Skicki Monday, July 23rd, 2012
                • mississauga condos fixer uper

                   

                  The terms “flipping a property” or “flipping a condo” refer to buying real estate at a lower price, with no intention of actually living in the place. The main objective of flipping is to generate profit.

                  There are two ways one can flip a condo in Mississauga. The more popular way is to buy a pre-construction condo that will generate profit in the future. But rehab properties, fixing them up and then reselling them is another way this can be achieved. In this blog post, I want to cover these two methods and provide an insight to anyone who might be interested in condo flipping.

                  Flipping A Pre-construction Condo

                  As mentioned above, most investors (I would estimate over 90%) who want to get into real estate turn to pre-construction condominiums. Over the years pre-construction condos have come to be known as “easy investments”, which generate great profit. For further information on pre-construction condos read this article.

                   

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                  • This entry was posted on Monday, July 23rd, 2012 and is filed under ALL Articles, Investment. Tags: , , , ,

                  Eric Skicki

                  Toronto Condos vs. Mississauga Condos

                  Written by Eric Skicki Tuesday, May 29th, 2012
                  Eric Skicki

                  Is Mississauga Expanding Too Fast For Its Own Good?

                  Written by Eric Skicki Sunday, May 6th, 2012
                  • Mississauga future real estate

                     

                    Mississauga is recognized as Canada’s 6th biggest and fastest growing major city. A key contributor to this exponential growth, are the downtown core condominiums. However, with so many condos being constructed around Square One, valid questions are being raised. Can the infrastructure in downtown Mississauga support this new population? Is there going to be an oversupply of condos? How will the real estate market respond to such changes?

                    All these questions spark interesting debates and everyone seems to have an opinion. If you were to ask five different realtors what they think about the future of Mississauga’s condo market, I guarantee everyone would have a different response.

                    I think the future of downtown Mississauga depends on 5 key factors:

                     

                    1. Public Transportation – A lot of residents who live in downtown Mississauga need to commute to work by public transit. Mississauga has already taken measures to improve its own transit system by introducing the MiWay, as well as adapting a new system, known as the LRT system, which envisions connecting Toronto, Mississauga and Brampton. The success and integration of these two transportation systems will be a key contributor to how the downtown real estate market will respond.

                     

                     

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                    • This entry was posted on Sunday, May 6th, 2012 and is filed under ALL Articles, Investment. Tags: , , , , , , , ,

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