QUOTE (grayani @ Aug 31 2007, 07:02 AM) I`m interested in knowing if anyone has a notion of how the recent GM announcement will affect home prices in the next 6 months, and in next 3 years based on past experience when such announcements have been made?
Thank you.
Galib
www.DogCountryGifts.com
Hi Galib,
this is my take on it... it`s an economics A to B to C flow so please let me know if you need me to clarify anything.
[list type=decimal][*]Sub-Prime Meltdown tightens up lending and risk management for the banks[*]This slows down housing starts[*]This slows down work for skilled trades who purchase some 50% - 60% of pickup trucks[*]Therefore, they put new truck purchases on hold for a while[*]GM recognizes the slow down and cuts back on production[*]This results in temporary layoffs[*]This results in a new Oshawa plant worker being temporarily laid off.[*]This results in a short term problem for the market placeConfidence in the market will reduce because headlines sell papers.
Let`s look at the facts:[/list type=decimal]
Always remember to look at the fundamentals... use your property gold mind score card, do you homework and contact the economic development office for additional information.
Hope that helps... I welcome other`s input as this is only my review on this issue.
Thank you.
Galib
www.DogCountryGifts.com
Hi Galib,
this is my take on it... it`s an economics A to B to C flow so please let me know if you need me to clarify anything.
[list type=decimal][*]Sub-Prime Meltdown tightens up lending and risk management for the banks[*]This slows down housing starts[*]This slows down work for skilled trades who purchase some 50% - 60% of pickup trucks[*]Therefore, they put new truck purchases on hold for a while[*]GM recognizes the slow down and cuts back on production[*]This results in temporary layoffs[*]This results in a new Oshawa plant worker being temporarily laid off.[*]This results in a short term problem for the market placeConfidence in the market will reduce because headlines sell papers.
Let`s look at the facts:[/list type=decimal]
- The layoffs are temporary (one of the points on the Goldmind Score Card)The Oshawa GM plant has the best productivity and quality ratings in north America (they won`t shut that down)There is 48 Acres of new brown field development going on the down town coreDurham as a whole has a dwindling supply of available landPickering and Whitby has minimal building permit tax levies so the taxes will begin to go upAjax and Oshawa have a 3 - 5 year span without much requirement for taxes to go up
Always remember to look at the fundamentals... use your property gold mind score card, do you homework and contact the economic development office for additional information.
Hope that helps... I welcome other`s input as this is only my review on this issue.
QUOTE (grayani @ Aug 31 2007, 08:02 PM) I`m interested in knowing if anyone has a notion of how the recent GM announcement will affect home prices in the next 6 months, and in next 3 years based on past experience when such announcements have been made?
Thank you.
Galib
www.DogCountryGifts.com
As a resident here and having seen lay offs in the past few years, I can tell you the price of homes have continued to increase. The majority of layoffs will end up being payouts for early retirement.
Don`t forget Darlington Nuclear Generating Station is going to be getting (unofficially) at least 2 new nuclear builds. This will take up to 10 years to build, then they will need to be staffed. That is a lot of Trades moving here for the build as well as the staffing.
Also, about 60% (I will confirm the percentage tonight) of the current staff at Darlington will be retiring in 6 years. OPG has begun hiring again for the first time in years. Just recently there were 100 new Engineer new hires, 47 new Mechanical Maintainers (Millwrights, Machinists); I could go on.
GM fortunately is not the only large employer in Durham.
Oshawa`s focus on improving it`s downtown core is moving forward and Oshawa, Courtice are still the least expensive housing market along the 401 in the GTA (that is why we moved here from Downtown Toronto; despite the fact that my husband worked in Brampton!).
Hope I provided some valuable info from a local perspective!
Thank you.
Galib
www.DogCountryGifts.com
As a resident here and having seen lay offs in the past few years, I can tell you the price of homes have continued to increase. The majority of layoffs will end up being payouts for early retirement.
Don`t forget Darlington Nuclear Generating Station is going to be getting (unofficially) at least 2 new nuclear builds. This will take up to 10 years to build, then they will need to be staffed. That is a lot of Trades moving here for the build as well as the staffing.
Also, about 60% (I will confirm the percentage tonight) of the current staff at Darlington will be retiring in 6 years. OPG has begun hiring again for the first time in years. Just recently there were 100 new Engineer new hires, 47 new Mechanical Maintainers (Millwrights, Machinists); I could go on.
GM fortunately is not the only large employer in Durham.
Oshawa`s focus on improving it`s downtown core is moving forward and Oshawa, Courtice are still the least expensive housing market along the 401 in the GTA (that is why we moved here from Downtown Toronto; despite the fact that my husband worked in Brampton!).
Hope I provided some valuable info from a local perspective!
Hi Mark,
That was a very interesting reply to a great topic/question from Galib.
I agree with your points. I would just add that the Canadian dollar is one negative factor for GM Oshawa and the auto parts suppliers.
I live in and have a rental property in Pickering.
The point about permits and taxes was interesting.
Are you saying that Ajax/Oshawa will outperform Whitby/Pickering?
Are you familiar with the Frenchmans Bay/ Bay Ridges area and if so what do you think of it`s future potential?
Regards,
Brian Anderson
I`m interested in knowing if anyone has a notion of how the recent GM announcement will affect home prices in the next 6 months, and in next 3 years based on past experience when such announcements have been made?
Thank you.
Galib
www.DogCountryGifts.comhttp://http://www.dogcountrygifts.com/
That was a very interesting reply to a great topic/question from Galib.
I agree with your points. I would just add that the Canadian dollar is one negative factor for GM Oshawa and the auto parts suppliers.
I live in and have a rental property in Pickering.
The point about permits and taxes was interesting.
Are you saying that Ajax/Oshawa will outperform Whitby/Pickering?
Are you familiar with the Frenchmans Bay/ Bay Ridges area and if so what do you think of it`s future potential?
Regards,
Brian Anderson
I`m interested in knowing if anyone has a notion of how the recent GM announcement will affect home prices in the next 6 months, and in next 3 years based on past experience when such announcements have been made?
Thank you.
Galib
www.DogCountryGifts.comhttp://http://www.dogcountrygifts.com/
They did it again.
http://www.thestar.com/article/419247
How does it impact Oshawa`s property market? Hard to tell it will be positive.
http://www.thestar.com/article/419247
How does it impact Oshawa`s property market? Hard to tell it will be positive.
QUOTE (grayani @ Aug 31 2007, 05:02 PM) I`m interested in knowing if anyone has a notion of how the recent GM announcement will affect home prices in the next 6 months, and in next 3 years based on past experience when such announcements have been made? Thank you.
Galib
www.DogCountryGifts.com
Ontario`s car industry will blossom again, and thus house prices in those affected ON towns will blossom again if AND ONLY IF:
a ) they lower $s/h paid to car manufacturing employees (to lower car prices), or
b ) they build high demand smaller, electric or hybrid cars in Ontario, or
c ) US $ rises dramatically against Can $, or
d ) the ON government is right-of-centre
Likely all 4 have to happen !
Until then, ON towns that rely heavily on car manufacturing will suffer in an environment where gasoline approaches $2/litre and where US economy is sluggish and where cars made in USA are cheaper !
Consider buying in DETROIT instead !!
Galib
www.DogCountryGifts.com
Ontario`s car industry will blossom again, and thus house prices in those affected ON towns will blossom again if AND ONLY IF:
a ) they lower $s/h paid to car manufacturing employees (to lower car prices), or
b ) they build high demand smaller, electric or hybrid cars in Ontario, or
c ) US $ rises dramatically against Can $, or
d ) the ON government is right-of-centre
Likely all 4 have to happen !
Until then, ON towns that rely heavily on car manufacturing will suffer in an environment where gasoline approaches $2/litre and where US economy is sluggish and where cars made in USA are cheaper !
Consider buying in DETROIT instead !!
Just considering point d. in Thomas` post, we desparately need an ON gov`t right of center for other economic reasons as well but that didn`t happen thanks to John Tory making the recent election a one issue division and it wasn`t an economic issue unfortunately. Now we`re all paying the price for Tory`s political blunder and at a very critical time. Believe me not only the auto manufacturing industry is affected - so are RE investors!