Woodstock needs condo apartments

In a smaller city like Woodstock (under 40,000), I firmly believe the community has a demand for more condominium apartment buildings because they are a terrific investment for an older single person who can no longer live in a house, but does not want to gradually witness a lifetime nest egg disappear by paying rent. In other words, 50 years of equity in home ownership will evaporate.
Woodstock has many very nice apartment buildings -- 4 on Chieftain, plus Finkle, several in Canterbury/Beale neighbourhood, and even some recently improved older buildings such as Northgate Towers on Admiral Street.
I Have An Idea
While it is impossible to guess exactly what will become of the old Woodstock hospital site, my suggestion would be a 5-storey condo building with underground parking -- apartments for sale (with condo fees, of course) in the $200,000 range (or more), which would all be a minimum of 1200 sq ft.
I'm not a builder, so I can't break down construction costs to see if this would be feasible, but the only real condo apartments for sale in Woodstock currently is the 2-building 4-storey complex on Ferguson Drive, but they lack indoor parking. The Ferguson 3-bedroom condos with 2 4pc bathrooms sell in the $140,000 (approx) bracket based on condition and view. A very good option.
My food for thought for today.
All the best to you and your family for the holiday season, and it is my wish to all for good health and happiness in 2012.
Until then, here's a story from the London Free Press noting that the residential rental vacancy rates are very low currently in London, according to the CMHC.
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LONDON VACANCY RATES OVERVIEW

By HANK DANISZEWSKI, The London Free Press

December 21, 2011

London's apartment vacancy rate has tumbled to its lowest rate in years as students, seniors and "echo boomers" jump into the rental market.

A survey completed in October by the Canada Mortgage and Housing Corp.

showed the vacancy rate fell to 3.8%, compared to 5% in the same month last year.

That's the lowest rate since 2007, and a dramatic turnaround after vacancy rates rose for several years and approached the record of 6%.

"We saw the turnaround in the cycle last year," CMHC market analyst Margot Stevenson said Tuesday.

Stevenson said the decline in vacancies is due to a number of factors:

After years of robust apartment construction, activity slowed down last year with only 775 new units coming onto the market to the end of June, the lowest level since 2007. London now has about 650 private rental apartments under construction, the lowest level since 2002.

Despite low mortgage rates, London's 9.8% unemployment -- one of the highest metro rates in Canada -- is also discouraging renters from buying their first home, shrinking the supply of available apartments. "Weak employment growth will limit the number of potential first-time buyers able to make the transition to home ownership," said Stevenson.

There are more young and old folks jumping into the rental market.

The first wave of "echo-boomers," a population bulge made up of the children of baby boomers, is starting to move out of their parents' homes into their own apartments.

At the same time, the first wave of baby boomers are becoming "empty-nesters" and edging into the seniors' rental market.

Seniors in London are more like to rent than in any other major city in Ontario.

Student apartments are also in hot demand again. The lowest vacancy rate in the city was in the area of north London around the University of Western Ontario. It had a overall vacancy rate of 2.1%, with one-bedroom units at 1%.

Western had its largest-ever, first-year enrolment this year, with 5,100 students. Existing student residences are operating at capacity, prompting construction of a new 1,000-bed residence. Sophomore students typically move out of residence into private apartments.

The drop in vacancy rates didn't do much to boost rents, with the price for a typical two-bedroom apartment rising only 0.8% to $881 a month.

Stevenson said rental rates are still being held down by several years of high vacancies.

Many of the same trends will continue into next year, she said. The CMHC predicts vacancy rates will drop again next year to about 3.6%.

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BY THE NUMBERS

London-area apartment vacancy rate:

2007: 3.6%

2008: 3.9%

2009: 5%

2010: 5%

2011: 3.8%

 

Woodall Farm could be (should be) park complex

I went to city council on Thursday Dec 15 as current chair of Woodstock Recreation Advisory Committee, to say that our volunteer civic committee (appointed by council) agreed with City Staff and Council (from their Sept. 15 meeting) on its decision to dedicate part of city-owned Woodall Farm (90+ acres; on Devonshire Ave and immediately east of new French school) for a 4- or 5-diamond ball complex.
The future could include a satellite library, hockey arena, indoor or outdoor pool, basketball and/or tennis courts, and an indoor gymnasium for all age groups, and certainly many varied sports and leisure activities.
It will be at least 3 years before the ball park vision becomes reality.
Here's the story from The Sentinel-Review on the project:

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Former farm could become park complex

By Bruce Urquhart Sentinel-Review

WOODSTOCK – Council took another important step Thursday towards a new ball diamond complex in the city's northeast corner.

Endorsing a recommendation from its recreation advisory committee (WRAC), council agreed to allocate "in principle" a suitable amount of land from the city-owned Woodall Farm property for a future recreation complex. Council also directed city staff to include funds in the 2012 capital budget for a preliminary site design.

The proposed ball diamond complex – the first phase of what could be an impressive new facility – would involve a minimum of five lit ball diamonds designed specifically to accommodate the needs of adult leagues. As part of the first phase, the committee also urges the construction of a permanent building that houses two dressing rooms, a concession stand, three bathrooms, and storage and utility areas.

For its part, the committee offered to do some research for the city to make sure the "exact needs" of users are met. With a goal of May 1, 2015, for completion of the estimated $2.25- to $4-million project, the committee wants to determine a projected number of teams to help define a possible financial commitment from local leagues. The committee also wants to explore possible corporate sponsorships, the revenue potential of hosting "major tournaments" and the "qualifying process" of obtaining senior government grants.

But the committee – and, in principle, council – want to preserve much of the 36-hectare Woodall property for an expansive park complex, envisioning a number of future phases that reflect facets of the city's 2005 recreation and leisure master plan.

"The (committee) is adamant in its consensus that much of this (36-hectare) land parcel should now and immediately be defined and reserved as a future location for a multi-purpose municipal facility/park," committee chair Mark Schadenberg said in his delegation to council.

The future phases, if approved, would incorporate a new indoor gymnasium with basketball courts and change rooms, a potential satellite library, a new ice pad with 600-person seating, an indoor Olympic-size swimming pool, an outdoor splash pad, tennis courts and open-air concrete pads for basketball and similar activities. With these phases, the park complex would need sufficient administrative and storage space to support this broad range of activities.

"Given all of the foregoing opportunities, it is also critical that the new 'park complex' be located in an appropriate area, but that enough lands be dedicated to provide sufficient space for a truly multipurpose facility," Schadenberg said.

The possibility of a new ball diamond complex was first raised with council in June following a review of "the current state and number of ball diamonds" by an ad hoc WRAC subcommittee. At the time, council directed city staff to review possible sites for a ball diamond complex. In September, staff provided council with four possible sites for the new complex and requested that WRAC offer its insight.

"After some debate, the former Woodall Farm site was deemed to warrant further study," Schadenberg noted.

Consider joining the Lions Club

If you're planning a resolution for 2012 to become more involved in your community, here's my plug for you to consider the Lions Club of Woodstock.
Firstly, the club, which I've been a member of for about four years, has been serving and volunteering in this community for more than 80 years. The Lions Club, for example, built the Lions Pool for the City in the 1940s and when the City wanted to take over operating it, the Lions sold it to the municipality for $1.
We have countless fundraisers, including operating a large food tent at Canada's Outdoor Farm Show in September to raise dollars to assist many community needs and projects. The Lions Club runs the beverage garden for both Cowapolooza and Canada Day in Southside Park, we are the organizing committee for the annual Terry Fox Run with member Bill Gillespie chairing the activity.
The Lions Club operates the weekly bingo at the Legion on Thursdays.
Also, A Ladies Night Out fundraiser makes money in two ways -- selling tickets for a dinner and selling vendors tables to businesses such as Pampered Chef and Osbourne Books. Everyone wins!
As a volunteer work force the Lions Club assists with The Christmas Place, the Santa Claus and Victoria Day parades, the annual soapbox go-kart rally, community barbecues, and the important early-morning get-up-before-dawn cleanup crew for the Canadian Cancer Society's Relay For Life.
The Lions Club also owns a historic fire truck which makes many public appearances throughout the county at events and parades. When you attend the Woodstock Santa parade you always know the jolly olde fellow in red is next when you our jolly olde fellow -- Lion Ed -- driving the red truck.
Speaking about getting our hands dirty, the Lions Club does highway garbage pickup twice a year on both Highway 2 on the west end of Woodstock and the nearby Lions Club / Standard Tube walking trails.
Cheques are written annually for high school bursaries, support for seeing-eye dogs, local Christmas charities, and for many one-time-only requests for items including prescription glasses and household assistive devices for people in need who make a formal request to our 'charitable reponse' committee.
Just this past week, the Lions Club paid for a Christmas dinner and distributed presents to children in a local organization. The gentleman in the red suit and beard was also a Lions Club member.
I tell friends of mine always, that the Lions Club of Woodstock is a great group of people doing great work. Call me if you're interested in joining in on the fun.
Woodstock is a great community, but it has become that thanks to the sum of its parts. You can do your part, by joining the Lions Club.

Mark Schadenberg, sale rep

Royal LePage Triland

Email: mschadenberg@rogers.com

(519) 537-1553

93 Sales Reported in November in WIDREB

It's not boxing, it's real estate

In boxing, it’s called the tale of the tape. In real estate, it’s the tale of the statistics.

Numbers always paint a picture. You can look at a series of sales figures and explain exactly what was happening at the time.

If you’re considering selling your home, it doesn’t matter if it’s a buyer’s market or a seller’s market, the asking price should be accurate.

 I’ve been in real estate full-time for 13 years now, but for stats I only range back to 2005 as it was in the spring of that year that Toyota announced it would be building a factory here to produce the Rav4. Almost overnight prices went up 15 - 20 % and the market change dramatically.

Here, therefore are total sales numbers for the first 11 months of the past seven years in WIDREB (Woodstock-Ingersoll board area also includes Innerkip, Norwich, Sweaburg, Burgessville, Beachville, Mt Elgin, Embro and points in-between):

2011: 1106

2010: 1154

2009: 1010

2008: 1118

2007: 1315

2006: 1218

2005: 1426

You can see 2009 was low in total sales due to a slow car industry, especially among the North American big three, including an almost shutdown at Ingersoll’s CAMI. However, 2011 is in line with the 2009 number.

In 2005, sales totals were quite high and it’s safe to assume many additional properties sold that were not formally MLS listed as multiple-offers and quick sales were everywhere as properties – with or without homes built on them – were selling rapidly and many purely on speculation.

As for November totals, 2011 was close to the last three years – 93 in 2011, 84 in 2010, and 87 in 2009. However, the car collapse of late 2008 resulted in just 55 sales after both 2007 and 2006 were both at 104 each.

Oxford County certainly follows regional and national trends.

In the meantime, I’m not an economist, but this is a great time to buy as there is a downward pressure on residential resale prices and interest rates are microscopic.

Mark Schadenberg
Royal LePage Triland Realty
Woodstock
Email: mschadenberg@rogers.com
(519) 537-1553

Rona vs Home Hardware vs Home Depot

Home Hardware, which is based in St Jacobs, is an icon of the Canadian lumber and building supply industry. The company is really just a buying group, which is explained nicely in this recent story which was published in the Toronto Star.

The Home Hardware name will be attempting to grow in upcoming years to better compete with box stores.

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Hardware franchise chains are similar, but different

By James Daw, Toronto Star, Personal Finance Columnist

Malcolm Firkser and Delip Chook watched their fathers learn the business ropes by running neighbourhood hardware stores.

Firkser’s family came to Canada from South Africa; Chook’s from India, via Afghanistan. Their parents sought out a business they could afford, one from which they could benefit from customer loyalty built up by previous owners.

Rather than compete alone against the major chains that dominate Canada’s retail hardware industry, they stepped under their umbrella — the Firksers with Home Hardware and the Chooks with Rona.

Firkser’s father began running Sunnybrook Home Hardware at Eglinton and Bayview Aves. in 1980. Malcolm, 51, took it over in 1988. He recently opened two more stores.

Chook, 25, says his father, Parshot, and mother, Sima, collected welfare upon arriving in Canada penniless and knowing relatively little English. After working hard, operating a series of gift stores and buying a home and commercial real estate, they approached Rona about six years ago to open a hardware store on Queen St. E. (A Home Hardware store had just closed.)

After his father was injured in a car crash, Chook took on the management duties, such as ordering inventory, at the store. His skills caught Rona’s attention. Now, he’s working there as an assistant project manager while studying part-time. He’s weighing his father’s offer to take over the store.

Both Rona and Home Hardware are looking to expand their number of locations, in response to increasing competition from the big-box stores of Canadian Tire, Home Depot and Lowes.

Home Hardware is particularly interested in expanding beyond 100 stores in Quebec. Rona expects half of its dealers will retire over the next 10 to 15 years, and also has expansion plans.

Based in Boucherville, Que., Rona is a public corporation that owns its biggest stores. Home Hardware, of St. Jacobs, Ont., is a buying co-operative owned by its members, who now number more than 1,000.

Instead of selling franchises, both chains work with aspiring entrepreneurs to open hardware stores and larger building centres under their banners.

Like franchise chains, both offer their members or dealers access to group purchasing power, enormous supply chains, advice and consulting services, and advertising support.

Dealers say they enjoy fewer restrictions than franchisees, lower upfront costs, the freedom to sell their businesses and some other advantages.

Both Firkser and Chook rave about their chain’s selection of suppliers, inventory control, ordering and warehouse delivery systems.

Rona’s goal is to capture 30 per cent of the hardware and building-centre market across Canada. Its first priority is to open large company stores and help existing dealers expand into larger locations, where their adult children can earn enough profit to earn an income and buy their parents out.

“We are trying to get close to the customer,” says Jean-Luc Meunier, senior vice-president of business development for Rona.

Home Hardware and Rona have different requirements and financial arrangements that are only disclosed in detail to their independent dealers.

Meunier offers only general information about the startup cost for a small Rona hardware store. Rona usually controls the lease on its dealers’ stores.

“The inventory would cost about $75,000 to $100,000,” he estimates, adding a person with equity of $200,000 to $250,000 could go to the bank to arrange financing.

Rona will sometimes help promising young people finance a startup, he adds. Before accepting a dealer, he or she will be put through a battery of tests.

It could take a year or two before a new dealer could draw much income from a small store, longer for a larger store.

Home Hardware charges a $300 application fee and $1,500 for shares in the co-operative. It directs 5 per cent of sales to an interest-bearing account.

The co-operative’s members may access some of the money later for an expansion or renovation, but most of the money in their interest-bearing account will only be repaid in five annual installments after selling or closing the business.

Firkser negotiated his own leases for his two new stores, and is looking for space for a fourth store.

“I still think Home Hardware is the best format in the business,” he insists. “When you retire, you will have a large chunk of money. With Rona, you walk away with your inventory, bank loan, and fixtures and fittings that will be worth nothing.”

Consultant Eugene Duynstee, president of KPM Enterprises Inc., offers general advice to prospective dealers or co-op members.

“When you are getting into a business relationship, a long-term view is very important. When you build a relationship with customers, where does that value go when you want to retire? Can you sell the business to someone else?”

Chook, whose customers saw him grow up from age 13 to 25 in his parent’s stores, admits he has a difficult decision to make: Build a career within the Rona organization or buy his father’s small business.

He says he has learned a lot about tools and home renovation projects in the past six years. He enjoys helping customers solve problems, and would be the most capable successor. “My brother should be on Canada’s Worst Handyman,” he says.

Firkser is committed to small hardware stores, and is looking to open a fourth in central Toronto. He uses a recent trip to a department store to buy a wallet as a lesson for his son on the value of personal service. They found plenty of wallets, but no price stickers or advice.

“I asked my son: How do these places survive? ... I think they are chasing money away.”