Hamilton LRT plans on the Rocks?

[bizaro86]

I saw this article and thought I'd post it here for comment by some of you who are more in-tune with Hamilton. Will this affect your strategy there? The mayor is saying potentially 10 years plus for the LRT to come in, and it's not his first transit priority. It sounds like he'll be focusing on keeping property taxes low, which is obviously a benefit.



http://www.thespec.com/news/local/article/565046--city-calls-off-non-essential-lrt-work



Michael

 

[karilu]

I have just joined REIN, and currently own one rental property. I live in Dundas, which is part of Hamilton... and to be honest, Hamilton's City Council has a history of going one step forward and two steps back. I know that Don believes it to be the number one city in Canada for rental property, but I've personally seen issues which would cause me to move cautiously, and this is an example. All of a sudden, LRT is virtually off the table after months of hype and hope. Another example is Hamilton's International Airport. It's beautiful, but has a reputation for losing airlines (tenants), and doesn't seem to have lived up to its potential thusfar. Even the signage pointing you towards the airport on the highway is embarrassing... not nearly as big and bold as it should be. I know that the REIN research indicates the city has a number of strengths. Perhaps the fact that Council has put the brakes on LRT is not the deal breaker some believe it to be.

 

[kkupina]

I'm hoping sooner rather than later...this city needs that!



Totally true on the airport signage! I found that funny, yet sad!

 

[DonCampbell]

The ongoing saga of a city that gets lost on the tough decisions.
Interesting how Ottawa City (after years and years of debate) finally approved a preliminary design for their LRT system http://bit.ly/rgaLYI while almost the same day City of Hamilton chooses to stop all work on the LRT project http://bit.ly/nCoymW
that could see the City achieve many of the goals it had set out, whil
Calgary and Edmonton moving forward on their LRT expansion.
If their stated goal is to attract a young urban professional to the City and change the long-term demographic of the city, then they have to find a way to do so. LRT is one of those, but more importantly the develpment that it will spur will be designed around this changing demographic. Sometimes leadership is difficult for elected officials due to the short terms they are provided when elected.

 

[markl]

It just let's me build my empire a couple more properties. I had my serious doubts about the LRT but I do know I can buy property poorly managed and increase rents on improvement and turnover 15-20% I will take those deals any day of the week.



Or I can cash flow on a single family the way I do in Hamilton sign me up.



disclaimer I own property and I do work as a realtor for investors in Hamilton. In fact just closed on another property last Wednesday



Regards,

 

[MrHamilton]

[quote user=bizaro86] It sounds like he'll be focusing on keeping property taxes low, which is obviously a benefit.


Hi Michael, when I spoke to a VP a Metrolinks, he basically told me the probability of the LRT B-line happening is 50/50. The biggest hurdle is, who is going to cover the operating loss. For example the TTC in Toronto only covers 70% of their expenses and the rest is covered by the tax payers. There are other significant hurdles as well such as needing a new dedicated bridge for the LRT to pass over the highway 403.



Will this affect my strategy? Not really. I've heard it from numerous REIN members from the GTA, KWC, Barrie, and Durham, that you really can't beat the opportunities for cash flow in Hamilton. And delaying LRT will allow us investors more time to acquire property.



I just checked the new Q2 update from the CMHC as well: http://www.cmhc-schl.gc.ca/odpub/esub/64227/64227_2011_M07.pdf Appears average prices in the Hamilton CMA are up 8.1% from Q2 last year. Food for thought.



My final two cents. Everyone interested in Hamilton should be circling the location of the new station on James North which everyone at the city has told me is a sure thing (again, no $$ announced, don't break ground till 2014). It's directly across the street from Liuna Station... Note there is another planned station in Hamilton on the same rail line at Centennial Parkway.



Hope that helps!

Erwin