I/we are moving shortly from US. and have planned to live in the GTA,
I am thinking of renting a Condo Apt initially around Square one area, at the same time thinking, how would it be, If I buy one condo apt in the same area?
Is it a good time for getting into real estate deals? considering the current interest rates etc. I do have an excellent credit history in Canada (apprx 1.5 years plus) as well as far as mortgage is concerned I do not forsee any issues.
Could anyone please suggest .
Thanks in advance.
Location: God's own country
Posted on: 26-07-06 10:13:12
First of all i am not sure if you are using the correct terminology. In USA, the terminology of a condo. is different from Canadian Condo.. A Canadian condo. an apt. in a multi storey building and you pay a maintenance fee around $500 a month irrespective of if you use the condo or not. Such condo's are available in plenty around Sq. 1 area.
As a common man and a house draftsman (and not one in real estate business/ realtor), i feel that buying a condo. is a waste if you buy it for money appriciation. After 2 or 3 years, if you want to sell it , you maynot be able to sell it due to the over flooding of condo's in the market.
A free hold townhouse or a detached bungalow may be a better option.
TK A
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Quote:
Originally posted by tamilkuravan
First of all i am not sure if you are using the correct terminology. In USA, the terminology of a condo. is different from Canadian Condo.. A Canadian condo. an apt. in a multi storey building and you pay a maintenance fee around $500 a month irrespective of if you use the condo or not. Such condo's are available in plenty around Sq. 1 area.
As a common man and a house draftsman (and not one in real estate business/ realtor), i feel that buying a condo. is a waste if you buy it for money appriciation. After 2 or 3 years, if you want to sell it , you maynot be able to sell it due to the over flooding of condo's in the market.
A free hold townhouse or a detached bungalow may be a better option.
TK A
Yes TK, I am referring to those high rise condos/apartments in Canada, I am not interested in buying a detached / semi-detached home at this time, due to some other reasons. and becasue of that I was thinking of renting such an apartment or a condo to start with. But as some one just asked me to think on the buying lines, I am seeking some good advice, pros , cons of buying a high rise apartment.
Thanks for your opinion though.
If you try renting a decent 2 bedroom/2 bath condo in the Square One area, you are looking at rents anywhere between 1250-1450.
Taking into account condo fees of close to $500/month + whatever your mortgate payment would be, probably you are looking at something close to or slightly higher than renting.. so it would purely be upto you.
I was in the same boat and decided to buy. But I believe TK's assessment is correct. I don't think you should expect any profits.. etc if you try selling your condo down the line as there is a huge cluster of condos coming up all over Mississauga including the Square One area.
You may like to consider following points:
1. If you buy right, at a good rate, current market trends would not affect you much.
2. If you are not planning to sell in short term then buying rather than renting would help you build equity over time.
3. Interest rates affect shift between buying / renting. You will have to do your homework, find rentals of similar properties, condo fees, mortgage installments, your cash flow, and work with a small calculator to see what makes sense at that point of time.
4. If I were you, I would rather buy than rent, all other things being equal. But I would like to hunt well and pay right price, without bringing sentiments into the deal.
5. Sentiments usually affect decisions of actual-user-buyer and he/she could end up paying a price which would make selling a problem in short term. In long term, real estate forgives you for all the wrong decisions, except maybe location decision.
6. One should never buy bigger condo than one can afford and end up condo-poor with a big shiny condo.
A 50 story Marilyn Monroe shape condo near square is now under construction and available for booking
One BED Room Condo price is close to 200 K and a Two BED Room + Den condo price is close to 400 K.
This condo won lot of international awards and will bring lot of proud to you and Mississauga Down town
Buying or Renting decision rests with you. Analysis of "objective" of why you would buy instead of rent will make it easy for you to arrive at a decision. If “price appreciation" is the primary reason of your purchase, then be aware that unless you spend a good deal of time in your condo, you aren't likely to gain much.
Currently there is lots of new condo construction going on near Square One and lots of availability of existing mix of old and new ones. The difference between the old and new is stark in terms of size, price and facilities. Maintenance fees in both don't vary much, but keep in mind that new condo complexes aren't fully occupied; therefore there energy costs are presently low. Some corporations are keeping the fee artificially low to attract buyers. And in some of them, you are responsible for your own Hydro costs over and above of the Maintenance fees.
Older condos are more spacious and there is less likelihood of substantial increase in their maintenance fees in the future. This is due to the changes in the Condominium Act few years ago that necessitated minimum amount of money in the Reserve Funds of the Condo Corp. Most of the Condos are either approaching this healthy reserve or have already attained these levels. You should therefore see only moderate increase in these fees in the future. Also bear in mind that Condos with Swimming Pools generally see a higher percentage increase in the maintenance fees that is linked to its upkeep and maintenance. In the future, if the energy plans are thoroughly implemented, Condos will see installation of Smart Meters for Hydro usage and that could actually lead to reduction in maintenance fees and better control of Hydro usage in these condos.
While buying a home (or a condo), you must prepare a list of “Must Have” and “Nice to Have”. Buying a home (or anything as matter of fact) is an emotional decision (that is supported by logics to convince oneself that it is a correct decision). You MUST LOVE the property you are about to buy. Only investors make non-emotional purchases as “return on investment” is their main driver.
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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
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