Friday, October 31, 2014

Real Estate Cycles

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


October 31st., 2014
Volume 17, Issue 7

Dear Friends and Partners,

The value of the cycle; I endeavor to talk about the good news stories as much as I do about the (bad news) potential risks in the market. The underlying economic fundamentals drive a market and give it depth, but don’t always do it fairly. Recently I have spoken to investors that started buying property in the 80’s and (to various degrees) continue to buy. Granted, a few folks that bought in the 80’s have changed their buying profile to larger, more manageable building and others have sold their commercial property choosing to only keep a few key residential ones to pass down to their children.

When we talk about purchases made in late 2007/2008 we fall against the backdrop of the global recession. This ‘dip’ in the cycle was, and still is for some areas, much deeper than first anticipated. It’s actually quite incredible that Edmonton weathered this storm as well as it did; thank those underlying economic fundamentals. But, nonetheless some properties bought in the peak of 2007/2008 still haven’t climbed back up to where they were.

Thus, this is the cycle.

We look at real estate cycles typically being 5-7 years, and here in Edmonton you can see house prices coming back to earlier highs. Now, does that mean we are approaching a peak and shouldn’t buy? Be conscientious of what you buy - not based on where the cycle is so much as what the leverage/rates are that you are getting. A solid piece of real estate WILL hold its value throughout a cycle. Put another way, if you held your rental property for the full 25 year mortgage term (or whatever it is you set up) you would own an asset free and clear that would produce net CF for you (minus taxes/operating expenses) provided you had bought a solid property to begin with. The trouble you can get into with low rates is thinking that they’ll go on forever.

Regardless of the timing in the market, it will still have a cycle of high-low-high-low and stabilization in between. Real estate is a long-term game. The winners have enough skin in the game to hold when they have to and will reap the rewards for carefully selected real estate that will weather the cycle.

And what about the 2007/2008 property? With proper management, mortgage administration and diligent repairs that asset will hold its value. And if you want to sell it…the cycle will come round (like it always does) and give you an opportunity to do so; with years of banked equity.

See our articles on HOW to buy here:
Focus on the fundamentals
Keep investment real estate profitable in any economy

=====================================================

 Central Edmonton: Terrace Heights 4-Unit Cashflow (PPI Deal)

Turbo charge your portfolio.
This 1963 built Side X Side Bungalow with in-law suites is located of Wayne Gretzky Drive in Terrace Heights. Easy access to Downtown, UOA and the Yellowhead as well as many parks and schools to enjoy in this neighbourhood.


This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites. This property was built as a duplex and will need renovations to operate the (non-conforming) in-law suites.

This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage. Ensuite laundry to be added. Property has parking pad . Excellent access to downtown, transit and Sherwood Park.

Comes complete with great tenants making this a totally turn-key property for you. Terrace Heights is a great mature area that is a desirable for tenants working in the city or attending U.O.A..

HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core. Purchase price factors in renovations. P.P. of $575K + $25K renovations = $595K.

Purchase price: $595,000K
Total Investment: $139,000K.
Your Estimated 5 Year Profit $94,475K.
Your pre-tax Total ROI is 68% or 13.6% 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!


=========================

Competitive tax rates give Edmonton an entrepreneurial edge over other big Canadian cities

By Geoffrey Morgan, Financial Post, October 20th., 2014

Louise Dirks admits it would be easier on her travel schedule to run her high-end shoe business out of a city like Toronto or New York, where trans-Atlantic flights are scheduled multiple times a day.
At the beginning of October, the founder and owner of Gravity Pope had just returned to her Edmonton headquarters after a business trip to Paris.

Ms. Dirks said that being based in Edmonton means there’s always one more flight to catch, or at least a few additional hours spent in a cramped airline seat, as she travels to France, Italy and Germany to source shoes and designer clothes for her stores in Edmonton, Calgary, Vancouver and Toronto.  FOLLOW THIS ARTICLE


===============

IMF sees ‘solid’ Canadian growth, despite ‘uneven’ global recovery

By Gordon Isfeld, Financial Post, October 7th, 2014

OTTAWA — The “uneven” global recovery will be with us for at least another year or two, although the pace of growth will be “more country specific” than before, according to the world’s biggest lending agency. 

Overall growth should reach 3.3% this year and 3.8% next year, the International Monetary Fund said in its October outlook released Tuesday. That’s down 0.1% and 0.2%, respectively, from the agency’s forecast in July.
For Canada, the IMF said “growth is expected to be solid,” thanks mainly to a strong pickup that is likely to continue in the United States during 2014 and into 2015. But it continued to caution policymakers about Canada’s “still-overvalued” housing market.  GRAB THIS STORY


===============

Canada one of the world’s most popular destinations for job seekers: study

By Tavia Grant, The Globe and Mail, October 6th, 2014

Canada is one of the top spots in the world for job seekers who are setting their sights abroad.

The U.S., the U.K. and Canada are the world’s most popular country destinations for job seekers, a Boston Consulting Group global survey of more than 200,000 people released Sunday showed. Among cities, London is the most popular spot, while three Canadian cities crack the top 25 list for most-sought after places: Toronto (#8), Montreal (#21) and Vancouver (#23). 

Bigger economies are one reason why job seekers opted for the top three, along with a largely English-speaking population at a time when English is the most frequently taught second language, the paper noted.  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.

Do your own thing on your own terms and get what you came here for."  - Oliver James

Warm Regards,

Todd and Danielle Millar


===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

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














Monday, October 27, 2014

Alberta This and That

It's no surprise that when an economy is active, salaries are up and so are rents - that’s the exchange you pay in any market. The opposite is true too; the cheapest rents are generally found in areas with depressed incomes. It's a lot harder to pay rent when you don't have a job.... Read Here

Here is a cool urbanist's look at Edmonton - Jump

We panicked with stocks is it time for oil now? They say YES.


Friday, October 17, 2014

What to remember when you invest. Peter Kinch ReBlogged....

I saw a report the other day that a UK company recommended Toronto, Vancouver and Calgary as the best places to invest in Canada. Well, one out of three isn't bad....

You may remember what $890k can buy in Vancouver. How are you going to cashflow with that property? You're mortgage payments are about $3320.00 so you have to rent that property out for about $3800 to cover tax, repairs, property management fees. I don't know about you but I have yet to find a tenant willing to spend $4000 to live in a hovel.

So with all the noise about investing where to do it, who to do it with even when to do it. You need to just remember the basics. For me the most important thing is why I invest. You could throw water on my face at 3am and it's quite likely I would shout out the answer word for word. That's my commitment.

Here are some reasons from Peter Kinch ( who I reblog a LOT) :

Here's the bottom line for all investors:

There are a lot of headlines this week trumpeting the downward slide of the stock market – All this while the head of Scotia Bank reminds us that reports of a ‘Housing Bubble’ are over-rated.
*If you are looking to invest over the long term, then don’t get too worried about the day to day fluctuations of the market – whether that’s in real estate or the stock market.
 

*If you’re looking for steady cash flow and long-term stability from your investment – then focus on the economic fundamentals of where you are buying and key in on having a solid tenant base.

In the meantime, here’s what’s ‘In the News’….

A new report suggests that Canadian homeowners are paying down their mortgages faster than they’re being given credit for.

Click here for full details from MoneySense.

Canadian concerns about a housing bubble are overblown in a country where credit growth is modest and the job market is stable, says Bank of Nova Scotia CEO Brian Porter.

Click here for the full Bloomberg article.

Bank of Canada Governor Stephen Poloz is signaling that it’s time to take off the training wheels – that the central bank will no longer be there to hold the market’s hand.

Click here for more from Business in Canada.

Do you have a mortgage that is coming up for renewal? Are you thinking of buying an investment property? Do you know someone who is buying a new principal residence and would benefit from a lower mortgage rate?

Now is the best time to get our expertise working for you. You can get a great rate and expert advice at the same time.

Call or Email Today to book a consultation!

Thank you Peter!

Wednesday, October 15, 2014

Developments abound

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


October 15th., 2014
Volume 17, Issue 6

Dear Friends and Partners,

Lot’s of big announcements these past few weeks. The city centre is growing fast with more and more new buildings coming on. Even if half come to fruition, the city scene will be positively changed forever.

On the energy front there have been some significant developments in transportation and the European energy bill, both of which you can read below. Stay informed, get active and don’t miss the opportunity Edmonton is offering.

BTW - REIN is hosting its ACRE event in Edmonton October 25th. If you are just starting DIY real estate investing, you won’t want to miss this.  Find more info about it HERE.

Central Edmonton: Inglewood 4-Unit Cashflow (Purchase Plus Improvement Deal)


Turbo charge your portfolio. This 1950 built Raised-Bungalow-Style 4-Plex is located in the heart of Inglewood, minutes from trendy 124th and downtown. The airport revitalization project is sending ripples of improvement throughout this area. Easy access to the Yellowhead as well as many parks and schools to enjoy in this character -rich neighbourhood.

This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites.

This property was built as a RF3 duplex and is noted as having lower-level suites in the tax assessment. This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage.

 Ensuite laundry to be added. Property has 1 x double detached garage . Excellent access to downtown, transit and St. Albert.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending NAIT.

HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core. Purchase price factors in renovations.

Purchase price: $664,000K
Total Investment: $152,930K
Your Estimated 5 Year Profit: $86,096.28K
Your pre-tax Total ROI is 56% 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!


=========================

Hicks: There is no transportation crisis for Alberta

By Graham Hicks, Edmonton Sun, September 26th., 2014

If there's a looming transportation crisis for Alberta oil, why have Suncor and its partners committed $10 billion to the new Fort Hills oilsands project?
Why is Exxon-Imperial Oil full speed ahead on its $8.9 billion expansion of Kearl Lake, even as Phase I is just getting up to speed?

Let's not be stupid. Nobody puts that kind of money into any business, without 100% certainty the product will get to market.

Yet we keep hearing, time after time, that without new pipelines west (Northern Gateway) and south (Keystone XL), much of Alberta's oil will be trapped with no way out.

Here's the reality, as explained to me by a few veterans of the oil transport business.  FOLLOW THIS ARTICLE

===============

Oilsands victory in Europe - but how will they get it there?

By Daniel Schwartz, CBC News, October 9th, 2014

The Canadian government and the oil industry can clearly claim a victory after Tuesday's announcement by the European Commission that it will not go ahead with a proposal that would have labelled oilsands oil as emitting more greenhouse gases than conventional oil production.
But the reality is that very little Alberta oil gets sold to European countries right now, and getting oilsands oil there should still be more of a challenge — especially at a competitive price.

Although the European decision will be disappointing for many environmental groups, it "provides a signal that Europe is open for business," says Nathan Lemphers, an independent oilsands policy analyst.  READ MORE HERE

===============

How Alberta’s oil patch teamed up with the ‘little guys’ for an end run around Obama

By Rebecca Penty, Hugo Millar, Andrew Mayeda and Edward Greenspon, Bloomberg News, October 7th, 2014

So you’re the Canadian oil industry and you do what you think is a great thing by developing a mother lode of heavy crude beneath the forests and muskeg of northern Alberta. The plan is to send it clear to refineries on the U.S. Gulf Coast via a pipeline called Keystone XL. Just a few years back, America desperately wanted that oil.

Then one day the politics get sticky. In Nebraska, farmers don’t want the pipeline running through their fields or over their water source. U.S. environmentalists invoke global warming in protesting the project. President Barack Obama keeps siding with them, delaying and delaying approval. Keystone has become a tractor mired in an interminably muddy field.  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.

“Nearly all men can stand adversity, but if you want to test a man’s character, give him power.."  - Abraham Lincoln

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

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.

Tuesday, October 14, 2014

Flying pumpkins and corn mazes

After a thoroughly fulfilling Thanksgiving weekend we need other ways to get out and celebrate our short beautiful prairie autumn.

We have become converts to the corn maze. Alberta's expanse makes the corn maze a really popular autumn family event. Usually there is a puzzle involved to make the maze interesting for kids. Some mazes have words cut into them that is the answer to the puzzle. For the adults the "Children of the Corn" jokes never stop coming. Right Malachai?

It's a lot of fresh air and walking sure to bring a good nights sleep.

Prairie Gardens and Adventure Farm have a huge puzzle, lots of activities and a haunted house that you can see with the kids. The also have the best thing I have ever seen done to a pumpkin - shooting them out of canons. Oddly satisfying.

Take a look at their excellent video here (THIS  VIDEO IS NOT FOR KIDS!) GO!

Prairie  Gardens is 100% kid friendly but this video is a little scary.

Thursday, October 09, 2014

It's 1984...

...not Orwell's dystopia, but gas prices yesterday in Alberta.

To celebrate 30 years of refining in Alberta some Shell stations in Edmonton and around Alberta dropped to 1984 prices. Gas signs that read 0.39, 0.49 and 0.57 drew huge lineups at the pumps.

Great idea and a way to give back to the consumer. Watch Video here

Tuesday, October 07, 2014

This and That October

Alberta is forging ahead with economic optimism - “Saudi Arabia’s (reported discounting of oil prices) could drive prices lower. But we could also see a situation where worries about supplies coming out of Iraq start driving oil prices higher again. There are just so many moving parts to this, and so many of them are geopolitical, not economic in nature.” Read more

Alberta's Goldilocks Economy - "In the long-run, it's stacked against us," he explained. "Energy is always going to be our strong card, but how do we increase that envelope of what's captured in the energy sector. It's hydrocarbons plus what other renewable energy sources could we be the champions of in Alberta. There's still a lot of work we need to do.” Jump here

When it gets to cold go to L.A. - "American Airlines launched Thursday its daily non-stop flight to Los Angeles International Airport from Edmonton." More here

Friday, October 03, 2014

Flying in Style

Start saving your Air-miles because this $23,000 Singapore Airline Cabin looks wonderful.
Check out the food, the service the amenity kit. So luxurious... Jump here

Wednesday, October 01, 2014

The city is abuzz

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


October 1st., 2014
Volume 17, Issue 5

Dear Friends and Partners,

More excitement in the city. If you haven’t taken a stroll in Edmonton’s downtown in a while, you might be surprised by all the cranes and construction. You’d probably also stumble across a couple of trendy new restaurants with lineups out the door; the city is a buzz. Edmonton's got a lot going on it’s just getting started.

 Like him or not, Daryl Katz is certainly a visionary for a ‘new’ Edmonton. With his interest in buying a portion of 104 AVE last week, to putting the arena into play, he’s making an impressive upgrade to the city’s downtown-core.

Since the revitalization of the core started it has created a massive wave of growth in business, retail and housing developments. All of Edmonton benefits and you can start to see the numbers in residential housing beginning to reflect this recent growth spurt.

 Edmonton’s fast-growing population is forcing real estate prices up, says the Realtors Association of Edmonton.

The month’s housing market by the numbers:

14 %: How much the total value of residential real estate sales ($5.7 billion) grew compared to the same time last year ($5.0 billion).

6.0 %: Year-over-year drop in the number of reported residential sales.

$435,430: Average price of a single-family dwelling in Edmonton census metropolitan area, up 4.3 % from same month last year. Full story here

 People are attracted by jobs and stability. People stay to raise a family and make their own mark in a growing city.



Central Edmonton: Inglewood 4-Unit Cashflow (Purchase Plus Improvement Deal)


Turbo charge your portfolio. This 1950 built Raised-Bungalow-Style 4-Plex is located in the heart of Inglewood, minutes from trendy 124th and downtown. The airport revitalization project is sending ripples of improvement throughout this area. Easy access to the Yellowhead as well as many parks and schools to enjoy in this character -rich neighbourhood.

This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites.

This property was built as a RF3 duplex and is noted as having lower-level suites in the tax assessment. This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage.

 Ensuite laundry to be added. Property has 1 x double detached garage . Excellent access to downtown, transit and St. Albert.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending NAIT.

HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core. Purchase price factors in renovations.

Purchase price: $664,000K
Total Investment: $152,930K
Your Estimated 5 Year Profit: $86,096.28K
Your pre-tax Total ROI is 56% 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!


=========================

Dreams of a thriving new downtown Edmonton start to edge in reality
By Carrie Tait, Globe and Mail, September 11th., 2014

 It takes a lot of imagination to picture roughly four million people hanging out in Edmonton’s downtown each year, all visiting in the name of entertainment. The dreams exist, the blueprints exist, but the buildings do not. Negotiations are in their final stages. Diggers are digging. And Daryl Katz’s real estate ambitions are at skyscraper levels.

When the billionaire talks about his plans to revitalize Edmonton, he has lists of numbers. Lots of numbers. He rattles off the amount of money that will be poured into Alberta’s energy sector – the oil sands, refineries, pipelines – in order to back up numbers off a second list. That list is the one that requires creative thinking, and a lot of new buildings.  FOLLOW THIS ARTICLE



===============

Edmonton Real Estate mogul Bob Dhillon excited for changing city

By Dave Lazzarino, Edmonton Sun, September 19th, 2014

Bob Dhillon sits in an Edmonton restaurant, awaiting his meal, sipping a rich, Australian Shiraz and talking real estate. To him, the wine isn't the only glass that's half-full.
"Edmontonians should celebrate," said Dhillon, who knows all about celebration.

His company, Mainstreet Equity, owns 3,725 residential apartment units in Edmonton -- 2,424 of them surrounding the Edmonton Arena District -- making him the landlord to what he says calls a city benefiting from youth.

"What drives a city like Edmonton and Calgary is the in-migration, young people," he said. READ MORE HERE

===============


Hicks: Strength among weakness in Edmonton’s corporate sector

By Graham Hicks, Edmonton Sun, September 19th, 2014

Alberta Venture Magazine’s September edition contains its annual Top 250 list of Alberta’s biggest companies and, as usual, it makes for fascinating comparisons.
The list demonstrates, more than ever, how Edmonton in the ‘50s and ’60s allowed the corporate side of the resource industry sector that surrounds us to slip away to Calgary. 

Fifty-nine of of the top 100 companies within Venture Magazine’s Top 250 companies, (as measured by gross 2013 revenues), are in the resource industries sector. Just two biggies, Weatherford Canada (61st, $1.3 billion) and North American Energy Partners (95th, $470 million) are based in Edmonton.  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.

“A true champion can adapt to anything."  - Floyd Mayweather, Jr.

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

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.