Investing in Windsor Ontario
There is a lot of economic development going on in Windsor right now, so I've started this thread to keep people up to date on all the latest news. As we all know, economic development is directly correlated with real estate prices; keeping track of the latest news should help all us be better real estate investors. Check back regularly for updates!
81 RESIDENTIAL UNITS COULD BE COMING TO ABANDONED PROPERTY IN WALKERVILLE
Major development projects continue to pop up across the city as Windsor's population continues to grow. Home to multiple international border crossings, a University, College, and a soon-to-be Mega Hospital, combined with the most affordable city in Ontario, has Windsor in the middle of a housing boom.
He says the project will become part of the Market Square property and boost a growing residential and retail mix in the area. "So many amenities on Ottawa Street on Walker Road, it's going to be a wonderful new development for the neighbourhood and the neighbours who are currently living next to it will have a cleaned up site," he says. "It's a win, win, for everyone."
Growing population leads to more businesses, more businesses leads to more people, and that cycle can continue for a very long time.
Bidding wars to rent a house? In Ontario, tenants and agents say it's a new reality
EXPERTS SAY BATTLES OVER RENTAL HOUSES ARE A RIPPLE EFFECT OF THE SKY-HIGH PANDEMIC REAL ESTATE MARKET
As housing prices rise, more people get priced out of the market and turn into renters. As more renters search for fewer properties, it pushes rents higher. Most investors underestimate the value of rising rents; your $200 cash flow today might be $500 or $600 in just a few years.
Real estate agents and other experts say a shortage of rental houses has become particularly acute in some areas of Ontario, which, like much of Canada, is dealing with housing affordability issues. And they fear the problem will get worse as new families are created or arrive through immigration.
Afshin Livar got into multiple bidding wars while looking for a rental house for his family of five last month in Richmond Hill, a suburb north of Toronto.
"I felt extremely devastated and desperate," said Livar. "You could continue bidding and bidding and bidding, and just come back unsuccessful. So that makes it extremely stressful."
This is a reminder that there is a housing crisis across every major city in Ontario with no real end in site. Now is a fantastic time to own rental properties, particularly while it's still affordable in Windsor.
Bank of Canada boosts expected to keep rates on hold until mid-2022
May investors are still on hold because they fear rising interest rates, meanwhile, the Bank of Canada has told us repeatedly they do not anticipate any interest rate hikes until mid-2022. During that time, I expect Ontario real estate prices to rise significantly which will leave many would-be investors even further behind.
Wednesday’s decision was widely predicted by economists, and is in line with market expectations of a hiking cycle that starts in the second half of next year, with multiple increases needed to cool an economy that will likely be running too hot in 2023.
When the bank does decide to raise rates, it will be because of a fully strengthened economy, and a strong economy will solidify the housing market making significant price decreases unlikely. I never recommend trying to time the market or interest rates, but if you are are trying, make sure you're not on the wrong side of the fence.
Living in a motel, this 22-year-old is desperate to find a place to rent
JOSHUA MCCLEMENT LOST HIS JOB DUE TO THE PANDEMIC, AND HAS HAD TO MOVE INTO A HOTEL. HE SAID HE'S BEEN DECLINED NUMEROUS TIMES FOR RENTALS IN WINDSOR BUT IS NEVER TOLD WHY.
Another negative result of Ontario's strict anti-landlord legislation is that, simply put, landlords cannot afford to take a chance on tenants that have subpar credit, no credit, and/or no job history. The fact that it is nearly impossible to evict a tenant in this province (or to recoup your money for missed rent payments) makes it too risky to take anybody with a higher risk profile. This leaves marginalized renters in a competitive market in dire straits.
Although he's got a budget of about $1,000 to $1,200 for monthly rent and can offer first and last month — McClement said he's been denied many times, with landlords demanding information like where he's from, where he works, what hours he works and character references. He said he's made deposits on rental units, only to have them returned.
This is also a stark reminder that Ontario is experiencing a severe housing crisis that is filtering over to renters now as well.
Real estate agents and other experts say a shortage of rental houses has become particularly acute in some areas of Ontario, which, like much of Canada, is dealing with housing affordability issues. The problem could get worse as new families are created or arrive through immigration.
Investors should take note and look to add rental properties to their investment portfolios to take advantage of the housing shortage.
A handful of Windsor businesses on hiring sprees ahead of Step 3 reopening
SOME BUSINESS OWNERS ARE UNDER PRESSURE TO HIRE MORE STAFF IN ANTICIPATION OF MORE CLIENTELE WHILE OTHERS ARE READY TO GO WITH THE STAFF THEY HAVE ON HAND.
As Windsor opens for business, what impact will this have on the real estate market? I expect the economy to quickly accelerate as people, tired of being locked down, start to get active with restaurants, bars, shopping, and travel. Also, with nothing to do, many are sitting on increased savings, a good percentage of which will make its way back into the economy.
The economy is opening, the borders are opening, the University, and College are opening, and immigration is set to resume, all of these factors should at pressure to an already-tight real estate market.
BREAKING: FULLY VAXXED U.S. CITIZENS CAN ENTER CANADA AUG. 9
OFFICIALS SAY THE 14-DAY QUARANTINE REQUIREMENT WILL BE WAIVED AS OF AUG. 9 FOR ELIGIBLE TRAVELLERS WHO ARE CURRENTLY RESIDING IN THE UNITED STATES AND HAVE RECEIVED A FULL COURSE OF A COVID-19 VACCINE APPROVED FOR USE IN CANADA.
The fact that Windsor borders the USA is a significant driver of local real estate values. As the border opens up, I expect cross-border employment, tourism, and the draw of big city amenities just five minutes outside the city to provide another nudge higher to local real estate values.
Longtime landlord disheartened to see Windsorites priced out of rentals. Here's why
I love this article because it points out a reality of Ontario's anti-landlord policies which put all the power in the hands of the tenants. As a landlord in Ontario, you have to be EXTREMELY careful with who you sign a lease with. You can't take any chances on someone with damaged credit, you can't take a chance on someone coming out of a difficult situation. Why, you ask? Because if you get a tenant that stops paying rent, for instance, good luck getting them out!
"The landlord tenant board in Ontario is really forcing us to be picky with with who we select. They've really made us raise the bar because there's a huge backlog of cases in the courts," he said.
These anti-landlord policies may have worked when the market was balanced, but now that competition for rentals across the province has become out of control (thank again to government policy) this socialist anti-landlord legislation is now coming back to burn the very people it was meant to help. The bar for renters is now so high that many people may not be able to overcome it.
Realtors tell renters to lock in homes before border reopens, competition stiffens
Many investors aren't looking ahead to restrictions easing, borders opening, immigration picking up, and schools opening. Competition for rentals is about to stiffen up. There is already not enough supply on the market and more-and-more people are getting priced out of the market (turning them into long-term renters).
“Get a rental now before the border is open because you're going to have tons of competition.”
It won't just be increasing prices Canadians are dealing with once people can enter the country again, realtors said.
Competition will be back too because people will be moving to the country or back to city centres as the school year begins, they said.
“And there already isn't enough product on the market. There's a real shortage as far as affordability is concerned,” said Bonnie Meisels, an agent with Keller Williams Urbain in Montreal.
“The way things are going, things are only going to continue to increase.”
Transport Canada to study high-frequency rail reaching Windsor
CANADA'S TRANSPORT MINISTER OMAR ALGHABRA SAYS FEDERAL LIBERALS ARE COMMITTED TO STUDYING HIGH-FREQUENCY RAIL THAT EXTENDS FROM TORONTO TO WINDSOR — BUT HE HAS NO FURTHER DETAILS TO GIVE.
This would be huge, especially with the new "work from home" or "mixed" working environment we find ourselves in. There is already a mass exodus out of the GTA to more affordable cities like Windsor, but this would take things to a whole other level.
This project will be one of the largest infrastructure projects in Canada in decades, and will transform travel.
Alghabra said he’s aware that high-speed rail reaching Windsor-Essex has been discussed for years, and the region has been anxiously awaiting federal word on the issue.
“We want to do this as quickly as possible,” Alghabra said. “I know that the community has been promised this by other governments in the past, so I understand the skepticism. This is the first time our (current) government is making this announcement, and we are committed to delivering it.”
Alghabra added that the Toronto-Quebec project will run on electricity, contribute to a “green economy,” and result in faster, more reliable train travel.
“With these improvements, the number of daily departures could triple,” Alghabra said. “This project will be one of the largest infrastructure projects in Canada in decades, and will transform travel.”
With or without the highspeed rail, Windsor remains a fantastic investment option for investors looking to take advantage of a border city on the rise.
Expect persistent erosion of housing affordability: RBC
As sad as it is that many Canadians are getting priced out of the market, the reality is that most of these unfortunate people will turn into high-quality, long-term renters. We have no one to blame but the government, but we do have the opportunity to take advantage of it as investors.
“A strong influx of buyers—several of whom coming from big cities—has significantly boosted property values in smaller markets in Ontario, B.C., Quebec and parts of Atlantic Canada. Large price gains have narrowed their affordability advantage over big cities. Since the pandemic, mortgage carrying costs have increased more as a share of household income in Windsor, Hamilton, London and Niagara than in Vancouver, Ottawa, Montreal or Toronto,” said the report from RBC’s Robert Hogue.
Instead of complaining about the situation, look to profit off of it by owning real estate.
La Verns Market Opens in Downtown Windsor
On of downtown Windsor's biggest downfalls is the lack of diverse amenities. Downtown Windsor was built on the bar scene, and when that died out, we were essentially left with nothing. For downtown Windsor to be successful, we need a diverse mix of residential, commercial, work, and leisure and some big time local investors are in the process of making that happen.
Howard Anglin: The one factor in the housing bubble that our leaders won’t talk about
WHEN POLITICIANS USED TO TALK ABOUT HOUSING THEY ALSO SPOKE ABOUT IMMIGRATION LEVELS. WHAT CHANGED?
All markets operate on one simple principle: supply and demand. The federal government continues to talk about only one side of this coin: supply. Where is all the demand coming from, you ask? How about the 400,000 immigrants entering the country each year! How are we doing on the supply side? Go try and get a building permit! Red tap, government bureaucracy, and heavy environmental and building regulations make it impossible to build anything that is even remotely affordable leaving Canada in a perpetual supply/demand imbalance.
Consider housing prices: in the 1970s, politicians understood that the problem was, at its most basic level, one of supply and demand. Today, it seems we only ever hear about inadequate supply. Politicians talk about the need for more houses, but they’ve stopped talking about why we need them. What happened to demand?
According to Wright, “[t]here are multiple reasons why Canada’s housing has become so unaffordable, but it defies credulity to argue that high levels of immigration will not exacerbate the growing unaffordability of housing in Canada.” This is because “[i]mmigration levels of between 400,000 and 425,000 per year (the current target of the federal government) means an additional demand for approximately 170,000 new homes each year.” And, of course, “[c]lose to 75 percent of immigrants settle in these six major cities.” Supply, meet demand.
The real estate market isn't rocket science; it's supply and demand. Right now, given the federal government's policy, you want to own as much Canadian real estate as possible.
Investors should take note that Ford City continues to improve.
A wreck of a building that sat vacant for decades was seen as a symbol of Ford City’s potential when local restauranteurs Gino Gesuale and Jay Souilliere bought it six years ago with plans to transform it into a brewery.
Many are mistakenly looking at month/month sales instead of year/year sales. Windsor's market dipped for the third consecutive month; this is common for this time of year. Meanwhile, market prices are up about 39% vs this time last year. Despite the monthly dip, the long-term fundamentals of Windsor's market have not changed: not enough houses, too many buyers, too many new entrants into the company, building costs too high.
“What we’re seeing is pretty typical of July,” said Windsor-Essex Realtors Association president Damon Winney.
“We’re seeing more inventory on the market. People are enjoying the patio season, vacations and a little more freedom than we’ve had.
“It doesn’t surprise me because we see this every year at this time.”
https://windsorstar.com/news/local-news/real-estate-market-remains-robust-despite-average-monthly-sales-price-dip?fbclid=IwAR05QfWfpv8ixaTmo89s0KMOHYmUqyWeE8R_PtIl2xsT1vTEEBfmZbVd1wU
Canada on track to meet ambitious 2021 immigration target, minister says
Canada's ambitious immigration plan is putting tremendous pressure on the country's already tight housing supply. Exasperated by a shortage of buildable land, material and labour supplies, and excess red-tape, builders have found it nearly impossible to keep pace with the increasing demand. I don't know how much more evidence investors need to buy cash-flowing rental properties to take advantage of the situation.
"We're ahead of where we expected to be at this point in the year, and we are going to continue to accelerate the pace of landing new permanent residents," Mendicino said in a telephone interview. "We are going to deliver on that goal."
https://www.ctvnews.ca/politics/canada-on-track-to-meet-ambitious-2021-immigration-target-minister-says-1.5546419
Competition spikes for Toronto rentals as students and professionals return
Students returning to school is putting tremendous pressure on the rental market in the GTA; Is the same thing going to happen in Windsor? Place your bets.
But as students gear up for in-person school this fall and young professionals who left the city during the pandemic plan to return to the office, Toronto real estate agents say the rental market is busier and more competitive than ever.
“It is insane right now,” said Strata.ca agent Galina Sheveleva. “There are multiple offers — two to four on average — on most one-bedrooms under $1,850. Listings don’t last more than two days on the market. Some go the same day they get listed.”
There are not enough houses to buy or rent in the province already, so any excess pressure is immediately felt by low vacancy rates and rising rents. The long-term fundamentals of Ontario real estate have not changed: high demand, low supply.https://dailyhive.com/toronto/toronto-rentals-students-professionals-competition?fbclid=IwAR2e8yVFEY_ZNUbhrXGIe13DLf7Alrcx1PjyZLVQdlCKtG7VpwPueKvtPbk
Canadian Home Buyers Need Up To 34 Years Of Savings For A Down Payment
Thanks to the federal government's horrible housing policies, there are going to be a heck of a lot more renters in the years to come. Might want to own rental properties!
Canadian real estate affordability deteriorated so fast, it will delay buyers by years. National Bank of Canada (NBC) crunched the numbers on how long it would take to save a down payment in Q2 2021. Not buy the home, but to just have the minimum required down payment to get a mortgage. Over one quarter, home buyers in some markets saw the time needed to save extend by years. That was on top of a timeline that already took up to three and a half decades to save the bare minimum down payment.
https://betterdwelling.com/canadian-home-buyers-need-up-to-34-years-of-savings-for-a-down-payment-nbc/#_
'Build, build, build' — but be smart, Windsor forum on housing to urge
Windsor's recent population boom has builders scrambling to keep up with demand, but red tape continues to hinder timelines and affordability. The population pressure has come from migration from Alberta and GTA, booming university and college student populations, cross-border workers, and the governments aggressive immigration policies.
But the real change came when the University of Windsor and St. Clair College began heavily recruiting for new students from abroad, with thousands heeding the call. Part of the attraction were federal programs offered by the Harper and Trudeau governments that permitted foreign students to remain in Canada after graduation to work and, better yet, to create new jobs.
The future for Windsor's real estate market remains very bright, especially factoring in that we remain the most affordable city in the most economically diverse economy province in the country.
One of the biggest drivers of the real estate market in any University or College city is students. Every year, thousands of students pour into cities to study, live, work, and play and they sap up a ton of housing supply in so doing. One more recent trend over the past decade has been a massive influx of international students under the Liberal government's aggressive immigration plan. A high percentage of these international students come to Canada on a study permit and slowly transition that permit into permanent residency.
Student housing is big business globally, but in Canada there’s a gap in the market, and with colleges and universities across the country slated to reopen in September, there are no lingering questions about demand.
It is no secret why there is a shortage of housing across Canada, and students are a major reason why.
We are in the middle of a housing crisis here in the GTA and across Ontario—and Canada for that matter. The cost of building new homes continues to rise.
Basic economic principles suggest that when a product is in short supply, you should own as much of that product as possible. Don't over-think it.
There are a number of factors that cause higher prices for new homes, such as rising costs for materials and labour, but speeding up the review process would certainly improve the situation.
We can’t just continue along the same path. The lack of housing will stymie our growth if we don’t take action. Our housing-to-population ratio is the lowest of any G7 nation and, with more than 400,000 immigrants expected to come into Canada in both 2021 and 2022, the situation will only get worse.
https://www.canadianrealestatemagazine.ca/news/torontos-c2k-initiative-is-a-step-in-the-right-direction-334796.aspx?fbclid=IwAR2LRMf4oxzmIqJav4kIGRKSSdW8As_8QTW46srPSXrcd9OUpwUGssRbF5w
Tecumseh's Peak Processing Solutions strikes $3.42-million deal with The Boston Beer Company
Big news for Tecumseh/Windsor!
Tecumseh’s Peak Processing Solutions has signed a five-year deal worth $3.42-million US with The Boston Beer Company to research, develop and be the sole manufacturer of cannabis-infused, non-alcoholic drinks for the firm in Canada.
Tecumseh broke ground Tuesday to officially start the construction of a new 10- court outdoor pickleball facility in Lacasse Park.
“We are excited to see construction begin for this much anticipated facility,” said Gary McNamara, Mayor of Tecumseh. “The sport of pickleball continues to grow in our community and this facility will allow for more players to access courts.”
Home ownership is becoming a lost cause and the Liberals did worse than diddly squat
I would like to reiterate my view that politicians don't actually CARE about affordable housing; they just talk like they do. The current administration has done absolutely nothing to address the fundamental driver of real estate values in Canada. The problem is too many buyers, not enough houses. Still 400,000 people a year coming to the country, still delays on construction, still heavy bureaucracy and regulation preventing enough building, still not enough incentives for developers. All of these factors make me want to own as much Canadian real estate as possible.
The Liberals want to build, repair, or preserve 1.4 million homes in four years, the Conservatives plan to build 1 million homes in three years, and the NDP aim for at least 500,000 units of “quality, affordable housing” over the next ten years. Even if, and that’s a big if when municipalities control zoning regulations, these are built in a timely fashion, they’ll still be wildly insufficient. Case in point: Canada’s immigration target for 2021-2023 is 400,000 newcomers a year. None of these plans would produce enough supply to serve new immigrants, let alone the existing underserved population.
Windsor looks at increasing urban density to save costs
A plan that's been in the works for 7 years (yes, SEVEN years) is being "fast-tracked" to help incentivize development in Windsor's booming market. Despite the efforts, I expect development in Windsor (and all across Ontario) to remain burdensome, bureaucratic, slow, and costly.
Plans to change Windsor’s Official Plan and strengthen urban density went into high gear Monday night — after seven years in the making.
The Development and Heritage Standing Committee is asking the city planner to provide options for amending the Official Plan that will “further enhance and strengthen densification and intensification.” They want a response before the end of the year.
The government can't seem to get out of their own way when it comes to speeding the approval process and making housing more affordable.