Investing in Windsor Ontario
Real Estate Agent · Windsor, Ontario · Member since 2017 · 835 posts · 214 votes
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!
Thanks for posing this info scott. I am a fan of your work! You are like a reporter but for investors of windsor.
As has been discussed numerous times in previous posts, immigration is one of the key drivers of real estate supply and demand, and ultimately, price. Canada is one of the most desirable countries that immigrants seek out because of our generous social system, relatively open borders, access to education, safety, and many other reasons. As a recent article posted in Canadian Real Estate Magazine states, "the federal government’s stated commitment to step up its annual immigration target from 330,000 this year to 350,000 by 2021."
Windsor continues to be an attractive destination for immigrants because we already have a large immigrant population. Further, proximity to Detroit and low housing costs continue to drive immigrants here as well.
If you're thinking of buying or currently own real estate in Windsor, take comfort in the fact that this trend is not likely to slow down over the next several decades as immigrants continue to seek out affordable, safe cities.
The auto industry is vital to the Canadian economy; and so is the auto worker. This fact is not lost on the Federal government who has agreed to work with Unifor and Fiat Chrysler to help mitigate the potential loss of 1,500 jobs.
“The government will work with us extensively on any sort of work-sharing program in order to keep the 1,500 jobs, whether or not you work the day shift and afternoon shift and the midnight shift is home for a week, or we work four days and the fifth day is off,” Dias said. “So we’re talking to Chrysler about all this stuff.”
The key takeaway here, from my perspective, is that the auto industry will experience its ups and downs (as always) but the government will always be willing and ready to support our auto industry (as was shown during the financial crisis of 2008/2009).
Absolutely love this decision by the city to introduce a $215 fine for those who fail to maintain their yards. City beautification is an important driver of real estate values and Windsor simply has too many properties that aren't being maintained. This is part of Windsor's ongoing effort to densify the city core area by bringing more residents downtown.
“There’s nothing worse than a dirty yard,” Morrison said. “You get a nice street with everybody looking after their properties and then you get one who just doesn’t seem to care. It just brings down the whole area for everybody else.”
The new $215 charge is being referred to as a “repeat offender fee,” said Telfer.
If a bylaw enforcement officer is called to your house about an old mattress on your lawn, you’d be given a written work order to clean it up within seven days. If you do, there’s no charge. If you don’t comply, the city would call out a contracted firm to do the work and hand you a bill plus an administrative fee of $215, which before May 7 was $90."
This is a great move by the city, and if enforced properly, should provide a slight boost to real estate values going forward.
A local developer broke ground on a $7-million condo project downtown Wednesday — a rarity in the city core the last two decades — with hopes of sparking a “renaissance.”
It's been a while since we've seen this type of project in Windsor's city core so this is welcome news to Windsorites and investors. This is a 4 story, 32 unit luxury development on Oullette Avenue, which is right downtown Windsor.
"The project is only the second major residential development downtown in more than two decades. It is partly a result of the city’s Community Improvement Plan that offers grants and tax rebates for projects that bring more residents downtown, a program Valente called a “good carrot.”
Incentives include no development charges, which Valente said can cost around $12,000 per unit in other areas of the city. Also, taxes for the property will remain at current vacant-land rates for the next 10 years."
“This is the best kind of work and use of a CIP when you’re talking about deferred taxes,” Coun. Bortolin said. “Deferred taxes are something that we wouldn’t be collecting anyway, and 10 years from now we’re going to have a whole building on the tax rolls.“
Bortolin likes that the project will not add to urban sprawl.
“If it’s done properly with infill like this, we’ve had to add no infrastructure here,” he said, meaning it will cost the city less.
The CIP has proved successful, sparking $60 million in new development and hundreds of new residential units. And more are slated to come.
The other recent major city core residential development is a 152-unit building on vacant land at Wyandotte Street West and Crawford Avenue.
Windsor's downtown revitalization plan continues to attract Windsor development to help offset the effects of Urban sprawl (the movement of locals outside of the city core). Urban sprawl makes city planning difficult and creates other issues like traffic jams.
Windsor is still one of the most affordable cities in Canada coming in with a ranking of 24th most expensive for rentals in the nation. 1 bedrooms averaged $800 and 2 bedrooms are hovering around $990. I've been saying this for a while, but we still have a long way to go relative to the national market. The supply/demand for housing is still way out of whack in Windsor and we should see rent continue to creep upwards for the foreseeable future.
https://windsorite.ca/2019/05/windsor-ranked-as-the-24th-most-expensive-city-to-rent/
I was recently speaking with some recent immigrants from Bangladesh and asked them why they chose Windsor, they responded "There are many people from our home country living in Windsor, it feels just like home here..." That got me thinking that immigration will beget more immigration as "referrals" to friends and family back home should bring those considering coming to Canada here to Windsor.
Some Quick Observations on Windsor's Growing Population:
CMA Windsor's population growth is getting phenomenal – increase of 20,000 people over the
past two years
The second most ethnically diversified city in Ontario with visible minorities constituting 23%
of local population – attracting more immigrants of similar origin from afar.
3rd fastest growing urban center in Canada after Peterborough, Kitchener-Waterloo (2.5%)
Immigrants and refugees from the Middle East, China, South
Asian and Southeast Asian countries
Population overspill from other Ontario cities such as
Toronto and Hamilton where property prices have become
less and less affordable
Retirees and smart home owners in these cities cash in on
the high property prices and settle in Windsor where homes
are considered “dirt cheap”
Strong economy and mild weather attracts settlers from
other provinces for work and retirement
Influx of international students continues
"Gentrification is the process of improving a district so that it conforms to middle-class tastes" and that is exactly what we are seeing in many neighborhoods across Windsor. Improvements in bike lanes, sidewalks, and transportation will generally move to improving neighborhoods which should also help raise the value of our real estate holdings.
The plan from the city also involves $5.6 million worth of sidewalk replacements over five years. I recently visited a block of Walkerville which recently had it's sidewalks replaced with new ones, wow, what a difference! It changed the vibe of the whole neighborhood.
These are great announcements for the city and I hope to see more such improvements in the future as our tax base continues to grow, so will our budget for improvements.
Welcome news for Canadian investors as the Bank of Canada is likely to hold interest rates at current levels, or even cut them between now and the end of 2020. Lower interest rates are great for investors as it increases borrowing power and lowers borrowing costs, leading to increased cash flow.
Some will argue that this is a negative sign because the bank is keeping rates low in response to a slowing economy, but as I always like to state, don't wait to buy real estate, buy real estate and wait. If lower interest rates help me buy more real estate, then I'm all for it.
For those that have been paying attention to all the hype surrounding electric vehicles (i.e. Tesla), it is important for not only Windsor, but for all of North America to make sure that we lead the way in electrification. I personally believe that over the next 20+ years, electric vehicles will begin to outsell your traditional combustible engine vehicles; and investment in research and development from all major vehicle producers (GM, Ford, BMW, etc) corroborate this theory.
Windsor is an automotive hub and has been for the past 100 years, they are now taking the necessary steps to ensure that we continue to be into the coming decades with major investments in our University engineering department.
Head of research Dr. Narayan Kar argues "about 85 million new cars are purchased annually around the world. He predicts in 10 years about half of those will be electric or hybrid electrics."
If Windsor can establish itself as a world leader in electric technology and manufacturing, we will re-ignite round 2 of the industrial revolution and likely see billions of dollars on investment here locally in technology, staffing, and re-tooling.
Been discussing on this thread for a while that home buyers continue to migrate to lower-priced cities where their quality of life can be much higher. These migratory patterns continue to put pressure on mid-priced housing in these satellite cities like Windsor. Check out this article for more information.
There is a lot of talk and fear lately about the potential collapse of the auto industry, especially in an auto city like Windsor. Despite these fears, we continue to see major investments by auto manufacturers both here and right across the border.
It's important to keep in mind that these vehicles produced here and in Michigan supply the GLOBAL market and are shipped all around the world.
While the auto industry certainly is cyclical, and we will continue to see fluctuating sales over the decades, but the auto industry certainly isn't going anywhere.
Further, we should see some MAJOR re-investments over the next decade as the shift to electric vehicles continues. Auto companies will need to re-tool plants, invest in technology and software, and re-educate their workforces for the future.
For the second year in a row, Canada has been ranked the #1 country in the world for quality of life. We have a sound political system, relative safety, healthcare, social systems, and solid education and banking systems which continue to make Canada the best place to live in the world.
Canada's relative quality of life is important to keep in mind for future immigration trends (which have a direct impact on real estate values over time), as immigrants behave similar to consumers in any other market; they seek quality and value in their decision making process.
With Canada's multicultural and immigration-friendly policies, we are likely to be a very high-demand country for the next several decades which should help you think about the demand for real estate going forward.
News has emerged of a potential merger between Renaut and Chrysler Fiat which would make the do the 3rd largest auto producer in the world with 9.7 million vehicles sold annualy. I believe this is welcome news for Windsor as this merger SHOULD create a stronger, more profitable whole that hopefully continues investing in Windsor production for years to come.
Though pundits tend to focus on all the negativity surrounding the auto industry, there is plenty of positive news for those paying attention.
Key Excerpts:
"A Fiat Chrysler Automobiles marriage with Renault — should it be finalized — is unlikely to create any waves for the future of minivan production in Windsor, said one global auto analyst on Tuesday.
“If the merger takes place, the minivans don’t have any competition within Renault,” said Sam Fiorani, vice-president of global vehicle forecasting with AutoForecast Solutions. “It is one of the stable fixtures of FCA that you can’t replace with a Renault product.
“In the long-term you might see a new platform, but it seems Windsor is the best choice at the moment to keep minivan production going.”
Based on 2018 results, the combined company’s annual revenues would be the equivalent of over C$256 billion with operating profit of more than C$15 billion, according to the FCA statement.
One of the key metrics to consider when deciding where to invest your money in real estate is population growth. One of the key drivers of population growth is immigration. Canada is among the most desirable countries that immigrants seek out and research shows no signs of that slowing down; especially among the millennial population.
“The number of millennials bidding farewell to Canada’s big cities pales in comparison to the number of their peers flocking in. In 2018, net immigration added a total of 76,300 young adults aged 20-34 to populations of Vancouver, Toronto and Montreal,” RBC stated in its recent study.
“In recent years, [these cities] welcomed approximately half of all new immigrants aged 20-34. We don’t see this share really weakening in the period ahead—except perhaps temporarily in Montreal while the newly elected Quebec government trims immigration levels provisionally to improve immigrants’ integration outcomes.”
If you're already invested in, or are considering investing in, Canadian real estate, take comfort in the fact that we have one of the most highly desired countries for wealthy immigrants to come to, this slow, sustained growth will put pressure on housing while helping to inflate values over the next several decades to come.
Hello to all and thanks for all the info Scott and BP family. I will review all this info and we will need to connect.
Have a great week everyone.
Hello to all and thanks for all the info Scott and BP family. I will review all this info and we will need to connect.
Have a great week everyone.
Looking forward to it @Dale Holder.
A homeowner was recently fined $4,200 after he failed to close the sale of his property because his tenant did not vacate the property as agreed to in the contract. Good to see the courts upholding buyer rights for tenanted properties.
As an automotive city, a lot is made about the importance of the industry to Windsor's economy. When talking to people about the inudstry, I feel as though most people have a backward looking view of automotive as a whole, and the city of Windsor altogether. We are in the early stages of a shift in the industry with electrification, autonomous driving, connected vehicles, and automotive tech all on the horizon. As one of the automotive centers of the world, I believe that Windsor will see a central role in this shift with billions of investments from auto makers as this slow shift continues. We are seeing the provincial and federal governments stepping in to ensure that Windsor's automotive leadership continues into the tech-focused future.
Article Key Excerpts:
"Canada’s largest and only publically accessible virtual reality cave for connected and autonomous vehicles became an actual reality Wednesday with the unveiling of the $4.6-million project at Windsor’s Institute for Border Logistics and Security."
“That will impact their ability to prototype and create new products and test and validate new products.”
"The province, through the Ontario Centres for Excellence’s Autonomous Vehicle Innovation Network, provided funding for the project with industry offering match grants."
"Windsor is one of six sites around Ontario involved in the research of AV and connected vehicles aimed at making the province the centre of emerging technologies in the field."
Out of 35 Canadian cities, Windsor ranks #1
First I want to thank you for this forum. I find it really informitive better than jus google reseach. I am an investor from Vancouver BC. Looking for 1 or 2 buy and hold properties in the Windsor area this year. Single family/duplex/triplex to start and possible smaller appartment next.
Which tenants would you target (students, industrial works etc)?
Which areas are the most desirable most likely to have good tenants, good cap rate?
Which areas would you avoid (warzone, homelessness etc)?
Also noticed some areas susseptible to flooding. Which area are those?
I talked to many people over the past 1.5 years who said they were going to invest when "the market slowed down". In my opinion, they've failed to consider market fundamentals in their slowdown predictions. Market fundamentals can be boiled down to supply and demand; basically, as long as demand outstrips supply, prices will continue to rise. With all the investment going on in Windsor, the immigration, and employees moving here for the bridges (see posts in this thread for more info), Windsor continues to face a severe shortage in high quality, low-to-middle priced housing and rentals. As long as this continues, prices will rise.
Windsor is the top market in Canada to buy real estate.
MoneySense Magazine is out with its latest ranking of which community is the best for investing in a home.
The listing is based partly on the current average sale price of $322,000, an increase of more than $50,000 since last February.
MoneySense Senior Editor Romana King says the ratio of home cost versus income is best in Windsor.
"As incomes have risen with more job prospects, housing prices have not kept pace," says King. "So although they've gone up, which is part of what we look at we want to see appreciation over the years, we want to see some momentum there. They haven't gone up as rapidly in sort of the exponential sense that they have in say the Greater Toronto area."
King tells AM800 News Windsor has among the lowest times to pay off a house based on the average income.
"If it only takes 3.66 years when you look at the average income in Windsor to pay for the average house price," notes King. "And say in Victoria it takes 7.6 years. If you can shave four years off the cost of buying a house then of course you're going to want to consider that."
According to the magazine, Windsor also has the best Return on Investment (ROI) at 11 percent over five years.
King adds the ROI figure reflects how housing values have grown.
"Everyone wants to be sort of patted on the back. If they did make an investment we certainly like to do that with our rankings to help them understand that yes, your gut instinct or maybe you saw something that others didn't and then it also helps people understand why there's momentum in the city, why does it rank number one. Well in the last five years it's performed well."
King says a lot of people have used these rankings to decide where to move to get the best value in housing.
The next closest community is Guelph where the average price is nearly $530,000 and return on investment is only 8 per cent.
We continue to see major tech investments just across the border with Google announcing another $17m injection into Michigan. As tech investing becomes more expensive in areas like Silicon Valley (San Francisco) and Toronto, I expect to see this trend of tech investment spreading to other locations. Windsor is in a great position to attract that investment with the close proximity to the border, friendly immigration laws, and cheap real estate.
Article:
Tech giant Google announced Monday that it will expand its Detroit and Ann Arbor offices and add new sales and technical support jobs.
The expansions will involve new hires across Google's two Michigan locations: its Detroit office next to Little Caesars Arena and its primary Michigan office on the north side of Ann Arbor.
The company declined to specify how many new jobs are coming, but said there will be a "significant" addition. Google currently employs about 600 people in Michigan, mostly in advertising sales and technical support for services such as Google's cloud-computing platform.
Google plans to spend $17 million on the expansion work and is not seeking any development subsidies. The company is making similar investments in 13 other states.
https://www.freep.com/story/money/business/2019/06/10/google-detroit-ann-arbor-jobs/1408818001/
Canadian mortgage rates continue to fall, there are many benefits to lower mortgage rates for real estate investors:
1. Increased affordability - banks qualify buyers on their debt service ability, lower rates means more affordability for buyers.
2. Lower rates = increased cash flow - lower interest rates mean lower monthly payments on your mortgage which means higher returns on your investments
3. Rising Real Estate prices - Lower rates lead to increased value of real estate as cheaper money inflates the value of assets.
@Scott Innocente, thank you for the valuable info.