Is buying an investment property in Mississauga still a good idea now that the market has softened slightly? All the stats suggest that buyers and investors are feeling a bit nervous. Real estate transactions are down all over the GTA, month over month and year over year. There were 7283 property sales in May compared with 8008 the month before. In June, there were only 6474 sales reported.
What is going on?
Rising interest rates and inflation have many potential buyers and investors putting their plans on hold. However, for the right person, now is the ideal time to invest, and Mississauga is the perfect place to do it.
Seasons Are Back In The Real Estate Market
Some buyers may feel gun-shy now that the market has slowed down, but that’s only in comparison to the craziness of last year. One thing that analysts can agree on is that seasonality appears to be making a comeback in real estate. 2021 was an anomaly that you probably shouldn’t use to evaluate any purchasing or selling decisions.
Like every industry, real estate has busy and slow times, and conditions are starting to normalize.
There is always a lull in the summertime as people are spending time outdoors and not thinking about moving. Once the Fall arrives, we can expect things to pick up quite a bit. As an investor, the time to act is now, while competition is down and prices have stabilized.
A changing market doesn’t have to be scary. Here are some other resources to see you through:
- Why Trust A Mississauga Real Estate Team During A Shifting Market
- Questions To Ask Your Realtor®
- How To Use Your Mortgage To Achieve Your Financial Goals
Mississauga Housing Prices Are Down
When you compare the average listing price now to a few months ago, the numbers may still look pretty high. Where are all these price drops that you’re hearing about? The difference isn’t in the listing price as much as in the final price you pay for a property.
There are fewer multiple offer scenarios, and bidding wars are almost extinct. In February, if a house was listed at $1 million, you might end up paying hundreds of thousands over asking if you wanted to beat out the other buyers. Now, the house might be listed slightly lower. Still, it provides a much better indication of what you will actually pay.
There has been a lot of speculation over what will happen next. Some buyers are still waiting on the sidelines hoping for a massive price correction. However, there is no way to determine when housing prices will bottom out.
The only thing that is certain is that real estate values tend to rise over time. Historically, real estate is still one of the best ways to grow wealth based on the appreciation in home values, even in a more balanced market with moderate price growth. It is better performing and less volatile than stocks/bonds, and far better than earning practically nothing by having your money sit in a bank account.
Who Should Invest In Mississauga Real Estate Right Now?
The current market rewards investors who buy and hold for the long term. Even with the higher interest rates, it is an excellent time to buy an income property. However, it may not be the best time for flippers and others hoping for a fast return. Prices are unpredictable, and it’s rare to find a property undervalued enough that you can sell it at a profit a few months later.
If you have a high debt load or your finances are insecure, you also may want to hold off on any significant decisions like investing in real estate. Without a financial cushion, you may struggle to cover your monthly payments during the short term or when your property is vacant.
However, anyone who is in a position to buy should do so. If you have some equity behind you and you’re ready to play the long game, you couldn’t ask for a better time to dive in.
With so many people looking to rent in the GTA, you will have no difficulty finding a tenant. Some rental properties are even receiving multiple offers because there is so little vacancy, and a detached home can go for as much as $4,000 to $5,000 per month. As real estate prices go down, it will be easier to create a positive cash flow with your income property.
Why Mississauga Is A Fantastic Investment
Mississauga isn’t just popular because of its proximity to Toronto. It has an appeal all of its own, and people are flocking to the city from all over. Many Toronto residents are tired of exorbitant rents and cramped living spaces and are turning their attention to its neighbour, Mississauga.
There is also a lot of appeal to people from smaller towns and rural areas who want a taste of big city life. What is so great about living in Mississauga? Here are just a few of the highlights:
- It’s busy and full of excitement, but far less crowded than Toronto. Mississauga is also more affordable than Toronto.
- Mississauga rents are almost at par with Toronto, but provide much better value for your money without compromising what the city has to offer.
- There are great restaurants and plenty of entertainment options.
- The shopping is second to none.
- You’ll find safe neighbourhoods, strong communities, and excellent schools.
- Mississauga has one of the hottest career markets in the country.
- Mississauga is Toronto’s immediate neighbour to the west and commuting into the city is easy, whether via Hwy 401, QEW, 427 or the GO train. You can get anywhere in the GTA quickly, including Oakville/Burlington in under 20 mins, 30 mins to Vaughan, or 40 minutes to Hamilton.
- Easy access to the gorgeous waterfront and refreshing beaches of Lake Ontario.
With so many perks, it’s easy to see why rental units don’t stay vacant for long!
There are so many ways to grow your portfolio in the current market! Here are a few other creative options to think about:
- What Is An Assignment Sale?
- How To Invest In Art
- How To Help Your Children With Real Estate Investing
How To Get Started As A Mississauga Investor
Interest rates are higher than they were at the beginning of the year, but are still relatively low. Now that housing prices are also down, you can’t ask for a better time to invest. How do you get started?
The first step is a careful analysis of your financial resources. If you have a lot of equity in your current home, the easiest way to finance your purchase could be with a second mortgage or home equity loan. Talk to your financial institution or a mortgage broker to see how much you can qualify for.
Mississauga offers a diverse range of housing options for your portfolio. As fewer people are buying homes, there will be more people looking to rent. Condos are an ideal option for a first-time investor. Single-family homes, duplexes, semi-detached and townhouses are also in high demand in the rental market.
Looking for the safest option to get started as an investor? Consider buying a home with a secondary suite. You can live in one unit and rent out the other. The income you generate may cover most or all of your mortgage. Best of all, your equity will grow as the property rises in value over the years.
Do you want to talk more about investments? It’s a topic we live for, and we’re always happy to help! Reach out to us right here.