Edmonton Real Estate Investor: Alberta oilsands real estate

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

September 15th., 2014
Volume 17, Issue 4

Dear Friends and Partners,

Summer sure came to halt here in Edmonton, Calgary even more so. 'What happened?’ asked all my cucumbers, withered and frozen on the vine. Despite a JOLT of winter the summer has been great - I hope yours has too.

We’re starting to see more Single Family Residential properties coming on the market and even a mortgage rate decrease. On Tuesday BMO listed a 5 year fixed rate of 2.99% to take advantage of fall home shoppers. The few points off won’t make too much of a difference to your cash flow, but will spur would-be home buyers to get active in the market after a lazy summer.

One of the best strategies for home owners to take advantage of low rates is to increase their payments as if their rates were higher. They can pay down equity faster or save the extra cash and apply it towards a down-payment on a rental. Edmonton's multi-family inventory remains tight. There is a small handful of decent properties out there, however the price point tends to be higher than what an investor needs to make it work. With that said, we continue to work with unlisted properties and pocket listings to make deals happen. You have a good window ahead for Q4/Q1 to add quality revenue property to your portfolio - take advantage of it!

Below are a few fairly stock snippets from an article on the upside of property investing and the hard work associated with it - believe me, there is a lot more of both!

"Ms. Jansson is in good company. Thousands of Canadians rely on residential income properties, whether close to home or abroad, to help them feather their financial nests.”

“It’s like any business that you want to enter. It’s all about time, money and expertise. If you don’t have the time, you at least have to have the expertise and you have to have the money to make it fly,” says Phil McDowell, a mortgage broker in Calgary.” Read the whole article here

Central Edmonton: Inglewood 4-Unit Cashflow (Purchase Plus Improvement Deal)

Turbo charge your portfolio. This 1950 built Raised-Bungalow-Style 4-Plex is located in the heart of Inglewood, minutes from trendy 124th and downtown. The airport revitalization project is sending ripples of improvement throughout this area. Easy access to the Yellowhead as well as many parks and schools to enjoy in this character -rich 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 RF3 duplex and is noted as having lower-level suites in the tax assessment. 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 1 x double detached garage . Excellent access to downtown, transit and St. Albert.

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 NAIT.

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.

Purchase price: $664,000K
Total Investment: $152,930K
Your Estimated 5 Year Profit: $86,096.28K
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!

=========================

Painting a picture with numbers, the story of Alberta

By Karyn Mulcahy, CTV Edmonton, August 21st., 2014

We’ve heard it time and time again, Alberta is a prosperous province with a booming economy, but how do we actually stack up, numbers wise? The Alberta Office of Statistics and Information has answers.

"Last year the population in our province jumped by 3.5%, which is triple the national average. More than four million people now call Alberta home. The average rent for a two bedroom apartment in the province sat at $1,190 in April of 2014, with the cheapest rent found in Medicine Hat ($739 a month), and the most expensive in Fort McMurray ($2.061). Workers earned the highest average weekly wages in the country ($1.108.01), 22% more than the national average, and the unemployment rate sat at only 4.6%, the second lowest in the country after Saskatchewan." FOLLOW THIS ARTICLE

===============

Arctic route for Alberta could trump stalled B.C. pipeline projects

By Justin Ling, Special to Financial Post, September 5th, 2014

Alberta’s plan to get its landlocked oil to overseas markets by way of Arctic shores might just become a reality — and sooner than the stalled Northern Gateway or Keystone XL projects.

The plan, until recently dismissed as dubious by some skeptics, may have finally found the right combination of winning conditions: a hunger for resource development in Yellowknife, a desperate need to find new markets for oil-sands bitumen, an aggressive push from the federal government to reduce environmental oversight in the territory, and the changing northern climate. GRAB THIS STORY

===============

Pembina Pipeline strikes Billion-dollar energy deals

By Bertrand Marotte, The Globe and Mail, September 2nd, 2014

Pembina Pipeline Corp. has struck a deal to build a West Coast propane export terminal in Portland, Oregon and is also tapping into the prolific North Dakota Bakken play with the acquisition of an ethane pipeline.
Calgary-based Pembina said on Tuesday it plans to develop a 37,000-barrel-per-day export facility in Portland’s port at a cost of about $500-million (U.S.). READ MORE HERE

===============
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.

“Show class, have pride, and display character. If you do, winning takes care of itself." - Paul Bryant

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.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start homestudy sets at a discount. Get your copy of the Canadian Success Stories book and the 2010-2014 Top Ten Investment Towns of Alberta and Ontario.

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 15th., 2014
Volume 16, Issue 2

Dear Friends and Partners,

Denny Morrison almost never falls. He could never remember falling in a race, and maybe only three times in more than a decade of training. But in late December, on his final lap of the 1,000-metre race at the Canadian Olympic trials, with the Olympics perhaps 50 metres away, the veteran speed skater clipped his right heel, and he fell.

He slid across the line late and failed to qualify. Morrison had hit low points before — he broke his leg while skiing in 2012 — but this time, he needed someone to pick him up.

If you’re not familiar with this story read it here.

Rarely do we see genuine teamwork in action unless we are personally involved with the team, the business or the group. I found Gilmore Junio’s decision to put his team and his teammate in front of his own personal goals so powerful and exciting; even ‘fresh’.

It's ironic to say that putting a team mate ahead of one’s self is a ‘fresh’ or new idea because it is in fact one of the oldest and most ingrained in true character. Maybe it is simply ‘refreshing’ to see it in action when the stakes are so high.

Let’s all take a page from Junio and a page from Morrison on what actions to model, victories to strive for. Well done!

North West Edmonton: Cash-flow: Suited Bungalow Reno Property in Glengarry

Turbo charge your portfolio. This semi-suited bungalow is located in the mature area of Glengarry. It is rough, ugly and bought for good value.

This 1962 built property has a front entrance for the upper unit and a rear entry for the lower suite. Our renovation team will fix this from top to bottom.

Renos to include all flooring, kitchens, bathrooms, fixtures, paint and much more. We use our special PPI strategy to wrap the repairs into the mortgage.

The suite is to be completed up to city code. 3 BD upper, 1 BD lower, en suite laundry and detached garage. Great access to 137 AV and 82nd st right to the Yellowhead and downtown.

Purchase price is $265K + $50K renovation package for a total of $315K - CF all day long and equity of approximately $20K.

Comes complete with great tenants making this a totally turn-key property for you. Convenient north west area with easy access to transit and downtown. Glengarry is a mature area with plenty of schools, park and amenities. Highly rent-able; solid value and increasing rents. 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: $315K
Total Investment: $75,341K.
Your Estimated 5 Year Profit $42,432.65K.
Your pre-tax Total ROI is 56% 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!
=========================

Alberta workers most confident in economy
Also most confident in Canada in finding new jobs

By Mario Toneguzzi, Calgary Herald, January 23rd, 2014

CALGARY - Alberta workers are the most confident in the country when it comes to the strength of the Canadian economy.

A new study, conducted by Ipsos-Reid on behalf of Randstad Canada and released Thursday, said 35 per cent of workers in Alberta were more positive this year than last year about the overall economy followed by 32 per cent in British Columbia.

The Randstad Canada Labour Trends Study 2014 found that 30 per cent of Canadians feel more confident about the economy heading into 2014 than last year.

Overall, 25 per cent of Canadians felt more confident in the job market this year than last year with 31.3 per cent of Albertans feeling that way.

“While 2013 may not stand out in anyone’s mind as a banner year for the Canadian job market or the economy overall, it is encouraging to see even cautious optimism from both employees and employers about this year’s prospects on both fronts,” said Tom Turpin, president of Randstad Canada, in a news release.
FOLLOW THIS ARTICLE

===============

Alberta’s Oilsands touted as giants of Canada’s economy
Calgary Chamber of Commerce not surprised by IHS report

By CBC News, February 13th, 2014

Alberta's oilsands contributed more to Canada's economy than the entire province of Saskatchewan, suggests a new study released Wednesday. According to Oilsands Economic Benefits: Today and in the Future, the oilsands contributed $91 billion of Canada's gross domestic product (GDP) and is the giant of Canada's economy.
"[Oilsands] production already represents a significant economic contribution to the Canadian economy, with annual expenditures already greater than the gross domestic product of half of the Canadian provinces," said Jackie Forrest, IHS's senior director in charge of the Oil Sands Dialogue project.

"Those contributions, in terms of jobs, economic growth and government revenues will continue to grow along with [oilsands] development."

The report suggests the oilsands will support more than 753,000 jobs by 2025.

That number is nearly double the current number of jobs supported by the fields, which hovers around 478,000, and would be equivalent to five per cent of Canada's total employment in 2012. READ MORE HERE

===============

Alberta Welfare Rate dips to lowest level since 1970s

By Jason Van Rassel, Calgary Herald, February 13th, 2014

The current welfare rate in Alberta is half that of Ontario’s and the lowest it has been since the 1970s, according to data compiled by University of Calgary researchers.
A study released Thursday documents overall welfare rate declines across the country — what it doesn’t do, however, is explain the trend.

“Is it a positive sign suggesting that the country has made significant strides in keeping people from needing to receive social assistance or is it a sign that public policies have simply made it too difficult for those deserving of support to receive it?,” wrote the authors, U of C School of Public Policy professors Ron Kneebone and Katherine White.
READ MORE HERE

===============

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.

“An ounce of performance is worth a pound of promises." - Mae West

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.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start homestudy sets at a discount. Get your copy of the Canadian Success Stories book and the 2010-2014 Top Ten Investment Towns of Alberta and Ontario.

Alberta Spends $2Billon for largest Carbon Capture Pipeline in the world -"Alberta will spend $2 billion over the next 15 years to push through with the largest pipeline system in the world to capture carbon dioxide. The green signal for the project was the recent signing of Letters of Intent with the Alberta government by Shell and TransAlta Corporation.

Once the two projects start in 2015, the yearly C02 reductions would be equivalent to tailpipe emissions of one million vehicles or removing off the road one-third of all the registered vehicles in Alberta."

That is an incredible reduction of Carbon emissions!

Alberta Productivity Lagging -"This is likely to be the first recovery led, not by North America or Europe, but by Asia, and it will be driven by energy and materials," said Leo de Bever, CEO of Alberta Investment Management Corp. (AIMCo).

"Alberta will be right in the middle of it, but we have to do something about productivity."

But Alberta is still in a better economic positiion due to it's lower projected deficit and $17 billion in a sustainability fund

Alberta housing market stilll affordable but costs are rising: RBC Economics -"Although home affordability has deteriorated, it still compares favourably to long-term averages," said Robert Hogue, senior economist at RBC. "Activity in the housing market has picked up considerably in the province since last winter, with prices now stabilizing or even gaining in some areas."

of the benchmark detached bungalow moved up to 34.4 per cent, the standard townhouse to 25.9 per cent, the standard condo to 22.4 per cent and the standard two-storey home to 37.9 per cent.

"The market recovery has been less pronounced in Alberta than in other regions of Canada, largely reflecting the particularly tough economic conditions in the province," noted Hogue. "Nonetheless, still-reasonable affordability levels and an expected economic recovery next year should boost housing demand in the period ahead."

In fact 35% affordability is very good other places, like B.C have seen figures in the 70% range.

Oilsands players hiring again but the economy isn't quite back in the game - "But while the new jobs indicate that activity in the oilsands is picking up, Sumner said he expects Alberta's labour market to remain volatile.

"It solidifies the fact that we know in the long run, these are viable projects and they're going to create a lot of jobs," he said.

"Does this mean that it's a sign the broader economy is turning around? I'm not sure you can quite say that."

Alberta's unemployment rate had jumped by 0.4% to 7.5% in October, an increase that had surprised many observers"

All eyes are looking to 2010 to be the year the economy rebounds, even with an unemployment rate of 7.5% Alberta was better off then most of Canada.

The days of oil rigs pumping furiously are coming to an end. Unconventional sources of oil require more manpower to get the oil out of the ground.

What does oil have to do with real estate?

Imagine if your investment property was near the next big oil reserve, workers from around the world were going there to live and work for the next few decades. Tenants were willing to pay top rents because the economy was booming and they were making oil dollars.

Alberta is that place, with vast oil sands that hold a proven 175 billion barrels of recoverable oil, second only to Saudi Arabia. The most impressive part is that Alberta has only just begun; experts say oil sands production can be sustained for at least 400 years.

"These are ambitious projects, very big projects, and thus very expensive," he said in a telephone interview from Calgary, Alberta -- Canada's oil capital.

"It's clear that cost is a problem," he conceded. "But it's also an important deposit -- several billion barrels of oil in the ground -- while more conventional sources of oil that would be relatively easier to extract are either drying up or are inaccessible to international firms such as Total."

"The price of energy is not going to collapse," despite downward pressure from a spiralling global economy, Gires predicts.

"To justify our massive investments in the oil sands, we're looking at what the world will look like in 2020, 2025 or 2030," he said.

"In the long run, despite all of the efforts to boost energy efficiency and develop alternative energy sources, the planet's appetite for energy ... will mean additional oil production will be welcomed and we'll find buyers for our output."

Think of the long-term, not an economy that in coming out of a recession but as the world starts to recover and the demand for oil increases - rents, property values will again increase. Maybe not like 2007 in Alberta but steady consistent growth that makes investors happy.

..is the oilsands.

Although oil prices may be low now and sure you can say they have "plummeted" from the earlier high of $140/barrel to $50/barrel. The oil companies are not fazed, long term views make day to day oil prices irrelevant.

The oil sands are one of the biggest capital investment projects in the world, averaging $20bn a year over the past few years, and with more than $100bn of projects planned for the next ten years.

"It is the economic engine of Alberta and of Canada," "At this time of global economic turmoil, the one shining economic light in this country is the oilsands," says Alberta's conservative Deputy Premier Ron Stevens.

Although global economic worries have caused the price of oil to fall, the oilsands are still very profitable with and incredible 300 to 400 year production life span.

In fact by slowing down production investors, like me, are given more time to purchase and sell investment real estate in this incredible region. Instead of planning to sell some of my portfolio between 2010 I can extend the date to 2012 or 2015, pay down my mortgages further and receive a bigger pay out at the end.

Oilsands budget for 2009

Well you are wrong! According to this video apple prices have increased more than oil and we (Americans) paid more for oil 25 years ago than they do today! I haven't watched t.v for a while is this guy the new Andy Rooney? Anyway good to know it just seems like gas prices are up.

This article is geared to stocks and day trading but I think it applies to real estate as well.

"The pros talk about nervous, quick-on-the-trigger traders as the "weak hands" in the market. But the nervousness is really just human nature. It isn't easy to hold on to an investment that's down, even if it was up for several years. When the markets are roiling, many investors panic and sell. And that's exactly the wrong approach.

When the same professionals mention "strong hands," they are talking about investors with a longer time horizon. These savvy investors swoop in when everything is beaten down, acquiring shares at bargain prices. They ignore short declines and stick around to enjoy the above-average returns that will follow eventually." MSN Finance

In Alberta where investment is always spoken of in BILLIONS not MILLIONS - this year will stand out as the year we beat all manufacturing across Canada for the first time.

"That one small little area of Alberta is attracting more investment than every manufacturing industry across the country." Philip Cross, Statistics Canada economist

This money isn't invested "willy-nilly" with no idea of ROI - extensive research is done; every possibility factored including Royalty reviews, Kyoto accords and oil prices. It is long term thinking with an eye on the future.

So if all this investment is going into a tiny little area in Alberta there is going to be a boom on jobs, on retail sales and of course on housing.

That is why I can't think of a better place to buy investment property in Canada and possibly the world.

Alberta is one big sandy irritant, well at least that’s what Al Gore would have you believe. I’ve been hearing a lot from Mr. Gore recently about the oil sands and their role in contributing to global warming.

First and foremost I think we as Canadians care about the environment and have always taken the steps needed to protect our beautiful country. Secondly, in my opinion the off shoot of the economic world growth, especially in China and India, will ultimately help improve living conditions around the world and over time, better equip us as a global community to deal with climate changes as well as decrease global warming.

Alberta is an irritant, just not the kind Mr. Gore implies.

As a kid I remember going to Hawaii and on every street corner there were Hawaiians selling oysters from big icy barrels. They were something like 3 for $5, maybe more I can’t remember exactly. You had a chance to grab an oyster with a pearl in it. Every tourist bought them. Sure enough, every time, you got at least one with a pearl in it.

How did they do it? It was a surprise, I mean you weren’t guaranteed to find a pearl, but it was pretty likely.

Long ago, pearls were important financial assets, comparable in price to real estate, as thousands of oysters had to be searched for just one pearl. They were rare because they were created only by chance.

Natural pearls form in oysters living in the sea without human intervention. When any irritant or parasite enters inside an oyster or mollusk the process of natural coating begins. However, natural pearls are rarely found nowadays.

On the other hand cultured pearls are formed with human help when a nucleus is implanted inside the oyster. It takes about 2-5 years to form a complete pearl depending upon techniques, where it is grown and other natural conditions. The pearls grow best when in a favorable environment. They need to have: clean, fresh or salt water, correct temperature and years to coat the grit in them to sheen of perfection.

It’s ironic that the pearl is actually an irritant to the oyster that’s trying to expel it, but one that we look upon so favorably. The Alberta Oil Sands may be an irritant to some, but a rare and beautiful jewel to others.

And just like pearls that thrive in the right conditions, your real estate continues to grow and flourish into a fine treasure.

For the time being Al Gore may continue to think the oil sands an irritant to the environment, but it takes time to grow a pearl, just as it does to make changes that will improve the environment and well being of many.