Tuesday, August 25, 2015

Edmonton Growth Reports

If you have some free time this weekend you could read the 160 pages of the 2015 Growth monitoring report and Edmonton Growth study released this week.

In short Edmonton is an economic leader and is growing city with a young demographic. Over the next 50 years the city is expected to double in population.

"Alberta continues to lead the country in economic growth. Its economy has grown on average by over 4% per year over the last three years and is forecast to grow by 3% per year over the next three years. The Edmonton-Calgary corridor demonstrates this economic activity having generated 60% of Canada’s overall job growth for the year ending July 2014. The Edmonton Region plays an important role in the Alberta economy, given its proximity to the world’s third-largest oil reserve. Edmonton has been leading or among the leading Canadian cities in terms of GDP growth over the past three years with that trend expected to continue for another five years.

 Strong economic fundamentals in Edmonton have created the need to accommodate
growth. Edmonton’s population grew by roughly 60,000 from 2012 to 2014, an increase of 7.4%. Much of that increase is mainly due to young adults migrating into the city. Housing starts have been pacing the population averaging 10,000 new housing over the last two years. The growth pressures to accommodate the added population have been strongest within south Edmonton. For example, 45% of the added population over the last two years occurred within the two southern most Wards. Demand for industrial land has been just as strong. The average annual absorption rate for the past three years –206 net hectares –is in the order of 85% higher than the previous eight year average. These growth demands are applying pressure on Edmonton’s supply of land for future residential and industrial development." City of Edmonton Growth Study

• The City of Edmonton continues to grow “up,” “in“ and “out.” The current findings confirm the complexity of maintaining growth balance between core, mature and established neighbourhoods and developing or “new” neighbourhoods.

• A demographic shift is occurring in mature and established areas of the city. The population is ageing and households are decreasing in size. There will be a significant increase in lone person and two person households.

• The 2014 Edmonton Municipal census counted 877, 926 people, 60,428 more residents from 2012.

• The Edmonton CMA is comparatively much younger than major Canadian city regions with a median age of 36 years  2015 Growth Monitoring Report

Thursday, August 20, 2015

Avenue Magazine Edmonton top 10 Neighbourhoods

There are a lot of beautiful neighbourhoods listed. I have rentals in 4 of them and never have a problem renting them because they are hip and desireable areas.

It depends what you are looking for, if you work in Fort Saskatchewan none of these would be great except maybe the highlands (which is also surrounded by some very interesting neighbourhoods) Some are well located in you bike or use transit but access to major routes would take longer.

Ritchie is one of my favorite we lived there for a while. Such great neighbours, airport in 20 minutes and downtown in 10 minutes. It's transitioning quickly and what we bought our place for four years agos would get you a 2 bedroom tear down now.

Every time I go out I try and think of a reason to go to Westmount to get a brownie from Dutchess Bake Shop.

Look at the full list here

Monday, August 17, 2015

Property managers - how to pick 'em

I got the email newsletter from CREW today.

First thing that caught my eye was "How to spot a bad property manager"the article spoke of what property managers were doing wrong but not really how to spot a bad one.

Well, I can tell you from experience how to select a good one.

1. Be a tenant - call one of their listings and see how they act and answer. See how the response time works how they book showings and even go to one.

Down the street from one of my rentals a property management company had a For Rent sign up for 3 months. It was a pretty hot rental market and no need for the sign to be up that long and the property vacant that long. It made me want to pull title and give the owner a heads up.

2. Ask other investors - straight from the horses mouth.

Todd and I posted a question on REIN forum about 6 years ago related to Edmonton's best worst property managers.  It still gets comments  and people still add information to it. It's a goldmine.

3. Ask for their maintenance team contact numbers - seriously the one thing I have learned in real estate is to talk to the maintenance people.

They will tell you all kinds of stuff. How fast they go out. If they are getting paid on time. Anything about the management ask them they MIGHT tell you. I also want to talk to the guys see if they are learning plumbing on my properties.

So communciation and reporting can only be tested once they are hired, make sure you get a good PM before handing them your hundreds of thousands of dollars of assets.

Thursday, August 13, 2015

This and That - August

What's happening in real estate markets outside of Toronto and Vancouver? 

"Unlike its sister city, Calgary, Edmonton’s housing market hasn’t felt quite the same pinch from falling oil prices. Sales rose 2.4 per cent in June and prices were up 2 per cent from a year earlier.
Yet while home prices have so far avoided a crash, Edmonton has witnessed a different type of housing-market phenomenon this year: a boom in rental-apartment construction. " Jump here

Beautiful Historic 1912 Tudor Edmonton Mansion sells Jump

Oil slump hits Fort McMurray
"Fort McMurray renter Richard Mayers and his family are now paying $2,700 a month for a four-bedroom home, down from $3,200. It’s a much-needed price break because Mr. Mayers recently was laid off as operations manager at CEDA International Corp., which provides industrial maintenance services for the oil-sands industry.  Read more

This is how much it costs to live in Calgary vs Edmonton
Alberta may be facing a less-than-ideal economy, but people are still coming to the province in search of employment.
Despite a loss of 5,000 jobs in June, over the past year Alberta has still gained 22,800 jobs, up 1 per cent, according to the latest employment figures from StatsCan.
Bank of Montreal economist Robert Kavcic told the Huffington Post most of Alberta's job losses have been in the oil patch, so far, with the cities "somewhat insulated."
So we decided to compare what it costs to live in Calgary versus Edmonton, as a newcomer to the province. Jump here