“If you look into the future of this increase, and the end consumer, it should only increase the prices of homes in the area,” said Tyler Soulliere, an investor and founder of TySoull Real Estate Group.
“This is great because, while any new subdivision or apartment building will cost more to build, it will increase the property prices in the surrounding areas.”
The City of Windsor
will draft a formal bylaw for a council vote this week, despite opposition from developers in the city.
The current charge for building a new house in Windsor
is $18,000; if the increase is approved, the charge for building a new house could jump by nearly 50 per cent over the next five years.
“This is just simple economics,” said Soulliere. “The city is looking to generate revenue to improve the city as expenses are increasing, but revenues are not.
“In this situation, these increases in development fees will be passed on to the investors, and will in turn be passed on to the end consumer.”
Investors may have to spend more upfront for new builds, added Soulliere, which has the potential to deter their interest in a market such as Windsor
, even though prices are not increasing as quickly as in the GTA, London and Kitchener.
“With all Windsor is doing in terms of infrastructure – investing in Chrysler and the University of Windsor expansion in downtown – I hope that it attracts more people and more jobs, which will only fuel the city and grow it, along with house prices.”
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Windsor landlords should ultimately win, says one local expert, pointing to City Hall’s decision to increase development charges that will nonetheless translate into higher acquisition costs for many.