Hi all,

I am planning to buy a condominium in square one, Mississauga area and then would like to rent the same. How is this option as an investment? Any ideas/ thoughts. I heart there is at least 12-15% appreciation per year on condo price in Mississauga area.

Your response will be highly appreciated.

Thanks
VP

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Ame amdavadi

Hi VP

The condo prices have been steadily increasing in past in the range you mentioned for some of the buildings. In the area around Sq 1, the average price of a condo increased from $181903 in Dec'05 (1211 sales) to $200410 at the end of Dec'07 (1583 sales). The average price of Condo in the same MLS district stands at $221627 (582 sales) as of yesterday.

Before embarking on this journey, I would caution you to pay attention to expected availability in the near future due to the current under construction projects. This may put negative pressure on the rents. On the other hand, slow economic growth, high dollar and oil prices may increase cost of living and erode affordability of a home or condo which may be beneficial for the rental market.

Condos come with a fixed carrying cost (over and above your mortgage) and you should factor that in your decision making process. Your assesment should include risk assessment, affordability and organisational skills.

Good luck!

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK