Resale vs. Builder New Condo Market 2023

Should you buy a Mississauga Central Erin Mills Condo from the resale market or from a builder?

Before we discuss this topic, let me briefly explain the major difference: Builder’s new high rise condo is a future purchase price that you accept today. Resale price is the market current price of what is selling today. One can read more about their pros and cons of new vs resale condos on our site.

First time buyers or renters opt for resale condos for many reasons. They prefer to move within 2-3 months and also can end up paying as low as 5% down payment vs. builder condos that require up to 20% down payment.

For example, if you were to buy a resale condo for $600,000, you can buy with as as low as $35,000 down payment (5.8% of purchase price). Now if you were to buy a condo for $600,000, you would typically have to pay 15% of the price in the 1st year, $90,000.

Builder’s price is always more than the current resale market prices because the future price is based on many variables like cost of land, cost of construction, development costs, builder’s financing terms, comparable offering of other builders etc.

There had been great opportunities in the Mississauga builder condo market segment in the past, where buying a builder’s new condo reaped excellent rewards for our investor clients.

M City 1 and M City 2 condosPerla condos, Crystal condosAmber condosGrande Mirage condos, Mill Square condos and Erin Square condos in Central Erin Mills, are some good examples.

No one has a crystal ball when it comes to predicting the future but a good look at the price gap can tell an investor if buying a builder condo makes sense or not. The right method of buying a builder condo is to analyze correctly the gap between the builder’s new and resale price.

If the gap is less, it makes all the sense to buy a builder condo. But if the gap is substantial, it would make less sense to buy a builder condo. So before buying a new condo from the builder, compare today’s resale market prices to the builder’s prices.

Just to give you an example of this week’s launch prices of Daniel’s The Kith condos across the Erin Mills mall. The project comes with A++ location but looking at the prices, it makes little sense to buy, as a value shopper investor. And here’s why:

Last month, I bought a gorgeous 825 sq. ft. 2 BR, 2 WR, with 1 parking unit at Downtown Erin Mills condos (4655 Glen Erin) for $710,000 only for one of our investors. This is a gorgeous building which was built in 2019.

At The Kith condos a similar sized condo is selling for $917,000 (including parking and locker).

What this means is that our resale investor should be very delighted. After checking out what builders are offering two bedroom units in the vicinity, our resale buyer should sleep well every night with his sound investment which can be growing every day to catch up with the builder’s future prices.

Having said this, not all models or floor plans can be looked at with the same lens. An expert condominium realtor should be the best person to help you with your investment, be it resale or builder new.

Call us if you are looking to buy or sell your condo or home in Mississauga and surrounding areas.

Check out all Mississauga condos for sale.

More about The Kith Condos in Mississauga

The Kith Condos

  • Located in the heart of Erin Mills
  • Expected Occupancy May 2025
  • Project by Daniels Corp
  • Minutes away from Erin Mills GO, Erin Mills Town Centre Shopping Mall, Credit valley Hospital
  • Easy access to QEW, 403
  • Close to Trails and Parks
  • Top Schools

Easy Launch Deposit Structure*:

$10,000 on Signing
Top up to 5% in 30 Days
5% at 250 days of signing
5% on Occupancy

The Kith Platinum Launch Prices*:

Studio with 1 Bathroom: From $529,900*
1 BR + 1 WR: From $637,900*
1 BR + Den + 2 Bathroom: From $743,900*
2 BR + 2 Bathroom: From $806,900*
1 BR + 1 Bathroom Suite with Terrace: From $652,900*
1 BR + 1 Bathroom Accessibility Designed Suite: From $725,900*

Contact Team Kalia for Full Detailed Price Lists & Floor Plans and for Your Access to Platinum Prices, Plans & Incentives!

Parking: $42,800*
Free Locker on some suites.
Maintenance Fee: $0.64 per sq ft per month + parking & locker maintenance fee extra
Property Taxes: Approx 1% of purchase price

*E.&.O.E. Builder reserves the rights to change prices, terms & incentives. This information is current as of May 24, 2023.

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