Investing in Oshawa, Ontario

[kathybonis]

Hi there,

Looking for some advice on investing in Oshawa. Just wondering how the "Top 10 cities" evaluation has changed for Oshawa with the GM scare?

I`m looking at a property right now (my first), that WOULD cashflow, but am nervous because, what if I can`t rent it? Vacancy rates are not too bad RIGHT now, but unemployment rates are going up?

Any advice would be greatly appreciated.

Kathy

 

[markl]

Hi Kathy,

We have a couple of properties out Oshawa way. I really like the area over the past while they have diversified so that they are not a 1 trick town. Min of Fin is a big employer Minacs World wide are probably the 2 big employers as well the university. As for GM they have recently retooled the plant to make it the most advanced and flexible GM plant in NA so you might see some job losses but do I think GM is going away from Oshawa in my opinion it isn`t. I forget what report it was but just recently I actually saw something which showed Oshawa house prices were up year over year.

Hope this helps and good luck

regards,

www.homeinvestornow.com

 

[Mike Milovick]

I am originally from Oshawa. If you like lots of risk, go for it.

I wouldn`t touch it.

Way, way, too much uncertainty with GM (one of the GM dealerships in my area, sold 8 cars so far this month - they usually sell 50 to 60).

Way, way too much uncertainty at the university there. No coherent plan for City to deal with student housing. Landlords around the university have already been burned.

Way, way too much uncertainty with Rental Licensing program that the City is trying to implement.

Only upside I see is proposed addition to Darlington which should create construction jobs and help long term.

When I think of Oshawa, I think of it as candidate for the next Windsor. No way.

Mike

QUOTE (markl @ Feb 25 2009, 01:09 PM) Hi Kathy,

We have a couple of properties out Oshawa way. I really like the area over the past while they have diversified so that they are not a 1 trick town. Min of Fin is a big employer Minacs World wide are probably the 2 big employers as well the university. As for GM they have recently retooled the plant to make it the most advanced and flexible GM plant in NA so you might see some job losses but do I think GM is going away from Oshawa in my opinion it isn`t. I forget what report it was but just recently I actually saw something which showed Oshawa house prices were up year over year.

Hope this helps and good luck

regards,

www.homeinvestornow.com

 

[mrembecki]

I have one investment property in that area and lucked out with a great tenant, but it took me a very long time to find him. There were many interested ppl. looking for a place to rent, but they all seemed to have issues that made them too much of a risk for me. I also feel that there`s a lot of investor/speculators that are now closing their newly built homes and will be trying to lease them out so you have to be mindful of the competition when considering your purchase. Depending on how much you`re looking to spend, there are some deals to be had for new townhome developments in Brooklin which is a nice community in North Oshawa. They were being offered at $189K at the time I last checked. Regardless, best of luck with your investment.

 

[David Bradica]

I`m originally from Oshawa and still have many ties to the city and main industry there. The biggest question mark around the city are the job losses at GM. The truck plant is going to close. Yes they are going to re-tool the two car plants into one flex plant however the truck plant jobs are going at the end of 2009 and will not be coming back. Remember, every job at an OE plant is connected to (depending on who you listen to) 5-9 jobs in the area. This could have a negative ripple throughout the area. Let`s not forget that there have been and continue to be corporate GM job losses at their Oshawa headquarters and that Minics head office is located right next to the GM headoffice. That should tell you that they do a lot of work for GM. If GM suffers there`s a good chance that Minics will as well.

How negative will this all be? Well that`s the question. There are other things on the move in Oshawa that will offset it however, with so many top 10 communities within 2 hours of Oshawa why take the risk?

 

[InvestagainInc]

QUOTE (kathybonis @ Feb 25 2009, 12:31 PM) Hi there,

Looking for some advice on investing in Oshawa. Just wondering how the "Top 10 cities" evaluation has changed for Oshawa with the GM scare?

I`m looking at a property right now (my first), that WOULD cashflow, but am nervous because, what if I can`t rent it? Vacancy rates are not too bad RIGHT now, but unemployment rates are going up?

Any advice would be greatly appreciated.

Kathy

Hi Kathy,

I think that if you read Don`s book again and review the due dilligence criteria required for a good long term investment you will find tha Oshawa does not meet the majority of the criteria. That said, if you can find something closer to Durham (Pickering/Ajax) you will likely find a place for the same or better money, but that meets more of the criteria required.

Currently I am advising my real estate clients to look at the markets in Ontario that are investing most in infrastructure (among other investments including major employers) as that is a proven long term growth strategy that works for real estate investors.

I hope this helps.