Posts tagged with: condos

New Rules Coming This Fall To Protect Mississauga Condo Residents

July 26, 2017 - Updated: July 27, 2017Condos

New condo laws, Mississauga, Todd Lee, Real Estate, Agent, Buy, Sell, Rent, Condos

 

Yesterday the Ontario Government announced new laws to “build healthy and sustainable condo communities”.  These changes come after many years of the Province looking at the simple and complex issues condo corporations and the residents have.  Disputes end up festering in the system being resolved via the courts or by private mediator and become very expensive and time consuming.

 

The result from this review is the Protecting Condominium Owners Act which looked to overhaul the provinces condo laws.  Most of the Acts provisions are not in forced yet, but come this fall Mississauga condo residents will see these new rule changes as per the Ontario Government website:

 

  • Regular mandatory updates about the condo corporation to help improve communication between boards and owners

 

  • Improving condo corporation governance and addressing conflicts of interest by introducing new disclosure requirements for directors, including whether they are not owners or occupiers of units in the condo or if they have interests in contracts involving the corporation

 

  • Mandatory training for condo directors to improve how condos are managed and operated

 

  • Clearer rules to make it easier for condo owners to access records of their condo corporation

 

  • New notices, quorum and voting rules to make it easier for owners to participate in owners' meetings

 

  • Mandatory education requirements for condo managers applying for a general license.

 

There will also be two new administrative authorities.

 

  • The Condominium Authority of Ontario (CAO), when designated on September 1, 2017 will provide education and promote awareness of condo owner rights and responsibilities, as well as provide important information for condo corporations. On November 1, 2017 it will also be responsible for managing the Condominium Authority Tribunal which will resolve disputes about access to condo records. Going forward, Ontario will consult with the public to identify other disputes the Tribunal could resolve. 

 

  • The Condominium Management Regulatory Authority of Ontario (CMRAO), when designated on November 1, 2017 will regulate and license condo managers and providers.

 

But what’s the cost for Mississauga condo owners?

 

The initial start-up cost is to be paid by the province for the Condo Authority.  Afterwards the Authority will set its own fees for users of its services and levies on condo corporations.

 

The levy on condo corporations is estimated to be $1 per unit a month. So if a condo has 100 units then the monthly cost is $100.  The condo corporation will then pass down this expense to the condo owner as an increase to the condo maintenance fee.  This would add another $12 dollars a year to the condo owner’s payments assuming the corporation doesn't find ways of cutting other cost from the fee.

 

The Authority will set the Tribunals fees and charge it to the party bringing the dispute. The anticipated cost of resolving a dispute through the tribunal is lower than legal fees and other costs paid currently.

 

 

 

 

 

Tagged with: mississauga condos todd lee new condo laws

Metrolinx Is Helping Mississauga Residents Move In A Big Way!

July 19, 2017 - Updated: July 19, 2017Community News

The Big Move Mississauga real estate buy and sell condos Todd Lee

 

Introduction

 

Grid lock in the Mississauga streets, rush hour traffic on the 400 series highways, smog, lost revenue for business and unreliable transit seems like I’m talking about today’s commuter problems.  But this was the state of transportation back in 2006 too.  At that time the Ontario government created an agency called Metrolinx whose purpose was to improve the coordination and integration of all modes of transportation in the GTA and Hamilton.  The resulting regional plan is aptly called the Big Move.

 

The Big Move Regional Plan Todd Lee Buy Sell Condos and Houses Mississauga Real Estate

 

According to Metrolinx and others in Government, the systems essential problem is the reliance on the car.  The transportation system cannot handle efficiently the rise in population and the resulting amount of vehicles, thus resulting in all the head ache causing problems big cities around the world have.  The Big Move plan has a 25 year vision and it looks to address these points:

 

·         High quality life

·         Thriving, sustainable and protected environment

·         Strong, prosperous and competitive economy

 

To achieve this vision the Regional Transportation Plan consists of 10 strategies. 

 

1)      Build a comprehensive Regional Rapid Transit Network – Invest in transit infrastructure to meet the challenge of a growing population, allow commuters to choose transit options vs others when gas prices are trending up, pollution is damaging the environment and congestions is a growing concern.

 

2)      Enhance and Expand active transportation – Encourage walking, cycling, roller blading and movements with mobility devices is healthy and cost effective while being environmentally friendly way to travel.

 

3)      Improve the efficiency of the road and Highway network – Better monitoring and planning of road and highways, promotion of carpooling and the use of tools to such as HOV lanes.

 

4)      Create an ambitious transportation demand management program – Create policies for government to limit time employees are on the road.  Encourage the private sector to do likewise.

 

5)      Create a customer first transportation system – The system needs to make transportation a more reliable and enjoyable experience for all users.

 

6)      Implement an integrated transit fare system – allows users to pay a seamless, integrated fare for all transit systems across the region.

 

7)      Build communities that are pedestrian, cycling and transit supportive – Build high density communities with a variety of stores and services for residents to access without a car.

 

8)      Plan for universal access – Removing the barriers that stand in the way of people with disabilities trying to move from place to place.

 

9)      Improve goods movement within the GTHA and with adjacent regions – finding ways to improve the transportation of goods in the GTHA more efficiently to affect positive change in congestions, and environmental impact.

 

10)   Commit to continuous Improvement – the Big Move is a massive plan to address many complex issues surrounding transportation in the GTHA. There are still issues which need to be addressed or discovered.  In the future these can become huge problems and will take a persistent effort over time in order not to fall behind.

 

Mississauga Regional Plan – Major Projects

 

Mississauga Transitway Map Todd Lee Mississauga Real Estate Buy And Sell Condos And Houses

MiWay Transitway Station Art Todd Lee Real Estate Buy Sell Rent Condos and Houses Mississauga

 

 

The Mississauga Transitway: Is currently under construction with segments in use.  When finished there will be 12 stops, have length of 18 kilometres and connect to the GO transit bus service, Hurontario LRT and MiWay bus service.  The transit way will lead to connections to the TTC subway system and employment hubs in the Square One Area and in the Airport corporate center. New Transit way stations are built or in construction running from Winston Churchill in the west to Ranforth in the east.

 

All transitway stations will have service for GO Bus and The MiWay bus service.  Included in the plan is 1.5 kilometres of bus only lanes that run parallel to the north side of highway 403.  GO Transit, expects travel and time savings for people travelling in rush hours up to 15 minutes faster, while offering more choice through more stations and greater reliability while travelling through the dedicated bus corridor.

 

Who is funding this project?  The Mississauga Transit project is funded by The 3 levels of government, the Federal government of Canada, The Province of Ontario and the City of Mississauga.

 

Mississauga LRT Map Todd Lee Buy and Sell Mississauga House And Condos

Mississauga LRT Concept Art on Hurontario St. Todd Lee Buy Sell Rent Mississauga Real Estate Condos And Houses

 

The Hurontario LRT: Is still in the planning and design stage.  The Light Rail Transit will have 22 stops and or stations and be 20 kilometres in length. Along that line there will be major connections to Brampton Transit, Go Train Milton and Lakeshore West Lines, GO Transit bus service, MiWay, bus service.  Construction is to start in 2018 and expected to be completed in 2022.  The LRT will be fast, reliable transit running through the Hurontario Corridor with a dedicated right of way.  The plan calls for a stop as north as Steels Ave (Gateway Terminal) in Brampton and as far south as Port Credit Go Station in Mississauga.

 

There’s certainly a great amount of effort, time, energy and money being spent that I can’t see this not helping the city of Mississauga move residence around better.  A paradigm shift has happened where the car is no longer the corner stone of the system due to congestion, grid lock, environmental issues rising prices in oil and quality of life. From a money perspective, I predict condos and houses along the new transit routes to get a bump in value when they are finally completed.

Tagged with: mississauga condos houses travelling public transit lrt transitway metrolinx

How Does Ontario’s Housing Reform Plan Affect Mississauga’s Real Estate Market?

July 4, 2017 - Updated: July 4, 2017Real Estate Market

 

Earlier this year the Ontario government made an announcement of their fair housing plan.  They were going to address sky rocking rental rates, curb foreign speculation in Ontario, and tackle the problem of “property scalpers”.  It’s been about couple months since the announcement, but how has Mississauga real estate been impacted?  Let’s look at each situation separately.

 

Affordable rent in Mississauga:  Year over year severing both landlords and tenants in Mississauga I can tell you from experience that the rates for rent are going up with little to no end in sight.  A two bedroom condo for example may only be $1,700 to $1,900 per month to rent just a couple years ago.  Today I can safely say the majority of new listings for rent are now over $2,000 per month for a 2 bed condo.

 

The new reform extends the rent controls on all buildings made before 1991 to all current properties and any built in the future.  This should limit massive price increases year over year for existing tenants.  However, if the existing tenant vacates the property, the landlord can still choose whatever price to ask for from the next tenant. In Mississauga condos rarely go un-rented even the trashiest of properties eventually get leased.  Simply put there is more demand than supply.  This leads to sometimes bidding wars for rent and while not common, some landlords turn away perfectly good tenants for better ones they hope will come along. 

 

Deterrents for foreign buyers and speculators. Made famous out west where foreign investors would treat the Vancouver real estate market like short term stocks, these reforms aim to stop any speculation here.  I’m not going to say it doesn’t happen at all, but I have yet to see it for myself.  The government will add a 15% tax on foreign buyers in the attempt to discourage them.  I am sceptical that the problem in Mississauga is the same as Vancouver, but there is no denying there is huge amount of Chinese money in certain areas of Ontario.

 

There are reports from out west that after the foreign buyer tax was installed sales dropped.  Then recently spiked again indicating maybe foreign buyers were just waiting to see what would happen then jumped right back into the market.  As most of my buyers are not foreign investors I haven’t seen this impact first hand.

 

In addition to the “speculation tax” the Provincial government will team with the Canada Revenue Agency to make sure tax is paid properly from the buying and selling of real estate.  This is huge as many local investors have been getting away without paying taxes on investment real estate mainly due to the lack of resources the CRA has.  Having recognized the obvious potential for revenue the Government has targeted real estate investors with audits to collect on taxes never paid.

 

To date there seems to be a slowdown in the Mississauga real estate market, where once there was bidding wars everywhere…now it does seem like negotiations have normailized. Detached homes are selling, but other homes are sitting on the market for over a month and seem to be on the market a very long time when compared to the first three months of the year.  These homes probably are not the target of foreign investors so I can only speculate there is a psychological block amongst Mississauga buyers at least for these more affordable homes.

 

The early result of the fair housing plan is that the Mississauga real estate market has felt its impact.  In terms of the stated goal of cutting back scalpers and controlling rent I don’t think the plan has fully hit its mark in the case of the latter.  As for the former I would say it’s probably over stepped the intended objective and put plenty of would be sellers in jeopardy of not selling in time for their goals or worse, not meeting their commitments if they purchased a bigger house first.  If there is some conclusion I can find it is this…Buyers, this is a great time to buy a house and Governments need to stay away from messing with the natural course of real estate markets for political points.

Tagged with: condos houses buying selling mississauga real estate market rent todd lee

Two bedroom condo for sale in Mississauga: 2913 - 223 Webb drive is modern and beautiful!

May 15, 2015 - Updated: May 15, 2015Top listings

223-webb-drive-2913-condo-for-sale

223-webb-dr-2913-dining 223-webb-dr-2913-master-bedroom 223-webb-dr-2913-second-bedroom.jpg 223-webb-drive-gym 223-webb-drive-pool 223-webb-dive-condo

 

Picture yourself living the condo life in one of the most sought after addresses in Mississauga. 223 Webb Drive, otherwise known as The Onyx condo exudes modern style and sophistication.  The Onyx has top of the line amenities, day round concierge and located just steps away from the famous Square One shopping centre.

 

The interior palette for this suite was tastefully chosen to contrast rich dark brown hardwood floors with splashes of grey for accents walls, clean white partitions and lightly coloured granite counter tops.  Dark cabinetry with modern backsplash and premium stainless steel appliances highlight the modern kitchen.

 

A great condo for entertaining guests, the kitchen is open to both the living and dining rooms.  Adding more space during the warmer months, the generously sized balcony can be accessed from the living room or master bedroom through sliding doors. 

 

Included with this two bedroom two bathroom condo: parking for one, one locker, access to a premium gym, swimming pool, party room and spectacular roof top terrace.

 

Asking price for this condo is reasonable at $378,000. For more information leave a comment below or contact me.

 

By Todd Lee

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Should You Compete In A Bidding War?

May 10, 2014 - Updated: May 10, 2014Buying Real Estate

Decisions

Some of the most dread words for a home or condo shopper to hear are: “multiple offers”.  The first thing my buyers think is… “I am not going to compete in a bidding war because I don’t want to over pay”.  That logic is pretty standard as I don’t know anyone one who willingly wants to over pay for anything.

 

Obviously people still engage in this seemingly cavalier behavior and end up winning the bidding wars despite this.  Do they have regrets?  I’m sure some do.  I’ve heard from people who felt the agent involved gave them the wrong advice and made them offer way too much money and in retrospect they could have offered less to win.

 

On the other hand perhaps some people may have the opposite feeling, one of happiness because they were the victor.  In this scenario the asking price may have been priced low and therefore the well informed buyer makes a conscious decision to give an offer higher than asking price but in reality they are still paying market value.

 

A third scenario can also be true.  Sometimes there are extraneous circumstances which prevail and the buyer has no choice.  I had a client some time ago who needed to buy an apartment next door to their own so their family can be close by for medical /safety concerns.  So they waited and waited until the neighbor finally decided to sell.  These buyers would have to decide on how important it was to own the unit next door vs. if they would have to compete in a bidding war.

 

The condo or home shopper really has to consider several things when shopping these days.  Does there budget meet the asking price of what they want or is it more realistic to find something cheaper.  How do they know their budget?  Did they get a real pre-approved mortgage or did someone ask them 3 or 4 basic questions and gave them a rough idea?  Confidence plays a huge role in a buyer’s strategy in multiple offer scenarios.

 

Many of my clients lately have been shopping at the top end of their budget.  They find homes they like but guess what other parties like the same homes too.  The thing is these clients are stretching to make an offer and are relying on negotiating the price down to be able to buy.  With all these multiple offers out there they will almost surely not be able to compete should the bidding war happen.  Now they have to look at a condo or home maybe in a different area to get the price to match or sacrifice something else.

 

Should the buyer wait until something else comes onto the market?  Maybe it does maybe it doesn’t.  I recall one time a client of mine found THE perfect condo.  They waited to see if the owner would reduce the price and before they made an offer someone else did.  They didn’t want to engage in a bidding war and lost their chance.  It’s been 3 years and they still haven’t found anything like the one they lost.  And the kicker is prices have gone up so much since then it would have been better to have at least tried to win a bidding war.

 

The usual manner for which a multiple offer is conducted is as follows.  The seller agent will inform the agents representing the buyers there is indeed multiple offers for the property.  The buyer agents are usually invited to meet at the seller agent’s office to make finally offers to the seller(s).  This is done for transparency.  The buyer agents can feel confident they are not being played because they are able to see all the agents present to make offers.  But, no one knows what the other’s offer is so the buyer is asked to bring their best offer forward.

 

After the seller is presented the offers they will discuss with their representation the merits of each offer and reach a conclusion as to which is the best offer.  The best offer is not always the one with the most money offered.  Other variables are at play such as the deposit amount which too low could mean the buyer is not as serious, the closing date may or may not be good for the seller and the clauses for finance and inspection may be waived making the deal more “firm”.

 

If you are an informed buyer and can understand you budget, need and your timetable requirements are tight then go for it.  You probably won’t have regrets afterwards.  For those who know you don’t have the budget then don’t bother wasting people’s time and energy and move on to something more realistic.  For those buyers who can “wait” years just understand prices are only going up and if you factor in the price increase over years you might be wiser to buy now.  In the end you win some and you can lose some.  But if you want to be the last man or woman standing you have to at least try.

 

By Todd Lee.  Be social and share Google+

Tagged with: bidding war buying multiple offers mississauga real estate blog condo condos houses homes

What Are The Closing Costs For Buying a Mississauga Condo or House?

October 17, 2013 - Updated: April 22, 2014Buying Real Estate

     Buyers often don’t realize the cost of buying any residential property in Mississauga is more than the down payment and mortgage.  Closing costs can be very significant adding thousands of dollars to the purchase of a condo or house.  If these closing costs are not taken into consideration by the buyer it will be a shocking surprise when they learn about it.  Generally speaking closing costs are made up of various fees and taxes which are incurred because of the purchase of the property.  These costs are variable meaning every situation is different, and are usually explained by the lawyer at the time of closing.  Below is a list of closing costs:

 

Land Transfer Tax - In Mississauga the buyer of a condo or house has to pay the Ontario Land Transfer Tax with the exception of qualifying first time buyers who would receive up to $2000 credit.

0.5% - on the first $55,000

1.0% - on the portion between $55,000 to $250,000

1.5% - on the balance over $250,000

2.0% on anything over $400,000

For quick calculations of land transfer tax please go to my webpage for Land Transfer Tax Calculator.

 

CMHC Insurance Premium – If the down payment is less than 20% of the purchase price the lender will require this coverage.   Mortgage insurance helps to protect lenders against mortgage default and helps consumers purchase a home with a minimum of 5%.  The premium can be paid in a single lump sum or it can be added to the mortgage.   The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage.  PST must be paid at the time of closing.  To estimate the Mortgage Insurance cost I have a calculator you can use.

 

Legal Fees and Disbursements - The buyer will require a lawyer’s services to purchase a house or condo in Mississauga.  The lawyer will be responsible for payment of all related fees and disbursements.  As every situation is different I suggest shopping around to find the best price and services covered, but I usually see clients paying around $1600 which also include things like registration of charge “mortgage”, transfer of deed and Title search of the property.

 

Title Insurance Premium – This is a type of policy which is designed to protect the home owner from challenges to the ownership of their home or from problems related to the title of the property.  A conversation with the lawyer should happen to find out if Title Insurance would be useful.  This could be around $200 plus.

 

Property Tax / Utility Bill Adjustments – In the agreement for sale of a condo or house the purchase price of a resale home is always subject to the usual adjustments at closing.  This means the seller has already prepaid for taxes or utilities and any excess amount would be adjusted back to the seller.

By Todd Lee

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Tagged with: closing costs buying condos houses mississauga

Investing: Mississauga Condos outperform Toronto condos in 2012

January 16, 2013 - Updated: April 18, 2014Condo Investments

    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

How to make money with Mississauga condos

October 21, 2012 - Updated: April 18, 2014Condo Investments

   

   Regardless of your political beliefs and it has absolutely nothing to do with Mississauga condos, that's a funny picture and brilliant at the same time! Inevitably my clients always seem to ask me this question...how to make money on Mississauga condos.  I understand their curiosity of course.  The need for greed is always driving us; though most people don’t buy Mississauga condos for this reason.  The typical buyer really just wants a place to live.  I suspect their need to know stems from not seeing living in a condo for the long term.  In my experience there are only a handful of ways people can “make money” with Mississauga condos.

   Flipping condos is a term to describe the exercise involving buying a condo, then renovation it and selling the property for a profit.  Sounds simple right?  Not so fast…if it was, then everyone would be flipping condos.  The obstacles can be quite expensive and time consuming.  But this is what has to be done.  First a suitable condo has to be discovered that has special qualities.  This condo should be in a desirable neighborhood and be bought at a low price.  Assuming you can find such a condo, and then you have to be able to renovate it to an upper standard with as little cost as possible.  When the condo is sold, the difference from the purchase price minus all the money that was put into buying, renovating and selling it represents the profit.

    Another popular way to making money with Mississauga condos is to rent the property.  Having a tenant is a nice steady way of helping you pay off your mortgage and increase equity. To do this right means selecting the right condo at the right price and being able to attract a tenant who will pay you rent without fail.  This requires marketing the condo to get interest from potential tenants, then going through a selection process.  The wrong selection can end up costing the Landlord financially such as missed rent payments and having to deal with a law suit to recover funds or going through an eviction process.  On the other hand, if things go smoothly then getting that cheque on the first of every month will make you smile.

    The third way to make money on Mississauga condos is to invest into pre-construction condos.  Essentially, buy the pre-construction condo with the minimum payments required as a down payment, then sell the condo before you take possession.  This is called selling the Mississauga condo by assignment.  The trick here is to sell the pre-construction condo higher than what you paid for it.  Take into consideration cost to sell the condo including any assignment fees owed to the builder.  If your take home is more than the cost of selling the pre-construction condo and the original purchase price you will realize a profit.

    As a general rule the more you can do yourself the more money you can save.  Then again if you are not experienced you will probably make critical errors in judgment that will cost you money to have someone else help you fix it.  Professionals can limit their expenses and see high returns in flipping, renting or selling pre-construction because they can do many things by themselves. The novice should employ professional s to the work they cannot.  The end result might be less profit, but at least you get a profit. 

    Thanks you once again for reading my weekly blog.  Should you have any questions or would like to learn more about this topic, please contact me at email:   info@toddlee.ca.

By Todd Lee
Tagged with: how to make money with mississauga condos condo investment flipping mississauga condos renting mississauga condos pre-construction condos selling on assignment condos

Pinnacle Grand Park 2 – Available NOW!

October 14, 2012 - Updated: April 18, 2014Buying Real Estate

 

 

    I have great news for all you out there looking to buy into the Pinnacle Grand Park 2, one of Mississauga’s hottest new condo developments.  I attended the VIP Sales Event Yesterday and I’m able to afford any of my clients the opportunity not only buy into this fabulous condo development, but also the best suites that are available.  Understand that the first phase, Pinnacle Grand Park 1 is almost SOLD OUT with only a small selection of suites available.  Now is the best time to get ownership of this first class condo development, The Pinnacle Grand Park 2!

 
“The lowest pre-construction condo fee in the Square One area.”
Eric Skicki, Realtor.

 

    For those who do not yet know about Pinnacle Grand Park, I will give you a heads up.  This project is being developed by Pinnacle International which is considered to be a leader in Canadian luxury condominiums, hotels and commercial developments.  This is the second phase being constructed in PRIME Mississauga real estate.  The construction site is located near the cross section of Burnhamthorpe Road and Grand Park Drive (between Mavis Road and Confederation Parkway).  The pre-construction advertised condo fee is $0.43, per square foot!  This is considered to be the lowest pre-construction condo fee available today.

    Through me you will get access to the best and most desirable buys for one bedroom, 1 bedroom plus a den and 2 bedroom condo units.  Remember that quantities of the best suites can and will go fast, just like in the first phase.

Contact Todd Lee, Mississauga Real Estate Agent today at:

Email:  info@toddlee.ca

Cell:  416-993-8533

By Todd Lee

Tagged with: pinnacle grand park pinnacle grand park 2 pre construction condos condo mississauga todd lee real estate agent vip

Condo Fees

July 31, 2012 - Updated: April 18, 2014Condos

 

    While working with clients to find real estate I am often asked questions about condominium fees.  There seem to be a little bit of pessimism probably due to a lack of knowledge about condos.

Let me address the first question, what are condo fees?

    A condominium owner owns an equal share of the common elements ie. The building facade, windows, landscaping, amenities etc… The unit owner also has an equal responsibility to pay for the “maintenance” of these elements.  The condo fee is simply the dollar amount that has been calculated by the condo management and billed to the unit owner every month.

How much are condo fees?

    In Mississauga where I predominantly sell real estate, the condo fees are all over the place.  There is a good reason for this too. It depends on many factors including how well maintained the building is; the size of the unit; the floor the unit is on etc.   In general, I try to see the value that comes with the condo fee in comparison to like condos.  For instance, if condo “A” is 3 bedrooms on the 22nd floor, has an area of 1600 sq. ft., has 24 hr. security, hydro, heat and water are also all included vs. condo “B” is 3 bedrooms on the 1st floor, has an area of 1100 sq. ft., has no security and no utilities are covered by the condo fee.  Then I would expect unit “A” to have a much higher condo fee vs. unit “B”.  If this is not the case then unit “B” would be considered to have an expensive condo fee in comparison.  To generally answer the original question I would estimate for a 1 bedroom unit the condo fee would be between $400-$500 on average, 2 bedrooms unit would be around $500-$600 on average and 3 bedroom unit will be in the neighbourhood of $600-$700 on average as of summer 2012.

What utilities do the condo fees cover?

    In the past many condos had all inclusive condo fees where the unit holder did not have to worry about paying anything extra.  In the past 5 years the government has given the condos incentives to go with metered hydro billing in a quest to reduce the demand for hydro.  As a result many condo fees will only cover heat and water these days.  Hydro is usually billed separately.  This may not be such a bad thing however.  The unit holder can now control their hydro costs directly often leading to a savings.  For others who still use hydro unwisely, have probably seen their cost go up.

Why would I buy a condo when the fees to live there are so expensive?

    This question is ultimately one of personal life style choice.  Consider how much it would cost to own a freehold home but adding all of these amenities:  Having a 30000 sq ft recreation centre with state of the art equipment, personal trainers, yoga classes, indoor and outdoor swimming pools, party room with kitchen, movie theatre, bowling alley, putting greens, virtual golf, lounge, barbecue area with plasma TV’s, courts for basketball, tennis, squash and landscaped terraces.  All of these amenities have a maintenance cost that is covered by the condo fee.  In addition the fee also covers cost to maintain the building, pay for security guards, removal of snow, landscaping, having an onsite superintendent, some funds are put a side for major repairs or renovations, insurance, paying for the management company to oversee the general operations and even the heat, water and hydro used by everyone in the common areas.

    If you prefer not to have all of those benefits in favor of doing it yourself that’s perfectly fine.  You will probably save lots of money.  For those who see the value in not having to cut and water the grass and living in a state of the art building with a modern recreational facility will save time from going to the local fitness club.  The management company looks after the up keep of the building and puts away money for a rainy day, whereas most individuals are not that prudent.

    Where some people see expense I can see value.  As always the choice is yours.  When shopping for a property it is very important to work with a knowledgeable real estate professional who knows the area.  Every ones situation is different and my stated points of view are for general knowledge.   

See a comparison of all fee's for Mississauga condos.

Thank you for reading my blog and as always please contact me at info@toddlee.ca if you have any questions. 

By Todd Lee

Tagged with: condo fees real estate todd lee mississauga condos condos

Buying Mississauga Condos: It just makes Money sense.

June 30, 2012 - Updated: April 18, 2014Condo Investments

 

    My clients often ask me the question: is Toronto the best place to buy a condo for investment purposes?  It’s easy to see there are plenty high rises buildings in development as you drive along the Gardiner Expressway.  Why wouldn’t there also be lots of money to be made?  Otherwise, why are there so many buildings going up?  My quick answer is, yes. The Real Estate Market is hot especially for rentals or the investor might be able to cash in big by flipping.  However, there is a “but” to this answer.  With so many condos built and being built the market can get over saturated. The most recent information from TREB indicates just that, as year over year appreciation was lower for condos in comparison to other segments in the Real Estate Market.  This is not to say you won’t make money on condos, but maybe not as much.

    This is where buying condos in Mississauga comes in as a great opportunity for the condo shopper.  While not being Toronto, Mississauga is located very close to the centre of Canada’s financial center and all of its vibrant night life, restaurants, attractions, museums, university’s, shopping etc… are within driving or public transit range .  This is not to say Mississauga is a barren waste land either.  The fact is, Mississauga has a very diverse population, has a vibrant city centre, a lakeshore, sports stadium, a Performing Arts Centre, night life, restaurants, trails, parks, great schools and is also home to the busiest Airport in Canada and to 61 of the Fortune 500 Canadian companies. Mississauga in essence is a mini version of Toronto but is also debt free and does not seem to be hit routinely by strikes and protestors.

   Investing into Real Estate is just like any other business venture.  Costs of investment and the potential return have to be studied and analyzed.  Let us examine the statistics posted by The Toronto Real Estate Board for the quarter one of this year.

The average sell price to list price for condos is around 97%-98% in Mississauga and Toronto.  We will simplify the comparison by just using the average list price for condos.  In Toronto, the average list price for a condo for Q1 was $360,892.00 while the average in Mississauga was $254,584.00.  What this means is on average the condo buyer will spend about $106,000 less to buy in Mississauga which obviously represents a cheaper cost.

Figure1.  Summary of Condo transactions created by TREB.

    If we focus on just the Toronto downtown core we also see the most popular units sold are one bedroom and one bedroom + den.  This segment of Toronto does represent the average price of condos listed.  By comparison, in Mississauga City Centre the most popular units sold are; two bedrooms +den and a close second place, two bedrooms and 1 bedroom +den.  The average of these units dose represents the average list price of condos in Mississauga.  Clearly, being able to purchase a bigger sized unit in Mississauga represents a greater value!

Figure 2.  Summary of condos sold in Down Town Toronto.

Figure 3. Summary of condos sold in Mississauga City Centre.

    Now let’s examine the percentage of appreciation for condos.  TREB lists the first quarter 2011 average price in the city of Toronto as $348,779.00 and for Peel Region (Mississauga represents the vast majority of condo sales in this region.  TREB did not collect data far back enough to see Mississauga’s exact numbers) $231,010.00.  As well, the average price in Peel for quarter 1 2012 was $246,688.  Doing the math the appreciation results from quarter to quarter looks like this:

Figure 4.  Condo Market Summary created by TREB.

  • Toronto condos + 3.5% in value.
  • Peel region condos +6.7% in value.

    The conclusion should be made that by percentage, appreciation of condos in Peel and more specifically Mississauga and Brampton is higher than in Toronto by almost double.  This also indicates a possible trend that wise investors are leaving Toronto for greener pastures west of the city.  One probable reason is the land transfer tax situation in Toronto.  It’s been well documented in the media that buyers are seeking other opportunities to invest their money as the cost of Real Estate is getting to be high in part, because of this tax.

    As an example if the investor (not a first time homebuyer) were to buy the average priced condo in Toronto they could expect to pay $7200.00 in Land Transfer Tax.  OUCH!  By comparison if the same investor were to buy a condo in Mississauga for the same price the Land Transfer Tax would only be $3888.00 thus saving $3,312.00.  Take also into consideration the average condo in Mississauga is cheaper and bigger than in Toronto.  If we use the average condo price in Mississauga, the result is $2294.00 of tax payable, representing a savings of $4906.00 in Land Transfer Tax versus Toronto condos!

    Another aspect of investing into condos is the potential to make rental income.  The goal for any landlords is to make money.  Thus, it’s very important to charge a tenant a rent which covers all of their investment expenses or even exceed it.  In reality most are not successful in reaching this goal, but are rather satisfied to have their tenants help to pay down the mortgage while covering the cost of condo fees and utilities.  The appreciation in value of the condo over time plus the accumulation of equity without having to put up all the money themselves can still be lucrative in the long run.  The key to renting is simple.  The Landlord must have a reliable tenant and any vacancy will add to the expense of the investment property.

    Let us have a look at the vacancy rate for condos in Toronto vs. Peel as per CHMC, 2011 Fall Rental Market Survey.  We can see the rate in Toronto is very disproportionate at 1.3% in comparison to Peel which is at 0.3%.  The disparity can be explained by perhaps the type of tenant.  In Toronto one bedroom condos is king for sales.  If we assume many of these are being rented to business clients or students, it’s less likely they will stay long term causing the Landlord to fill vacancies with more regularity.  We know the two bedroom +den is king in Mississauga which can mean young couples or small families are renting, thus are more likely to stay longer meaning less vacancies.

Figure 5.  GTA Condo Vacancy Rate

    The last factor to consider is the cost of financing your investment.  The Federal government hinted that in the first quarter of 2012 that interest rates will probably increase this year. They also made it clear they think certain Real Estate Markets were too hot and perhaps growing without following the fundamentals.   Since the early part of the year when this was stated, some things around the world have changed.  The Euro market was in turmoil.  Now the European Union has made some changes to protect hard hit Euro economies making markets around the world more confident and perhaps negating the need to raise interest rates so soon.  However, the Feds still want to control the debt levels that Canadians are taking on.  The Feds response was to change the Mortgage rules to make it more expensive to borrow for Real Estate. They took away 30 yr. amortizations so the maximum is now 25 yrs.  To illustrate I will give an example of a monthly mortgage payment for $500,000.00 amortized by 25yrs and 30yrs.

  • 25yr mortgage = $2104.08/month, also requires an income or at least $78903.00/yr.
  • 30yr mortgage = $1902.07/month, also requires an income of at least $71328.00/yr.

    That $300 makes a huge difference in affordability as the buyer would have to make at least $7600 more a year.  Therefore, investing in Mississauga condos, the more affordable option puts you the investor at less leveraging risk.

    Another factor to consider when determining your potential to buy is how much down payment you can afford.  Assume you want to avoid the CHMC insurance fees for high risk mortgages.  You will need to have 20% of $360,892 for the average condo in Toronto which works out to $72,178.40.  In Mississauga the 20% down payment for the average condo would be $50,910.80.  In other words, you could save $21,267.60 by investing in Mississauga.

    Ultimately as a condo investor you have to ask yourself the questions…Do you prefer a rate of return of 3.5% or 6.7%?  If you are buying the condo to live in or rent would you rather have a 1 bedroom or 2 bedroom +den?  How often do you want to find Tenants?   How much can you afford to be leveraged without going into financial disaster if things don’t work out the way you had hoped?  How much down payment do you have?  After reading my blog I think you will be better prepared to answer that question yourself.

Thank you for reading my blog and as always if you are interested in my Real Estate services please don’t hesitate to contact me at:  info@toddlee.ca

*All statistics and charts are from the Toronto Real Estate Board.

By Todd Lee

Date posted - 30/06/2012

 

 

 

Tagged with: todd lee mississauga condos buying renting investing city centre brampton peel toronto condos

Posh Style Vibe 2 Condo VIP Sale

June 15, 2012 - Updated: April 18, 2014Buying Real Estate

 

The PSV 2 VIP Sale is almost over.  Units available with the PSV 2 VIP sale are one bedroom, 2 bedrooms or 2 bedrooms with den. This deal won’t be offered to the general public after the VIP sale ends.  Sale includes $5000 cash back, FREE assignment ($5000 value), Stainless Steel Appliances, Free Window Coverings and Easy downpayment structure with only 15%..  Call me and I can arrange for you to take advantage of this great deal. 

My  Phone:  416-993-TLEE or 416-993-8533. 

For those who didn't know PSV was released a few months back and had outstanding success selling out a reported 75% in 3 months, making it one of the hottest condo projects going in Mississauga.  The Follow up PSV 2 has not been released yet, but insiders have a chance to participate in VIP Sales Events, getting the first shot at picking units and also getting exclusive deals.  This VIP Sales event is an opportunity to buy or invest in a condo property considered by many as the place to live in Mississauga!

"Amacon has unveiled its latest and most anticipated project: PSV at Parkside Village. PSV stands for POSH STYLE VIBE. This is a new kind of condo for a new era of Mississauga. We are making our mark. PSV is a reflection of a style, personality, and attitude to call our own. A fun, vibrant place for family and friends where you can step outside to eclectic cafes and restaurants, chic shops and boutiques, green spaces, parks and trails. PSV at Parkside Village redefines neighbourhood and will completely redefine the way you live."

- Source http://www.lifeatparkside.com/psv-%E2%80%93-posh-style-vibe/

By Todd Lee

Tagged with: mississauga condo todd lee square one condo psv 2 posh style living 2 vip sales event condos

The Only Place You Need To Look For Mississauga Condos

June 8, 2012 - Updated: April 18, 2014Buying Real Estate

    If you want to buy a condo in Mississauga for personal or investment purposes and need a comprehensive source of information, then look no further.  Currently I have catalogued and reviewed all condominiums in west Mississauga from the 401 to Lakeshore Rd, from Winston Churchill Blvd to Erin Mills Parkway.  All Square One condo reviews should be completed in two weeks with a few being posted daily.  The remaining condos in the east and south will be finished shortly afterwards.

Features of the Mississauga Condo website are:

  • Complete catalogue of every condo in Mississauga
  • Full reviews of every condo
  • Currently offered condo units for sale
  • High resolution pictures
  • Amenities map for every condo

Here is the direct link to the Mississauga Condo website.

By Todd Lee

Tagged with: todd lee mississauga condo condo website complete list of mississauga condos mississauga condo reviews square one condos condos

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