Call 705-735-6030 or visit my website www.robinjones.net for more information and aerial photographs.

 

Market Summary: The already fueled market for increasing price throughout southern Ontario has translated to the waterfront property marketplace. However, the increase in prices was has not been as dramatic as the increase for traditional single family homes that are not on the water. This comment is related to real property values and not tax assessments.

 

Where is the value of waterfront property going? Development of the Innisfil shoreline is intensifying including the development of South Shore Woods and the proposed development of Big Bay Point.  The Oak Ridges Moraine land freeze has increased speculation that Innisfil will explode with development over the next two decades and land is being snapped up at a dramatic pace in the areas north of the tenth line and east of the 20^th Sideroad, all the way from Gilford to Big Bay Point. Secondary plans are underway for providing services to this entire corridor in anticipation of intense residential development. This development will have a dramatic impact on waterfront properties. As I see it, over the course of the next 30 years the waterfront will take on the following features: the use of the waterfront parks and road ends will increase due to the population, pressure will be applied to lakefront developments on private roads to hook up to services, this will put pressure on developing back lots, servicing will allow for increase lot densities, 100’ lots will be severed into 50’ lots, rural areas will become urbanized, cottages will be replaced with full season dwellings. Most likely waterfront property values will increase, as is common with urbanization; however this will be especially the case where severance is a possibility. I have prepared a report on the land that is being rapidly acquired in Innisfil. You can request a copy by e-mail me at info@robinjones.net. Oro-Medonte, it appears, will continue to elude the effects of Barrie’s growth. There does not appear to be any plans for Barrie to head north, and even the proposed developments in the area are subject to strong opposition.  

What about Property Taxes? Updated October 20, 2005

The new assessments are out and based on January 1, 2005. It looks like Innisfil waterfront properties are going to see a substantial increase in taxes to to the disparity between the average increase circa 28% for the Town and somewhere between 50-75% for much of the waterfront properties. The Township of Oro-Medonte will see an increase but not as dramatic. Check out the cottage property tax website at www.wraft.com for more info.

 

As many of you know I publish aerial photographs of the area and especially Lake Simcoe West on my website at www.robinjones.net . Well the time has come for an update. I will take pictures the first week of May and they will be published by June. Note: all the old photos will be gone, so download now.

 

The appraisal institute publishes a program on their web site that helps property owners translate renovations and improvements to market value. The

RENOVA program at www.aicanada.ca is a useful tool that is worthy of consideration as a guideline.

 I find that some improvements translate to a higher return on value in specific markets. The value of decks on waterfront properties is one area of interest. The RENOVA guide suggests that a $10,000 deck will add approximately $5,000 - $7,500 to the value of a property. There is no reference as to the type of deck and for how long in the life of the deck that this value added is applicable. It may be reasonable to assume that the lower value of $5,000 is applicable to pressure treated decks and the upper level of $7,500 is applicable to cedar decks. It is clear that it is not a good investment to build a deck in the year you are selling, but if you plan on using it for a few years it provides a sound investment. A good way to further capitalize on the value is to consider a deck with a longer economic life. That is the period of time that it is considered an asset to the property. During a specific look at local waterfront property sales, I’ve noticed that “pressure treated” wood decks add little value to a property.

 

Discriminating buyers are looking for more in the way of quality, design, and durability. Cedar decks are more common and offer these features. Still, a 5 year old wood deck that has not been maintained looks like it needs replacing.

 A discussion with Gerald Heatherington, the local   (Barrie & area) franchisee of the well established Hickory Dickory Decks (www.decks.ca) has provided the following insight into present decking trends and statistics. Typical cedar decks last some 10-15 years. This may be less in damp or south facing areas typical of the waterfront. A $10,000 cedar deck will need to be stained every 2 – 3 years at a cost circa $600, provided the deck is clean. If this deck adds a value of $7,500 in the first year, it stands to reason that it will depreciate by upwards of $750 per year until the end of its economic life in 10 years. With maintenance, it effectively costs $1,000 per year in lost value. Then a new deck needs to be purchased at 2015 prices. In contrast are the newer maintenance free deck products. Maintenance free decking materials are a composite of wood and plastic products that have guaranteed life spans from 10 years to life (depending on the brand with say 20+ years being average). While they cost a little more, say from plus $1,000 to plus $3,000 over the $10,000 cedar deck they effectively depreciate at half the rate or less due to the longer economic life. A clean 10 year old maintenance free deck looks like it’s only a few years old. If the RENOVA ratio is applicable at the end of 10 years this deck (the $13,000 one) should have a value added of at least $4,875 (say 75% of $13,000 depreciated a maximum of 50% = half its life) leaving an effective cost of $487 a year in lost value with no maintenance costs. As a bonus you still won’t need to replace the deck until 2025 (the same time you may be replacing the second wood deck). Steel roofs have the same effect compared to asphalt roofs. They may cost a little more but after the asphalt roof has been replaced, the steel roof adds plenty of value. Oh, and by the way, you can also get maintenance free decking with a galvanized steel substructure to increase the economic life even longer.

For more information contact Gerald Heatherington direct at 905-875-5294 or 705-487-5255.  Check out the enclose brochure or the Hickory Dickory Decks website at www.decks.ca