Friday, July 15, 2016

Cloudy with a chance of gloom

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:

July 15th., 2016
Volume 21, Issue 2

Dear Friends and Partners,

The tea leaves show a continued gloomy outlook for Alberta. For my two cents worth, I’d say Q3 of 2017 should be the turn around point unless oil goes up and gets us out faster. No real surprise there. We’ll most likely see the period of Q4, Q1and Q2 to be toughest for renters and job seekers. My mantra of 'prepare for the worst…’ should be taken to heart concerning tenanting and managing rents for the winter ahead.

And for those looking to buy…? The industrial/commercial sector is pretty beat up. If you are good at vetting tenants or have a good agent to do so, you can find a deal in the Nisku area with over 80 vacant properties there alone. You need the tenant (or the ability to find a tenant) if you plan on going out for financing. A strategy is to buy (or offer) at a reduced price now and vet your own tenant, then go for financing to extract capital after lease is in place. This is definitely not for the novice, but can be lucrative nonetheless.

For residential and commercial multifamily in Edmonton, the deals are around but you still have to hunt for them and keep a realistic expectation of rents. An upside remains; low mortgage rates.
Stony Plain: Legal 4-Unit
Turbo charge your portfolio. For those wanting to explore a little bit outside of Edmonton, visit Stony Plain - 30 minutes away. Great area, 4-unit, across from the park and near the centre of town.

This is property is in great shape and boasts 4 X 3bedroom units all with in-suite laundry. 1978 built, newer roof, some windows, kitchen and laundry. Terrific access to local amenities in sought after Forest Green.

 This property has a massive lot and room for RV parking. Purchase price to include reserve fund and light renovation budget to make it standout - rolled into mortgage. This property shines! This is a turn-key deal. Excellent access downtown and in the highly rentable and desirable neighbourhood of Forest Green.

Comes complete with great tenants making this a totally turn-key property for you.  Forest Green is a mature neighbourhood that is convenient for tenants working in Stony Plain or Edmonton. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Stony Plain's growing status of a ‘bedroom community’ to Edmonton.

Purchase price: $635,000
Total Investment: $151,840.
Your Estimated 5 Year Profit: $91,074.
Your pre-tax Total ROI is 60% or 12% 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!


New economic forecast suggest gloomy times to continue in Alberta

By Keith Gerein, Edmonton Journal, July 13th., 2016

The second half of 2016 will fail to bring much relief to a sour provincial economy, new economic forecasts revealed Tuesday, while noting the energy and housing markets show mild signs of recovery.
The latest quarterly outlook from ATB Financial offered another gloomy prognosis for the province, warning of continued job losses in the oil sector this summer that will push the unemployment rate above eight per cent.  READ MORE HERE 


House prices post biggest monthly rise in a decade

By House Price Data Centre, Globe and Mail, July 13th, 2016

June showed the largest monthly rise in home prices in Canada in a decade, rising 2.3 per cent over the previous month, according to the latest Teranet-National Bank House Price Index. Year over year, prices are up 10 per cent. All markets except for Calgary and Edmonton tallied gains above the historical norm.
"What is even more striking is that this surge occurred after strong gains in the previous months. As a result, on a year-to-date basis, home prices are already up a whopping 6.8 per cent, well above the historical average of 4 per cent for the first six months of the year," said National Bank senior economist Matthieu Arseneau. — D'Arcy McGovern  GRAB THIS ARTICLE


Bank of Canada’s Poloz delivers cautiously optimistic update on Canadian economy

By Andy Blatchford, The Canadian Press, June 16th, 2016

OTTAWA - Bank of Canada governor Stephen Poloz says the country's economy is finally making progress after hobbling through the effects of the slow U.S. recovery, feeble exports and a stubborn commodity-price slump.

In a speech Wednesday, Poloz said while the economic situation remained complicated and uncertain, he was confident Canada was emerging from its stretch of slow growth.

Poloz pointed to signs that Canada is benefiting from a stronger U.S. economy, a robust level of household spending and a rebound in many non-energy export categories.   FOLLOW 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’d rather attempt to do something great and fail than to attempt to do nothing and succeed.” -Robert H. Schuller

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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