Housing Market Outlook 2015

December 12th, 2014

RE/MAX Housing Market 2015

Mississauga Housing market  2015 GTA Housing market

The residential real estate market in Canada’s largest city continued showing healthy market activity in 2014, with both the average residential sale price and the number of transactions showing an increase over the previous year. Inventory continued to be very low among freehold properties and average days on the market fell from 25 the previous year to 23. The average residential sale price is projected to increase four per cent in 2015. With rising prices and limited inventory, potential buyers will need to be well prepared and informed when entering the housing market next year.

In the past, modest, but under-valued, homes sold for hundreds of thousands of dollars above asking price in some areas of the city and the effect was that buyers entered the market with no certainty about what kind of home they could afford. In turn, sellers came to the conclusion that their homes were all of sudden worth more than they actually were. More realistic pricing in 2014 has inspired confidence among buyers—a trend that is expected to continue in 2015. Toronto should remain a seller’s market, although the condominium market is projected to be more balanced as developers release inventory and investors seek to unload their units. Many first time buyers should continue to look to the condominium market, attracted by affordable options in convenient locations. Downsizers may not play as much of a role in this market as had once been expected, as many buyers in this group have been deterred by unpredictable assessment funds and condo fees.

The recent municipal election has brought a feeling of stability to the city, which generally proves well for local real estate. With political stability and the city set to be showcased by the 2015 Pan AM Games, pent-up demand may result in strong price appreciation in the latter portion of 2015. The luxury market will continue to display strength, as wealthy buyers are comfortable absorbing any modest price fluctuations. However, as inventory for freehold homes continues to be at historic lows, the city is projected to be poised to have another strong year of price appreciation.

Mississauga Housing Market 

As per RE/MAX housing market outlook 2105, Mississauga has grown by leaps and bounds over the past several decades. While its growth is typified by suburban developments, the city also boasts leafy neighbourhoods, lakefront properties and a burgeoning downtown. These factors, along with its transit links to downtown Toronto, are driving demand for residential property in Mississauga among a range of buyers.

Mississauga’s real estate market picked up in the second half of 2014 following a long and cold winter and historically late start to the market. Typically, the spring buying and selling season begins in February, whereas last year it started in May. Pent-up demand made for a busy summer season and more fall activity than is typical. The average residential price is expected to rise between two and three per cent in 2015 with inventory levels remaining steady, as per RE/MAX housing market outlook 2105 report.

New luxury homes on leafy lots in Mississauga neighbourhoods such as Lorne Park and parts of Port Credit are enticing wealthier buyers and bringing a more multicultural character to the area. A regular train service from Port Credit to Toronto and new condominiums in downtown Mississauga are attracting younger buyers to those areas. In Mississauga’s brisk housing market, well-priced homes sold within days in 2014, although properties over $1 million typically had listing periods of between one and two months. A seller’s market is expected to continue through to 2015 but soften modestly, especially in the luxury segment where it is moving closer to a balanced market.

Download Full Report (pdf) Canada Housing Market Outlook 2015

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Category: Realty Talk

Essential Builder Upgrades

December 6th, 2014

Builder Upgrades for Condos

PSV condos are under construction in our Downtown Mississauga. The Amacon builder is booking decor center appointments in order to select finishes and upgrades. I have sold some units in this luxury condo project and I often receive phone calls from my clients to help them with tips on choosing the right finishes.

Decide if you will rent or move in!

Here is what I suggest, first decide if you are moving in or you plan to rent it out.

Repalce washer dryer combo with a duet type washer dryer

You should also decide how long you intend to keep the unit before selling it. If you are planning to move in then you can go for some upgrades that you find essential. But don’t go over board by spending thousands of dollars. You might not be able recoup the full cost of upgrades. For example, if an average 1 bedroom costs $250,000 and you spend $20,000 in upgrading it, any informed buyer will hesitate offering you more than half of this money. Try going for minimal upgrades that you feel are very important and buyers can see the value when purchasing your suite.

If you are an investor planning to rent your condo, then you need some basic upgrades that will help protect your investment in the long run. Some essential upgrades may include swapping the standard combo washer dryer with separate duet type double capacity washer dryer units. This will protect your unit from repairs and water leaks that are associated with cheap combo style washer dryer units. 

Wood flooring in kitchen is a no-no!

Replacing hardwood in kitchen area with tiles is also a good idea to save flooring from water damage. No matter how careful one is, it is hard to stop water falling out of dishwasher and sink. 

Replacing carpet with hardwood in bedrooms is always a good idea. Carpets need shampooing every time a new tenant moves in. Builder carpets are also not top of the line and wear out in four or five years. Hardwood (in actual, it is engineered laminate flooring) is more durable, easier to clean and has a longer life. 

waterproof vinyl flooring for condos

These are a few upgrades that I feel are necessary, they can be estimated around $2,000 for a standard 1+den unit. 

Tips regarding a new flooring product

Recently, I was introduced to a new type of vinyl flooring that is waterproof and looks just like any high-end laminate flooring. This product is very useful for investment properties with high traffic. 

Armstrong and Krausa are two manufactures who offer this type of product in Canada. Some of my clients have used this product successfully. 

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Category: Investing, Realty Talk

Invest Young. Build your fortune faster!

October 27th, 2014

Investing in Property

Investing in PropertyI feel that “Millennials” or the Generation Y (those born from early 1980s to early 2000s) are far more communication savvy and tuned in to global economics today that many of us ever were in our 20s or 30s. They have grown up seeing swinging inflation, vacillating stock market conditions and career fluctuations that affected many of their lives personally. This has given them greater awareness and better knowledge about starting on the career path young. However, there are lesser books on sound investment decisions for young millennials than there are books on History, Geography or French!

As an experienced Mississauga broker, I would like to tell them that nothing offers more financial security than investing in your own property as early as possible.

Patrick O'Shaughnessy, Author of "Millennial Money: How Young Investors Can Build a Fortune” reinstates my view with some great tips to help young investors get rich and stay rich. He believes that most people wait till they are in their 40s or 50s to invest in their own property. What they don’t realize is that if they wait that long, they lose out on valuable time.

If you can invest when you are young, you can get significantly ahead”, he says. I have to agree with him.

So how young is young before you can invest? When do you have enough money? Do you ever have enough money in your 20s and 30s to invest in your own property?

In my view, Millennials should start out by taking baby steps towards investing. You should invest small amounts in your tax free savings account. It is important to appoint a financial consultant at your local bank while doing so. 

As Patrick correctly states, the average growth of each dollar you save in your 20s grows in value by leaps and bounds over the years. If you wait till you are in your 40s, that growth percentage lessens considerably.

When it comes to property, once you invest at least 5% down payment, you are well on your way to buying your own home and stop renting. Doesn’t that sound great?

If you are one of those privileged young people who have the luxury of living with your folks, the going can be even more fantastic! This gives you the opportunity to continue saving and build enough equity to buy an investment property for renting.

As Patrick O’Shaughnessy states, your home feeds your psychological needs. Stocks might have outperformed the real estate market in the long run but real estate investors get richer faster when their properties are not bought with 100% cash. Most investors put down 20% or more and banks loan the balance of the home's price.

For example, in our GTA market you can invest in property by putting down 20% or more down payment. This is called leveraging. It makes good sense when your properties are rented to good tenants and your rent is greater than or equal to your investment property’s expenses (mortgage, property taxes, insurance, maintenance expenses etc.).

It is prudent to consult a financial advisor before investing and even more important to find a good real estate broker specializing in investment properties if you are considering owning property. Parents can also assist their young investors get a head start by helping with the down payment.

If you are a young millennial thinking of venturing into real estate investing, give me a call. We have a lot to talk about. 

Category: Investing

New immigrant to Mississauga?

September 8th, 2014

See how Mississauga real estate makes you feel at home.

New Immigrant MississaugaSummer has brought in many new immigrants to Mississauga. Sometime ago I read in Reader’s Digest that both in the USA and Canada, new immigrants are responsible for a thriving economy. Immigrants as a whole are better educated and those with marketable skills get brownie points. With their advent, industries grow and job vacancies rise.

Canada especially stresses on skilled immigrants who have gone on to strengthen the economy with their valuable expertise. Canadian immigrants come from different cultures and nations which consequently translate to greater expertise, linguistic skills and connections with their country of origin, promoting trade and strengthening international relations.

However, with a shrinking local population in some provinces and declining skills, a shortfall of 3 million skilled workers by 2020 is estimated in the future.

Undoubtedly, Canada has the highest per capita immigration in the world, even though the immigration rate has declined sharply since the early 20th century. The high immigration rate is attributed to the country’s rich economy. Canada is one of the world’s largest suppliers of natural resources such as lumber, metals and oils. In recent times, the real estate, medical, pharmaceutical and IT sectors have also registered a sharp growth in investment and sales, which is most visible in the Greater Toronto Area, especially Mississauga.

Even as the demand for immigrants is on the rise, the difficulties they face after arriving here make many others think twice. To beat this trend, the government in Canada, especially Ontario, has taken it upon themselves to make things easier with several grants and benefits for first time buyers, especially in housing and real estate. For example, new immigrants are offered home loans with down payment of 35% even with no credit history and job. 

Canada Mortgage and Housing Corporation’s (CMHC) newcomer’s guide to Canadian housing gives useful insight into the Ontario Housing market. If you have set your sights on Mississauga, visit Mississauga neighbourhood links to find out about the best places for living, working, schooling, shopping etc.

Mississauga believes in the spirit of community. No matter which part of the city you choose to live in, you will find people who can help you adapt to your new life and fit into our Canadian society. In the weeks, months and years ahead, you will have many opportunities to participate fully in Canadian life. You and your family can grow together, side by side with other Mississaugans and make a better life for everyone. This is your new home. Welcome to Mississauga!

Category: Investing

Tridel Islington Terrace Condos VIP Sale

August 22nd, 2014

Hurry-VIP Brokers Sale! This is a One day event!

Islington Terrace Condos

Each year 100s of condo projects enter our GTA market. In my opinion, only a handful of those projects are worth investing in.

Good projects are measured on the reputation of builder, prices, location, return on investment, finishes, demography, timing of completion among other variables.

​I keep an eye out for good projects for my valued clients, and I only represent projects that make sense to me. Tridel Islington Terrace is one of those few projects. 

Quick Facts About Islington Terrace Condos: 

Developer: Tridel (One the most reputed GTA builders)

Tridel Islington Terrace Condos Location: 64 Cordova Ave, Etobicoke, ON

Phase: 1st of 3 towers (prices move up with every tower)

Floors: 45 Floors

Unit Size: from low 500 feet

Price range: from $228K (1 BR suite)

Condo fees excluding pkg & locker maintenance: estimated at $0.49 per sq. ft. 

Estimated completion: Summer 2018

Deposit structure: 20% over 365 days

Proximity to Islington Subway: Within a few steps

Amenities: Outdoor Pool, BBQ, Entertaining area, Fitness Studio, Yoga Room, Movie Theater, Party Room, Aqua Spa & Games Room

Special incentive for my VIP clients:

No assignment fee at Islington Terrace Condos

Capped closing costs & levies

Extended deposit structure

A+ tenant on closing (1 year lease)

A la carte Property Management Services

Register for priority access:

Category: Hot Deals, Investing