Need suggestions on buying Mcity Condos in Mississauga

[Rupinder11170]

Dear members

I am a new investor and thinking of buying my first investment property. My consideration at this point of time is booking a 2 Bedroom Rogers' Mcity Condos to be constructed in Mississauga, Ontario. The price plan is not yet out but the presentation team mentioned that a 2 bedroom would be in the range of 400k to 500k.

I would need suggestions on making this investment.

Thanks.

 

[Thomas Beyer]

What is the goal here ? Buy and flip ? Buy and rent out ? If it sells for $500,000 do you have the 100K required to buy and can get a $400,000 mortgage ? What do comparable projects in the area sell for ?

 

[Rupinder11170]

What is the goal here ? Buy and flip ? Buy and rent out ? If it sells for $500,000 do you have the 100K required to buy and can get a $400,000 mortgage ? What do comparable projects in the area sell for ?

The goal is to buy and rent out. If it sells for 500k, I will be able to manage 100k down and get a 400k mortgage. The resale market is selling higher than this price for something similar because of bidding wars in Ontario. The closing on this pre construction project is 2021

 

[Rupinder11170]

Tomorrow they are rolling out the price and floor plans and I will get a better idea on what to choose. That will provide others more inputs to suggest something.

 

[Thomas Beyer]

.. The closing on this pre construction project is 2021

That is a long time to tie up your money .. 20% ? then flip for a 100% gain ?

This is not investing, it is speculation. Why not buy stocks ? At least they are liquid.

 

[Rupinder11170]

That's a very valid point. 2021 is a long time to tie up money and yes its more of speculation.

As per the price plan the cheapest 2 BR + M is in the range of $360,900 - $432,900 (568 sq ft - 624 sq ft). This project is part of a 10 building plan and right now we are talking about the pre-construction of the first building.

I am still educating myself on whether to buy this condo. SFH is difficult to buy in GTA due to red hot market and no cashflow at all at 20% down. Moreover, I don't want to overpay by getting involved in any of the bidding wars for a detached/semi detached/free hold town house (although they are all my preference).

By buying stocks - did you many stocks in general or the stocks for these condos I talked about?

 

[Rupinder11170]

What would be a better alternative to invest in real estate other than pre-construction condos, seeing the red hot GTA market.

 

[RELover]

Hi rupinder,

I receive a lot of info on GTa and area condos. One of the realtors sent this to me.

I'm not investing in either. Just thought I'd share in case it helps you.

1. The launch of M city Condo with a huge hype. Over 1000 Real Estate Agents stood in the queue in freezing cold weather at Mississauga Cineplex Theatre
just to get the price list. I got calls from lots of clients inquiring about it.

2.The launch of Mills Square 2 on 28th March 2017. Both this project got me really thinking. As a realtor it is my job to educate my clients and provide
all the information available to me. To make things easier I did a comparison on the important details of both the projects.

3. I received The President's Gold Award, Service Excellent Award and Terrequity Silver Award for 2016 from Royal Lepage Terrequity Realty.

Mills Square 2:

1. 4 Buildings in Total (Last one on sale)
2. Lower Price per square feet
3. Maintenance fees is approximately $0.54 per square feet. It includes all utilities except Hydro
4. Purchase Price includes 1 underground Parking and 1 Locker.
5. Lower Development Charges (approx $3500 - $5000)
6. Amenities include Indoor Swimming Pool and many more (approx 17,000 sq ft of recreation)
7. 18 Storey Building with 179 Apartments
8. Almost all condos come with 2 bathrooms
9. Excellent location with close proximity to Highways, Shopping, Hospital etc
10. Occupancy around Spring 2020.
11. Free Assignment
Most Important - Deposit Structure is as follows:
$5000 on Signing
Balance of 5% in 30 days
5% in 180 days
5% in 370 days
5% on Interim Occupancy (Spring 2020)
You are paying 15% in 1 year and balance 5% after 3 years at interim closing

M City Condo:

1. 10 Buildings in Total (1st one on sale)
2. Higher price per square feet in comparision to Mils Squre
3. Maintenance fees is approximately $0.50 per square feet. It does not include any Utiliities. Individual meters for all units
4. Purchase Price does not include Parking and Locker. You have to pay $20,000 for Parking and $3,500 extra for Locker
5. Higher Development Charges (approx $6000 - $8000)
6. Amenities include Outdoor Swimming pool and Ice Rink
7. 51 Storey Building with 700 units
8. Bigger condos come with 2 washrooms
9. Excellent location in High demand Square one Neighbourhood
10. Occupancy Around August 2021
11. Free Assignment ($500 admin fee)
Most Important - Deposit Structure is as follows:
$5000 on Signing
Balance of 5% in 30 days
5% in 180 days
5% in 370 days
5% in 540 days
You are basically paying all 20% in 2 years

 

[RELover]

Another thing to keep in mind is that this Condo requires a 20% deposit! In my opinion (I'm not an experience md investor) it is too high! Normally on preconstruction the deposit is aroun 10%

 

[Rupinder11170]

thank you so much for your response.