The Wealth Building Guy

"We expect growth in Waterloo-Guelph to exceed both the Ontario and Canadian rates over the 2009-12 period"  - Dr. Sherry Cooper, Chief Economist, BMO Capital Markets.

(source: body soul and spirit)

This year we’ve been fortunate to work with great people from across the world buying and selling real estate in Waterloo region.  Calgary, Alberta; Vancouver, British Columbia; Eastern Europe, the Middle East, Guelph, Cambridge, Toronto, London, Montreal - just to name a few.

When we speak to clients, we ask them why they’ve decided to invest some of their hard earned investment capital into Kitchener Waterloo, Ontario, instead of a property in their home town or country.  We hear a variety of responses from: Affordable purchase prices; low vacancy rate; great student rental market (with some great opportunities right now); growing, young & diverse economy; proximity to Toronto and Major US Cities via the 401 highway - just to name a few, again.

Last week BMO published a report with some great information on why Waterloo Region is attracting so much attention from Real Estate Investors.  The report detailed some of the investments being made into the region, as well as some of the reasons that the rate of growth is predicted to exceed the nation’s.

In Kitchener, the University of Waterloo’s School of Pharmacy building will open this year, and construction will start this year on a new medical school. Both are part of the University of Waterloo’s new Health Sciences Campus in downtown Kitchener. A new recreation centre with twin ice pads, boxing facilities and indoor walking track opened this year. Fairview Park Mall recently received a $33 million makeover. St. Mary’s General Hospital will complete a 115,000 square foot addition this year, part of a multi-year $90 million renovation and expansion program. Grand River Hospital will renovate its intensive care unit and construct a new mental health unit, starting this year. The City of Kitchener is spending $46 million to convert the former BF Goodrich plant into its new central maintenance facility. It is hoped that work will begin this year on the $90 million Centre Block redevelopment. This project would include two residential towers, public parking and retail shops. Also, there is a $100 million proposal to redevelop the former Sportsworld site, with offices and small retail shops. 

 

In Waterloo, Conestoga Mall is undergoing a $50 million renovation and expansion. Construction will begin this year on the Balsillie School of International Affairs in downtown Waterloo. Two new buildings are being built at the University of Waterloo’s Research Park: the $8 million first phase of the Research Accelerator Centre and the $20 million InnoTECH building. The University of Waterloo’s School of Optometry is getting an addition to be completed in 2009. There are also a number of other building projects at the University of Waterloo. Future projects include a $25 million joint city/YMCA library and recreation centre. A proposal has been made to redevelop the Canbar site — a $200- to-$250 million project including a 280-room hotel, apartment and condo towers, and office and retail space. Preliminary discussions are taking place about a possible new law school in downtown Waterloo.

Outside of the major cities, the largest project is a $29 million arena and recreation centre in Elmira, which is to be completed in 2009. A $200 million gas-fired power plant in Waterloo Region southeast of Cambridge has been proposed.

Municipalities within the region are rushing to make more industrial land available. In Guelph, the first phases of the city’s Hanlon Creek Business Park, which will eventually have more than 350 acres of serviced land, will be available later this year. In Cambridge, the city plans to start bringing the Boxwood subdivision in the Cambridge Business Park to market in 2008, with 150 to 170 acres of developable land. In Kitchener, an additional 30 acres will be available at the Huron Business Park in late 2008. Meanwhile, in Waterloo, there are no city-owned industrial lands available as the city conducts a strategic review.

 

In addition, properties which were sitting idle for longer periods are now being redeveloped into condos, such as the former Arrow shirt factory in Kitchener, the former Tiger Brands knitting factory in Cambridge, and the former Bauer Industries plant in Waterloo. There are also plans in the making to redevelop the former Canbar (Canada Barrel) property in Waterloo into mixed use (hotel, residential, office, retail) and the former Lafarge property in Guelph into commercial space.

…

Third, the area has a relatively youthful population and strong net inmigration. The population of the area
is expected to continue to grow faster than both Ontario and Canada over the medium term. This, in turn, will support residential construction and retail sales.

Fourth, the excellent educational institutions in the area are a source of strength. The University of  Guelph, the University of Waterloo, Wilfrid Laurier, University and Conestoga College are all top-ranked  institutions in Canada and, in some fields, the world. All have strong connections to the business community through their co-operative education programs. Further, these educational institutions have been good incubators for new companies through their research programs.

Fifth, the area’s industrial mix positions it for growth. The advanced manufacturing, information and communications technology (including computer and electronic equipment), and biotech clusters, in particular, have strong growth prospects.

The government of Ontario has targeted advanced manufacturing, in which the Waterloo-Guelph area has
particular strength, as a priority with its $500 million Advanced Manufacturing Investment Strategy.

…

Kitchener By Night

 

The Province of Ontario recently passed the Places to Grow Act, which provides a legal framework for
growth planning in Ontario. Waterloo-Guelph is part of what is called the outer ring of the Greater Golden Horseshoe. There is limited room for growth in the inner ring of the Greater Golden Horseshoe. Surrounding the inner ring is a greenbelt, which the province plans to maintain with limited development. Therefore, growth in the Greater Golden Horseshoe will leapfrog the greenbelt over the next twenty-five
years into the outer ring. As development leapfrogs the greenbelt, the population of Waterloo-Guelph  will expand rapidly.

The population of the Greater Golden Horseshoe is projected to rise 48% between 2001 and 2031, from 7.8 million to 11.5 million. The population of Waterloo Region is projected to rise 60% from 456,000 in 2001 to 729,000 in 2031. The population of Wellington County, including the City of Guelph,1 is projected to rise 65% from 195,000 to 321,000. As the area expands, major transportation projects are already in the planning stages. A new Highway 7 between Kitchener-Waterloo and Guelph is being planned, at a cost of $300-400 million. Construction could start as early as 2011. Also, Waterloo Region is considering a rapid transit rail line. The first phase, at a cost of over $300 million, would run from  Waterloo to Kitchener. A second phase would continue to Cambridge.

Waterloo-Guelph has developed a reputation for innovation. Its entrepreneurial spirit has allowed it to
reinvent itself over the years. Old companies close their doors, but new ones are continually opening up. Waterloo-Guelph is leading the charge from the old economy based on traditional manufacturing to the
new economy based on high technology and services.

For the full report click here to email me.

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Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate
Investing can make you wealthy. Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying, selling and owning a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008