Alberta Mid Month Update

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
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June 17, 2017

Volume 22, Issue 10

Dear Friends and Partners,

Happy Father's Day Weekend!


South East Central Edmonton: Ottewell, Legal 2-Unit Cashflow 

Turbo charge your portfolio. Perfect smaller addition or first property. Low risk investment in a great A+ area with 2 legal units under one roof. This legal suited bungalow is across from park and near school. 7 minute drive to downtown 8 minute to U.O.A. 9 minutes to Hospital. 
This property has many recent upgrades including boiler and windows. Offering 1 X 3 & 1 X 2 bedroom units. Separate laundry in basement. 1962 built, double detached garage, zoned RF3 and wide front yard.

Terrific access to local amenities in sought after Ottewell. Purchase price to include renovation budget to upgrade interior and exterior to make it standout - rolled into mortgage. This is a turn-key deal. Excellent access downtown and in this highly rent-able mature neighbourhood.

Comes complete with great tenants making this a totally turn-key property for you. Ottewell is a mature neighbourhood that is convenient for tenants working downtown or attending UOA. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton’s growing centre and University.


Purchase price: $380,000
Total Investment: $92,800
Your Estimated 5 Year Profit $54,232
Your pre-tax Total ROI is 58%

These 2 legal 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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Ontario vs. Alberta smackdown: Which will lead Canadian growth this year? 

By Erica Alini  May 17, 2017    Global News  
  "Canada’s economy is steaming ahead, but will Ontario or Alberta take the lead?

Economists disagree on which province will post the fastest growth this year. According to the Conference Board of Canada, which published its spring economic forecast today, the crown belongs to Alberta. That province is projected to post a 3.3 per cent increase in real GDP. " HERE

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Oil majors embracing push to green energy: Wood Mackenzie
By Geoffery Morgan June 12, 2017 Financial Post

"We are able to make investments in this business where the investment proposition is right in the middle of the fairway where the risks and rewards are very similar to our core pipeline and utility businesses,” Calgary-based Enbridge Inc. executive vice-president and chief development officer Vern Yu   HERE

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After oilsands divestments, Shell Canada refocuses on gas, chemicals and renewables
By Geoffery Morgan June 6, 2017 Financial Post

"CALGARY – Shell Canada Ltd. will soon announce a project to turn vegetable products into diesel fuel in Alberta, as part of the company’s transition to produce less oil and more energy from natural gas, renewables and chemicals.

This follows Shell’s massive US$7.25-billion divestment of its oilsands assets, announced March 9. The company still plans to build an LNG terminal in British Colombia, but no timeline has been set."
 HERE


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 Natural gas production boom has pipeline demand exceeding supply
 By Geoffery Morgan June 14, 2017 Financial Post

"TransCanada Corp. announced Wednesday that natural gas producers had bid for more space on a new $2-billion expansion of its Nova pipeline system than was available.

“We had more people in the queue than ultimately signed contracts,” TransCanada president, Canada and Mexico natural gas and energy Karl Johannson said.

Johannson said natural gas production from the prolific Montney, Duvernay and Deep Basin formations is surging and gas reserves in those formations has grown to the point that, “I think people have stopped counting.”

The expansion project will allow gas producers in northwestern Alberta and northeastern B.C. to move an additional 2.6 billion cubic feet of gas per day out of the field and into pricing hubs. It will also allow producers to send 400 million cf/d to markets in California, Nevada and the Pacific Northwest. gas production boom has pipeline demand exceeding supply" 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.

“Brevity and consciousness are parents of correction.” -Hosea Ballou

Warm Regards,

Todd and Danielle Millar

June 2017: Top Cities to Buy Property in Canada - by James Cummingss

It is easy to see why property owners, Investors, developers are cautiously optimistic about the Canadian real estate market right now. While some parts of the country face certain unique challenges, the Vancouver and Toronto markets continue to experience an increased demand brought by lack of supply.

Although this has raised prices, and led to affordability concerns, the underlying message is that markets in each region present valuable opportunities for smart investors and developers. That is provided they embrace technology and correctly predict the needs of future buyers.

An economic viewpoint

Canada’s economic performance seems to have bounced back from a weak stint since 2015. The country’s economy continues to readjust itself in the wake of declining oil and other commodity prices. According to Conference Board of Canada’s Metropolitan Outlook 1 Spring 2016, the country’s GDP is expected to increase by 2.3% in 2017 and stay above 2% till 2021.

As Richard Morrison of Turbo Tap says, “While there are regional differences in the outlook for various types of property, developers, property-owners and investors are optimistic about the coming months.”

The following are some top places to buy:

Edmonton

Most people who’ve only read or heard about Edmonton think the city’s main attraction is the big West Ed Mall, but those who’d been or lived there will tell you there’s so much more from the “the blue collar city.”

Much of the wealth of Edmonton --- considered Alberta’s cultural, administrative and educational hub (the city is home to the University of Alberta (UofA)) --- owes to the trades people who work in the oil sands.

Edmonton is famously nicknamed “Canada’s Festival City,” largely because of its vast number of carnivals and thriving art scene with 82nd Avenue (around Whyte Avenue) the main hub.

People who’ve made a home or work in the city know that access to Anthony Henday Drive is the key to a good quality life, as the ring road links easily to all corners of this fast emerging Albertan city.

A lot has however changed in the last 15 years, since construction on this road first started as neighbouring communities to the Henday Drive, such as Montrose and Newton, continue to see rapid growths and expansions. Developers are refocusing attention to these city corridors but buyers could still get an older bungalow for about $275,000.

Guelph  (Ontario)

Guelph has established itself on top of the list as the city with the most attractive opportunities for real estate investors in Canada according to Moneysense’s 2017 “Buy Now” ranking. This means it has knocked Thunder Bay from its 2-year stay on that pedestal (now down to 4th position).

Over the past few weeks, government experts, economists and bank CEOs have expressed some concern about the ongoings in the property sector. In a recent report, it was revealed that the price of homes in Toronto had risen by 33%. The city’s housing market shows no signs of cooling as the price of a standard detached home in the city soared from C$1.6 Million to C$2 Million.

No market is totally devoid of issues, but some are in a better position to buffer a market downturn. One such place is Guelph.

At the moment, homes in Guelph cost C$441,000, which is about 4 times the average household income. In comparison to markets like Saint John, Moncton or Thunder Bay, this city in Southwest Ontario is not exactly cheap, but when compared to Toronto, it can be regarded as affordable.





Durham (Ontario)

In spite of the predicted drop in some sales activity, Ontario’s housing markets won’t see price declines anytime soon. This is especially true for properties in the Greater Toronto Area and in the larger Ontario region called the Golden Horseshoe. This is mainly as a result of a persistent lack of supply of housing stock, especially for low-density, single-household detached homes.

The lack of supply indicates that sellers are sitting comfortably in a heated seller’s market. Figures are measured by the months of inventory ratio. The common rule is that an inventory ratio under four months (120 days) is strong seller terrain.

The lack of inventory has affected the price of housing in the last 12 months. As a result, property owners or investors looking to sell a home in Durham and surrounding areas can expect strong demand. The average price of a home in Durham is C$527, 285, which is nearly 5 times the average household income. The 5-year annual ROI average is 10.9%.



Burnaby and Burquitlam (Vancouver)  

According to MLA Advisory, a property intelligence group, an estimated 4,500 new presale condominium units will be launched in Metro Vancouver between April and June. Almost half of the new condos will be located in Burnaby and Burquitlam. According to MLA, these areas will be the busiest for concrete condo sales in Western Canada, 2017.

If you are in the market for presale condos, these areas should pique your interest. Downtown Vancouver also shows promise as a top buy location this quarter with the forthcoming 1,000 luxury units to be unveiled later this year.

Real estate properties are also selling out fast in this area. For example, Wexley and Belmont at Heritage are said to be quick approaching sell out. It is estimated that more than 35 new high-rise buildings will be launched this year in Metro Vancouver, as well as 10,700 new concrete units.

Economic growth

According to PWC, Vancouver is expected to top all cities in Canada with a GDP growth of 3.3%, driven by strong gains in employment and housing statistics. It isn’t known yet how British Columbia government’s increased property tax for foreign investors will impact the Vancouver market in the long term.

Millennials are also driving up the city’s rental market. They are looking for new, better-quality units near good facilities and close to public transit.

Following closely behind Vancouver in terms of top growth is Saskatoon, with a forecasted 3% GDP.

By James Cummings