Mississauga Homes and The Market

For those wanting a steady return on their money, Mississauga homes can be a sure bet. When the baby boomers started madly buying houses in the 1980s, suddenly real estate seemed like the path to instant wealth. The real estate markets fluctuate constantly. There have been times when the prices for Mississauga homes have gone down. However if you look at the overall price of homes in Mississauga over the last 10 years, in most cases, prices have risen.

Where is the housing market for Mississauga homes headed? Nobody can accurately predict. But even if house prices don't rise phenomenally,  homes in Mississauga have two strong things going for them as an investment.

Why Buy Mississauga Homes?

First, any capital gains on your principal residence are tax-free. If your house appreciates by 6 per cent, you get to keep every cent of your gains. Now 6 per cent may not sound like much, but in terms of how much you end up with, you'd have to earn as much as 12 per cent on a fixed-income investment such as a GIC to match that return, after tax.

Second, you don't have to come up with the full purchase price, meaning you're able to harness leverage. The conventional mortgages for a home requires a down payment of 20 per cent of the house's appraised value. Where as the High Ratio Mortgage, requires only 5% down payment. For example, for $200,000 homes in Mississauga, you need to come up with around $50,000 for a conventional mortgage. If the home's value rises to $220,000, that's an increase of 10 per cent. But what's really happened is you've put up $50,000, and made $20,000 from your house. Your real gross return on your invested funds is around 40 per cent. But notice the word “gross”. Don't forget that your real return will be less.

At the end of the day, Mississauga homes are great properties that can benefit any buyer.  Buying  a homes in Mississauga and having a mortgage is a a tremendously powerful forced savings program, making it a true investment! Not to mention all the developments that are currently going on around the Square One area. Those will definitely increase the value of your home if you live in the vicinity.

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