Investment

Eric Skicki

Short-Term Condo Rentals in Mississauga – The Untold Story.

Written by Eric Skicki Monday, February 9th, 2015
  • condos for rent short stay

    If you want to rent a condo in Mississauga, you are required by many landlords to sign a one year lease with them.  The one year lease is often seen as a good length of time for a landlord to commit to a tenant, and for a tenant to commit to a property. More than 50% of tenants end up staying for more than a year; sometimes for as long as 5 years. Read FAQ on condo rentals in Mississauga here.

    Although there are no official definitions of short-term leases, for the purpose of this blog, I will define short-term leases as any residential condominium rental for the period of one day to 90 days, or 3 months.

    Why is there such a demand for short-term condo rentals in Mississauga?

    Unlike Muskoka or Miami, short term rentals in Mississauga are not primarily driven by tourism. Mississauga attracts a lot of short-term rentals because of three main reasons:

    1) Business – Compared to its sister city Toronto, Mississauga is very affordable and easier to commute in by car. Many business professionals come to Mississauga since it’s close to the airport and it’s the headquarters of many fortune 500 companies. Executives that stay in short-term rentals argue that they prefer condos over hotels. Living at times for a week in a hotel can be depressing and tiresome.

     

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  • This entry was posted on Monday, February 9th, 2015 and is filed under ALL Articles, Investment. Tags: , , ,

Eric Skicki

Should I Buy a 1 Bedroom or 2 Bedroom Condo as an Investment?

Written by Eric Skicki Sunday, October 26th, 2014
  • 1-bedroom-vs-2-bedroom

    Perhaps, the number one question asked by any investor looking to purchase a condo in Mississauga for investment is whether they should buy a one bedroom or a two bedroom condo. Although both have their advantages and disadvantages it’s important that the buyer is aware of all the pros and the cons that come with each choice. In this blog post, we will examine how a one bedroom vs. a two bedroom apartment purchase, affects the bottom line of any investor.

    Appreciation

    Capital appreciation is the price appreciation each condo owner gets simply by owning a condo over a period of time.  With real estate prices in Mississauga universally going up by a 2-5% year over year, the idea of leveraging a small downpayment, against a large purchase price is attractive to investors. To put into perspective; if a one bedroom condo which sells for $275,000 goes up in price by 10% over a four year period, the owner made $27,000 in appreciation. On the other hand, if a two bedroom unit which sells for $350,000 goes up by 10% in the same four years, the unit has appreciated by $35,000.

    Two bedroom units appear to be the better choice over one bedroom units, when looking at the appreciation rate.

     

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  • This entry was posted on Sunday, October 26th, 2014 and is filed under ALL Articles, Investment. Tags: , , ,

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
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    “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
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    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: , , , ,