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!
@Scott Innocente I'm investing in NZ and The US and can tell you that the Market in NZ is getting more and more challenging to invest in.
Not only the returns are compressing further and further, the current socialist government is introducing new "Tools" to cool the market. None worked. Recently the introduce warranty of fitness for houses, all investors have to upgrade their properties according to specific requirements, the LTV is restricted to 65%-70%, Investors in residential RE can no longer deduct interest rate as an expense and much more ridiculous thing.
Originally posted by @Hadar Orkibi:@Scott Innocente I'm investing in NZ and The US and can tell you that the Market in NZ is getting more and more challenging to invest in.
Not only the returns are compressing further and further, the current socialist government is introducing new "Tools" to cool the market. None worked. Recently the introduce warranty of fitness for houses, all investors have to upgrade their properties according to specific requirements, the LTV is restricted to 65%-70%, Investors in residential RE can no longer deduct interest rate as an expense and much more ridiculous thing.
Crazy! Funny that socialist policies tend to make prices higher instead of cheaper. We know all about it here in Canada!
'Accelerator on steroids' for EVs launches in Windsor
THE FUTURE IS ELECTRIC AND WINDSOR IS SETTING ITSELF UP FOR SUCCESS
Everyone knows that the automobile industry is in the early innings of a massive shift to electric. Windsor needs to position itself to partake in the shift and is taking steps to do just that.
The hub includes a "ramp-up factory" where people can research and build zero-emission, electric vehicles or other autonomous devices, such as drones.
Hub spans 3 locations in city
Three locations across the city will host the research and enterprise sections of the new Canadian Automobility Hub: St. Clair College, the University of Windsor and automotive manufacturing company Windsor Mold Group.
Windsor's 100 + year history of automotive and proximity to the US has us well-positioned to take part in the multi-billion dollar shift to electric.
With Windsor housing prices skyrocketing, mayor to attend 'crisis' summit
When an asset is in short supply, you want to own that asset. Investing isn't complicated. Ontario is in the midst of a housing crisis that may never get cleared up (due to exploding costs, government bureaucracy, and heavy immigration), owning cash-flowing Ontario real estate doesn't take a Master's degree.
“The dream of home ownership is now increasingly out of reach for the next generation seeking to enter the housing market,” Mayor Drew Dilkens said of a growing number on residents in his community.
“The average price of a (Windsor) home is up over 34 per cent so far this year, and that’s on top of a similar increase in 2020,” he said Thursday. “Ontario is experiencing a housing affordability crisis.”
These government meetings rarely solve anything, and expect more of the same with this one.
Nearly half of Canada's $6.1 Trillion home value is concentrated in Ontario
This is why I prefer to invest in Ontario over Canada's other provinces (though I would technically invest anywhere that the numbers work). Ontario is the most economically diverse province with the greatest population.
A whopping 46.6 per cent of Canada's home prices are concentrated in the province, not bad considering Ontario only makes up 38.26 per cent of the national population.https://www.blogto.com/real-estate-toronto/2021/11/canada-home-value-ontario/?fbclid=IwAR1tiLQk2Ap9wpiTGshpvyyDa2AFDqcU8xKosCVIGeJomyqLieM9zjebufc
Local housing prices continue steady climb
A lot of people are making a lot of money right now while the rest sit on the sidelines waiting, wishing, and hoping for crash. 36% rise (and likely more of the same to come) as the government continues to provide any real solution to the supply demand imbalance.
November’s average sales price of $570,879 is the second-highest monthly average recorded after April’s benchmark of $571,943. In October the average sales price was $565,278.
I continue to preach that, until the supply catches up to demand, or demand is reduced to match supply, prices will continue to rise. The government is either completely incompetent when it comes to market fundamentals, or simply doesn't care; my view is that it's actually a combination of both.
Canada not in midst of housing bubble: Former housing and mortgage head
Whenever housing prices go up, the average citizen begins throwing around the term "bubble". Most people don't understand that a bubble can only exist when supply exceeds demand. Canada is nowhere near these two fundamental market drivers coming into balance, therefore, we cannot be in a bubble.
“If demand is going up and supply is not, prices will go up, that’s not a bubble. So it’s a question of what the future brings and whether there will be supply and demand coming back into balance and that’s a crystal ball question.”
The government is completely inept to fix the problem, they require private sector assistance in this matter, yet their policies continue attacking the private sector with red tape, taxes, and bureaucracy:
“Let’s face it, that’s all government can really do on the supply side. It’s too much for a government to handle. We’re talking trillions of dollars in housing activity. It’s is a supply problem, but it’s not a supply problem the government can deal with on its own. It needs private sector support,” he said.
If you're going to use the term "bubble" you must firs understand it's meaning.
Wage inflation is coming – and could complicate things for the Bank of Canada
The labour market operates on the same fundamental principles as all other markets: when there is more demand than supply it will push prices higher. We are seeing rising wages across North America, even for entry level jobs as employers scramble to attract wage-workers. As wages rise, so too will demand for assets like real estate.
“I’m seeing increases in labour wage rates anywhere from 10% to 40%,” said Tanya Cerniuk, head of sales for Canada at global staffing firm Adecco Group.
“I saw one today … they were offering C$14 ($11.35) an hour and now they’re offering C$19.50 per hour,” she said.
Rising wages will be an incredible catalyst to real estate resale prices and rental rates as more money finds it's way into real property.
'Massive investment' confirmed for Adie Knox — an awesome feeling, Ward 2's Costante says
Good news for Windsor's west end a the city has approved $29 million investment in restoring this recreation center:
“Council’s investment here will supercharge this recreation complex by modernizing the existing building, adding new facilities like a full-size gym, multipurpose room for specialized classes and programming and a fitness centre. And the reimagined Adie Knox will also have (an outdoor) basketball court, pickleball and tennis courts, a splash pad accessible playground and a walking path.”
Windsor auto parts company receives $80,616 from province, adds 24 jobs
As the automotive industry shifts to electric, it will be important for Windsor to push to capitalize on billions of dollars of investment that will be made of the coming decades. Windsor has the workforce, auto plants, and parts plants, combined with proximity to the USA to hold our position firm, but it's going to take some big investments. The Ontario government is investing an additional $12 million in auto parts companies through the next phase of the Ontario Automotive Modernization Program (O-AMP) to drive competition and “position Ontario as a North American hub for building the car of the future.”
“By helping Ontario-based companies grow in the globally competitive auto parts industry, O-AMP plays an integral part in the next phase of Driving Prosperity ― The Future of Ontario’s Automotive Sector,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “The auto and manufacturing sectors are cornerstones of Ontario’s economy, providing good jobs for local families and workers. Through O-AMP, our government is creating the right economic climate to encourage investment, innovation and growth.”
I personally believe that Windsor is in the perfect position to take advantage of the shift to electric, as long as we play our cards right and continue to invest in the sector.
National Bank Of Canada Calls 2022 “The Year Of The Hike,” Sees Rates 6x Higher
The bank of Canada sees rates heading 6x higher than they are today. .25 x 6 = 1.5%. Many believe that rising interest rates have the potential to crash the housing market in Canada, however, I simply cannot see how 1.5% rates will crash the market given the supply/demand imbalance. As for significant raises after this, I cannot see how the Bank of Canada can raise rates at any significant pace without crashing the entire economy (which I believe any rational government is wont to do).
In 2023, they don’t see much more happening due to Canada’s real estate bubble. The bank only sees one more rate hike, topping out the country at 1.75% — the lower bound for the neutral rate. A neutral rate is the level of interest where money is cheap enough to support full employment but high enough to control inflation. According to the BoC’s last estimate, the neutral rate for Canada is between 1.75% to 2.75%.
The BOC finds themselves between a rock and a hard place, they must find a sweet spot for rates that keeps the market competitive, but doesn't crash it. My bet is that the BOC continues to hold rates at all-time low levels, albeit, higher than they are today.
Soaring prices: Home ownership a fast-fading dream for many in Windsor
Prediction: future real estate ownership will be concentrated in the hands of the few and the wealthy and will become a generational asset class. The majority of lower and middle class will become renters.The Canadian government has mismanaged the housing market so badly that we may never catch up. The idea of affordable housing for the masses is a ship that has already sailed.
The average sale price in Windsor is nearly $600,000. That’s still a relative bargain compared to other Ontario cities (less than half Toronto’s average), but a growing number of Windsorites are being squeezed out of previously attainable home ownership.
Malott was fortunate. He has a good job with the city and paid low enough rent on his current apartment that he could set aside funds. He won’t divulge what he paid for his modest 100-year-old home just south of downtown, but he got a “downpayment gift” from his father, and he’ll move in with two friends.
Investors should take note that real estate ownership will likely be more difficult and more expensive in the future than it is now. Those on the sidelines may want to consider entering the market before it's too late.
It will take “years” to tackle the challenges making Canada’s housing market so unaffordable, Freeland said in the government’s fiscal update.
The average person doesn't understand that prices across the country (and across the world) are being driven by fundamental factors. An explosion in global wealth, rising population, shortages in land, labour, and building materials, low interest rates, and the game-changing work from home economy have likely altered the real estate market forever.
“In addition to rising inflationary pressures, strong housing demand throughout the pandemic combined with limited supply has led to significantly higher house prices across the country,” the update explained.
The dream of home ownership for the average Canadian is fast-fading, and those hoping things will change any time soon I fear will be left behind forever.
“It will take years of strong supply growth to address the acute affordability challenges Canadians are facing in some regions of the country,” according to the update.
Real estate has become a generational asset class and I don't see that changing. Keep in mind, this phenomena has already taken place across almost every major city in the world (where the average citizen does not own, but rents), and it is just starting to happen here.
Windsor's Unemployment Rate Dropping, Housing Increasingly Unaffordable
Windsor has a potent combination of rising employment, rising population (immigration and migration) combined with low inventory which continues to push real estate prices higher.
"We had unemployment down under 7% for the first time in years prior to the pandemic and people were flocking to Windsor because of affordable housing, because of our border proximity. But now we face that combined risk of continued border crossing issues, supply chain challenges, housing prices that are making affordability a real issue."
As housing becomes more unaffordable for the average Canadian, more and more would-be-buyers are turning to renting creating a larger pool of qualified tenants and rising rents. Now is as good a time as ever to own Windsor real estate.
Cross-border rail tunnel passenger service moves step closer
This would be huge
Ontario to accept 100 immigrants who invest $200Gs in local companies
“I see immigration as one of the key economic drivers of Ontario’s growth,” McNaughton said. “There’s an opportunity to create new businesses outside of the GTA, to create more jobs for people across the province.”
McNaughton said the program will help with the recovery of the Ontario economy after COVID-19 pandemic.
“We have to be aggressive as we build back better out of the pandemic to recruit entrepreneurs to Ontario,” he said.
Last month, Ontario called on the federal government to double the number of immigrants allowed under the Ontario Immigrant Nominee Program — from 9,000 to 18,000 a year — a program aimed at boosting the skilled workforce.
McNaughton said the province is facing a significant labour shortage that has been intensified by the impact of the COVID-19 pandemic.
A significant portion of Canada's real estate crisis is being driven by immigration. We are already short homes all across the country.
333 Afghan refugees arrive in Calgary, 1,800 more expected by June. As part of Canada’s promise to help 40,000 Afghan refugees, another charter flight landed in Calgary on Thursday.
Bank of Canada raises key interest rate to 0.5%. A half-point increase may slightly decelerate the market, but I don't think it's enough to turn prices negative.
He projects three further rate hike increases of 25 basis points in the bank’s subsequent announcements before a “pause” at 1.25 per cent for the remainder of 2022.
#windsorrealestateinvesting #windsorrealestate #Windsor #realestateinvesting
The Construction price index has exploded across Canada. When construction prices rise, it makes replacement costs higher. When replacement costs are higher, it makes re-sale homes more valuable. This cycle can last for decades in markets with rising populations.
Windsor remains the cheapest city in Ontario with an average sale price around $700k. These rising prices are the result of government increasing money supply drastically, while welcoming 450,000 new immigrants annually, all while in the middle of a housing crisis.
As Canada's premier tool and die maker, Windsor stands to benefit from any positive automotive news across the country. Honda will invest $1.4 billion to retool its Alliston plant, which produces the popular CRV and Civic models
That’s why the Honda announcement in Alliston on Wednesday is so important. It’s another sign that the industry in Ontario isn’t dying. Instead, it’s coming back to life.
The real estate game has changed forever due to the work-from-home economy. There are many ways to capitalize on this long-term, game-changing trend.
Remote work is here to stay. According to their projections, 25% of all professional jobs in North America will be remote by the end of 2022, and remote opportunities will continue to increase through 2023.
https://www.forbes.com/sites/bryanrobinson/2022/02/01/remote-work-is-here-to-stay-and-will-increase-into-2023-experts-say/?sh=4f5655ad20a6
The Stellantis and LG Energy Solution plant is expected to cost around $4 billion and employ as many as 3,000 people. The facility would be located on a greenfield site of around 230 acres (93 hectares) in Windsor.
$5 Billion investment. Construction is expected to begin this spring with production operations planned to launch in the first quarter of 2024.The plant aims to have an annual production capacity of more than 45 gigawatt hours and will create an estimated 2,500 new jobs for the Windsor-Essex region.
Rent increases for one- and two-bedroom units across Canada averaged about five per cent. No surprise, more people getting priced out of buying and turning to renters, more renters = more demand, more demand = higher prices. This is likely a 20+ year trend in Canada.