Tuesday, May 15, 2012

Temper the Boom

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com   email: info@glennsimoninc.com


May 15th., 2012
Volume 12, Issue 6

Dear Friends and Partners,

As the economy heats up in the West we’re seeing more ‘good news stories’. And it’s long overdue that we share these stories. However, it’s important to temper every up cycle with cautions that often get thrown aside during a growth spurt. In Alberta, oil and energy still play a major role to our economy. The diversification that we have in the Alberta market is well distributed in many sub categories from nanotechnology to healthcare, from agriculture to manufacturing.

These economies will grow tremendously over the next 30 years and will give Alberta a much more even keel when we enter the down cycles. Nonetheless, the Keystone pipeline and the Kitamat pipeline are important issues to consider as this growth cycle takes hold, as are mortgage rates. There is a great opportunity to position yourself with stress-tested revenue properties and buy right for the next 5-7-10-20 year cycles.

A mortgage stress test is when you run a series of scenarios of how your property will perform when rates increase and if rents drop. This helps you manage and mitigate potential ups and downs that will occur when the market softens. Buy right, buy now, manage well and have a clear exit strategy and you can take advantage of this next cycle which is forecasted to be steady and more balanced than the last one – but not without its challenges.

If you have specific questions about building, managing or exiting a revenue property portfolio, email our office and we can schedule a time to discuss.

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Farmers Looking To Cash In On Surging Demand

By Carry Tate, Globe and Mail, May 13th 2012

Beyond the oil patch, Canada’s West has China to thank for its economic prosperity. The Asian giant is gobbling up grains and oilseeds at an enormous pace, helping push prices sky high.

Hoping prices will remain strong, farmers are now aggressively planting the next crops to cash in on the surging demand.

But the planting frenzy has some agriculture experts worried. If the harvest proves bountiful, prices could be set for a big tumble.
In Canada, farmers are expected to plant a record canola crop, which would be the industry’s sixth consecutive record canola crop. This comes after the oilseed flirted with record prices a few weeks ago. Soybean acreage is forecast to set a new high, and Ontario farmers are on track to break their 1981 corn-for-grain record, according to Statistics Canada’s March farm survey. GRAB THIS STORY



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Alberta Leads Economic Way: Report

By Mario Toneguzzi, Calgary Herald, May 3rd 2012

CALGARY — Alberta’s economy significantly outperformed the national average in 2011, as rising oil production fuelled 5.2 per cent real GDP growth, according to the Provincial Monitor report released Thursday by BMO Economics.
The report said the province should remain atop the Canadian leaderboard this year, with growth running 1.5 percentage points above the national average at 3.4 per cent.

“The energy sector continues to drive growth in the province, with oil production up 9.8 per cent in 2011 despite some temporary disruptions,” said Robert Kavcic, economist with BMO Capital Markets, in a statement. “Crude bitumen production rose 12 per cent, and the province is expecting growth of more than 10 per cent annualized in the next three years.”  READ MORE HERE


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West Coast Pipeline Key To Canada's Interests, Economist Says.

By Dave Cooper, Edmonton Journal, May 9th 2012

EDMONTON — With Alberta’s Western Canadian Select crude trading at $30 a barrel less than world oil prices, Canada must build a new pipeline to the West Coast for the sake of its economic health, says Scotiabank economist Patricia Mohr.

“Imagine the cost to the economy. We have a lot of congestion (at Cushing, Okla.) and are overly reliant on U.S. Midwest refineries. If they go down there is no where for the crude to go,” Mohr told the Canadian Institute of Mining, Metallurgy and Petroleum national conference on Wednesday.

To paint a picture of how important oil has become to the Canadian economy, Mohr presented her team’s latest export estimates.  FOLLOW THIS ARTICLE


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Your success continues EVERYDAY, let me help you build for tomorrow.

"Believe it can be done. When you believe something can be done, really believe, your mind will find the ways to do it. Believing a solution paves way to solution."  -David Joseph Schwartz

Warm Regards,

Todd and Danielle Millar

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