High Rise Condos in City Centre (Square One Area) 

Builder New and Resale condos in Downtown Mississauga are a great opportunity for investors to capitalize on. With the demand for condos in the Square One area and the expected growth in the near future, buying a Square One Condo as an investment is a great option. 
 
Currently, the condo market in Downtown Mississauga is very hot. With more and more buyers and investors going towards the condo market, one explanation is because of the new mortgage rules. The stress tests and qualification rates for buyers to get a mortgage approval has become very difficult. Typically, buyers are now being qualified in the $400,000 to $600,000 range. As of today, this is the average price range where buyers are able to find Resale and Builder New Condos in Downtown Mississauga. Buyers looking for homes in Mississauga that are $700,000 and over have dropped because of the tightened mortgage rules and lower demand. 

In City Centre, a typical resale condo can start at roughly $650 per square foot and pre-construction condos can start at roughly $800 per square foot (as of June 2019). 

 
Rental Market in City Centre
With the influx of Newcomers coming to Mississauga and the tightened mortgage rules, the rental market has also increased dramatically. With 1 bedroom and 1 washroom condos starting at roughly $2000/monthly (as of June 2019), in the Square One area. With the high demand for rental condos in the Square One area often causing a shortage of inventory, tenants are finding themselves competing with multiple offers to secure to rental property. 
 
Client's Condo Investment in City Centre 
One of Pratham Kalia's clients was in search of an investment property in Mississauga. Pratham had suggested to his client that the Square One Condo market was a great opportunity. After a few days of searching, Pratham helped his client purchase a 1 Bedroom + Den Square One Condo for $395,000 and the closing took place in December 2018. Pratham also helped to secure a tenant for the property. The Rental process took 4 days, after receiving multiple offers.
 
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Fast forward to today (June 2019) where comparable condo units in the Square One Area are selling for approximately $440,000-$450,000 and the rent for a similar condo unit in the Square One area is roughly $2,100-$2,200. In just 6 to 7 months, the market has picked up. It goes to show how the Downtown Mississauga condo market is booming. 
 
Example - Buying an Investment Condo

Property Information
Bedroom(s): 1 + Den 
Washroom(s): 1 
1 Locker and 1 Parking Included 
Price: $450,000
Property Tax (Annual): $2178.09
Monthly Maintenance Fee: $375


Purchase Price: $450,000
Down Payment: 20%
Amortization Period: 30 years
Mortgage Rate: 3.19%
Mortgage Type: 5 Year Fixed
Total Mortgage Payment: $1551


Property Tax: $181.51 (2178.09/12)
Maintenance Fee: $375  
Property Insurance: $35 (roughly)


Total Monthly Expenses: $2,143

Based on this example, if an investor were to purchase the above condo then the tenant could be paying off the total monthly expenses. As of (June 2019), the rental market is offering roughly $2,100 to $2,200 in rent per month for 1 bedroom and 1 washroom in the Square One area. 
 
 Above calculation is simply a rough example, please do not rely on the examples, values, figures and numbers. This calculation is for demonstration purposes only. We do not guarantee that the calculations are accurate. Always consult a professional financial or mortgage advisor before making personal financial decisions. This article was last updated on June 6th, 2019. Please contact us for more details and review our Privacy Policy and Terms
 
Gain from a local Mississauga Real Estate Professional to help YOU scope out great investment deals in the market. Contact Pratham to book a FREE one on one investor seminar regarding investment opportunities.
 

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