Sudbury - Economics

[NassirNathoo]

Hi All,

Anybody has done any study on the Sudbury area.
I have been reading the report from the CMHC that shows good rental rates.
I have been reading Sudbury 2015 plan and where they want to be.
Inmigration made some progress compared to 1995 to 2000.
University and college in the area.
Economics, sudbury economic and planning are working on plans and their future focus on becoming experts in mining, biotech, healthcare.
affordability index based on the medium of salary and house price is 36.
Can you share any of your finding please.

I am planning a trip there in within 2 weeks. I sent some messages to few REIN member that are already looking but did not get any feedback yet.
It will really help if you post your finding as well.

Thank you and happy hunting...
Nassir Nathoo

 

[Dejavu]

QUOTE (NassirNathoo @ Mar 11 2008, 04:32 PM) Hi All,

Anybody has done any study on the Sudbury area.
I have been reading the report from the CMHC that shows good rental rates.
I have been reading Sudbury 2015 plan and where they want to be.
Inmigration made some progress compared to 1995 to 2000.
University and college in the area.
Economics, sudbury economic and planning are working on plans and their future focus on becoming experts in mining, biotech, healthcare.
affordability index based on the medium of salary and house price is 36.
Can you share any of your finding please.

I am planning a trip there in within 2 weeks. I sent some messages to few REIN member that are already looking but did not get any feedback yet.
It will really help if you post your finding as well.

Thank you and happy hunting...
Nassir Nathoo

Hi Nassir,

I have not researched Sudbury for RE investment purposes but I used to travel there on business quite a lot and know the city well. Sudbury is a mining town. The majority of people work for the two major nickel mining companies - ValeInco and Xstrata. While there are other employers too (CRA, the laurentian university, the hospital etc) most of the job market evolves around mining. As such, the town`s economy is very dependent on metal prices, namely nickel. Lately, nickel has been doing exceptionally well, hence Sudbury`s boom. However, commodities are cyclical and right now we are at the top of the biggest and lengthiest cycle on record. Although, analysts predict that this boom will continue for quite some time, you should be aware that there are risks associated with the downturn. Most of people I interacted with in Sudbury own their houses free and clear, primarily because prices have been depressed for years there. However, lately the prices have skyrocketed and the construction activity has been through the roof. It was to the point where people could not purchase drywall and other materials for house renovations as HD, RONA and the likes were sold out. In order to get skilled trades (carpenters, drawlers etc) one had to book them months in advance and even then availability was not guaranteed. I am not sure what it is like now, the above was accurate as of around six months ago, although I would not expect things to change significantly.

not sure if this is helpful...just my two-cents worth. If you have specific questions about the city etc, pls feel free to post. If I do not know the answer, I would be glad to attempt to find out from someone local there.

 

[NassirNathoo]

Thank you Dejavu. I have been looking at the population and jobs, as you said, the major player is mining.
What could be causing the demand in rental? CMHC is reporting a low vacancy rate.
There are some properties that are bringing 10% cap. And prices are below 180k. I am very curious to find out.
According to the reports from the development, it seems that the politiciens are creating some value. They want to be a destination.
If Mining is the only one, does it sound like Fort McMurray with oil only?
If you have any more information, please do not hestitate to post. I am still curious about the growth potential.

Thanks
Nassir
QUOTE (Dejavu @ Mar 11 2008, 09:21 PM) Hi Nassir,

I have not researched Sudbury for RE investment purposes but I used to travel there on business quite a lot and know the city well. Sudbury is a mining town. The majority of people work for the two major nickel mining companies - ValeInco and Xstrata. While there are other employers too (CRA, the laurentian university, the hospital etc) most of the job market evolves around mining. As such, the town`s economy is very dependent on metal prices, namely nickel. Lately, nickel has been doing exceptionally well, hence Sudbury`s boom. However, commodities are cyclical and right now we are at the top of the biggest and lengthiest cycle on record. Although, analysts predict that this boom will continue for quite some time, you should be aware that there are risks associated with the downturn. Most of people I interacted with in Sudbury own their houses free and clear, primarily because prices have been depressed for years there. However, lately the prices have skyrocketed and the construction activity has been through the roof. It was to the point where people could not purchase drywall and other materials for house renovations as HD, RONA and the likes were sold out. In order to get skilled trades (carpenters, drawlers etc) one had to book them months in advance and even then availability was not guaranteed. I am not sure what it is like now, the above was accurate as of around six months ago, although I would not expect things to change significantly.

not sure if this is helpful...just my two-cents worth. If you have specific questions about the city etc, pls feel free to post. If I do not know the answer, I would be glad to attempt to find out from someone local there.

 

[joeiannuzzi]

Hi Nassir. You may wish to look at this link for more information.

http://www.city.greatersudbury.on.ca/keyfa...=Keyfacts_In_EN

 

[NassirNathoo]

Thank you. The website has good information.
I noticed lots of construction activities in the area and completion of medical univerisity. please post more information if you find.

Thanks
QUOTE (joeiannuzzi @ Mar 27 2008, 11:08 PM) Hi Nassir. You may wish to look at this link for more information.

http://www.city.greatersudbury.on.ca/keyfa...=Keyfacts_In_EN

 

[joeiannuzzi]

I am working on my systems to cover more Ontario communities in the Economic fundamentals threads. This includes searching through the "Sudbury Star" daily and posting relevant articles. Just keep checking Ontario Economic fundamentals and I will update everyone as to the latest developments.

 

[Thomas Beyer]

QUOTE (Dejavu @ Mar 11 2008, 09:21 PM) ... As such, the town`s economy is very dependent on metal prices, namely nickel. Lately, nickel has been doing exceptionally well, hence Sudbury`s boom. However, commodities are cyclical and right now we are at the top of the biggest and lengthiest cycle on record. Although, analysts predict that this boom will continue for quite some time, you should be aware that there are risks associated with the downturn. ...

understood .. more risk than a diversified area like GTA or Kitchener-Waterloo .. but therefore prices are much lower too !

sounds like Alberta .. replace "nickel" with "oil" .. and you get the same effect !!

We are buying a large apartment building there right now .. decent CAP rates and decent rental upside when units are vacated .. like 30-60% between a $395 "as is" 1BR and a newly renovated one for $650-$700 !

Sudbury is bigger than Red Deer, Alberta`s 3rd largest city !