Investing: Mississauga Condos outperform Toronto condos in 2012

January 16, 2013 - Updated: April 18, 2014

    When asked, many people out there would assume Toronto would be the better condo real estate market to invest in.  The facts are both markets were highly supplied with existing buildings and new ones being completed last year. Yet, Toronto saw an overall loss in the average sale price in Q4 versus 2011 Q4 by -3%.  By contrast Mississauga condos average price increased by +1%.

    Also one has to look at how much it cost to invest to have a better understanding of the risks and potential rewards.  The average price for an investor of Toronto condos in Q4 2011 was $361,488 + $7237 Land Transfer Tax.  But the condo investor in Mississauga would have spent in Q4 2011 on average $258,252 + $2349 Land Transfer Tax.  Simply stated it’s more costly to buy in Toronto and I haven’t even talked about monthly costs of ownership.

    Considering the effects of restricted mortgage rules had on affordability; combined with an oversupply of condo units; Toronto seems to be an expensive option.  Mississauga condos market seems to be a little bit more resilient to the combination of factors that saw Toronto lose 3% last quarter.  Looking ahead into the near future in my opinion Mississauga condos will probably trend similarly as in 2012.  Toronto will probably still suffer from oversupply and higher costs.

By Todd Lee


Tagged with: investing in mississauga condos condos
| | Share

Condos For Sale / Condos For Rent / Houses For Sale / Contact

 

Copyright © 2011- 2014 www.toddlee.ca. All Rights Reserved.

 
Powered by Lone Wolf Real Estate Technologies (CMS6)