Here`s a lesson in looking beyond the headlines.
There have been some highly publicized reports recently -- from media outlets and realty firms -- listing "The Best" and "The Cheapest" cities to live in Canada. These lists are interesting and even entertaining to read, since you can see where your city of residence or investment ranks according to other people`s findings.
In at least one of these reports, Windsor, ON was ranked as among the most affordable places to live in Canada.
According to what criteria, is the obvious question. It`s no great secret that Windsor, at the moment, is a place to buy cheap real estate. But there`s a reason for that. Thanks to deep cutbacks in the auto industry -- not just the car makers themselves but also their suppliers -- on both sides of the border, Windsor`s real estate market has been among Canada`s most depressed in recent years.
But it`s now showing signs of life.
According to the Canadian Real Estate Association, the average home price in the border city was $158,414 in May 2010, up about 3% from 153,622 in May 2009.
So, yes, judging purely by those numbers, it has to be among Canada`s cheapest -- or "most affordable" -- places to live.
But even at those prices, would you buy a home or an investment property there? If you have the cash and want to live there, or have a stable job in the city, then great -- go for it. But for investment properties? Who would you rent it to?
While purchase prices may be cheap, the vacancy rate in Windsor is scary -- 12.4% overall in April 2010, according to Canada Mortgage and Housing Corp. In fairness, the rate is dropping -- from 15.5% in April 2009, and from 15.5% to 13.1% in the popular two-bedroom condo category. That`s the progress, but still miles away from any level considered attractive.
Worse, perhaps, is that while the vacancies are improving, rents are dropping -- to $661 from $662 overall, from April to April, and from $748 to $736 for two-bedroom condos.
And if you had been thinking if was safe to go back to Windsor, consider that both Ford and GM announced major layoffs again last week. This after showing signs of recovery in recent months.
The "most affordable place to live in Canada"? The vacancy rates and rents still read "caution", and clearly the economy has some ways to go before it says "stability."
There is some great longer-term news on the horizon in Windsor, with some major capital infrastructure projects underway -- including the Windsor-Essex Parkway. Despite recent struggles, the Windsor-Detroit corridor remains hugely important for Canada-US trade, and these projects will ensure a future in Windsor. But in how many years?
For Investors, one scenario that can make immediate sense in Windsor is student housing.
But that`s a blog for another day.
There have been some highly publicized reports recently -- from media outlets and realty firms -- listing "The Best" and "The Cheapest" cities to live in Canada. These lists are interesting and even entertaining to read, since you can see where your city of residence or investment ranks according to other people`s findings.
In at least one of these reports, Windsor, ON was ranked as among the most affordable places to live in Canada.
According to what criteria, is the obvious question. It`s no great secret that Windsor, at the moment, is a place to buy cheap real estate. But there`s a reason for that. Thanks to deep cutbacks in the auto industry -- not just the car makers themselves but also their suppliers -- on both sides of the border, Windsor`s real estate market has been among Canada`s most depressed in recent years.
But it`s now showing signs of life.
According to the Canadian Real Estate Association, the average home price in the border city was $158,414 in May 2010, up about 3% from 153,622 in May 2009.
So, yes, judging purely by those numbers, it has to be among Canada`s cheapest -- or "most affordable" -- places to live.
But even at those prices, would you buy a home or an investment property there? If you have the cash and want to live there, or have a stable job in the city, then great -- go for it. But for investment properties? Who would you rent it to?
While purchase prices may be cheap, the vacancy rate in Windsor is scary -- 12.4% overall in April 2010, according to Canada Mortgage and Housing Corp. In fairness, the rate is dropping -- from 15.5% in April 2009, and from 15.5% to 13.1% in the popular two-bedroom condo category. That`s the progress, but still miles away from any level considered attractive.
Worse, perhaps, is that while the vacancies are improving, rents are dropping -- to $661 from $662 overall, from April to April, and from $748 to $736 for two-bedroom condos.
And if you had been thinking if was safe to go back to Windsor, consider that both Ford and GM announced major layoffs again last week. This after showing signs of recovery in recent months.
The "most affordable place to live in Canada"? The vacancy rates and rents still read "caution", and clearly the economy has some ways to go before it says "stability."
There is some great longer-term news on the horizon in Windsor, with some major capital infrastructure projects underway -- including the Windsor-Essex Parkway. Despite recent struggles, the Windsor-Detroit corridor remains hugely important for Canada-US trade, and these projects will ensure a future in Windsor. But in how many years?
For Investors, one scenario that can make immediate sense in Windsor is student housing.
But that`s a blog for another day.
