James Street North

by Darrin DeRoches September 19 - 25, 2013

All eyes were on James Street North last week with the biggest event of the year in Hamilton – Supercrawl. For those who have not attended, it is a great opportunity to see your city in a different light. The first year I went I walked up and down the street and I noticed buildings and architecture I had never seen before. Now, I drive down James Street at least once a week and you probably do not see the street as I did when the festival was going on and everyone was having a great time. This past week I walked the street with investors from Toronto and showed them all the opportunities that the street has to offer when it comes to real estate.  We walked all the way down to Pier 4 and I had to point out all the investments, new restaurants, the future go station etc. They were impressed and felt it was like Rosedale area in Toronto from twenty plus years ago. A couple of properties “popped out” to them and they asked me to find out more information.     I already knew the prices and once I told them they were less impressed. A lot of prices are “aggressive” to put it nicely. I did the history on the properties and with using a comparative analysis I cannot justify the prices to the investors. Sure, the area is “hot” but what defines it? Price, return on investment, future investment? The area is doing amazingly in comparison “but anyone who is cool knows money does not buy you cool” – Fonzi. Money buys you what the property is worth today not what the future holds. So I took them up to the Durand neighbourhood to a property I believed was worth investing in with a good return and future improvements. They loved it and I had to do the reverse explanation of why has no one bought this property. Again, the price was aggressive but the neighbourhood can justify the price point. Doing a history on it we see the seller dropping the price over 10 per cent within months and it is finally price right. This area is also considered desirable and it has proven to be a great place to invest in with great returns over the years.     We are going to keep an eye on James Street to see if the prices come back down to reality and make a move on the property in Durand neighbourhood. You should take a second look at your city and it’s culture, architecture and artistry. The city looks amazing through the lens of how fast a street can move from nothing to becoming the jewel within the core. Artcrawl, Supercrawl and all those people who are rejuvenating the core from the Witton lofts to the storefront businesses are making it a great area to invest in. Be proud Hamilton. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca