- if nothing changes local GDP growth will hover around 2%
- ” if the Ajax mine proceeds to operation in 2018, a direct GDP impact equivalent to 0.5% of the region’s GDP value will be realized […] we have projected a real GDP growth rate of 2.5%. With the addition of the mine operation, the region’s GDP growth will be 3.0%, which is substantial.”
- Ajax Mine construction impact: 1,980 jobs, $2,073,600 municipal taxes
- Ajax Mine operation impact: 671 jobs, $900,000 municipal taxes
- Twinning of the Kinder Morgan Pipeline will add about $10,000,000 GDP for 2016 and 2017
- a Domtar closure would mean a loss of 1000 jobs and .2% GDP*
*The report projected a complete closure of the mill, however this is highly unlikely. If anything, the Domtar mill will be sold to another company, similar to what happened in 2007 when Domtar acquired the Weyerhaeuser pulp mill operation. Further the report states “RKA has no information regarding the likelihood of such a major decision.” How does this affect Kamloops Real Estate Investors like me?
The above GDP graph shows what happens when GDP grows in a region.
If When the above mentioned projects are implemented, we will see a significant increase in property values a short time later, just like what happened in 2006: I am betting that there will be a big jump in real estate values in Kamloops with a medium term view(within 5-10 years). In the meantime, rents are so high that purchasing in this market results in great annual returns, even with NO increase in house prices.
Until next time,