Playing the Waiting Game

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

October 14th., 2015
Volume 19, Issue 6

Dear Friends and Partners,

As the warm weather stretches into October, so does the anticipation of the election. It feels like we’re holding our collective breath; for oil prices to stabilize, the Alberta budget to be announced (end of October) and the Federal leaders to be chosen.

A feeling of uncertainty leads us into Q4 and that is reflective in the housing markets (slower sales) and rental market (more vacancies). Hope for the best and plan for the worst is an ideal axiom to see you thru.

 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 rent-ability. 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!


These 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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Homes near new arenas and stadiums can expect bumps in real estate value

By Mario Toneguzzi, Calgary Herald, October 13th, 2015

The construction of new arenas and stadiums has a positive impact on real estate values for nearby homes, says a new report by the Real Estate Investment Network.
“A key highlight of the research findings is: Homes in neighbourhoods close to new stadium builds — or proposed stadium builds — on average, have premiums ranging between three per cent and 15 per cent, depending on the different types of housing, parking options available, and the distance from the stadium itself,” said Don Campbell, senior analyst with REIN.  GRAB THIS STORY

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Calgary, Edmonton forecast shows dramatic reversal in oil patch fortunes

By Gordon Isfeld, September 22nd., 2015

OTTAWA — The dramatic reversal of economic fortune in Alberta is most evident in its major cities, where a province-wide recession has already followed the global collapse of oil prices.
Both Calgary and Edmonton are expected to end 2015 with negative growth, as will the province as a whole, the Conference Board of Canada said in its forecasts for metropolitan economies, released Wednesday.

“After cruising at high speed over the last five years, Alberta’s economy has shifted into reverse gear this year,” the Ottawa-based think-tank said.  READ MORE HERE


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Alberta economy to contract more than expected this year

By Mario Toneguzzi, Calgary Herald, September 22nd., 2015 

Continued volatility in oil prices has “aggravated already challenging economic conditions” in Alberta, leading to a further forecast decline in the province’s economy, says RBC.
The bank’s latest provincial outlook says the Alberta economy is now expected to contract by 1.3 per cent in 2015 compared to its June forecast of a one per cent drop. A return to positive territory is expected in 2016 with 0.6 per cent growth in real gross domestic product, it said.

“A renewed downturn in crude oil prices is intensifying the pressures facing the hard-hit energy sector in 2015,” Craig Wright, senior vice-president and chief economist with RBC, said in a statement. “Prospects for a relatively short bout of contraction were further dampened with drought conditions, wildfires and disruptions to crude oil production exacerbating the economic downturn.”  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.

“It's a recession when your neighbor loses his job; it's a depression when you lose yours."  - Harry S Truman

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.

July This and That

If you haven't been downtown Edmonton in a while you should take a look. We counted more than 5 cranes working in the downtown core. The changes are exhilarating albeit frustrating for driving.

The most spectacular is the new arena and the Ice District - here is an amusing video from Edmonton Journal about the name "Ice District" not quite sure about the Romulan comparison.

If you think were you live is bad take a look at this JUMP (If your place is worse you need to move)

Oil prices are falling and the NDP aren't going to make any Rae like mistakes in Alberta. 

Alberta Economy Fair or Fear?

I see both sides. Of course I want employees to make a livable wage. It can only be good for the economy right? But what if the minimum wage increases 47% in 3 years. Seems a bit of a burden for business owners. It looks like the increase will start October 1, 2015 at $1.00.


"It’s madness to believe that putting such a burden on businesses and non-profits won’t have an impact. Economists normally argue that minimum-wage increases don’t cause a rise in unemployment, because most minimum-wage earners (52 per cent of them in Alberta) are young people working part-time in service industries and going to school. No one else wants the work, especially in strong economies. Service industries, such as the fast-food business, just keep hiring and pass the expense on to customers." Read more

Here is the argument for a $15 minimum wage. I enjoy the comments below. Especially this:

"Exactly. I too am a business owner. I pay entry level 12 dollars per hour now and their supervisor draws 17 per hour. If I have to give me entry level people 15 then I have to give the supervisor 20 or 22. And up it goes, add to that CPP, EI, etc. etc........"

Hopefully this means less defaults on rentals. 

Where did Chinese investment go? Read more

Is Capital Expenditure leaving Alberta? Jump

Growing our city center

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.

Wealth Creation

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


April 14th., 2015
Volume 18, Issue 7

Dear Friends and Partners,

From time to time I post a thought from Steve Chandler’s Wealth Warrior group that I belong to.

Here is another about collaboration with your partners and yourself;

"If you're doing business with partners, you'll want to meet often on the central issue of wealth creation. Most people never meet on that subject. They meet about problems. Soon they become a group of problem-analyzers, instead of a group of wealth-creators.

Have this be the subject of a meeting:  

How does this adventure of ours expand, succeed, and get more creative? 

 And if you are in business alone, as so many people are today, don't forget your meetings!  Meet with yourself for the very same objectives that a team would meet for. Let your conscious mind and your subconscious mind get to know each other. Let the left side of the brain shake hands with the right. Harmonious convergence leads to wealth."  Sign up for his newsletter here

West Edmonton: Jasper Park Legal 4-Unit Cash-flow 

 

Turbo charge your portfolio. This legal 4-unit, 1962 built, RA-7 zoned property is located directly across from school and park in Jasper Park. Near Telus World of Science, Edmonton Zoo, NAIT, Hospital and fast access to downtown and on either the Yellowhead or Whitemud. This property has front entrances to the 4 X1 BD and a parking pad for six cars.

This property was purpose built and is in good condition. It is rare to find a legal 4-pled for this price. Investment capital includes $15K budget slated for further renovations to modernize and improve value and rent-ability. All suites have own laundry. This is a turn-key deal. Excellent access to downtown, transit and parks.

This property comes complete with great tenants making this a totally turn-key property for you. Jasper Place is a mature area that is a desirable for tenants working in the city or attending NAITS west-side campus. HUGE upside potential due to the RA-7 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: $449,000
Total Investment: $108,500
Your Estimated 5 Year Profit $60,697
Your pre-tax Total ROI is 56% or 11% 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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There might be light at the bottom of the barrel

By Myke Thomas, Calgary Sun, April 4th, 2015

 Here’s what you do know: The low price of oil has taken Alberta’s roller-coaster economy on a downward spiral.
What you may not know is how did we get here and what happens going forward.

For some answers, here’s Todd Hirsch, chief economist at ATB Financial.

“The story of how we got here has been told repeatedly,” says Hirsch.

“The problem in 2014 and 2015 has been far too much global supply. OPEC has just finally said, ‘We’re not going to be the guardians of high prices anymore, we are no longer going to curtail our production in an attempt to keep oil prices high. We’re just going to turn on the spigots and produce as much as we can,’ and that of course has resulted in a global glut of oil accompanied with some weak demand globally.”  FOLLOW THIS ARTICLE

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The biggest threat to our economy is fear

By Myke Thomas, The Calgary Sun, March 28th, 2015

Do not feed the fears — that was the bottom line message on Alberta’s economy, delivered by ATB economist Todd Hirsch to a gathering of residential construction executives last week.
“I think that when we’re dealing with an economy that’s moving into a rough patch, sometimes we are in danger of falling into this ‘already-living-in-a-recession mentality’ when a recession isn’t even a foregone conclusion,” said Hirsch.

“Some of us are already living in the worst of times, the worst-case scenarios that can possibly happen and very quickly that builds into our mentality and does nothing positive in terms of moving the economy forward.”  READ MORE HERE


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Westjet Airlines says passenger demeaned growing despite Alberta’s sluggish economy

By Ross Marowits, Financial Post, April 6th, 2015

WestJet Airlines said Monday passenger demand keeps growing even as concerns mount about the impact on the Calgary-based carrier due to a sluggish Alberta economy following the recent collapse in oil prices. 
The airline said passenger traffic increased 1.5% in March from a year ago, as a record 1.7 million people flew on the Calgary-based airline and its regional subsidiary WestJet Encore.

However, WestJet’s capacity grew 4.8%, causing its load factor — or the amount of seats that are used — to fall by 2.7 points to 81.3%, from 84% in March 2014.   READ MORE 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.

“Whenever you find yourself on the side of majority, it is time to pause and reflect."  - Mark Twain

Warm Regards,

Todd and Danielle Millar

Invest in You

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


April 1st., 2015
Volume 18, Issue 6

Dear Friends and Partners,

I always find spring inspirational. Yeah, sure, maybe it is the seeds sprouting, warmer weather or the determined bits of green fighting through the slush. Whatever it is, it prompts me to redefine, renew and improve. I like to go through my systems and protocols to see what is working, what’s not and what can be improved upon. Constant learning is essential as is setting ‘fresh eyes’ upon your daily actions.

Whether you like Louis C.K.’s brand of humour or not, you can hear is honesty and frustration coming through in the jokes. But, forget him as a comedian for a second and read this article about what he did and the uncomfortable choices he made without certainty - that got him where he is today; that is a great story. It’s a spring story too. 

"Louis CK turned down $500,000 a year from Conan in the early 90s so he could go broke instead. Conan wanted to hire him as head writer of his show.  Every step of the way in the 20 years since he put a challenge in  front of himself that seemed impossible and it was until he passed it.  Now he’s the best comedian ever. One can argue with that but one can argue about anything.  He was offered the job of head writer at one of the hottest comedy shows in the world. He would’ve grown from that and be set for life." Read more here

West Edmonton: Jasper Park Legal 4-Unit Cash-flow

Turbo charge your portfolio. This legal 4-unit, 1962 built, RA-7 zoned property is located directly across from school and park in Jasper Park. Near Telus World of Science, Edmonton Zoo, NAIT, Hospital and fast access to downtown and on either the Yellowhead or Whitemud. This property has front entrances to the 4 X1 BD and a parking pad for six cars.

This property was purpose built and is in good condition. It is rare to find a legal 4-pled for this price. Investment capital includes $15K budget slated for further renovations to modernize and improve value and rent-ability. All suites have own laundry. This is a turn-key deal. Excellent access to downtown, transit and parks.

This property comes complete with great tenants making this a totally turn-key property for you. Jasper Place is a mature area that is a desirable for tenants working in the city or attending NAITS west-side campus. HUGE upside potential due to the RA-7 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: $449K
Total Investment: $108,500K
Your Estimated 5 Year Profit $60,697K.
Your pre-tax Total ROI is 56% or 11% 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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What to do when Alberta’s housing boom turns to bust

By Gary Marr, Financial Post, March 23rd, 2015

The economic downturn in Alberta is nothing new to Ryan Griffiths. The technician who works for the Ford Motor Co. in Airdrie, just north of Calgary, gets paid piecemeal based on every job he does. When the economy started to slow in 2008, he had to figure out how to make ends meet.  “That’s the running joke around here: How did you get through it last time?” said Mr. Griffiths, 45.
The simple answer is: save enough money so you have a cushion when times are bad. Most planners suggest savings should cover  your living costs for three to six months. The worst answer is: to do what some people appear to be considering right now, panicking.  FOLLOW THIS ARTICLE

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Under clouds of economic gloom, Alberta entrepreneurs defend turf

By Anwar Ali, The Globe and Mail, March 19th, 2015

In the face of negativity swirling around the economy, Albertan entrepreneurs are steadfastly defending their turf, albeit with a little dose of reality.
Economic predictions are getting worse as GDP growth steadily declines. The provincial government’s current 2015 growth forecast, 0.6 per cent, is well below the previous estimate. The Conference Board of Canada has even warned that Alberta may stagger into a recession this year, its ability to recover contingent on the oil industry.   READ MORE HERE

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Nearly half of Alberta consumers say economy remains strong

By Mario Toneguzzi, Calgary Herald, March 6th, 2015

The latest ATB Consumer Economic Pulse survey found that 47 per cent of Albertans in late February saw the province’s economy as strong despite the uncertain climate with lower oil prices.
That’s up by two percentage points from the previous survey in early February.

But their thoughts about the future economic outlook are not as positive.  READ MORE 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.

“Positive thinking will let you use the ability which you have, and that is awesome."  - Zig Ziglar

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.

More Good News

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


February 14th., 2015
Volume 18, Issue 3

Dear Friends and Partners,

Not all the news stories are bad. I met my friend early Monday morning and he looked really tired. He said that he’d been volunteering (1 of 3 shifts) for The World's Longest Hockey Game. He’d spent from 2:AM-6:AM score-keeping.

That meant standing on the cold balcony watching the game at the house of Dr. Brent Saik's of Saiker's Acres hockey rink who has been hosting the event. He said it's amazing to take part.

You can see more here  and donate here.  Keep the good news coming. 

 Central Edmonton: Inglewood 4-Unit Cashflow

Turbo charge your portfolio. This 1977 built Side X Side Duplex with fully finished basement suites is located a few blocks from the old municipal airport, which is to be redeveloped into an urban living/green space. Inglewood offers easy access to Downtown, Grant MacEwan and Yellowhead Highway as well as many parks and schools to enjoy in this desirable, mature neighbourhood.



This property has front entrances to each side of the 2 X 3BD halves.  This property was built as a duplex and features 2 x 1BD (non-conforming) basement suites. Slated to renovate and modernize to improve value and rent-ability. This will become a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending Grant MacEwan. HUGE upside potential due to the quality 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: $679,000
Total Investment: $158,900
Your Estimated 5 Year Profit $96,725
Your Estimated 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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Short-term slowdown predicted

By Myke Thomas , Calgary Sun, January 17th, 2015

The sudden and precipitous drop in the price of oil has put a huge question mark over the Calgary housing market in 2015 and Calgarians are looking for answers.
The economists have answered with their thoughts below.

Canada Mortgage and Housing Corporation

CMHC predicted a housing market slowdown in the fall, before oil prices plunged, with expectations for total housing starts to decline 16% and net migration to slow by 17%, with an increase of 2% in MLS sales this year over last.  FOLLOW THIS ARTICLE
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Analysis: Job figures show oil price drop hasn’t sunk employment
Employers watch numbers for impact of declining spending on oil exploration

By Don Pitis, CBC News, February 6th, 2015

Oil companies across Canada have been slashing their budgets. In previous months, those cuts have not showed up in Canadian unemployment numbers, but today's job numbers offer a new window on the state of the U.S. and Canadian economies.
The numbers were a surprise to the upside, with Canada's economy adding 35,000 jobs during the month — much better than the 5,000 jobs that economists had been expecting.

Jobless figures give unemployed people an update on their prospects for finding work, but labour force statistics do a lot more than that.   GRAB THIS STORY

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Keep building during downturn Consulting Engineers of Alberta urge

By David Howell , Edmonton Journal, February 5th, 2015

Alberta’s economic woes have prompted the Consulting Engineers of Alberta to ask members to hold their 2015 rates for consulting services at 2014 levels, as part of a wider effort to encourage continued spending on infrastructure.

In December, the association recommended a 3.3-per-cent increase to 2015 contracts. But after a vigorous debate this week, board members voted unanimously to ask all firms to hold the line, CEA president Matt Brassard said Thursday.  READ MORE 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.

“If you’re going through hell, keep going!"  - Winston Churchill

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 blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

Oil Woes

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

January 14th., 2015
Volume 18, Issue 1

Dear Friends and Partners,

2014 feels like a blur to me. The exception was where unforgettable memories were made; truly engaging conversations, planned adventures and the spontaneous ones that happened in between.

So, I have my business goals, my health goals, my financial goals and now I’m working on my ‘crazy fun and memorable goals’. It's just too hard to plan spontaneous. What about you? Do you have a list of FUN things to do in addition to the serious goals, have you found a way to make the serious goals fun? Share them in an email, post to our blog or a link to yours.

Did you notice the falling oil prices? Yeah, I meant that sarcastically.

It’s a peculiar shift to go back and read the news from a few months/years ago when oil prices were up. The general worry was how BAD the oil sands are and how we collectively ‘must' slow, correct, stop, monitor, penalize, cancel (to various degrees) oil production. As soon as oil starts to tank, the same reporters sing a song of woe about how the goose is dying, heck you’re in the kitchen sharpening the knives or at least across the road badmouthing how bad that goose is…

Nonetheless, we’ve seen a sharp downfall in crude prices. My take is that barring a series of major geopolitical events, such as what happened last week in Paris, economic downturn in U.S.A and/or China. We will see a rebound sometime later this year. Not to where it was, but hopefully over $60/b. The biggest factor is emotional, what will WE, the global community,  feel like in 2015? Scared, Rebellious, United? This will play a big role in where oil goes.

Softer housing prices for 2015 in areas that rely on oil and gas production is very likely. That can mean a good buying opportunity for long-term investors. Flatter prices will inevitably frustrate those that wish to sell. Looking at the current situation and economic fundamentals in Edmonton, AB, the housing market should remain stable - but no one can ever forecast 100% accuracy. Alberta, specifically Edmonton, remains the best spot in Canada to invest; however it goes without saying that risk is consistent everywhere.

Building a portfolio than can weather up and down cycles is key when buying.

Do some reading:
RBC’s well laid-out Housing Report PDF
CMHC’s report

South East Central Edmonton: King Edward Park 2-Unit Cash flow 

Turbo charge your portfolio. This 1969 built Side X Side Bungalow with fully finished basements is located a few blocks off Whyte Ave. in King Edward Park. Easy access to Downtown, UOA and Wayne Gretzky as well as many parks and schools to enjoy in this neighbourhood. This property has front entrances to each side of the 2 X 5BD halves.  This property was built as a legal duplex and has substantial renovations done throughout, finishing the basement with bedrooms and kitchenettes. No repairs are needed; this is a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and Mill Creek Ravine.

Comes complete with great tenants making this a totally turn-key property for you. King Edward Park is a great mature area that is a desirable for tenants working in the city or attending U.O.A.. HUGE upside potential due to the quality 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: $685K
Total Investment: $158,330K.
Your Estimated 5 Year Profit $88,418.56K.
Your pre-tax Total ROI is 55 % or 11% per year

These 2 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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Energy economist Peter Terzakian takes a bullish view on Alberta oil

By Gary Mason, Globe and Mail, December 25th., 2014

In your travels around the world, what do you hear most often about Canada?
“It’s cold in Canada, isn’t it?” is the universal conversation opener. Responding to the stereotype becomes annoying after countless meetings abroad, but I don’t mind when put in a global context. At least I don’t have to answer to questions about civil war, corruption, political instability or other domestic nastiness that is so prevalent in other countries. People see us as a very safe place with a lot of integrity. Yet from a business point of view, those who sit on the other side of the table view Canada as an unknown expanse. They always want to know about Canada in the context of the United States – a free-market point of reference they understand.  FOLLOW THIS ARTICLE

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Ewart: Oil price rout dominates energy sector

By Stephan Ewart, Calgary Herald, December 27th, 2014

"The chill of winter hasn’t saved Canada’s booming oil and gas industry from “a good sweating” as the year comes to an end.

The top story in the Canadian oil and gas industry in 2014 wasn’t even on the radar in mid-June when West Texas Intermediate crude was trading for more than $107 US a barrel. Then, with little warning, the price of oil plunged nearly 50 per cent in six months.

The far-reaching implications of the oil price decline — from spending in the oilpatch and the falling price of gasoline to the value of the dollar and the performance of the stock market — shows up repeatedly in my choices for Top 10 stories in the energy sector in Canada from the past year."   READ MORE HERE

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Calm before the storm in Alberta?

By Mario Toneguzzi, Calgary Herald, January 9th, 2015

Is this the calm before the storm for Alberta’s labour market?
One national economist was speculating that on Friday as Statistics Canada reported that both the Calgary region and Alberta saw employment growth in December while the rest of the country shed jobs.

In fact, Alberta’s 2.9 per cent hike in employment from a year ago was the best in the country.

Robert Kavcic, senior economist with BMO Capital Markets, said the employment situation is “likely to change in the coming months as the steep slide in oil triggers a wave of cost cutting across the energy sector.”

He said it will take some time for unemployment rates in Calgary and Edmonton to rise in response to the oil price shock.  READ MORE 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.

“Adversity causes some men to break; others to break records."  - William Arthur Ward

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 blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

Real Estate Goals - Clarify your targets

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


November 15th., 2014
Volume 17, Issue 8

Dear Friends and Partners,

Last month’s newsletter was immensely popular. Investors want to learn and understand how to use Real Estate cycles to their benefit. In that spirit, we’re re-posting a few of our earlier NuWire articles to help you define your target area, property and tenant profile. Coupled with real estate cycle knowledge, you can build a strong portfolio.

Reach Your Real Estate Goals with Filters that Clarify Your Targets
There are different strategies that you can apply to make money in good or bad markets, with short-term buys or longer ones. We follow a conservative style of investing or a ‘residential buy and hold strategy’ — nothing fancy here.

Real estate cycles and to a lesser degree, market timing, play roles in where and what type of property you’ll purchase. Once you have used those first filters, you can start using the other filters to analyze a potential area or property. The #1 constant filter is cash flow from day one.

Filters To Consider

1. Type of investment property and exit strategy: How long do you expect to be in the market, what exit strategies can you employ?

2. Financing options for this type of investment property: Is conventional financing possible - 50%, 35%, 20%, 5% down payment? Are their incentives such as grants or ‘purchase plus improvement’ strategies that you can leverage?

3. Your ROI target: After all expenses what is your minimum target return within your elected time frame? Is this realistic and achievable in the current market?

4. Management options: Who will look after your property? If it is you, what succession plan do you have in place to remove you from management when the time comes?

5. Is your system scalable: Can you create a template and duplicate success?


Exit:

Every time I consider adding a property to my portfolio I establish the type of deal and how/who I will eventually sell it on to. Some properties may be a short-term renovation/resale of 6 months. Others may be keepers that I don’t intend to sell for 20+ years. Is my exit buyer a fellow investor, a first time home buyer or a retiring couple?

Financing:

I very rarely want to use the smallest down payment possible. More often I look to buy properties that stress-test (a system we use to run interest rate hikes and rent drops to test the property’s breaking point; a shock test to determine the buffer we need to build in) with a LTV of 75%. Instead of going too skinny into a property I will look for ways to add value (equity) by financing renovations or buying with an advantage like dividing a lot, adding a suite, garage or other source of income. Of course, buying under value is also good. That doesn’t mean that I use all my time chasing distressed properties or desperate sellers.

ROI:

I run my properties through various filters and stress-tests (as above). Income after all expenses equals Net Positive Cash Flow (NPCF).  I factor in the expenses below, but remember you may have additional expenses that you need to add too. There are property specific costs such as mortgage, tax, insurance, condo fees, property management, vacancy, repairs, advertising, bookkeeping, yard care and tenant incentives. When I do up a pro-forma I look at my selling costs as well as what my return on equity and appreciation are. My main focus here is to establish my NPCF and determine if the overall ROI is inline with similar property metrics in my target area.

Property Management:

If you are self managing there will come a time when you want to hand the reins over to an experienced manager so factor these costs in. While you are self-managing you need to identify your cost be it time or money, because it will likely be both.

Scalable Systems:

First you need to establish your goal as a property investor. This may mean a dollar amount of NPCF, a lifestyle shift or creating generational wealth for your family. Refine your goal and the number of properties you need to reach it. Then look at capital, financing, time and energy needed to reach your goal – is it duplicable? Do you need to buy 3 single-family homes or 3 x100 units? Quite often you will find that you need less doors to reach your goal than you initially thought.

Remember that every plan grows and mutates. Along the way you’ll identify what works best for your skill set and in your area. You may tweak your plan to better compensate your lifestyle; grow with it.


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 Central Edmonton: Terrace Heights 4-Unit Cashflow (PPI Deal)

Turbo charge your portfolio.
This 1963 built Side X Side Bungalow with in-law suites is located of Wayne Gretzky Drive in Terrace Heights. Easy access to Downtown, UOA and the Yellowhead as well as many parks and schools to enjoy in this neighbourhood.


This property has front entrances to the 2 X 2BD main floor units and lower entrances for the 2X 1BD suites. This property was built as a duplex and will need renovations to operate the (non-conforming) in-law suites.

This is a purchase plus improvement deal, meaning that we wrap the ($25K) renovations into a new mortgage. Ensuite laundry to be added. Property has parking pad. Excellent access to downtown, transit and Sherwood Park.

Comes complete with great tenants making this a totally turn-key property for you. Terrace Heights is a great mature area that is a desirable for tenants working in the city or attending U.O.A..

HUGE upside potential due to the quality 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 factors in renovations. P.P. of $575K + $25K renovations = $595K.

Purchase price: $595,000K
Total Investment: $139,000K.
Your Estimated 5 Year Profit $94,475K.
Your pre-tax Total ROI is 68% or 13.6% 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!


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Bumpy economic ride causes panic

By Gary Lamphier, Edmonton Journal, October 15th., 2014
EDMONTON - Yes, oil prices have tanked, and stock markets have sunk too. The last month has been a real bummer, man.

Unless you live under a rock, you know this. No need to alarm our fellow townsfolk by using words like “collapse” to hype the news.

No doubt, it has been a miserable few weeks. Corrections happen, and this one is well on its merry way, leaving pain and angst in its path.

As of Wednesday’s close, oil prices were 23 per cent below their June high. Toronto’s main equity index was off 11.5 per cent, and the key U.S. indexes had shed between 6.9 per cent and 8.5 per cent.

Why? Pick your poison, peeps. The reasons are many, and varied. For starters, stocks were overvalued, and overdue for a pullback. Ditto for oil prices, which remained aloft despite growing global supply and softer demand in China and Europe. FOLLOW THIS ARTICLE

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Alberta economy to ‘soften’ in 2015, but experts say no crisis on the horizon

By Amanda Stephenson, Calgary Herald, November 13th, 2014
Calgary and Alberta may be in for a period of softer economic growth in 2015, but two top economists said Thursday there is no reason to be alarmed.

While sharply lower oil prices are expected to have an impact, the guest speakers at Calgary Economic Development’s 2015 Economic Outlook said by no means will they be a catastrophe for Alberta or Canada as a whole.

“Sometimes you want a little bit of a moderation — it helps to control costs for energy producers, it helps to rebalance the labour market,” said Todd Hirsch, chief economist for ATB Financial. “I’m not expecting anything in 2015 that anyone could call a bust — just a slight pullback, a bit of a moderation.”  GRAB THIS STORY

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Yedlin: Keep your eyes on Q4 results in Alberta’s energy sector

By Deborah Yedlin, The Calgary Herald, November 1st, 2014

For anyone who doesn't yet understand the importance of the energy sector to Canada's economy, Friday's Gross Domestic Product numbers were opportunity to reassess that view.
The country's economy grew at a rate of 0.1 per cent in August, with the fall-o in oil and gas activity being one of the key culprits. That GDP number supports an annual growth rate of two per cent.

While some of that decline is attributable to both planned and unplanned maintenance activity from August, the fact there was also a 4.3 per cent drop in oil and gas service sector activity suggests something bigger is going on. And that's before the oil price really tanked.  READ MORE 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.

“Learn to say ‘no' to the good so you can say ‘yes’ to the best."  - John C. Maxwell

Warm Regards,

Todd and Danielle Millar



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.

“Do your own thing on your own terms and get what you came here for."  - Oliver James

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 blog at Edmonton Real Estate Investor for all your cutting edge market news and information.