Manitoba (Winnipeg) - Economic Fundamentals

[tmacdonald]

Hello,

I`m glad to report that I`m a new member of REIN as of Nov. 7th!
Being relatively new to all of this I feel somewhat at a disadvantage living in Winnipeg. But as were taught, feelings are bunk! It`s the fundamentals that matter, numbers etc... I was born in Ontario, grew up in Calgary Alberta, lived two years in the Okanagan and moved here to Winnipeg 6 years ago to take a promotion within WESTJET! Since living in Winnipeg I`ve invested in two properties, manage five others for family members that I convinced to invest here in Winnipeg.

After joining REIN, I find myself at a standstill when considering the fundamentals here in Manitoba. I`m looking to lean on my new found community of like minded real estate investors for a little wisdom here.

Does anyone have input on the economic fundamentals in Winnipeg? I am attempting to do the research myself and am afraid so far the results aren`t what I wish they would be but I have more work to do! I realize it doesn`t compare investing ing Alberta, Ontario and BC in terms of top places to invest however being one of 10 members based here in Winnipeg I wonder if any of you ever consider Winnipeg, and if not, why? Detail would be appreciated instead of simply saying it doesn`t rate...I guess I`m searching for reasons NOT to invest here.

Thanks in advance for your input,
Troy MacDonald

 

[joeiannuzzi]

Hi Troy and welcome to REIN. If you look under the Economic Fundamentals forum, you will see the MB Economc Fundamentals thread. Winnipeg receives the majority of attention for Manitoba. You may also wish to speak to the economic development officers at Winnipeg`s city Hall and go to RBC Economics website for their monthly updates. Hope that helps.

 

[Jack]

I`m actually quite bullish on Manitoba.I made a post on this board a few weeks ago about relative affordability amongst provinces, and Manitoba came out on top in almost all dwelling categories (condo, townhouse, etc.). What that means is that their real estate was trading at a lower earnings multiple than other provinces (earnings/real estate prices). And what that means, which is of great importance right now and in the coming years, is that it`s affordable. Its real estate isn`t terribly inflated, its economy is strong with low unemployment, decent wages, and diversification, and I think the only concern I`d have overall is the lack of in-migration to the province. One thing I have noticed, though, is increased advertisements in local media outlets about Manitoba, emphasizing affordability, lifestyle, economic stability, etc. And this is exactly what Saskatchewan did in mid-to-late 2006, which probably played a part in their huge boom in 2007 as a lot of Alberta residents (presumably) chose to head east as the provinces continued to become more unaffordable.

Stick to the score card, and I think you`ll do great. I might have to talk to you about certain areas in the city, too, as it`s a place that I`m really looking at investing in.

 

[ZanderRobertson]

I agree, go for it if it cashflows. stick to the system and it`ll work in manitoba or alberta.but jack, i`m curious as to how you came to your numbers? are these statistics you gathered yourself?


QUOTE (Jack @ Nov 21 2008, 07:33 AM) I`m actually quite bullish on Manitoba.

I made a post on this board a few weeks ago about relative affordability amongst provinces, and Manitoba came out on top in almost all dwelling categories (condo, townhouse, etc.). What that means is that their real estate was trading at a lower earnings multiple than other provinces (earnings/real estate prices). And what that means, which is of great importance right now and in the coming years, is that it`s affordable. Its real estate isn`t terribly inflated, its economy is strong with low unemployment, decent wages, and diversification, and I think the only concern I`d have overall is the lack of in-migration to the province. One thing I have noticed, though, is increased advertisements in local media outlets about Manitoba, emphasizing affordability, lifestyle, economic stability, etc. And this is exactly what Saskatchewan did in mid-to-late 2006, which probably played a part in their huge boom in 2007 as a lot of Alberta residents (presumably) chose to head east as the provinces continued to become more unaffordable.

Stick to the score card, and I think you`ll do great. I might have to talk to you about certain areas in the city, too, as it`s a place that I`m really looking at investing in.

 

[Jack]

QUOTE but jack, i`m curious as to how you came to your numbers? are these statistics you gathered yourself?

Average weekly earnings (StatsCan, Q3 I believe) annualized, divided by average price per dwelling (RBC`s Q1 Housing Affordability Index).

 

[ZanderRobertson]

if it`s a measure of affordability, how is it different from the RBC index?

QUOTE (Jack @ Nov 21 2008, 08:46 AM) Average weekly earnings (StatsCan, Q3 I believe) annualized, divided by average price per dwelling (RBC`s Q1 Housing Affordability Index).

 

[Jack]

QUOTE if it`s a measure of affordability, how is it different from the RBC index?

The earnings figures are more relevant (Q3 v. Q1).

For whatever reason, RBC hasn`t published a new index since Q1.

 

[tmacdonald]

QUOTE (Jack @ Nov 21 2008, 08:33 AM) I`m actually quite bullish on Manitoba.I made a post on this board a few weeks ago about relative affordability amongst provinces, and Manitoba came out on top in almost all dwelling categories (condo, townhouse, etc.). What that means is that their real estate was trading at a lower earnings multiple than other provinces (earnings/real estate prices). And what that means, which is of great importance right now and in the coming years, is that it`s affordable. Its real estate isn`t terribly inflated, its economy is strong with low unemployment, decent wages, and diversification, and I think the only concern I`d have overall is the lack of in-migration to the province. One thing I have noticed, though, is increased advertisements in local media outlets about Manitoba, emphasizing affordability, lifestyle, economic stability, etc. And this is exactly what Saskatchewan did in mid-to-late 2006, which probably played a part in their huge boom in 2007 as a lot of Alberta residents (presumably) chose to head east as the provinces continued to become more unaffordable.

Stick to the score card, and I think you`ll do great. I might have to talk to you about certain areas in the city, too, as it`s a place that I`m really looking at investing in.

 

[tmacdonald]

Jack,You ready to do a deal in Winnipeg yet?

Troy

I`m actually quite bullish on Manitoba.

I made a post on this board a few weeks ago about relative affordability amongst provinces, and Manitoba came out on top in almost all dwelling categories (condo, townhouse, etc.). What that means is that their real estate was trading at a lower earnings multiple than other provinces (earnings/real estate prices). And what that means, which is of great importance right now and in the coming years, is that it`s affordable. Its real estate isn`t terribly inflated, its economy is strong with low unemployment, decent wages, and diversification, and I think the only concern I`d have overall is the lack of in-migration to the province. One thing I have noticed, though, is increased advertisements in local media outlets about Manitoba, emphasizing affordability, lifestyle, economic stability, etc. And this is exactly what Saskatchewan did in mid-to-late 2006, which probably played a part in their huge boom in 2007 as a lot of Alberta residents (presumably) chose to head east as the provinces continued to become more unaffordable.

Stick to the score card, and I think you`ll do great. I might have to talk to you about certain areas in the city, too, as it`s a place that I`m really looking at investing in.