Thursday, July 30, 2015

Batten down the hatches.

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


July 30., 2015
Volume 19, Issue 3

Dear Friends and Partners,

** Summer is here and your newsletter is heading to the beach! Issues resume again September 15th. Our Blog keeps going though - so check in regularly. **


With the sun shining and summer in full swing, it's hard to imagine winter being 3 months away… I want to remember these seasonal changes (the cycle) and do my property maintenance now, so that I’m prepared for winter. I want to prepare now, for the next real estate cycle (downturn) that is coming. It’s not good or bad, it just is. You can take advantage of ridiculously low mortgage rates, conservative buys and position yourself well with rental properties during the next buying period.

I’ve attached a few links below to articles on property investment and tips to help prepare and manage downturns, including this article we wrote in ’09:


How To Keep Investment Real Estate Profitable In Any Economy

Wherever your real estate investment is located—provided you bought it at the right price and terms—there are many ways to keep your property profitable. If you analyze your real estate, update and improve your investment team, review your long- and short-term investment plans and stay focused on the end result; your real estate portfolio will be a rock solid fortress that can weather any storm.

Analyze

The first and most important thing is to carefully analyze your portfolio.

What properties are doing well?
Are there properties that are slowly leaking dollars like a dripping tap?
If so how can you fix them?
If you don’t know the hard numbers on your properties, then you are risking everything that you have worked for. Keep your budgets in line and carefully evaluate every purchase and renovation. Once you have a better idea of where you stand, you can start to recession-proof your properties. First, your customers are your tenants, so learn how to keep them happy and decrease vacancies. For example:

Provide Internet or free cable
Give lease incentives or rewards for rents paid on time, or even the best garden.
Increase your revenue by adding rental units to your properties or other moneymaking add-ons like renting garages separately, extra parking spaces or coin-op laundry facilities. You can also refinance your mortgages with longer amortizations, increase rents where reasonable or rent your properties furnished.

Evolve and involve your team
Is your property management up to par?
Are you getting discount rates for a big portfolio?
If you have few properties are they being managed in a way that will help you grow your portfolio? 
Are their rates competitive and are they keeping your property in excellent resale condition? 
Streamline your team. I don’t mean fire everybody and do it all yourself, but rather make your team out of the best players available in your area. Once you have the all-star team, get their input and advice, use their knowledge and experience to protect and improve your assets and your position in the market. Accountants can help you lower your taxes, lawyers can protect your assets, bookkeepers keep you aware of money liquidity and property management can up the cash output of your investment property.


Be aware

Be aware of longer-term trends and statistics. Don’t get caught up in the moment—especially when making decisions. There are both positive and the negative things that are happening in headlines. Take both sides into account and be realistic as you evaluate what’s really going on. Review your business plan both short-term and the long-term and adjust it as necessary. Don’t knee-jerk react, but also don’t drift back and forth without any solid goal in site. Have multiple investment strategies all with a clear exit in place. 

This is not the first economic downturn the world has seen nor will it be the last. What is important is to mind your business and your properties to make them profitable no matter what comes your way.

Recession proof rentals HERE  and HERE

North West Edmonton: Sherwood 4-Unit Cash flow 
(Not one of my target areas, but still a solid property.) 


This massive Side by Side duplex features separate (not legal) suites down. 1963 built, located across from park. Walking distance to Parkview School and less than 10 minute drive to West Edmonton Mall. Close to downtown and Whitemud. Good access to downtown and transit.

This property has separate entrances to each suite; 2 X 3 bed and 2 X 2 bed, double garage, plus pad.

This property was purpose built and is in fair condition. Investment capital excludes $15K (PPI) budget slated for further renovations to modernize, improve value, aesthetics and rent-ability. The funds are returned at end of renovations once bank appraisal is complete.

Comes complete with great tenants making this a totally turn-key property for you. Sherwood is a mature neighbourhood that is desirable for tenants working in the west end of the city. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $579,000
Total Investment: $139,856
Your Estimated 5 Year Profit $78,179
Your pre-tax Total ROI is 56% or 11.2% 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!

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Tax expert pushing for new tax in Alberta

By Kevin Maimann, Edmonton Sun, July 20th, 2015

One of Canada's most influential tax experts is pushing for a new tax in Alberta.

Dr. Jack Mintz, who is currently on the Economic Advisory Council for federal finance minister Joe Oliver, spoke Monday during a business luncheon to the Rotary Club of Edmonton.
Mintz was invited to give his views on the economic and social priorities of Alberta's new government.

He said a 7% Harmonized Sales Tax -- which would mean adding 2% to the federal GST, with the added tax to be collected by the Canadian Revenue Agency and remitted to the province -- would bring in over $1  billion.  GRAB THIS STORY

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Alberta Economy: Province needs to nurture its economic gazelles


By Stephen Murgatroyd, Troy Media, July 21st., 2015

EDMONTON, AB – A colleague suggested to me recently that Alberta should stop talking about diversifying its economy. Instead, he said, we should talk about broadening the economic base.
He is right.

Of course, the province’s economy is diversified now – somewhat.

For example, Alberta opened its forests to forest companies back in the 1970s, which led to the province becoming home to North America’s largest pulp mill (Athabasca’s ALPAC), as well as several other mills. Our mills and lumber firms are efficient, productive and significant players in the Alberta rural economy, with some 18,000 jobs and significant exports ($2.7 billion in 2014). It is a $5.4 billion industry.  READ MORE HERE


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National Post View: Stop delighting in Alberta’s misery

By National Post, July 24th, 2015 

Alberta, a province with a population of about four million, has been dominating the country politically and economically for the past decade. But with tanking oil prices, industry layoffs, pipeline leaks, agricultural disasters and NDP political successes, many in the rest of the country are feeling a sense of schadenfreude: the delight in Alberta’s economic — and political — misfortunes.

To at least some extent, their feelings are understandable. It was not long ago that Alberta was at the top of its game: from the rise of Stephen Harper, to the increasing importance of the energy industry as central Canadian manufacturing faltered; Ontario’s debt rose and Quebec’s fiscal situation spiralled as Alberta remained blissfully debt free.  FOLLOW THIS ARTICLE
 
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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.

“My optimism wears heavy boots and is loud.“  -Henry Rollins

Warm Regards,

Todd and Danielle Millar

Wednesday, July 15, 2015

Seize the summmer!

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


July 15th., 2015
Volume 19, Issue 2

Dear Friends and Partners,

When I lived in Japan I was acutely aware of the changing seasons. Spring would start like clockwork on the ‘official calendar day’ and not merge, but explode into summer a little shy of three months later. The Japanese have holidays (like we do) mixed in and out of the year; some reflective of the seasons, others of religion, royalty, birth and death. I find that Edmonton shares a burst of seasonal changes as well albeit some seasons do tend to drag on (yes, winter that is you).

Albertans seize the summer! When the weather is good, it's time to head to the lake, river or mountain. It’s also time to take a break. I firmly believe that claiming a minimum of one ‘rest day’ every six is crucial for mental, physical and creative health. Having young children, my rest days have tended to stretch longer but the trade-off forces me to work more efficiently (sometimes longer) on my work days; compacting them if you will.

I have added a few links below showing the benefits of unwinding and the increase in performance that can be attained. The second link starts strong and has some great points throughout.

"It's Sunday evening but instead of relaxing with your family, you're sitting in front of your home computer. There are just a few emails you have to send out before the week starts, a couple of projects you want to complete in the quiet before the phone calls and urgent emails begin arriving the next morning. You're tired, and vaguely cranky to find yourself working on what's supposed to be a day of rest. But it needs to get done, so you push through….”
JUMP


"Ask any physician and they will tell you that rest is essential for physical health. When the body is deprived of sleep, it is unable to rebuild and recharge itself adequately. Your body requires rest….”  JUMP


North Central Edmonton: Westwood 4-Unit Cashflow 


Turbo charge your portfolio. This 4 unit, 1973 built, RF-3 zoned property is located 2 blocks from NAIT. Walking distance to Kingsway Malland St. Basil School.

It’s a short drive downtown and to Royal Alex Hospital. This property has separate entrances to each suite; 2 X 3 bd and 2 X 2 bd, massive double garage, plus parking pad for six cars.

This property was purpose built and is in good condition. There are good upgrades; HWT, cabinets and flooring. Investment capital includes $10K budget slated for further renovations to modernize, improve value, aesthetics and rent ability. This is a turn-key deal. Excellent access to downtown, transit and college.

Comes complete with great tenants making this a totally turn-key property for you. Westwood is a mature neighbourhood that is desirable for tenants working in the city or attending NAIT. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $585,000
Total Investment: $139,040
Your Estimated 5 Year Profit $80,817
Your pre-tax Total ROI is 58% or 11.6% 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!


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Edmonton growth expected to slow down, but not stop.
New neighbourhoods and central core saw majority of growth, mature neighbourhoods didn’t fare as well

By CBC News, July 3rd, 2015

Despite tough economic times in Alberta, Edmonton's city planners say the city will continue growing in 2015 — both up and out.

Yesterday saw the release of the city's second growth analysis, Our Growing City. The report shows that, even with the economic slowdown, Edmonton continued to expand last year.

"It was really a banner year for growth," said Kalen Anderson, director of urban policy for the city.

Anderson noted that in 2014, the city saw more than 12,000 new permits for housing units. Despite the city's recent push for more infill in mature neighbourhoods, the report suggests that the suburban fringe and the downtown core continue to draw the greatest numbers.  GRAB THIS STORY

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Alberta housing market weathering the storm

By Myke Thomas, Calgary Sun, July 11th, 2015 

The Alberta housing market, as a whole, has weathered the headwinds of a slowing economy in 2015 better than many expected, says Todd Hirsch, chief economist at ATB Financial, in the Alberta Economic Outlook for the third quarter of the year.

“Despite a weaker energy sector and shaky consumer demand, housing starts (in Alberta) have continued to hold up quite well over the first half of the year. In May, builders began construction on just over 34,000 homes (on a) seasonally adjusted annualized rates (basis),” says Hirsch. “Even though this is a bit below the 12-month average, Alberta’s housing market is reacting reasonably well to the current economic landscape.”   FOLLOW THIS ARTICLE

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Canada must avoid Greek entitlement

By Anthony Furey, Calgary Sun, July 3rd, 2015

It's a sad day in Canadian politics when a possible future cabinet minister applauds the latest news in the current Greek tragedy.
Niki Ashton, the MP for Manitoba, and a prominent voice in the NDP caucus tweeted "NO to austerity! YES to democracy!" in celebration of Greek voters' rejecting the latest bailout terms offered by the European troika on Sunday.

Ashton also re tweeted more severe and more popular comments made by author and far-left celeb Naomi Klein: "Nobody should be forced to sign their own death warrant. So many Greeks voting no to blackmail and terror. Powerful day.”   READ MORE HERE

 
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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.

“Unless a man has trained himself for chance, chance will only make him look ridiculous."
  -William Mathews

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 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 2011 Top Ten Investment Towns of Alberta and Ontario.


Tuesday, July 14, 2015

July This and That

If you haven't been downtown Edmonton in a while you should take a look. We counted more than 5 cranes working in the downtown core. The changes are exhilarating albeit frustrating for driving.

The most spectacular is the new arena and the Ice District - here is an amusing video from Edmonton Journal about the name "Ice District" not quite sure about the Romulan comparison.

If you think were you live is bad take a look at this JUMP (If your place is worse you need to move)

Oil prices are falling and the NDP aren't going to make any Rae like mistakes in Alberta. 



Tuesday, July 07, 2015

Solid Advice for Condo buyers

Alberta's young population's first step into home ownership is often a condo. Condos are stylish, well located and a reasonable price. 

There is a lot to know about buying a condo because there are monthly fees and assessments that could (will) be looming in the future.

"Find out exactly how much you’ll be paying in condo fees and evaluate whether you’re getting good value for your money. Dig into the health of the reserve fund, because that’s a good predictor of whether you’ll be levied any special assessments if you buy. Ask if there are any claims or actions aimed at, or prompted by, the condo corporation. How much are your utilities? Who pays them?" Real Estate Matters Jump Here 

If you're in your condo for the long term there will be repairs and as the condo ages the cost of repairs increases. That's why the reserve fund is so important. Even new condos can have huge repairs and assessments like the one in Calgary

Your money will be well spent getting a condo document review to make sure there are no red flags in the finances of the complex you are buying into.

Some horror stories about assessments (Ontario) Here

Service Alberta Condo Tip sheet Here

Really good assessment information Here