I am considering buying a condo (flat) in Mississauga , Canada. I am not a canadian resident but during my recent visit there, I noticed that property prices are rising rapidly. These condos I am buying are not ready till 2007. So it’s like holding the price for 3 years by paying a deposit. Once it is ready, I will either sell or let the condo.
To all Canadian guppies out there- as I do not understand the realestate trends in canada- is it a good idea to do so or not?
Khattana, theres 2 much to be said here...i'll try to make it as comprehensive as i can :)
real-estate prices are definitly going up...over the past 6 yrs, the price for freehold homes has gone up on an avg of 4 - 5% each yr...not so much for condos, its bout 2 - 3% for them...so its definitly a good investment nonetheless in terms of the return u r getting...
this is from the buying and selling perspective, to make a quick profit...investing in new houses/condos is a good deal 2...by the time the houses/condos are built, u can sell 'em for bout $10 - 15K more than what u paid the builder...HOWEVER, here's something u might want to research b4 u decide to buy one of these new condos being built...some of the builders don't allow sales ads for the condo units/houses that they've built for atleast a yr after their completion, i.e. if the condos u r looking into will be finished in 2007, and the builders DO have the rule that i just mentioned, u might not be able to "actively" list it on sale in any papers or even with a real estate agent till 2008...
if u want to invest long-term, renting/leasing out the condo/house is definitly a great idea...just make the downpayment (typically thats b/w $5000 - 15000 depending on what type of condo/house u r buying from the builder, and wherebouts is it located) and get a mortgage for the rest...the rest of the money u don't have to pay till the unit is ready newayz...once the unit is ready, rent it out and put the payments u receive from the rental towards the mortgage and bills, paying extra if u can towards the mortgage...pay off the mortgage like that, and voila, the condo/house is urs after a few yrs depending on how long ur mortgage was and how many extra payments u've made...the big factor in doing this, u would've already guessed, is getting the mortgage...on what terms r u going to get it, on what interest rate, can u make extra payments, would those payments count towards the principle only or both the principle and the interest etc etc...so u gotta have a plan in place for that, and look @ all ur options really carefully b4 deciding on what type of mortgage to get and on what terms :)
i hope this helps...if u still have more questions, plz feel free to ask! i'll try my best to answer them :)
Thankyou very much DesiMundeya for taking the time to come up with such a comprehensive reply. I will go ahead and buy this condo.
How is Mississauga ranked as a city in the GTA? It seems to be cheaper than it's neighbouring cities. The condo I am buying is in the middle of downtown Mississauga opposite Square one shopping mall.
best of luck khattana!
sauga is a great place to buy property right now, most of the major companies are opening up branch offices there making it a central hub for business…
:k:
lemme know if u have any other questions 
Desi, I have pmed you also.. I will indeed some help in buying a condo in Sauga my self. I was there day before yesterday and man there is some serious construction going everywhere
-Salman
Mississauga's maintaining itself as a relatively cheap suburb of Toronto...some might even call it a city equal to Toronto (but they're usually mississauga banner toting losers). The lower than usual taxes in mississauga appeal to many, and the large population provides several emmenities. Unfortunately it has never had the prestige or even been well known as a safe neighbourhood like Markham(Unionville) or Richmond Hill. Viva Markham!
Mississauga is great, but so is Oakville. Now if you really want some appreciation, look for something on the harbourfront. There's some serious appreciation there.
Good luck.
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*Originally posted by DeSiMuNdA: *
this is from the buying and selling perspective, to make a quick profit...investing in new houses/condos is a good deal 2...by the time the houses/condos are built, u can sell 'em for bout $10 - 15K more than what u paid the builder...
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great reply....but yarr, what about real estate agent fees......usually agent charges 4 to 6 percent of your home price.......and for a 150,000 dollar condo , it is about 7000 to 8000 dollars....and based on my personal experience, i know how difficult it is to sell a home/condo on your own....it takes forever....especially forget selling condo on your own....you have to have a real estate agent to sell a condo because condos awlays fall under some kind of association agreements and usually they do not allow u to put ads outside your condo........plus i also know that many associations do not allow you to rent your condo more than a year......my own association used to have that stupid rule...........
so if we will make 10,000 after 2 years and out of 10,000 we will pay 8000 to real estate agent, we r left with 2000 and with closing fees of above 2000 dollars means we made zero dollar.........
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*Originally posted by phoenixdesi: *
great reply....but yarr, what about real estate agent fees......usually agent charges 4 to 6 percent of your home price.......and for a 150,000 dollar condo , it is about 7000 to 8000 dollars....and based on my personal experience, i know how difficult it is to sell a home/condo on your own....it takes forever....especially forget selling condo on your own....you have to have a real estate agent to sell a condo because condos awlays fall under some kind of association agreements and usually they do not allow u to put ads outside your condo........plus i also know that many associations do not allow you to rent your condo more than a year......my own association used to have that stupid rule...........
so if we will make 10,000 after 2 years and out of 10,000 we will pay 8000 to real estate agent, we r left with 2000 and with closing fees of above 2000 dollars means we made zero dollar.........
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4~6 % seems very high- in the UK the estate agents normally charge about 1~2% and normally you can bargain with them.
In a stagnant market, it is not very prfitable to buy & sell property but it is better to buy and let to pay off the mortgage. However in a buoyant market, like Canada is at the moment, you should expect to see increases of at least 5% per annum which would mean that in two years worst case the price would rise by about $20k on a 200k condo. Actually prices are said to be increasing at over 10% which would make the increase 40k in 2 years. So even if you have to pay about 10k of fees, it is still worth the investment.
If any you guys need help with Mortgage financing let me know as I am a independent mortgage broker in the Miss/Toronto area www.financialpro.ca !
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*Originally posted by phoenixdesi: *
great reply....but yarr, what about real estate agent fees......usually agent charges 4 to 6 percent of your home price.......and for a 150,000 dollar condo , it is about 7000 to 8000 dollars....and based on my personal experience, i know how difficult it is to sell a home/condo on your own....it takes forever....especially forget selling condo on your own....you have to have a real estate agent to sell a condo because condos awlays fall under some kind of association agreements and usually they do not allow u to put ads outside your condo........plus i also know that many associations do not allow you to rent your condo more than a year......my own association used to have that stupid rule...........
so if we will make 10,000 after 2 years and out of 10,000 we will pay 8000 to real estate agent, we r left with 2000 and with closing fees of above 2000 dollars means we made zero dollar.........
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Agent fee is usually 2% - 3 % and the seller pays, not the buyer.
+ Lawyer's fee and Insurance are some thing you need to shop around to get a better deal. Also available in a flat package deal, if you realy look hard for it.
Generaly speaking Condos are a bad investment for profit making in the end. However if you invest in a condo with this perception then you must negociate your closing and mortgage penalty. If not then brand new affordable town homes are the best to book.
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*Originally posted by Raindance: *
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Generaly speaking Condos are a bad investment for profit making in the end. However if you invest in a condo with this perception then you must negociate your closing and mortgage penalty. If not then brand new affordable town homes are the best to book.
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Why do you say that they are a bad investment? I would have thought they would be popular as they provide 5 star hotel amenities as well as accommodation in the city centre. Therefore they should be very popular and their popularity should increase as the city grows bigger.
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*Originally posted by sweetpac: *
If any you guys need help with Mortgage financing let me know as I am a independent mortgage broker in the Miss/Toronto area www.financialpro.ca !
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Well I may take you on on your offer. The condo will not be ready till 2007 so I may contact you then !!