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!
New mortgage stress test rules are coming June 1
AT ALL INCOME LEVELS, THIS CHANGE REDUCES THE AMOUNT OF MORTGAGE A HOUSEHOLD CAN QUALIFY FOR BY ABOUT FIVE PER CENT
Many are wondering whether this will significantly cool Windsor's hot real estate market. My personal opinion is that it may slow things slightly, but this is not enough to make a significant dent in the market given the severe supply demand imbalance coupled with rising building costs and bottlenecks in the housing supply chain.
Whoopsie! Bank Of Canada Says Their Use Of QE May Have Caused Greater Inequality
Newsflash: The government isn't good at business! The only economic equality that the government can create is making the middle class closer to the poor (without them knowing); the rich will always get richer because they own assets and income generating businesses. The poor and middle class continue to buy into the belief that the government will bring the rich down to their level, but this has never, and will never be the case.
During his speech, the Governor finally suggested QE can cause wealth inequality. “QE can boost wealth by increasing the value of assets such as the investments Canadians have in their registered retirement savings plans or company pension plans,” he said.
“But of course, these assets aren’t distributed evenly across society. As a result, QE can widen wealth inequality. We will look closely at the outcomes of QE here and elsewhere and will work to more fully understand its impact on both income and wealth inequality.”
Trudeau government begins work on reopening U.S.-Canada border
One of Windsor's main draws is our proximity to Detroit. Detroit has re-fashioned itself as a top-tier city offering amazing amenities, sports, entertainment, and an international airport. Further, more than 6,000 people cross the border daily to work in Detroit and surrounding area.
With 6,120 people working outside of Canada, Windsor-Essex has the largest number of residents in Ontario working outside of Canada, followed by Niagara with 1,405 and Sarnia-Lambton with 555 people. This phenomenon makes the commuter flows in Windsor-Essex unique.
In October 2016, about 300 of the 1,500 nurses at Henry Ford were Canadian.
Despite the borders being shut down for over a year, Windsor's real estate market has seen explosive growth. The borders are shut down, Immigration has slowed, the University and College are shut down and still the supply-demand imbalance has remained palpable. Is it possible that this growth gets even more explosive when things open back up?
LASALLE MOVING FORWARD WITH NEW WATERFRONT EVENT CENTRE
LASALLE'S $50-MILLION SMALL COAST WATERFRONT PROJECT IS STARTING TO COME TOGETHER
Good news for home owners an/or investors in LaSalle as council has approved a plan to redevelop the former Westport Marina into a municipal event centre at a cost of $6.5-million.
According to a report, the interior and exterior of the building could be used for a number of activities such as concerts or a farmer's market.
Overall, Windsor/Essex County continues to improve as the growing population adds to the tax base.
Stability for International Students
EACH COHORT IS GUARANTEED AN UNCHANGED TUITION RATE FOR THE TYPICAL LENGTH OF TIME REQUIRED FOR THE DEGREE.
Universities are big businesses and an extension of government policy. The University of Windsor will do what it needs to do to stay relevant and attract students (customers) from around the world. Universities need to be looked at as a valuable piece of any local economy.
Canadian Condo Markets Have Seen Prices Rise Up To $116,000
It's not surpring to see condo prices rise across the country. As the cost to build new supply skyrockets, more and more buyers have no choice but to purchase or rent a more affordable condo unit. this is another reason that I believe new construction condos that cash flow are a great investment.
Canadian condo prices had a boring 2020, but suddenly every market is hot. Detached homes are now firmly out of reach in many markets, leading to lock out fears. Condos are likely perceived to be the last chance at ownership for many.
It doesn’t appear to matter where either, because small cities are rising faster than big ones. This is quickly closing the gap, meaning commuting may not be as much of a deal as it used to be. Buyers are likely trying to grab onto whatever they can, since various officials have sent the message they’ll work to protect equity.
https://betterdwelling.com/canadian-condo-markets-have-seen-prices-rise-up-to-116000/
Unbelievable': Red-hot home building in London continues record pace
ANOTHER RECORD-BREAKING YEAR FOR HOME CONSTRUCTION IS FORECAST FOR LONDON AND AREA.
Reminder that Ontario has a sever housing shortage, and, despite rapidly rising prices, Windsor remains the most affordable city in the Province.
“It all starts with demand. It’s unbelievable right now. It’s not slowing down,” Zaifman said. “We’re starting to see consistent demand, and we can bring more online. We’re looking at a record year.”
https://lfpress.com/news/local-news/unbelievable-red-hot-home-building-in-london-continues-record-pace
Unbelievable': Red-hot home building in London continues record pace
ANOTHER RECORD-BREAKING YEAR FOR HOME CONSTRUCTION IS FORECAST FOR LONDON AND AREA.
Reminder that Ontario has a sever housing shortage, and, despite rapidly rising prices, Windsor remains the most affordable city in the Province.
“It all starts with demand. It’s unbelievable right now. It’s not slowing down,” Zaifman said. “We’re starting to see consistent demand, and we can bring more online. We’re looking at a record year.”
https://lfpress.com/news/local-news/unbelievable-red-hot-home-building-in-london-continues-record-pace
Why the mortgage stress test will create more renters
The B-20 mortgage stress test modification slated to take effect June 1 will adversely affect first-time homebuyers and push them into a rental market that’s already on the precipice. Simply put, home ownership is becoming more out of reach for more
Canadians than ever before which is pushing would-be buyers into the rental market. As an investor, this means we will have a much larger pool of qualified tenants with good jobs and good credit than ever before.
Guest column: Governments must get involved as lower-income folks struggle in housing market
NEWS REPORTS HIGHLIGHT THE DRAMATIC INCREASE IN HOME PRICES, THE PLIGHT OF FIRST-TIME HOME BUYERS NOT BEING ABLE TO ENTER THE MARKET AND LONG-TIME HOMEOWNERS LOSING IN UNCONTROLLED BIDDING WARS
Regardless of government intervention, rapidly rising housing prices in Windsor will create more renters than ever before. Simply put, a significant (and growing) percentage of the population will not be able to afford to purchase a home. This is likely to create the largest pool of qualified renters with good income and credit than Windsor has ever seen before.
More demand for rentals, higher sale prices, and higher landlord costs of ownership, in turn, will push rents higher slowly and steadily over time.
City and University Announce Plans to Upgrade West-End Recreation Infrastructure
More good news for West-Windsor which continues to gentrify!
With the construction of a new pool about a kilometre away, the City of Windsor is committed to renovating and expanding the municipal facility to invest in the needs of current and future west-end residents.Gymnasium
https://www.citywindsor.ca/Newsroom/Pages/City-and-University-Announce-Plans-to-Upgrade-West-End-Recreation-Infrastructure.aspx
The rate at which Canadians are saving money has never been higher
With nothing to do, Canadians are saving at a higher rate than ever before. There is a lot of cash on the sidelines right now that should eventually find its way into the economy as things open back up. Many predict that the economy could skyrocket when we get back to "normal" which would be a huge boon for already robust real estate sales.
Condo developer plans to buy $1-billion worth of single-family houses in Canada for rentals
My personal theory is that the housing shortage created by government policy (and exasperated by cheap money) will lead to real estate being concentrated in the hands of the wealthy. Future generations will, in general, be renters for either all of their lives, or significant portions of their lives. Windsor remains the most affordable city in Ontario making it ripe to attract this kind of investment.
What does this mean for real estate investors? Large pension funds, REITs, investors, and developers continue to snap up significant portions of supply which leaves less housing available for everyone else. When supply/demand is out of balance, prices and rents rise making the real estate investment class even more lucrative.
In short, don't wait to buy real estate, buy real estate now and wait.
“They have tight vacancies, like zero vacancies,” Mr Houtin said. “Immigration is increasing, the population is increasing and buying a home or condo has become less and less attainable. This is really driving up rental demand across all of our markets,” he said.
Core is targeting eight medium-sized cities in Ontario, and this year began buying properties in Kingston, St. Catherine’s, London, Barrie, Hamilton, Peterborough and Cambridge. It will soon start shopping in Guelph. Its medium-term goal is to build a $1-billion portfolio of 4,000 rental units in Ontario, Quebec, BC and Atlantic Canada by 2026.
Economist David Rosenberg said an affordable rental home may be more attractive to a potential home buyer because home prices are so high.
https://granthshala.com/condo-developer-to-buy-1-billion-worth-of-single-family-houses-in-canada-for-rentals/
Largest E Sports Facility in Canada Coming to St. Clair College
E sports is a perfect combination of tech and big business. Windsor continues to diversify more and more into technology; something we've sorely lagged behind other major Canadian cities.
Construction is scheduled to be completed by January 2022. It is part of a $23-million expansion at the school’s Windsor campus. The new Zekelman Centre of Business and Information Technology will also feature classrooms, student study areas, meeting rooms and offices for faculty. The Alumni Hall auditorium and the esports facility are the centerpieces of the new build.
The esports facility at the school’s South Campus will be the largest publicly accessible facility of its kind in Canada at over 15,000 square feet, making St. Clair a destination college for aspiring students, gamers and esports enthusiasts.
Tech jobs are high paying jobs and attract talent from Canada and around the world.
https://windsorite.ca/2021/06/largest-esports-facility-in-canada-coming-to-st-clair-college/?fbclid=IwAR3UaI--sO8EEM57aGnCz1EfhXMDx13XM1AG6P7JbX1nVPe0hkkZ421xESA
Walkerville listed among "coolest neighbourhoods" in North America
WINDSOR’S HISTORIC AND TRENDY WALKERVILLE DISTRICT IS RUBBING SHOULDERS WITH MONTREAL, SAN FRANCISCO AND CHICAGO IN AN ONLINE RATING OF COOL NEIGHBORHOODS IN NORTH AMERICA.
“Low crime rate, great schools, accessibility to medical services, and pride of ownership are some of the characteristics that make a neighbourhood great,” the website article said. “But what makes a neighbourhood cool? The following neighbourhoods all have a few things in common, including: good food, plenty of arts and culture, a vibrant nightlife scene and, perhaps most importantly, a distinct lifestyle.”
'Windsor is cool' — members of 'diaspora' offer thoughts on city loved, left behind
During Windsor's darkest days, many Windsorites left for greener pastures in Toronto or out West. One new trend seems to be those returning home while realizing all that Windsor has to offer. Affordability, less traffic, and access to world class Detroit amenities make the grass not so much greener on the other side.
A group of professional urban watchers said on Wednesday that to those living in other Canadian cities, Windsor remains an attractive and economical destination to settle down and raise a family.
With the pandemic’s impact on families and the recent birth of her child, Gooch said she and her spouse are now looking at the future, including a possible return home. “A lot has to do with job prospects — and what we can afford,” she said, adding she knows other Windsor ex-pats who have decided they’re returning to their hometown.
As someone who personally left Windsor for a few years and returned, I can say that Windsor is a great city on the upswing that has a lot to offer.
London rents poised to rise as pandemic ends, students return
ANYONE THINKING ABOUT RENTING A NEW APARTMENT IN LONDON MAY WANT TO DO IT SOONER RATHER THAN LATER.
The same is likely to happen in Windsor as the border opens up and The University of Windsor and St. Clair College resume studies
Danison said competition for units is expected to heat up in the months to come as Western University and Fanshawe College students return to classes in September.
The return of students will put added pressure on the rental market that also is being impacted by a housing market pricing many out of homeownership, forcing people to rent longer and keeping supply tight.
https://lfpress.com/news/local-news/london-rents-poised-to-rise-as-pandemic-ends-students-return?fbclid=IwAR0Uki3Gju0FfsUohn3jf1ken2_YUgafnRCg7-yGZXa8c6esCg0ojDEizNo
As Walker Road townhouses near completion, Soods plan transformation of industrial wasteland
The "industrial wasteland" on Walker Road is undergoing a major transformation thanks to local developers. The city has suffered from poor planning with an unholy mix of commercial and residential strewn about the city. It's good to see many of these vacant gaps being filled with residential. Once again, incentives played a role here as the City of Windsor finally understands that it needs to ease burdens on developers to get them to invest in the city.
“We want to make this picture perfect, the whole area that we control is going to be the talk of the town, 100 per cent,” patriarch Ashok Sood said Wednesday, referring to land his family owns on both sides of Walker and in particular a 11-acre former industrial site bounded by Walker, Edna Street, St. Luke Road and Richmond Street. Given the current unprecedented demand for housing, he and son Anuj say they’re excited to get moving on their plan to build three five-storey towers with 62 units each, plus 90 two-storey townhouses.
The Ontario housing crisis has Windsor finding itself in the middle of a housing boom, one which has no real end in sight considering we still remain the most affordable city in the province by a long shot.
https://windsorstar.com/news/local-news/as-walker-road-townhouses-near-completion-soods-plan-transformation-of-industrial-wasteland?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook&fbclid=IwAR1ovFVy7N5fNj4Zamb0MxCbgIxKtzBqS85_n5qDw6ohxtxM0ELi9vHCybQ#Echobox=1623885458
Toronto Ranked 2nd Most Expensive City in Canada but Remains Low on Global List
"GLOBALLY, CANADA REMAINS A RELATIVELY AFFORDABLE PLACE TO LIVE AND AN ATTRACTIVE DESTINATION FOR REMOTE WORKERS," SAID GORDON FROST, PARTNER AT MERCER CANADA.
We now live in a global world. Many Canadian cities have seen rapid price appreciation over the past decade but most of these cities remain relatively cheap on a global scale, including Toronto.
"Globally, Canada remains a relatively affordable place to live and an attractive destination for remote workers," said Gordon Frost, Partner at Mercer Canada.
Canada remains a very attractive country to buy and hold real estate for the next hundred years.https://www.blogto.com/city/2021/06/toronto-ranked-most-expensive-city-canada-world/?fbclid=IwAR2MwnhJcQ4L-eYoS4vwiu4QZxPUXjzUGJPEYirhlnVeODAnLSB1YcHGvjk
Council eyes $679K in incentives to spur downtown, Ford City projects
CITY COUNCIL WILL DECIDE NEXT WEEK ON WHETHER TO APPROVE ALMOST $700,000 IN INCENTIVES TO SPUR $12 MILLION WORTH OF TRANSFORMATIVE REDEVELOPMENTS IN THE DOWNTOWN AND FORD CITY.
The City of Windsor continues to improve as we finally have a government in place that understands the power of incentivizing private development. Given Canada's heavy bureaucracy and taxation, getting projects off the ground is expensive, time-consuming, and often simply not profitable. Incentives and tax breaks are usually what tip the scales to make the investment worth it.
“This is actually the power of a strong real estate market, coupled with the CIP incentives, that really makes this time exciting,” said Mayor Drew Dilkens.
He was referring on Monday to the community improvement plans passed in recent years for Ford City and the downtown that are now paying dividends in encouraging investors to transform faded and under-utilized core buildings for uses that are needed and seen as boosting the local economy.
Incentives, coupled with a booming real estate market, are what's attracting tons of private investment in the city leading to massive improvements. Keep in mind, the University and College, Border, and immigration are still shut down. I'm anxious to see how far Windsor can go as things open back up.
Ottawa targets Windsor area for immigration pilot project
THE WINDSOR AREA HAS BEEN SELECTED TO RUN AN INNOVATIVE PILOT PROJECT DESIGNED TO HELP MUNICIPALITIES FILL GAPS IN THE LABOUR POOL AND DRIVE ECONOMIC GROWTH.
Immigration is arguably the most significant driver of real estate values in Canada and is undervalued by real estate investors. Every new person moving here requires housing, an asset already in short supply, which should have local investors clamoring to own more real estate.
The federal government has set a target of attracting 401,000 newcomers in 2021 after the COVID-19 pandemic limited numbers in 2020.
Minister of Immigration, Refugees and Citizenship Marco Mendicino on Tuesday confirmed the local start of the regional project under the Municipal Nominee Program and which is expected to set aside about 5,000 immigration slots nationally.
Mendicino cited the ability of the university and St. Clair College to draw international students from around the world as a boost for the local economy, but also a lure for companies looking to locate here to tap into the talent pipeline.
Understanding Federal immigration policies can help you profit off your real estate investments and help you get ahead of the curve.
Red tape – not greedy companies – is the real cause of Canada’s housing crisis
The root cause of Canada's housing crisis is expensive deveopment costs caused by red tape. Canada is a heavily-taxed and heavily-regulated country which makes developing new supply both time-consuming and costly. Canada continues to let in 400,000 immigrants a year while doing nothing to address the lack of supply in the Canadian market. The only true way to combat the rising population is to de-regulate the private sector, lower taxes, and increase incentives to develop new housing. https://www.theglobeandmail.com/opinion/article-red-tape-not-greedy-companies-is-the-real-cause-of-canadas-housing/
Strong population growth forecast for Southwestern Ontario
WINDSOR AREA TO GROW FROM ABOUT 410,000 TO 550,000
Many Windsor investors are on the sidelines right now waiting for prices to grow, meanwhile, we are experiencing a significant shortage of housing with the population continuing to swell. Our population is projected to grow by 140,000 people all while building costs are soaring, developments are delayed, and our bureaucratic government continues to get in the way with red tape at every turn.
The federal government has set a target of 401,000 newcomers for 2021 and will add 10,000 people to that figure in each of the next two years.
“The federal government has increased its immigration targets, so that’s worked in the Windsor area’s favour as we’ve traditionally been a pretty diverse area,” Fathers said.
Southwestern Ontario is a solid market for long-term real estate ownership and Windsor remains the most affordable city in the province. https://lfpress.com/news/strong-population-growth-forecast-for-southwestern-ontario/wcm/4cebf562-cd0e-4f70-bfac-f8d9e25df6ae?fbclid=IwAR0ZVkaVNUoBYsXe7ps3dA4cHW60IuZxKBwG8nUeWRumh5ggLHQ3-mCLya4
City of Windsor continues to invest in revitalizing neighbourhoods
Downtown Windsor continues to improve drastically after it bottomed out over 5 years ago. Windsor city council approved a number of applications to its community improvement plan on Monday, totaling nearly $1 million. Most of the projects are in the city’s core.
“There is no vacancy to speak of in the downtown,” says DWBIA chair Brian Yeomans, who is thrilled to see more projects popping up in downtown Windsor, with the help of the CIP. It’s accounted for about $135 million worth of development. It’s incredible.”
“International students that have been coming to Windsor for school whether it be the university or the college,” he says. “So there was a huge influx of students. Some of them have stayed.”
A third project downtown is also receiving a grant.
A new cocktail bar at Pelissier Street and Maiden Lane.
“We’ve had 15 businesses that have opened since the beginning of the pandemic. Which in the last 15 years you don’t hear 15 businesses opening in the downtown,” says Yeomans.
A strong city core is invaluable to the success of any city. The City of Windsor has finally caught on that incentives are necessary to attract private development to invest. The downtown core still has a long way to go, but is clearly on the upswing.
https://windsor.ctvnews.ca/mobile/city-of-windsor-continues-to-invest-in-revitalizing-neighbourhoods-1.5498802
Windsor's economy set to benefit off of the shift from oil to electric with massive investments projected to find their way to Canada's automotive capital. Among the beneficiaries will be The University of Windsor, St. Clair College, local tool and die companies, and, of course, the automotive manufacturers themselves.
Windsor Assembly was promised one or two new electric models in its contract negotiations last fall to go with the Pacifica and Grand Caravan.
Windsor may be in store for decades of re-tooling, research, and investment as the world shifts to electric.