Thursday, October 01, 2015

Tapping the brakes

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   email:

October 1st., 2015
Volume 19, Issue 5

Dear Friends and Partners,

It didn’t feel like a boom did it? The last five years were Alberta’s recovery and peak, before we navigate into a potentially downward trend. You can argue all day long that we don’t have boom and bust cycles here and you’d be right… But what we do clearly have are up and downward trends.

Over the last 5 years we’ve seen a fairly good economy and I think the shift into a slower economy is becoming more gradual than decades before. The gradual shift from high gear to low gear is becoming ever-so-slightly, softer. That’s a good thing.

It shows as a province, an economy - that we are better navigating through the cycles.

Here is an excerpt of an article we wrote 6 years back. The information is timeless and will help you understand and manage your rentals.

How to Keep Investment Properties Tenanted with Long Term Renters

"The purpose of your investment real estate is to produce positive monthly cash flow and sell for an increased value at some point in the future. The only way rental real estate will be successful is to have excellent hands-on partners in the venture, otherwise know as tenants. Great tenants are crucial to the financial success of your rental property. In fact it’s been said that the property isn’t an asset without great tenants in it. So where can you find the elusive great tenant? They’re only elusive if you don’t know how to attract them. By being open minded and pro-active, pumping up your ads and sweetening the deal you can attract great tenants like bees to honey."

BONUS Good ad writing advice:
Simple Ways To Make Your Rental Ads Stand-Out

 North East Edmonton: Highlands Legal 4-Unit Cashflow 

Turbo charge your portfolio. This terrific legal four-plex features separately titled suites. 1971 built, located half a block to Ada Boulevard and the river valley.

Walking distance to schools and transport. Close to downtown and Wayne Gretzky Drive. This property has separate entrances to each suite; 3 X 3 bd and 1 X 2 bd, double garage, plus pad. This property was purpose built and is in fair condition.

Investment capital includes $50K budget slated for further renovations to modernize, improve value, aesthetics and rentability. This is a turn-key deal. Good access to downtown and in a great, mature neighbourhood.

Comes complete with great tenants making this a totally turn-key property for you. Highlands is a mature neighbourhood that is desirable for tenants working in the East and downtown. 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: $725,000
Total Investment: $166,575
Your Estimated 5 Year Profit $97,062.50
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!


Why Canada’s last great hope for the oil sands is no slam dunk

By Claudia Cattaneo, Financial Post, September 28th, 2015

As major bitumen pipeline options keep falling off the table, Kinder Morgan’s TransMountain pipeline expansion is becoming the last big hope to open a new market for Western Canadian oil this decade.
With Enbridge Inc.’s proposed Northern Gateway stuck trying to increase aboriginal support in British Columbia, TransCanada Corp.’s Keystone XL expected to be rejected by the White House in the coming weeks, the start date for TransCanada’s Energy East proposal pushed back to 2020 at the earliest and a marine terminal at Cacouna, Que., cancelled only the $5.4-billion TransMountain expansion (TMX) remains on track for completion in 2018. You know the reasons: Aboriginal pushback, climate change and anti-oil activism, mistrust of corporations and governments, etc.

So, it’s TMX or bust – literally.  GRAB THIS STORY


Alberta’s economy could recover in 2016, ATB’s Todd Hirsch says
Glimmer of hope depends on oil rising to $60, dollar staying weak and other sectors performing well

By CBC News, September 21st., 2015

The worst of the economic downturn could soon be over for Alberta's energy sector, according to the chief economist at ATB Financial.

There are signs the province will rebound enough to see modest growth by the second half of 2016, Todd Hirsch said on the Calgary Eyeopener Monday ahead of his address to the 2016 Economic Outlook presented by Calgary Economic Development and ATB Financial at the BMO Centre.

"So that's the good news, the bad news is that's still probably eight to 12 months away, so we do have a bit of a slog here to get through," he said.  READ MORE HERE


More layoffs anticipated as recession takes hold in Calgary and Alberta

By Mario Toneguzzi, Calgary Herald, September 21st., 2015 

More job layoffs are anticipated from now until Christmas as Calgary and Alberta fight through a recession this year, but the Bank of Canada Governor says the economy is able to handle the challenges presented by a volatile resource sector.

Stephen Poloz said resources make up more than a quarter of the Alberta economy and “we’ve had to learn how to deal with large swings in their prices.”

“Any economy that relies on natural resources is naturally going to be challenged by large movements in their prices,” Poloz told a record crowd Monday at the annual 2016 Economic Outlook put on by Calgary Economic Development at the BMO Centre at Stampede Park.

“These shocks are more than just swings in Canada’s national income. They also force businesses to make decisions about the way resources such as their capital and labour are allocated. These decisions often  lead to difficult adjustments, but they are necessary for maximizing our economy’s potential.”     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.

“Knowledge is an unending adventure at the edge of uncertainty.“  - Jacob Bronowski

Warm Regards,

Todd and Danielle Millar


1 comment:

Aaron Marshall said...

This is a great post, thanks for writing it.