Monday, February 01, 2016

January Doldrums

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:

February 1st., 2016
Volume 20, Issue 2

Dear Friends and Partners,

So, there you have January 2016 - done. It was an anemic month for growth, decisions and ‘keeping a steady hand on the rudder’.

But, let’s focus on the good; oil hung on around $30 bbl., rates stayed low (a neutral event), some cash was injected into the AB economy (see below) and a rather frustrating, yet good decision was made to keep the Royalty Rate - the same. You can read more about that from Don Braid.

What we need is more clear decisions and less indiscretions. The royalty review was a ‘decision' and that will create some stability, at a needed time - so that’s good news.

I’m seeing a lot of for rent signs up, but that’s what happens during down turns (preferably not in January, but hey..). You’ll have a segment of renters that will choose to move to cheaper properties. You’ll also have landlords adjust from higher rents to moderate ones and inexperienced landlords at already low rates, panic, and drop further - don’t be the latter sort.

Downtown Edmonton: Oliver 9-Unit Apartment

Turbo charge your portfolio. Great, 9-unit apartment, minutes from Ice District; a winner to add to any portfolio. 1972 built, meticulously maintained. Terrific access to local amenities in trendy Oliver.

 Mechanical, roof and 6 units all upgraded. This property has a great suite mix; 6 X 2 bd and and 3 X studios, all parking stalls are energized and separately metered.

This property has a tried and true layout and is built to last. Purchase price includes reserve fund and estimated $30K in renos to make the property shine! This is a turn-key deal. Excellent access downtown and in the highly rent-able and desirable neighbourhood of Oliver. CAP rate of 6% and 5% C.O.C. return.

Comes complete with great tenants making this a totally turn-key property for you. Oliver is a mature neighbourhood that is desirable for tenants working in the downtown and 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: $1.05M
Total Investment: $387K.
Your Estimated 5 Year Profit $151,968.
Your pre-tax Total ROI is 40% or 8% per year

These 9 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!


Opinion: Let’s not let economic gloom kill Alberta’s dreams

By Thomas Lukaszuk, Edmonton Journal, January 29th, 2016

Recent media articles paint an apocalyptic picture of Alberta’s economy and the province’s prognosis for recovery.
Maclean’s magazine declared our economic slowdown as the “Death of the Alberta Dream.” The sudden drop in commodity prices, shifts in carbon fuel production and consumption, plummeting dollar and some counterintuitive fiscal policy shifts by the provincial government have resulted in massive job losses, the outflow of investment capital and immediate drop in government revenues.

These financial challenges are felt by Albertans and will become more evident in 2016. Yet my outlook is optimistic.  FOLLOW THIS ARTICLE

Alberta kicks in another $5M to help-high tech companies

By Jodie Sinnema, Edmonton Journal, January 22nd., 2016

The Alberta government is pumping an additional $5 million into a program to help small and medium companies and entrepreneurs create jobs and develop high-tech ideas into commercial products.

That’s on top of $4.1 million already funnelled into the program. It has allowed companies such as Pleasant Solutions, which hires out software developers and works in the security and password field, create one permanent job for every $15,000 in such grants.  READ MORE HERE


The 10 Best (non-oil) things about Alberta

By Todd Hirsch, Special for Globe & Mail, December 17th, 2015

While it was booming, Alberta’s petroleum sector was a gravitational black hole that sucked up everything else around it. Other industries scrambled to compete for labour, office space and investment capital. It’s a challenge for a tech firm, for example, to open an office in Calgary when a receptionist could command $75,000 a year.

Today, Alberta is grappling with an energy patch that has lost its gravity, at least for now. Oil is below $40 (U.S.) a barrel, and it won’t come suddenly roaring back in 2016. This winter will be difficult for thousands who’ve been thrown out of work.  GRAB THIS STORY


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.

“I don’t know where I’m going, but I promise it won’t be boring.”  -David Bowie

Warm Regards,

Todd and Danielle Millar


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.

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