Tuesday, June 03, 2014

A new low...

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

June 3rd, 2014
Volume 16, Issue 9

Dear Friends and Partners,

Just when you thought mortgage rates couldn’t get any lower, Scotia Bank pushes down their 5-year fixed to 2.97%. For first time home buyers these are amazing rate options and simply can’t get much lower.

The qualifying process has become tougher than it was a few years ago, even a few months ago, with CMHC. These changes are more in-line with current global lending practices and (slightly) better designed to reduce the number of default mortgages. At least Canada doesn't have NINJA (No Income No Job or Assets) loans.

The lowest rates offered are for properties deemed 'primary residences’. However, there are many terrifically low rates available for both residential and commercial mortgages. When we entered into the last up cycle in Alberta (2004-2007) we saw rates averaging 6%.

A great wealth building tip is to pay extra on your mortgage. If you are in a variable or fixed rate at 3%, adjust your payments so you are effectively paying 4.5% either bank the difference or increase your payment amount. When rates climb up you won’t get a shock and you will have added to your equity. Veteran investors may choose to divert the cash flow generated from low rates to build down payments and add more properties.

I like to run 75% of my rentals lean and upgrade the properties for top-dollar sales as an exit strategy. I also pay down my long-term keepers (15+ years) to clear off the mortgage for maximum cash flow then refinance to reinvest in another cash flow asset. There are many different strategies that you can deploy.

When and what strategy to use can be determined by measuring your current portfolio/lifestyle against your future ideal portfolio/lifestyle; the goal being to bridge the gap while improving performance along the way.

The news for mortgages is good - be sure to make a sensible investment and take advantage of the current lending environment.

North West Edmonton: Calder 4-Unit Cashflow

Turbo charge your portfolio. This 2002 built 4 suite (Duplex) property is located near Grand Trunk Park and minutes from the Yellow head Trail in the transitional area of Calder.

This property has front entrances for the 2 X 3BD main floor units and rear entrances for the 2X 2BD lower units.

This is NOT a legally built 4-plex but a duplex with lower units added. 

Lots of modern touches and very good square footage. Shared laundry down, parking for 6 cars. Excellent access to Yellow head, downtown and Anthony Henday.

Comes complete with great tenants making this a totally turn-key property for you. Calder is a mature area that is showing early signs of transition. HUGE upside potential due to the age of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

*Please note: this is not a target area of Glenn Simon Inc’s but does offer potential for a ‘hands on’ investor.

Purchase price: $665K Total

Investment: $165K
Your Estimated 5 Year Profit $89,085.19K

Your pre-tax Total ROI is 54% or 11% per year

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!


Alberta housing market a standout performer

By Mario Toneguzzi, Calgary Herald, May 20th, 2014

CALGARY - Alberta has emerged as a standout performer in Canada’s housing market and while a slowdown in Canada’s broader housing market is underway, the province’s housing sector has been heating up, says a new report.
The Alberta Treasury Board and Finance’s Economic Spotlight said housing starts continue to trend higher, prices are accelerating, and the resale market remains firmly in seller’s territory in the province.

“The underlying driver is a robust economy. Alberta’s economy has grown at double the rate of the Canadian average over the past three years, and accounted for a disproportionately high share of the nation’s new jobs,” said the report. “  FOLLOW THIS ARTICLE


Canada’s receptive oilpatch in line for trillions in new investment

By Peter Tertzakian, Globe and Mail, May 20th, 2014

The first trillion dollars came over one hundred years. The next trillion is likely to take only a dozen.

Last week, Western Canada’s oil and gas industry celebrated its centenary in Turner Valley, Alta. Since the time a big metal spike repetitively bashed a hole in the earth at an oil well named Dingman #1, Canada has grown to be the world’s fifth-largest producer of crude oil and natural gas.  GRAB THIS STORY


Lamphier: Ambitious industrial project to break ground this summer

By Gary Lamphier, Edmonton Journal, May 8th, 2014

EDMONTON - Edmonton’s downtown building boom gets a lot of positive media attention, as you’d expect.

The splashy new downtown arena, the new Walterdale Bridge, the growing forest of stylish new condo and office towers, and the new Royal Alberta Museum are quickly transforming the public face Edmonton presents to the world.

That’s something worth celebrating, and for most of city residents who wish Edmonton had more of Toronto’s busy urban vibe or a bit of Vancouver’s West Coast style, it can’t happen too soon. READ MORE HERE


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.

“Action is the foundational key to all success."  - Pablo Picasso

Warm Regards,

Todd and Danielle Millar


P.S. Stay ahead by checking out Danielle's  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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