If you drive into the Kilworth area west of London (Some of this Middlesex Centre area is actually inside London boundaries now), you can see some extremely large homes on spacious rural-subdivision lots.
A reporter from The London Free Press has done his homework and has determined that the value of some of these houses can be compared to Halton Hills and other exclusive areas around Ontario. The story is a good read:
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Some London homes are castles
By Norman DeBono, The London Free Press
Sunday, September 16, 2012
KILWORTH -- Its tax rolls rival that of big-city Toronto and top that of many affluent communities.
Its residents are so well-heeled they once openly opposed a development because its $400,000 homes would drag down their property values.
Welcome to quiet, rural Middlesex Centre, the farming community west of London, that has become a centre for monster homes, with the highest property tax assessment in Southwestern Ontario.
The developments are so big, in fact, the municipality is worried they may not be sustainable and is looking to bring more smaller, family homes to the area.
“We are looking at our strategic plan, and council has identified it is a priority to diversify residential development,” said Michelle Smibert, chief administrator for the municipality.
“Middlesex Centre is known for building big houses on large lots and council wants us to become a centre for multi-residential, sustainable growth; a community, attracting young families and seniors.”
Monster homes in communities such as Delaware, Komoka and Kilworth use a lot of land, resources and infrastructure and if the market is not there to support those developments in future generations, the community may be left with homes and lots needing redevelopment, a costly option.
Ward 5 Coun. Frank Berze recalls one new housing development in Kilworth where houses started at about $400,000, and neighbours protested, saying the subdivision would drag down their property values.
“They were really upset by it, they really fought it. It makes you wonder,” said Berze.
Now, Middlesex Centre has an average assessment per capita of $142,300 — that is the total assessed value of property in the municipality, divided by every resident.
By comparison, London’s is $84,000.
Middlesex Centre’s is higher than such affluent communities as Halton Hills, Mississauga, Burlington and Kawartha Lakes and just less than Toronto’s, which is about $145,000. The Ontario average is $122,000, according to BMA Consulting, which offers financial information to communities across Ontario.
Of the more than 80 communities listed by BMA, Middlesex Centre is in the top 20 for assessed value, per capita.
“The risk there is it is all in one class of property. If the economy turns, people may not want larger houses. It does not have a diverse assessment base,” said Jim Bruzzese, partner at BMA.
The province is also pushing smaller developments and saying larger lots and houses are not environmentally sustainable, using too many resources, said Berze.
“They want to see better land use. I think there is concern for the cost of infrastructure and its environmental impact,” he said.
“If 30 houses share a sewer line versus 10, costs go down.”
He cites the quiet settings, rolling landscape, and locale only minutes from London as reasons Middlesex Centre is attracting the well-heeled. That, and the fact taxes are lower and development charges are about half those in London.
The total residential property tax rate for London is 1.4%, compared to 1.1% in Middlesex Centre. Property tax on an average London bungalow is $3,079, compared to $2,556 in Middlesex Centre.
Development charges may be $30,000 in London and about $15,000 in Delaware, he added.
“We have good parks, community centres, there are a lot of reasons,” Middlesex Centre is popular, he said.
Measurement of wealth
Per capita assessment (PCA is the total assessed value of property, divided by population)
Middlesex Centre: $142,300
London: $84,000
Toronto: $145,000
Ontario average: $122,000
Provincial ranking
Of 85 Ontario communities, Middlesex Centre is in the top 20
Average household income
Middlesex Centre: $114,584
London: $76,500
SW Ontario: $82,694
GTA: $114,362
Source: BMA Consulting
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Middlesex Centre assessment
$2.55 billion
5.36% growth from 2011 to 2012, 1.75 points from growth, 3.61 points from reassessment.
Population: 16,000 plus
Source: Municipality of Middlesex Centre
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