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.

West Central Edmonton: Cashflow 4Unit

Turbo charge your portfolio. Upgraded 1978 built 4-plex with separate entrance to lower suites. 2 stylishly finished 3 bedroom upper suites with tall, newer cathedral windows. 2 upgraded, 2 bedroom 900 sqft lower suites. All suites are carpeted and feature en-suite laundry. The upper suites have dishwashers and some ceramic tile in kitchens. There is a shared fenced yard and a 4 car detached garage with automatic door and opener, bringing in additional revenue. Some upgrades include newer roof  and HWT. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to the Yellowhead and 137th Ave., and on the bus routes. These pictures show the detail and care that went into building this quality property.

Comes complete with great tenants making this a totally turn-key property for you. Convenient West central area with easy access to transit and downtown. Established neighborhood featuring strong rental base; solid value and stable rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's improving downtown area. 

Produces $913 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $630K Total Investment: $151K. Your Estimated 5 Year Profit $112K. Your pre-tax Total ROI is 73% or 14% per year + $913 Cash Flow in Your Pocket Every Month

Poised for massive growth. These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!


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

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


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

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.

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


P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start homestudy sets at a discount. Get your copy of the Canadian Success Stories book and the 2010-2014 Top Ten Investment Towns of Alberta and Ontario.

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