Absolute World Condos

There is a lot of buzz being created by newly built Absolute World condos in Mississauga Square One.

The Absolute Condos (50 and 60 Absolute Ave) span 50 and 56 storey high, respectively. Their curvy shapes and unique architecture has helped dub one of the condo towers as Marilyn Monroe. As a local Realtor working at SQ One, I work with many landlords/investors at these buildings.

I still remember the time when both these building were snapped up by buyers (mostly investors), in a matter of days of their launch. At the time of launch in 2006, approx. price of lower floor condos ranged between $350-$400 per square foot, a floor premium of $500 per higher floor, and a premium of $5,000 for floors above 31st floor. Of course, the penthouses had their own premium prices.

In 2006, newly built resale condos at Square One were hovering around the $200-$250 per square feet mark.

The launch price of Absolute World in 2006, is the approximate price per square foot of some other newer Square One luxury condos in today's market.

Being conservative in my investment approach (even more prudent when it comes to my investors), I did feel that the launch prices of Absolute condos were high, at that time. Well, now that one of these towers will soon get registered (towers are more than two years behind schedule), one will see many new listings for sale.

Now the question is: If buying at premium launch prices a good decision? For answer, refer to my blog post- the user, the investor and the flipper. In a nutshell,

• if you were one of those users who bought your condo to live and enjoy, sure it was a great decision to buy
• if you were a smart investor, someone who chose the right type of condo, the right floor level and at the right time (in this case, before the general public launch), you should be doing just fine
• if you are a flipper, who had bought into the hype without understanding the condo market of Mississauga, with no knowledge of popular floor types, sizes, price ranges etc., you may face a challenge when selling

I am personally very curious to see the resale activity in $750K + range condos at Absolute World.

Someone has said, real estate is worth what it is worth, what it is worth. And who decides that worth: THE MARKET.

Here is what I have available at Absolute World condos (exclusively listed):

• One, 1 BR for lease: $1,350 per month
• One, 2 BR for lease: $1,800 per month
• One, 2 BR+den for lease: $1,850 per month
• Four, 1 BR (600 sq ft), assignment sale at 50 Absolute: $299,900 each
• Two, 2 BR +Den (1050 sq ft), assignment sale at 60 Absolute: $499,900 each

Poll question

As a first time buyer on a budget of $350-$400K, what you will prefer to buy in Mississauga:

1. luxury 2BR plus den luxury condo apartment
2. 3 BR condo townhouse
3. 3 BR freehold townhouse/semi

If you are an investor or a first time buyer who is thinking of buying a property, call me to discuss your options and learn all about taking the right approach.

Greater Toronto’s residential real estate market continued to make headlines in 2011, defying expectations and posting an increase in both sales and average price. Read full Re/Max housing outlook report

Tight inventory levels throughout much of the year led to a significant upswing in values, with average price expected to close the year at $465,000—up seven per cent over 2010. Home sales are forecast to climb to their second highest level on record—at 90,500 units—five per cent ahead of last year. Strong demand and limited supply set the stage for a year of multiple offers—with sellers firmly in the driver’s seat—from entry-level housing to the upper-end of the market.

Activity in suburban 905 communities (Mississauga, being a part 905 community) also increased as affordability and neighbourhood served to attract purchasers-given that a single-detached home in the 905 area code can sell for as much as 25 per cent less than a similar property in the 416 area code.

Several factors were in play in the GTA during 2011 that contributed to the overall health of the market. Job security spurred buyer confidence, low interest rates and stock market volatility. Foreign investors were exceptionally active in the new condominium market, seeking shelter in a global market.

As per the report, 32 per cent of residential MLS sales this year involved a resale condominium apartment or townhouse. Affordability remains the foremost driver, with the vast majority of condominium sales occurring under the $400,000 price point.

Some projections as per Re/Max

Toronto’s population is projected to rise from 2.72 million in 2010 to 3.36 million in 2036, an increase of 23.7 per cent. Other census divisions of the GTA (Durham, Halton, Peel and York) will experience a significantly faster growth rate. International immigration will drive population increase, while out-migration to other provinces is expected to taper. Unemployment levels remain above the provincial average, but the rate is expected to decline in 2012. The GTA is expected to lead the country’s largest CMAs, alongside Calgary, in real GDP growth this year, hovering at 3.1 per cent and 3.8 per cent respectively.

Heading into 2012, tight inventory levels and unrelenting demand should continue to buoy housing values. Home sales are expected to be strong, rising to 93,000 units by year-end 2012, on par with 2007’s peak performance. Average price is forecast to appreciate further, climbing five per cent to $488,000. Demand is expected to be consistent in virtually every price range as economic recovery ramps up, particularly in the mid to latter half of the year.

Condominiums should continue to enjoy solid activity, supported by a tight rental market and declining vacancy rates. Sales in the top-end of the market are expected to be especially brisk, as more and more purchasers choose a tangible asset like a principle residence over riskier investments in the stock market. A continuation of low interest rates should stimulate home buying activity well into 2012.

Ontario Real Estate Association  (OREA) has developed a standard buyer representation agreement (B.R.A.) for buyer clients. Any licensed real estate salesperson in Canada can legally act as a buyer's salesperson/broker. A buyer's salesperson performs services for you that a seller's salesperson can't, such as showing you reasons NOT to buy a particular property.

A good buyer salesperson will include contingencies in the contract that protect you, rather than the seller as in most standard contracts, and keep confidential any information that could hurt your bargaining position. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting.

Bear in mind that the seller's salespersoN always works for the best interest of his/her seller.  Brokerages have to disclose all relevant information they have on property defects to sellers. But brokerages must tell buyers only about material defects that render the property dangerous or unfit for habitation, not necessarily all defects in a property. That's where a buyer agency comes in handy, being free to talk about anything that can affect the buyer's interests.

When you decided to buy, the services of a qualified in real estate professional; salesperson acting as your buyer representative, is of utmost importance. The ideal buyer's salesperson will have a good working knowledge of the local real estate market conditions, can advise you about current government programs that benefit consumers, provide you with insight into market trends, current market values of similar properties, add conditions and clauses in agreement of purchase and sale to protect you interest, offer information about the amenities of specific neighbourhood and have the support of a reputed real estate company.

The seller usually pays all commission to the listing brokerage who, in turn, forwards the appropriate portion to the buyer’s brokerage. Alternatively, the buyer’s brokerage can be paid directly by the buyer and, therefore, this amount does not form part of the sale proceeds. In most transactions, the commission to the buyer’s brokerage is paid via the listing brokerage from the proceeds of the sale.

Smart buyers should not start their home search without signing a Buyer Representation Agreement (B.R.A.).