Builder New Condos Update for 2020
2020 will be an Exciting Year for Downtown Mississauga Condo Market
Some eight towers are going to complete construction and that should add many condo units in our housing market in Downtown Mississauga, Hurontario and Central Erin Mills areas.
These towers are Block Nine at Parkside Village (some 600 units in both towers), Grande Mirage Condos ( some 350 units), Perla Tower 1 and 2 (some 460 units in both towers), Arc Condos (some 300 units) and Mills Square Condos (some 400 units in both buildings).
More Supply To Ease Rental Market. Increased Competition for Sellers
These condominiums will help ease the shortage of condos in Downtown Mississauga. Add many rental and for sale units. Currently, we are experiencing a very tight supply market. Our condo rental rates are one of the highest in GTA.
In fact, lately Mississauga condo rents are equivalent to Downtown Toronto (example of Mississauga condo rental prices: 1 BR average rental is $2,100 per month and 2 BR average rental is $2,600 per month).
On the sales side, we are experiencing a very hot market with multiple offers. An average 1 BR condo in a newer building is selling around $430K, 1+ Den condos are selling around $470K and a starter 2 BR, 2 WR condo is selling around $530K mark.
Things to Know About New Builder Condos Closing
Almost all new builder condos will have two closings, namely interim occupancy and final closing. There are few points that all buyers of newly construction condos should know.
All of the above mentioned builder new condos in Downtown Mississauga are backed by TARION warranty program. This warranty includes both your condominium unit and the common elements. You also receive a brand new appliances with warranties. These warranties are transferable to a new buyer at no cost.
What owners can expect at newly built Mississauga condos?
Pre-Delivery Inspection (PDI)
The PDI is part of your warranty coverage under Tarion Warranty Corporation (Tarion). It provides the homeowner with the opportunity to get acquainted with the details of the new home which ensures that the new home has been completed in accordance with the terms and conditions of the Agreement of Purchase and Sales.
The Move-In Manual
This manual is offered by the builders upon interim occupancy. On the occupancy date the owner is allowed to move into the property. He receives the keys, parking remotes and a move-in manual. This manual provides basic information about the building, the unit and its components, instructions and the manufacturer’s information for certain items within your condo (i.e. flooring, plumbing, security alarm, air-conditioning and heating unit etc.) It should be reviewed to learn various aspects of your new condominium unit.
Property Management at builder condos in Mississauga
In the first year, the builder employs his own property management company. Once the condominium building is registered the owners form a condominium board who then appoint a condominium corporation of their choice. Sometimes they opt to retain the same condominium corporation based on the performance in the first year.
Interim closing
Until the condominium corporation is not registered, ownership remains with the builder.The owner is allowed to move into the property once he receives the keys.
Occupancy fee
During interim occupancy, each purchase is required to pay a monthly occupancy fee, the amount of which is made of the following:
- Interest on the unpaid balance of the purchase price at a prescribed rate as set under the Condominium Act of Ontario, which essentially comprises a rate equivalent to a conventional one year mortgage rate.
- An amount representing an estimate on a monthly basis for municipal taxes attributable to the units purchased.
- The projected monthly common expense contribution for the units purchased as set out under the proposed First Year Budget Statement for the Condominium.
Mortgage Requirements
This is a good time to revisit your lender and ask lender to lock in your rates. Definitely, your investment has appreciated substantially since it is purchased two to four years ago. It can take anywhere from four months to one year for a building to be registered from the date of interim closing.
Lawyer role when buying new condos from builder
Your lawyer will be provided with an Interim Statement of Adjustments showing the total monthly occupancy fee to be paid. Based on the amount to be established, you will be requested to provide a series of monthly post dated cheques for these payments.
This is the time to inform your lawyer if you would be living in the condominium or if you are planning to use the condominium as an investment. This step is very important. If you decide to use this condo as an investment, that is you plan selling or renting it out, you are required to pay the new builder HST housing rebate back to the builder since this is a privilege to be enjoyed by someone who is moving into the property.
Landlord investors can claim part of HST portion back once they rent the property and submitted the new builder housing rebate form to the Canada Revenue Agency.
HST Rebate
HST Rebate can be a substantial saving for buyers of builder new homes or condos. But the buyer must actually reside in the property or rent it out immediately after closing and submit proof of residency or lease agreement to the Canada Revenue Agency (CRA). Make sure to review your agreement to see if the rebate has already been factored into the purchase price by the builder, in which case you may not be able to qualify for the rebate.
Assignment Sale
Interim Occupancy usually provides a good opportunity for assignment sales, for owners who may want to cash out their investment, with any returns generated to that point. Your plans may have changed and you may want to get your deposit back so you can move on or invest that money in another project. Doing it at Interim Occupancy stage helps you avoid occupancy fees and closing costs. However, you need to confirm builder assignment clause in your agreement.
Condo Insurance
It is of utmost importance that condominium owners get an insurance policy for their unit and that investors renting out their units obtain proof of insurance from their tenants. While the condo corporation covers insurance of common building elements, you need to protect your personal property contents such as appliances, furniture, belongings and ensure that you have enough liability coverage in case of any wider complications arising out of your unit.
Property Management & Rental Services from Team Kalia
Team Kalia is here to assist you – please don’t hesitate to contact us with any questions or concerns regarding your Grande Mirage, Perla, Block Nine Condos, Arc, Mills Square Condos or any other real estate matter.
All our buyers automatically get enrolled into Team Kalia’s a la Carte Property Management Program. This empowers you with hassle-free property management services. Our portion of rental fee also comes free for our valued buyer clients.
