Thunder Bay

[Hutchym]

Hi All,









I was in Thunder Bay, Ontario for the last 5 days helping my brother purchase some property. Interestingly enough, he got into a bidding war with 2 other buyers for his new home. At first we were both a little bit confused on "big city" bidding wars in Ontarios fastest declinding major population area. After discussing this with his agent (and a 2nd we met one night), we had learned the reasons.









One is major retirements for Hydro One/ Ontario power generation. Also new waves of support type organizations for first nations people of northern Ontario (Thunder Bay is a major hub). Once these employees retire, many of the families are moving back to Thunder bay for job openings that weren't there 10 years ago.




The second, and very surprising reason is the increasing amount of Fort Mcmurray money flowing into the city. They are seeing a unusually high (and increasing) amount of young people in their 20's purchasing homes, many in cash. Rumors have been floated from what I understand of possible daily flights from Fort Mcmurray to Thunder Bay quite soon with such a large population workforce going to Fort Mcmurray.




I should add to the above, that many of these young people buying property do in fact work in Fort Mcmurray.



If anybody has any other information for me, I would appreciate to hear it.









Thanks.

 

[Thomas Beyer]

One of the lessons learned is that it costs the same or more to fix up a place, I.e. new fridge, new roof, new carpet ... And as such smaller communities in the middle of nowhere are high risk. It is very cold in the winter and it is in rent controlled Ontario. Do some major major homework on achievable rents for a long term hold, and find a reliable property manager if you live elsewhere. Many places are cheap for a reason. Thunderbay is one of them. Go further east, to Sudbury, or further west to Manitoba.

 

[hotbunz4]

I have rental units in Thunder Bay and I'm looking for more.

there has been very little supply in the last year or two.



I just picked up a real estate magazine that was saying T.Bay is the place to invest.

I think this means that it's time to sell in Thunder Bay. ???

Prices are up and cmhc is expecting it to continue.

I think they sayd t.bay has a suprising number of baby boomers that stay in there homes after the kids move out.



Although it may cost the same to do the renos, I think the renovations may go a bit further in this town

due to the fact that most of the units are trashy. I mean it, a tidy rental easily impresses most prospective tenant

and I often hear, "wow, this is nice, everything else I have looked at has been garbage."



I'm not expecting any appreciations, but it's hard to turn down the cash flow.

ex. just completely renovated a gutted duplex. appraised at $160k rents for $1600/month plus utilities.

cash flow over $400/month. If it sells in ten years for $160k ...is there anything wrong with that???

...oh yes there is, I forgot my little friend inflation. Lets hope it can appreciate by that much at least.