Edmonton Real Estate Investor: 18 month economic forecast Alberta

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
www.glennsimoninc.com
email: info@glennsimoninc.com

August 3rd., 2017

Volume 23, Issue 03

Dear Friends and Partners,

The talk about the economy is starting to cheer up. But, there isn’t a lot of strong economic data to support it, at least not long-term anyway. We should feel optimistic with the increase in building contracts and public sector industry, but oil & gas is still taking a hiding. ‘Diversification’ is present and needs much time to grow and take root. ‘Cautiously optimistic is a good phrase’ for this summer. If you want a darker read (or perhaps a rant) go HERE

Our next newsletter will be October

Central NW Edmonton: Idylwyde, Conversion to 4 Unit - Cashflow

Turbo charge your portfolio. Low risk investment in a great area that is surrounded by terrific, sought after neighbourhoods. The intention is to turn this semi-suited, duplex, bungalow into 4 separate suites. Zoned RF 4 and with potential to build a revenue increasing garage, this is a great rental and long-term money maker. 10 minute drive to downtown 10 mins to U.oA. & Hospital.

This property will undergo many upgrades including mechanical, addition of suite and full interior upgrading. After renos will offer 2 X 3 & 2 X 2 bedroom units. Separate laundry in suite. 1971 built, large parking pad, zoned RF4 and wide front yard.

Terrific access to local amenities in sought after Idylwyde. Purchase price to include major renovation budget to add suites and improve exterior to make it standout - rolled into mortgage. This is a turn-key deal. Excellent access downtown and in this highly rentable mature neighbourhood.

Comes complete with great tenants making this a totally turn-key property for you. Idylwyde is a mature neighbourhood that is convenient for tenants working downtown or attending U.o.A. 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.

Purchase price: $629,000
Total Investment: $111,800
Your Estimated 5 Year Profit $79,958
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!

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Alberta is about to be Canada’s fastest growing economy again

By Greg Quinn & Catarina Saraiva, Bloomberg, July 28th., 2017

"Alberta’s economy is more than just back on its feet, it’s about to run faster than any other region in Canada.

Gross domestic product in the western province will rise by 2.9 percent this year, according to a Bloomberg survey of economists, up from an April estimate of 2.5 percent. That matches forecasts for neighboring British Columbia, and in 2018 Alberta comes out on top with a 2.4 percent expansion that would be tops among Canada’s 10 provinces." JUMP
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Albertans see wage increase; economist considers it encouraging sign

By Scott Johnston, Global News, July 27th., 2017

"The take-home pay of employed Albertans rose in May by 1.9 per cent. It marks what City of Edmonton chief economist John Rose considers another encouraging sign the region is now on the rebound after a recession.

Considering the numbers from Statistics Canada on the average weekly earnings, alongside improvements in employment, retail sales, wholesale activity and housing starts, Rose is cautiously optimistic." GRAB THIS ARTICLE

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Alberta economy rebounding, but deficit will remain: Conference Board of Canada

By Alyssa Julie, Global News, July 27th., 2017

"A new report suggests Alberta will have trouble getting back to a balanced budget despite an increase in oil royalties and corporate tax revenues.
The Conference Board of Canada forecast in its fiscal snapshot that Alberta’s economy would grow by more than three per cent this year and 2.3 per cent in 2018. But it said economic growth would not reach pre-recession levels." FOLLOW THIS STORY

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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.

“I feel extremely lucky, extremely grateful, and a little bittersweet, too.” -Wentworth Miller

Warm Regards,

Todd and Danielle Millar

Well one good thing in Alberta is we are having a beautiful winter. Maybe there is a direct correlation between low oil and higher temperatures. Every one of us here would go down to -40C for an equal hike in oil prices.

Dropping oil prices aren't over yet nor is there any clear indication of when they will rally.

"A growing number of grim forecasts are calling for even that demolished price to fall further. Last fall Goldman Sachs warned oil could hit US$25 as crude storage tanks reached capacity. In December a report from the International Monetary Fund argued new oil flowing from Iran could push prices even lower. This week analysts at Morgan Stanley made the case for US$20 oil based on the strengthening value of the U.S. dollar, which tends to push commodity prices lower." JUMP

Some say that China's economic slump will keep the price of oil low for a long long time.

"They say you don’t know what you have until it’s gone. For Canada’s oil patch, China’s growing demand for oil always seemed like a permanent fixture – an everlasting thirst that would never run dry. Chinese oil consumption skyrocketed after the turn of the millennium, from an average of under 4.4 million barrels per day (bpd) in 2000 to just under 11 million bpd 15 years later. A massive infrastructure buildout in the country was fueling a bonanza, and in April 2014 China surpassed the U.S. as the world’s largest net importer of oil." Read More

And our current political situation hasn't helped with stability.

“Heightened environmental concerns, a lack of pipeline access to new markets and the unknown impact of the victory by the New Democratic Party in Alberta’s elections last year are causing companies to slow development,” IEA HERE

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
www.glennsimoninc.com email: info@glennsimoninc.com

June 2nd., 2015
Volume 18, Issue 9

Dear Friends and Partners,

Despite the turmoil, change and a sluggish economy, there are many new commercial buildings being proposed downtown. If oil can keep above $60 bbl and climb further, the growth of the downtown core should continue.

There is concern that non-government backed buildings will be shelved if the economy falters for a prolonged period. Currently though, developers are taking an optimistic approach with two new high-rise developments tabled this week.

In addition to those, check out the proposed $100M expansion to Gilead's pharmaceutical campus (below) and the new jobs it will create. Despite a rocky outlook for the next 18+ months, the underpinnings of the economy remain relatively stable and present good opportunity for the longterm investor.

South Central Edmonton: Strathcona 3-Unit Cashflow

Turbo charge your portfolio. This Capital Housing approved 3-unit, 1950 built, RA-4 zoned property is located half block from park in Old Strathcona.

Walking distance to U.O.A, Mill Creek Ravine, shopping, clinics school, 5 minutes from downtown and Whyte ave.

This property has separate entrances to each suite; 2 X 2 bd and 1X 1bd plus parking for six cars. It was purpose built and is in fair condition. It is rare to find a triplex in this area at this price point.

Has some upgrades; windows, HWT, electrical and main sewer. Investment capital includes $25K budget slated for further renovations to modernize, improve value, aesthetics and rent-ability.

This is a turn-key deal with excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Strathcona is a trendy, sought after neighbourhood that is a desirable for tenants working in the city or attending UOA. HUGE upside potential due to the RA-4 zoning of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $485,000
Total Investment: $111,755
Your Estimated 5 Year Profit $60,849
Your pre-tax Total ROI is 55% or 11% per year

These 3 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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Alberta’s uncertain economy and stalling housing market seen boosting demand for rentals

By Robert Tuttle and Katia Dmitrieva, Bloomburg News, May 19th, 2015

Kurt Kerschner, a 46-year-old electrical engineer from Austria, was ready to buy his first home after moving to Calgary with his family in the fall.

With the housing market in oil-rich Alberta at a standstill after the crude price crash, he’s now considering staying in the apartment he rents, concerned he may be stuck with a house he can’t sell should work dry up.

“Initially, we planned to buy but now we are not sure,” he said in a May 14 phone interview. “If you sell the property, maybe you can’t sell it immediately.”

Rising demand for rental housing is good news for Boardwalk Real Estate Investment Trust and Mainstreet Equity Corp., two of the western Canadian province’s largest apartment building owners. READ MORE HERE

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Lamphier: Stantec CEO sounds optimistic note on new government, economy

By Gary Lamphier, Edmonton Journal, May 21st, 2015

EDMONTON - Stantec chief Bob Gomes has seen it all since he assumed the top job at the Edmonton-based engineering consulting firm six years ago.

From the Great Recession of 2008-09 to the abrupt crash in oil prices over the past few months to the decimation of Alberta’s 44-year-old Progressive Conservative dynasty, there have been fireworks galore.

Through it all, Gomes has guided the acquisition-driven company and its 15,000 employees to steady growth, relentlessly expanding its range of services, its geographic footprint and its revenues.

Today, Stantec operates in all of Canada’s provinces and territories, dozens of U.S. states, and several far-flung foreign markets, from Great Britain to the Middle East to India. GRAB THIS STORY
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Lamphier: Gilead announces $100-million manufacturing plant
U.S. biotech giant on local expansion drive

By Gary Lamphier, Edmonton Journal, May 28th, 2015

EDMONTON - Gilead Sciences doesn’t have the power to cure what ails Alberta’s struggling energy-fuelled economy, but it’s doing its best to ease the symptoms.

In the process, the Foster City, Calif.-based biopharmaceutical giant is giving Edmonton’s biotech sector a badly needed shot in the arm while creating hundreds of new, high-paying local jobs.

Gilead is already in the midst of a multi-year, $100-million expansion at its 21-acre campus in northeast Edmonton, where it officially unveiled the first of two new laboratory buildings Wednesday.

Now it plans to double that commitment by building a new $100-million drug manufacturing facility nearby. FOLLOW THIS ARTICLE

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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.

“Innovation distinguishes between a leader and a follower" - Steve Jobs

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

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.