The Quiet Storm

by Darrin DeRoches July 21 - 27, 2011

I was in line today getting a great sandwich when I overheard a couple of gentlemen talking about the sales of condos downtown Hamilton.  A recent project in the Durand neighbourhood just launched a few weeks ago and it sold over 70 percent of its units.  It will take at least a year and a half to construct but I would bet on two years till occupancy.  The gentlemen were talking about this project and how selling was “no problem” and they are looking at “what’s next?”  That is exactly what we all should be looking at….what is next?     The “quiet storm” of condos building is brewing in Hamilton.  The first wave was the film work lofts.  Then the Herkimer Apartments came in quietly, and then they sold the Witton Lofts. The Stinson Lofts are over 70 percent sold and supposedly the Hamilton Grand is starting to be built.  This is a huge influx of condos with a great deal of others in the works.  Five years ago you would not even think of buying a condo in downtown Hamilton, but now they are selling “pre–sale” at a rapid pace.  This is a big deal and nobody is really talking about it.  I had a conversation with an agent who sells new high end homes and his question was “who are buying these condos?”  Well according to the two gentlemen in the sandwich shop 90 percent who are buying are going to live in them.     These condos are selling upwards at $300 plus a square foot.  That is big dollars when compared to a newly built house or townhome. The reality is they are selling!  The investor should be looking at these condos and consider buying them as an investment.  You can pre–buy them at the lowest price and when they are finally built, two years later, the increase in value all but covers your down payment.  Rent them out and they will cover the mortgage and low maintenance fees.     So what is next?  They have started to break ground on the project on Dundurn and Aberdeen.  The announcement of the purchase of the old knitting factory by Beasley Park will be the one to watch.  They have supposedly passed enviromentals and since they bought it for a “song’ they will be able to develop it and make a tidy profit, even if the neighbourhood is rough.  There is a project for 50 units in the works on Locke Street which if priced right will be a great investment for the future.  Let’s not forget the projects at Caroline and Bay, which will be a biggest development in downtown. Condos downtown are going to change the landscape of the city.  They are going to be bringing people back to our core and I believe this is just the beginning. If the city does get the “ALL DAY GO TRAINS” then these condos projects will be the biggest investment for the next 20 years in our city.  Pay attention and get in while you can!   V