The User, Investor and Flipper in Real Estate
Sometimes developers create a media hype about their projects that seem like the best deal in town. This may not always be true. Real estate decisions need to be based on proper consulting and guidance. You need to understand real estate from different perspectives, including the advice of a real estate professional if you are a user, investor or flipper.
Investor Types – Users
If you are a user, someone who is planning to live in the suite, then your idea of buying should be based on lifestyle. You should consider buying something that you feel comfortable with, a place you can call home, a home or a condo type that suits your personality, and a neighbourhood you can feel proud of. Price is an important factor and it should be based on your income. If you think a high-price tag luxury home or condominium is where you really want to live in, you should be able to afford it. Before buying a new home or condominium, consult with me and I will be able to match your lifestyle with what is out there. We can look into many newly built homes, condos, pre-construction and resale homes and condominiums in Mississauga, or other areas.
Investor Types – Pure Real Estate Investors
If you are an investor, someone who is investing in real estate for the long-term, planning to keep a condo for the purpose of renting and paying off the mortgage using rental proceeds, then you need to dig in further. Cash flow and rental yields are important in most cases. Real estate investors need to be comfortable being landlords and taking good care of their tenants.
Before you commit to a builder new home or condo, you need to evaluate other options. You may want to do comparison shopping with similar units from the resale market. You may also want to find out if there are better assignment sales opportunities out there. (Assignment sales, as the name suggests, is an assignment of the builder’s new home or condo before the final closing date. The new buyer takes over the builder’s contract from the original buyer). Let me know if you need to find out more about available assignment opportunities in various condo projects in Downtown Mississauga or Toronto.
Investor Types – Real Estate Flippers
If you are a flipper, someone who is speculating on future price increases, planning to sell your home or condominium immediately upon closing, then you may be out of luck, at least for now. Flippers had their best runs of the decade until recently. Now a days, Canada Revenue Agency (CRA) is penalizing flippers who try to evade taxes on profits.
Before buying real estate to flip, you need to work out the math with a professional. You need to understand buying and selling costs involved in real estate. If you are currently locked into a situation where you see no price appreciation on your property, you have a few options. You can either convert into a real estate investor or transfer or sell your unit to someone you know who is a real estate user (builder’s approval may be required). Again, before you think of doing any of the above, talk to a professional.
First time buyers in Mississauga have many choices
Condominiums continue to attract first-time buyers in Mississauga, condos are most appealing to newcomers and young professionals. Home prices in Mississauga are affordable when comparing similar properties in Toronto.
Currently, the condominium resale market is attracting many first time buyers. Reason, new mortgage rules are churning out fewer buyers for expensive homes, and affordable condos have become a viable option. There are some great price offerings in store for buyers looking into both resale and new builder condos.
First Time Home Buyers’ Tax Credit, Land Transfer Tax Refund and RRSP Home Buyers’ Plan are great incentives for first-time buyers. Coupled with record low interest rates and so many available listings for sale, the environment is welcoming indeed.