CondoPundit.com

Homes that sell are Properties that are sold well

There is no doubt that the once hot Mississauga real estate market has cooled off (changed into a balanced real estate market) this summer. Many sellers are still expecting their home value to appreciate the way it has been for a few years now. Upon listing their property at a higher asking amount, many sellers are encouraging the buyers to just sit and wait for a price reduction.

Mind you, there are still many buyers in the Mississauga market, but due to a recent slow down in Ontario’s economy and the falling real estate markets in some over-valued cities (Edmonton, Calgary, Vancouver, Saskatoon and Regina) has scared off a lot of first-time buyers. The Global economic slowdown and the US housing market’s downfall is simply adding fuel to the fire.

In fact, many hot neighbourhoods are not hot any more. The types of homes that sold in a jiffy or even received multiple offers are moving slowly now. Lately, I had an opportunity to do some open houses at some of my condominium listings (a townhome in Mississauga’s High Park Village and Condo Apartments in Mississauga City Centre).

There have been a lot of showings but not many offers, unlike a few years ago. However, once the asking prices were reduced to fair market values there was a flurry of activity. Finally, my townhome listing got sold conditional with multiple offers. I am still waiting to sell the other two condo apartments at Tridel’s Grand Ovation in Mississauga. Come visit me at my open houses on Sunday between 2-4 pm. One condo’s price is in fact, the best deal in the building. This Tridel condominium can carry itself if tenanted, by putting only 20% down payment.

Sellers Need better salespeople, smarter marketing, creative selling & stunning Home interiors

In my opinion, there are many things that informed sellers and their agents can do to sell properties faster and for more. Gone are the days when anything would sell by itself. Now property sellers not only need competent REALTORS®; someone passionate about their work, but also ones with many creative ways to sell fast.

Price and Marketing are of paramount importance. Good price and marketing helps bring a lot of traffic/ buyers into the property. Once a buyer comes in, the only thing which helps sell is how the property looks from inside and shows in comparison to others out there.

If the property needs to be spruced up, go for it. With so much competition among available listings at one given time, only the homes that are priced well, marketed smartly and look better will sell first.

Buyers want to walk into a house and immediately envision themselves living there. Simple staging techniques like cleaning, organizing and de-personalizing can help to make your house buyer-friendly. One can also pay to hire home staging professionals. Their payback has been tremendous. I have myself used home stagers and recommend their invaluable services to sellers.

Sellers on a shoestring budget for improvements should at least invest in interior painting where one can expect immediate positive results.

Buyers Seek properties needing minimum out-of-pocket expenses

Buyers look for properties that need minimum out-of-pocket expenses. Here are two ways that sellers can benefit from.

Sellers should opt for pre-listing inspection before listing the property in the market. Condominium owners finding defects with the common elements can address the problems by informing their condominium corporation’s management company. This way, the onus of fixing common elements moves onto corporation’s property management company. And well managed condo corporation resolve problems before they become big.

Another way is to offer upgrades to the potential buyers. For example, sellers can head out to their local home interiors store in Mississauga, grab some samples of material that they/REALTOR® /Home Stager think needs to be changed. Then get some contractor to price it out for you. Offer the new buyers a choice to choose their own samples/finishes. Let them know the cost and add this price to your home price. Doing this serves two major objectives. One, sellers will be able to sell fast, second, buyers can move into their dream home with finishes that they themselves chose to live with. The price, though paid by the seller, comes at no extra cost to the buyers as the same is added into their home mortgage. Wow!

A lot goes in when it come to selling your home/condo. Let a professional guide you through the way. Call me to learn more about getting the true worth for your Mississauga home/condo and to sell fast.

Three Hundred Front St W Downtown Toronto Condominium

Three Hundred Front Street West (300 Front St W) will be a spectacular world class landmark in Dowontown Toronto. Three Hundred Front Street West condominiums are coming up in the heart of Toronto Entertainment District, at Front and John. Three Hundred Front Street West is set amidst the city’s playground. Steps from The CN Tower, Rogers Centre and The Air Canada Centre.

Tridel’s Three hundred Front St is a Green building that will contribute to helping society develop in an environmentally appropriate way. Green buildings contribute to healthier, more sustainable communities, deliver value to the purchaser and offer unsurpassed quality of life.

300 Front St West is a 49 storey building with 672 suites, the tentative occupancy is in Spring 2012. Suites (condo apartments and lofts) at 300 Front St. start from 445 sq ft is size and go up to 2000 square feet (Signature suites).

More details about Tridel’s 300 Front St Condominiums

Three hundred Front Street location
Three hundred Front Street site plan, club and other amenities
Three hundred Front Street features
Three hundred Front Street floor plans

Three hundred Front Street deposit structure:
- 5% upon signing
- 5% 90 days from signing
- 5% 180 days from signing
- 10% at occupancy
 
- Maintenance Fees at 300 Front St W is approx. $0.35 per square foot, excludes parking and locker maintenance
- Separate Hydro Meter
- Parking at 300 Front St W is available at  $35,000
Parking available for only 1 bedroom + den and up

For a limited time, the prices start from $278,000, VIP clients will receive $2,500-$3,500 price discount and one time assignment with no fees. Ask me for more details.
 

Toronto Star’s Catherine Farley’s report

Catherine Farley, Graphic reporter of Toronto Star recently complied a report on the performance of GTA’s housing market based on Toronto Real Estate Board’s monthly market reports. Her study covered average and median home prices across the Greater Toronto Are (GTA), house prices adjusted to inflation, volume of house sales and also comparing price gains with the stock market (Toronto Stock Exchange; TSX composite) over the same time period. Catherine and her team unearthed some interesting analysis:

Average resale home prices have increased by a whopping 1,250% since 1969, about the same as the stock market, TSX composite index (1,244%).

• The house price and the TSX outstripped inflation by 2.5 times.
• Since the last price peak of $280,000 in 1989, the average home prices across Toronto fell 31 per cent, to a low of $192,405 in 1996
• Since the last peak, some areas have enjoyed gains of more than 100 per cent, but in 40 of 85 areas tracked by the Toronto Real Estate Board, prices have not kept pace with inflation.
• Home prices have been lowest in the month of January consistently in the last decade.
• May is the highest month for house prices, followed by December. One notable exception was 1989; prices peaked in October.

See full report on Toronto Star
Download PDF file of House price gains 1969 to present

A family Event to enjoy

Get ready for some finger licking fun if you enjoy eating ribs. The Amacon Mississauga Rotary Ribfest is known for its famous BBQ ribs, cold beer, live music, and children’s rides, spectacular performances and fun the whole family can enjoy! The event is being held at Mississauga City Centre’s Library Square.

The Rotary Clubs of Mississauga will support the community by donating proceeds to many organisations like-Canadian Cancer Society, Food Path Mississauga, Trillium Health Centre, Credit Valley Hospital, Mississauga Symphony, Breakfast for Kids, Distress Centre Peel, Mississauga Arts Council, Erin Mills Youth Outreach to name a few.

There are many events planned for families to enjoy. Visit Mississauga Rib Festival website for more information.

Slower price growth as real estate markets cool

The dramatic rise in Canadian housing prices experienced over the past two years is over, but average prices will still increase 3.5 per cent this year, according to Royal LePage Real Estate Services.

Thursday’s report from Royal LePage report followed the news Tuesday that average house prices in June fell compared with a year ago for the first time since early 1999, according to the Canadian Real Estate Association.

Royal LePage said the April-June quarter was “solid,” with higher prices in most of the country.

While prices are forecast to move higher, the country’s largest real estate company predicts the number of transactions this year will decline by 11.5 per cent to 461,000 units.

It attributed the slowdown to jitters among prospective buyers because of economic uncertainty, along with an easing of pent-up demand.

In the second quarter, the average price of detached bungalows rose by 5.6 per cent from a year earlier to $351,587. Two-storey properties increased 5.2 per cent to $418,943.

“After several years characterized by a persistent shortage of listings, home buyers have felt the pressure of bidding wars and take-it-or-leave-it counter offers ease during 2008,” stated Royal LePage president and CEO Phil Soper.

“Home sellers have had to come to grips with the longer time it is taking to sell properties, but can take comfort in a market that continues to support reasonable price increases.”

The survey of 17 cities across the country found lower prices in two major markets - Edmonton and Calgary.

In Edmonton, the average price for a bungalow dropped 14.5 per cent while an average Calgary two-storey dropped six per cent.

The greatest price increase was in Regina, which has seen home values surge as higher commodity prices have driven the regional economy.

In Regina, all types of housing saw higher prices, even though inventory of homes increased five-fold, the survey said.

Tuesday’s report from the Canadian Real Estate Association said the 0.4 per cent June price decline reflected a slowing economy and a pullback from the huge runup in prices in recent years in Alberta’s energy-powered housing market.

Daniels 1 & 33 Elm Dr. Condominiums

The No. 1 City Centre residence built by Daniels in Mississauga is indeed a prestigious condominium residence. No. 1 & 33 City Centre were built in the year 2004. This was the Daniels first  condo development in Mississauga, followed by The Capital Condos ( at Living Arts Dr.), One Park Tower (Prince of Wales Dr.) and Chicago Condos (construction stated in May 2008). Daniels is a leading builder in the GTA since long. The Daniels Corporation is the recipient of many Greater Toronto Home Builders’ Association Awards.

Daniels Elm Dr. Condos are contemporary twin towers (see virtual tour), 31-storey buildings crowned by a dramatic, sweeping roof line, gracious landscaped gardens, urban plaza courtyard and a grand lobby with a 24-hour concierge and a convenience store at the ground level for your everyday needs.

The sleek condo suite designs at Daniels Elm Dr. are airy and open, thanks to the elegant use of glass and steel. There are around 355 exceptional suites at No. 1 City Centre Condominiums in each building: 1 and 33 Elm Dr. has size ranging from 500-sq. ft. to more than 1,400-sq. ft. featuring spectacular floor plans and huge windows with full-height glazing. Plus, almost all the suites have balconies to take advantage of the panoramic views. Some suites also offer panoramic views of Lake Ontario and Downtown Toronto.

Most condominium suites at Daniel’s No. 1 City Centre include custom-designed cabinetry, quality ceramic floor tiles in the kitchen, pre-finished engineered hardwood flooring and five appliances. In addition, there are several dramatic penthouse suites that offer fabulous 10′ ceiling height, granite counter tops and upgraded finishes.

Among the features of the exclusive 18,000-sq. ft. No. 1 Club and amenities area are a stunning indoor/outdoor whirlpool and gorgeous outdoor terrace with a tanning deck. The fully equipped exercise room features sound and video monitors, indoor pool, relaxing massage, Yoga studio, aromatherapy steam baths and dry saunas conveniently located in each change area. There are even lessons offered for swimming and yoga. Residents and their guests also unwind in front of the fireplace in the members’ library/lounge. There’s even a games room with a billiards table and a virtual golf pavilion.

Daniels condos at 1 and 33 Elm Dr. attract young working professionals of mixed demography. The building offers affordable rentals and is very popular with real estate investors seeking quality buildings in the Mississauga real estate market.

The condo prices at 1 and 33 Elm Dr. start at much lower prices compared to other similar condos in many newer Mississauga Square One condo developments, making them an outstanding value.

With close access to many amenities, this pet friendly building is close to nursery schools, provides easy access to the Cooksville Go Train station, shopping, and major Hwys: 401/403 & QEW. Elm Dr. Condos are minutes from surrounding points of interest - Lake, Mississauga City Centre, Waterfront, Port Credit Marine & upscale Restaurants.

Your local Mississauga Condo REALTOR®

My office just a short walk from Daniels Elm Dr. Condominiums. I can help you when it comes to buying, selling, renting or investing in Mississauga Square One neighbourhood. You can see many Mississauga property listings on my website http://www.livingmississauga.com/

NEW Mortgage Guidelines

Here is some interesting news. Though this should have come much earlier, good news is welcome anytime. Looking at what Banks did to the consumers in the USA, the Canadian government has now taken steps that should avoid US type mayhem here. From Oct 15, 2008, there won’t be any more mortgage loans with 40 yr amortizations, only 35 year amortization periods or less, for all government backed mortgages. Reason: this type of amortized loan, makes only the Banks richer, leaving little room for one’s equity growth (principal).  

Government is also abolishing zero down payment loans. Buyers will have to come up with at least five percent down payment for all new government-backed mortgages. With smaller year over year price gains and the cooling of the housing markets, zero down loans posed a risk. 

There also will be no more “interest only” loans. Interest only loans are all time favourites of the real estate investors. Interest only loans may work well in the rising markets, and not when the price rise slows down or plateaus. The government has also decided to establish new credit score requirements and loan documentation standards.  

According to the International Monetary Fund, the increase in house prices in Canada is based on sound economic factors such as low interest rates, rising incomes and a growing population. A recent Statistics Canada report concluded that home ownership is at record levels, with over two-thirds of Canadians owning their own home. Careful steps as the above should boost consumer confidence and keep the real estate market’s health in a good shape.

Read Toronto Star article about Mortgage rules change

Mississauga’s Strategic Pillars for Change

On June 25, 2008, City of Mississauga hosted an open house to launch the draft framework of the Strategic Plan.  Residents, business leaders and community groups had the opportunity to review and comment on the draft plan at the Civic Centre.

“Together as a community, we have been able to draft a plan that will help move Mississauga towards a more vibrant, healthy and sustainable City for the 21st Century,” said Mayor Hazel McCallion.  “As we move forward, we need to continue to work with the community to help us finalize our plans for a great city.”

Over the past eight months, thousands of ideas provided by the community have been inspired by conversations that have evolved from the various workshops such as the Speakers Series and the Visioning Symposium.  Those ideas were collected and built into the framework of the draft Strategic Plan established by Members of Council, the City’s leadership team and community representatives.  The Strategic Plan was then broken down into two phases: phase one focused on creating the high level directions of the plan and phase two will focus on developing a plan for implementation.

At the open house, the community was introduced to the Strategic Pillars for Change, a part of phase one, which have been identified to give structure to the draft Strategic Plan:

Pillar 1 - Developing a Transit Oriented City
Pillar 2 - Ensuring Youth, Older Adults & New Immigrant Thrive
Pillar 3 - Completing our Neighbourhoods
Pillar 4 - Cultivating Creative & Innovative Businesses
Pillar 5 - Living Green

“Over six thousand ideas were provided by the community through a puzzle piece campaign, which was compiled into the draft Strategic Plan,” said Bruce Carr, director of Strategic Planning and Business Services.  “It’s thrilling to see the overwhelming response from the community wanting to shape Mississauga’s future.”

In addition to revealing the draft framework for the Strategic Plan, a number of sculptural pieces were selected from four participating Mississauga secondary schools and were on display for the community to see how our youth envision the City of Mississauga in the 21st Century.

Council will consider the final direction for the Strategic Plan in the fall following the input received from the open house.  Once again, there will be an opportunity for the community to participate in the creation of the Implementation Plan for the Strategic Plan, which subsequently will be considered by Council for approval.

For more information, please visit http://www.conversation21.ca/or call the Building a City for the 21st Century Office 905-615-3200, ext. 2100.

What are occupancy fees?

When buying a new builder’s pre-construction condominium, it is important to know about the occupancy fees.

The Condominium Act requires the condo developments to be constructed to a substantial level prior to registration of the condominium plan. Title to a unit cannot be transferred until the condominium is registered.

Thus, with newly built condominium apartments, there are two “closings”. The “interim closing”, occurs at the time of occupancy and the “final closing”, occurs at the time of final registration.

The process works something like this; the developer undertakes to build a condo development by submitting a site plan with the Municipality. When the Municipality registers this site plan it becomes a “Registered Site Plan”, setting out exactly what the developer is promising to deliver.

The developer then sells the suites as “pre-sales”; based on floor plans, brochures etc. Once the developer sells enough units, say 60% or more, they start the construction while continuing to sell the units.

Upon completion, the municipality verifies the building to be in accordance with the registered site plan and issues the “Occupancy Certificate”.

Since the buyer’s down payment is deposited into the lawyer’s trust account, the developer does NOT receive any monies until the building registers (final closing). The developer borrows the construction financing from his bank until such time.

Upon receiving the occupancy certificate the developer contacts all the buyers notifying them of their occupancy date, starting from lower to higher floor, spread over a few months. This is the first closing/ interim closing.

At this juncture, the developer cannot give the purchasers titles to their properties. The municipality still has to inspected the premises to ensure that developer has delivered exactly what the original “Registered Site Plan” represented. The process normally takes 4-6 months.

Upon completing its due diligence, the municipality registers the building, this is the  second closing, final closing, at which time purchasers will receive title to their property, their mortgage payments starts, and the developer gets his money.

During this occupancy period the buyers undertake a portion of the developer’s mortgage with his bank, also called “Phantom Mortgage”, which is equal to their proportionate share of the overall condo.

The “Occupancy Fee” is made of three components and is roughly equivalent to the:

1. interest calculated on monthly basis on the unpaid balance of the purchase price (the rate is protected under the Condominium Act);
2. the monthly maintenance fee contributed for the unit; and
3. a factor for property tax (in total it will be about the same as if you took a mortgage but you cannot get a mortgage because there is no “Title” to the property, thus banks cannot issue a mortgage).

The purchaser can avoid paying the interest portion of the occupancy fee should he/she elect to pay the full balance of the purchase price owing on the date of occupancy. However, in order to do this, the purchaser or his lawyer must request this during the 10-days rescission/ cooling off period.

In all the cases it is left to the developer to include or exclude any of the above components in the occupancy fee, as long as, this is made clear in writing and disclosed in the developer’s disclosure documents.

This occupancy fee does not accrue to a mortgage thus it is frequently interpreted as “Rent” however the first few months of a mortgage is pretty much to cover interest, tax and condo fees.

My above article is for informational purpose only and may not be substituted with legal advice of any sort.

There are many things that an informed condo buyer/investors should know before buying a new builder condominium. That’s why, one should work with someone who has the skills, knowledge and experience in the condominium market. With years of experience backed by the trust of many clients in Mississauga condominium sales, I can help you achieve your condo buying/investing goals.

Attend Mississauga’s Mosaic - A South Asian Heritage Festival

Mosaic, the largest free multi-disciplinary arts festival of the western GTA is a celebration of Canadians originating from Afghanistan, Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka and Maldives. A large number of South Asians come from Barbados, South Africa, Kenya, Trinidad and Tobago, Guyana and Uganda as well.

South Asians constitute the largest visible minority of Mississauga. This event provides an opportunity to established and emerging artists in traditional and contemporary fields of music, dance, film, theatre, literature, poetry, cuisine, arts & crafts and much more.

Mosaic Festival will be held at Mississauga City Centre in the heart of Mississauga. Entry to the festival is free.