Edmonton Real Estate Investor: alberta economy

Yedlin: Pipeline approvals put Canada's energy future in much clearer focus -

"Trudeau’s approvals of Kinder Morgan’s Trans Mountain expansion and Enbridge’s Line 3 project — to triple volumes shipped on both pipelines — is a clear sign Canada has found a way to balance the importance of resource-driven economic growth and environmental stewardship.

And while this could yet prove to be a difficult process and there are valid questions about how the prime minister will stand up to the inevitable backlash and court challenges, it’s a long overdue first step." Read More Here

Ottawa approves two pipelines, rejects one while imposing tanker ban on northern B.C. coast
“Canada is a country rich in energy of all kinds,” Trudeau said in approving two export pipelines and rejecting a third. “There isn’t a country in the world that would find billions of barrels of oil and leave it in the ground while there’s still a market for it.” Jump Here

This is just weird and wrong 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

February 13th., 2016
Volume 20, Issue 3

Dear Friends and Partners,

For the last few years we’ve seen a bit of a boom in RTO (Rent To Own) investments in Edmonton. There are a few ways to do them. You can bring in an investment partner and with full-disclosure they are perfectly legal. RTO, like many investment strategies, have risks and require their own set of due-diligence questions to go through.

Another investment that isn’t new, but has been popping up quite a bit is flipping and skip transfers (similar versions; wraps, sandwich leases).

Many of these strategies have been around for a long while. There are legal ways to do them and illegal ways to do them. With our market slowing considerably in Edmonton, you won’t find as many people employing this strategy; rather you will see people modifying it to entice a sale for a seller that wants rid of his property. Similar to shorting a stock.

Where you typically see flipping is in hot markets like Vancouver and Toronto. Peter Kinch clarifies what a skip-transfer is in this short video. Watch it here.

Downtown Edmonton: Oliver 9-Unit Apartment

Turbo charge your portfolio. Great, 9-unit apartment, minutes from Ice District; a winner to add to any portfolio. 1972 built, meticulously maintained. Terrific access to local amenities in trendy Oliver.

Mechanical, roof and 6 units all upgraded. This property has a great suite mix; 6 X 2 bd and and 3 X studios, all parking stalls are energized and separately metered.

This property has a tried and true layout and is built to last. Purchase price includes reserve fund and estimated $30K in renos to make the property shine! This is a turn-key deal. Excellent access downtown and in the highly rent-able and desirable neighbourhood of Oliver. CAP rate of 6% and 5% C.O.C. return.

Comes complete with great tenants making this a totally turn-key property for you. Oliver is a mature neighbourhood that is desirable for tenants working in the downtown and attending NAIT. 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: $1.05M
Total Investment: $387K.
Your Estimated 5 Year Profit $151,968.
Your pre-tax Total ROI is 40% or 8% per year

These 9 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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Trudeau and Notely talk pipelines and slumping prices with oilpatch

By James Wood, Calgary Herald, February 4th, 2016

Justin Trudeau’s pledges of help were met with guarded optimism in the heart of the oilpatch Thursday, even as the prime minister made no concrete promises around pipeline proposals.
As Trudeau and Premier Rachel Notley hosted a round table meeting in his first visit to Calgary since becoming prime minister, he told a group of top energy executives the government wanted to hear ways Ottawa “can be a better partner in helping you through this difficult time.”

When he spoke to reporters later after touring the downtown YWCA, Trudeau said he believes the battered energy sector is open to a different approach from the federal government. FOLLOW THIS ARTICLE
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Jingle mail rears its ugly head in Alberta again
Federal government worried about Albertans making strategic defaults on their mortgages

By Tracy Johnson, CBC News, February 8th, 2016

One of the big bads from the 1980s is starting to emerge again in Alberta.
Jingle mail — the act of walking away from an underwater mortgage by mailing your keys back to the bank — is a peculiarity of the Alberta residential market and an act of desperation. However, a combination of high debt and lost jobs make it an option in a province going through a significant economic reckoning.

It's enough of a concern that the federal government is watching the Alberta market closely. Jingle mail, or strategic defaults, weaken the housing market and increase loan losses among Canada's banks. GRAB THIS STORY

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Edmonton real estate market gives reason for optimism

By Graham Hicks, Postmedia Network, February 11th, 2016

You have to forgive Realtors.

They are relentlessly optimistic.

The economy is dropping like a rock. A great time to buy!

The economy is sizzling red-hot. A great time to sell!

I was impressed with the reasonably objective research and conclusions of Edmonton Realtor (and ex-accountant) Kathy Schmidt, in her monthly The Schmidt Report.

The sky is not falling, she argues, not in Edmonton’s housing market.

It has crashed down in Fort McMurray, it’s falling in Calgary, but here, we’re just a little overcast.

Median house prices are down – about 3% — in most of Metropolitan Edmonton, a median price of about $340,000 compared to $350,000 at this time last year. 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.

“Accept the challenges so that you can feel the exhilaration of victory.” - George S. Patton

Warm Regards,

Todd and Danielle Millar

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!
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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

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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

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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

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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.

“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.

This week I've seen two separate articles about people from around the world coming to Alberta to find work. The first was about American vets applying in the thousands to get out here for high paying jobs.

“As far as I know, Alberta is facing a serious labour shortage and is in desperate need of skilled workers. People coming out of the military do have skills or are prepared to learn them, which is why their unemployment rate is two points below (the United States’) national average.....It’s not just oil and pipeline work up there. There’s all this construction and road work going on,....It’s incredible. Canada has a great economic engine right now.....As far as I’m concerned, it’s a win-win for everybody,” Ted Daywalt, president of the Atlanta-based companyVetJobs

The second was about recruiting from Ireland;

“We’re changing people’s lives by giving them an opportunity,”...A new job could mean the start of a new life. Canada needs skilled workers, and skilled Irish workers need jobs. It all comes full circle.” Linda West Actyl Group

I've had a few tenants from the UK. They emphasized the difference in quality of life and the opportunities we have in Alberta and probably Canada on the whole. Todd and I have been doing real estate comparisons and the cost of living is very different. Of course there is a lot to consider and straight comparisons are not entirely accurate.

Actually, on our recent trip to the UK and France we were asked a lot of questions about life in Canada and people had great interest in living here. In France one airport official literally chased us down the tarmac so he could write "Edmonton" down so as to not forget the city name. We should seriously be Ambassadors for Alberta!

"It's no mystery why the Alberta Progressive Conservative Party has remained in power for 40 years, even though The Journal's reporters and experts, celebrating the anniversary, do their best to make the obvious mysterious." Comment from Journal

I don't know why I'm surprised by the publication of these silly, narrow, generalizing rants - but I am. I suppose I mirror rants like these with my own...

People in politics and politics in general create, manage and grow an economy (all though many also leech and destroy one). It is a basic tenet to manage and grow a community; with infrastructure, business, economy as well as spirit. What kind of person patronizingly 'unveils the big mystery' about the big bad conservatives coming to rule in the land of plenty? Someone who remains ignorant of the system we use to ELECT our government I assume. Read More Here

When you read that Albertans are more entrepreneurial than other Canadians it's an understatement. The spirit of owning a building your own company is alive and apparent all around the city and province.

Whenever I leave my house I see truck after pick-up after half-ton pulling trailers with a variety of company names on them. All obviously small but making it in a slew of very specialized fields.

It's this spirit that keeps Alberta's economy leading the nation.

If you really want to know what's going on with the economy in Canada and aren't afraid of knowing the REAL facts not the hype then you must go to this event:

Real Estate Investment Network(TM) (REIN(TM)) will host the Canadian Economic Summit on June 26th in Edmonton. Some of Canada's top economists will be providing unbiased opinion and analysis on the fundamentals of the Canadian economy (locally and nationally) and its impact on the bottom line for investors and business owners. Among the speakers will be Mary MacGregor, Chief Economist for the Government of Alberta.

Other speakers include:

Carl Gomez, Bentall Capital's Vice President, Research.

Ron Gilbertson, President and CEO of Edmonton Economic Development Corporation

Todd Hirsch, Economist and Media Commentator

Peter Kinch, Author and Canadian mortgage expert

Don R. Campbell, Bestselling author & market analyst

"The market will no longer cover up mistakes and blind guesses. Actions and investments must be better planned, and better planning comes from knowledge," said Don Campbell, President of REIN. "These experts will provide unbiased analysis of where we are heading as a country and how that will affect you and your business."

Topics on the agenda include:

- Long-term effects of high unemployment rates, cancelled capital projects and economic stimulus packages

- Today's world economies, how long will the turbulence last

- Will lending environment continue to tighten

- Positioning your company and investments for recovery

- Assessing the real estate market - when should you invest

- Inflation? Deflation? Recession? Depression? What the economic fundamentals really tell us and the affect on businesses, labour markets, oil prices and retail sales

Complete information at

REIN ECONOMIC SUMMIT

WHEN & WHERE: June 26th at 7:00 PM

Shaw Conference Centre in Edmonton Alberta - Hall D

Contacts:
Real Estate Investment Network
Kelly Marvetz-Todd
604 856-2825
kelly@reincanada.com

Regardless of what is happening in the short term Alberta, specifically Edmonton and Calgary are the best places to keep your money for long-term returns.

"Cowtown is Wowtown but Edmonton isn't far behind, says a report released yesterday that gave Calgary a top-of-the-class grade on a global scorecard for overall economic prosperity.

Calgary was the lone metropolis in a survey of international commerce heavyweights to earn an A grade in the Calgary Economic Development-commissioned Conference Board of Canada report.

Edmonton was third. Dallas was sandwiched at second between Alberta's two major centres in the 23-city ranking.

Such results aren't surprising for Calgary, which accounts for 5% of national gross domestic product, despite a local economy cooled by the recession, said Cowtown Mayor Dave Bronconnier."

Local bankers see thaw in economy Alberta the place to be to 'ride out' recession - "I'd rather be here in Alberta than anywhere else in the world right now to ride out this recession," said Garth Warner, chief executive of Servus Credit Union

Alberta's jobless rate highest since 2002 - "Alberta gained 5,700 jobs in April but its unemployment rate still inched up to six per cent, according to figures released Friday by Statistics Canada. It’s the highest provincial rate since 2002.

The increase in unemployment from 5.8 per cent in March despite job growth was attributed to the labour force growing by 9,400 people."

He said much of Alberta's problem is that its residents see the bad news and cut back on spending.

"The key message is that we are in a great place, the economy is strong and the banking industry in Alberta is supporting the economy here."

Canada Real Estate Forecast - "The Canadian Real Estate Association (CREA) recently released its predictions for 2009-2010, and it expects Multiple Listing Service (MLS) sales to decline in 2009 before rebounding in 2010."

Green economy could create thousands of new jobs in Alberta: report - "We're starting to realize that in the long run, a healthy environment is essential for a healthy economy and that the economy can be put to work to improve the health of the environment."

A move toward creating more environmentally sustainable energy sources could provide jobs for electricians, computer and electrical engineers, iron and steel workers, welders, construction workers and sheet metal workers, the report says."

This Kind Of Reporting Stinks - Another fear mongering article. Talks about a couple who gave it all away to move to Alberta and wait... still have it. But what if they lost their jobs!!! Well it could happen but would they even have jobs in their own hometown? Cornwall wants them back but do they have the jobs to keep them? Continued next week.....

Vegas takes a gamble - Canadians are thinking of Vegas. Sure they are who isn't when it's still -30 outside and the wrong side of March. Sure some Canadians may be thinking of buying down south but it's a good way to get chauffeured around the city by a Realtor on your vacation. If Vegas if part of your long term goal and that property makes sense then buy it. But properties down there are a dime a dozen make sure none of those eggs are rotten.

Note to environmentalist read The Canadian Press - An environmentalist writes that the slowdown in the oil sands is a great time to re-evaluate greener policies before the oil sands get going again (and they will). I hate to tell you but if you just read this article you'll see that $140 million has been dedicated to carbon capture. If I got to tell you the news then you are seriously out of the loop.

Listen to the whole audio file if you are interested but it is the last 10 minutes of where the price of oil is going that interest me.

CKUA March 22nd Radio Program

This week's Political Panel includes former Conservative cabinet minister Rick Orman, former Liberal Edmonton MLA Mo Elsalhy, and the Treasurer of the Alberta New Democrats Erica Bullwinkle.

Bonus Bad! In the wake of the AIG uproar in the U.S., Alberta's opposition parties engineer the elimination of bonus pay for civil service managers. But it raises the possibility that there could be more on the chopping block in the near future.

Bye Bye Rebate! Citing both financial and environmental reasons, the province puts an end to its six year old natural gas rebate for consumers.

Housing the Homeless! The government rolls out its plan to end homelessness in Alberta by 2019. All it needs is money.

In his business commentary, Gary Lamphier sees reasons for optimism in the recent rise of oil prices.

Listen to the March 22nd show

Employers not appealing to Gen X and Yers - "The labour market in Edmonton and Alberta is tight as I've ever seen it in 10 years in this industry, and if you can't attract this next generation of upcoming leaders, the Gen X and Gen Y, then you as an organization are going to have significant challenges moving forward." Mike Corbett, vice-president, Edmonton, at David Aplin Recruiting.

Poll results buoy Alberta minister - "Fifty-seven per cent of respondents in The Canadian Press Harris-Decima survey said there are more benefits than drawbacks to the oil sands, while 35 per cent reported the reverse.

A majority of those surveyed in every province except Quebec supported the benefits, with Alberta leading at 70 per cent.
"This data tells us a lot of Canadians do see there is benefit to the oil sands that goes beyond Alberta," Jeff Walker, senior vice-president with Harris-Decima, said yesterday.

Energy boost welcomed - Mel Knight announced yesterday that the government will offer a maximum 5% royalty rate for new oil and gas wells that begin production between April 1, 2009, and March 31 next year.

The province will also offer a drilling royalty credit of $200 per metre drilled for new conventional oil and gas wells, on a sliding scale based on their production levels from 2008.

Albertan consumers still confident - "If you look at Alberta relative to itself from a year ago, then we're probably seeing some of the largest slowdowns in Canada," said ATB Financial economist Dan Sumner. "But if you look at Alberta now compared to everyone else right now, we're still doing OK. Retail sales per capita are still by far the highest in Canada."

People in other countries are lining up to get into Canada. While their economies are suffering and unemployment is rising, Canada is begging for workers at immigration trade shows in the UK.

Sure the Canadian economy is feeling the effects of the global economic crisis but when compared to countries like Iceland, America and Scotland we are a beacon in the darkness.

Alberta especially is attractive due to its low taxes and high than average salaries.

"Canada welcomed 8,128 British immigrants last year, up 25 per cent over the previous year and making Britain the sixth-biggest source of immigrants to Canada." Read More

This is a win-win situation for real estate investors because when the long-term migrants first come they rent properties and when they decide they love Canada/Alberta they buy real estate.

He is among the most successful and currently the No. 1 golfer in the world. His level of achievement is legendary. He is focused, highly skilled and can probably perform at this level for many years to come.

Like many super-performers he knows there are times to step back improve, re-tool your skills and evaluate your game. You just have to take the a break sometimes.

When he does nobody says, "He's done! Golf is finished!" They wait and watch him comeback new and improved.

That is what is happening in Alberta Real Estate. The global economy is wonky, oil prices dropped and the housing market was way over-heated. So the market cooled down, prices dropped and then regulated and the market became more balanced.

Edmonton, Alberta real estate is still a "Tiger Woods" area - super performer says Don R. Campbell of REIN.

"People need to be realistic,.....The last three years in Alberta have been the Tiger Woods years of real estate. No matter what you did, you won, but that can't sustain forever."

"Alberta still has the three things the world is going to need when the recovery hits. It has food, fuel and fertilizer and those are the things the world needs and needs in abundance,"

Jumping into '09 columnists continue focusing on the negative. Sure, things will get worse (especially in the U.S.) before they'll get better - but certainly, they will get better. What doesn't kill banks and businesses will make them stronger.

U.S. president-elect Barack Obama plans to travel to Canada for his first international trip after he takes office, to speak with Prime Minister Harper. Fingers crossed that Canada won't fumble the Oil Sands ball moving forward and gets off to a good start with the new President.

Its hard to imagine these current economic clouds passing, but when they do we should be left with a stronger and more transparent economy.

Local Picture Says Financial Fear Foolish

By Kerry Diotte
Edmonton Sun, January 8, 2009

"I've stopped looking at the monthly statements on my RRSPs and stocks these days. It's too discouraging. At last check I was down 75% of the actual money I'd put into the portfolio. What the hell: it's a paper loss, right? I'm hardly alone.

Besides, it seems the stock market these days is largely fueled by wild rumors, hunches and superstition. But, on a good note, the TSX has been largely on an upswing since its low in November." READ FULL STORY HERE

Wait-and-See Buyers May Miss Out on Deals

By Jennifer Podmore Russell
Calgary Herald, January 10, 2009

"We have come to the end of another year where real estate is one of the hottest conversations in town. The topic can be heard at the water cooler, in restaurants, at dinner parties and on airplanes. We talk about it because it affects us and because the continued correction in the market this fall was unexpected and driven by non-local factors." GRAB THIS ARTICLE

How to Stay Positive in a Negative World

Lorraine Pirihi, The Productivity Queen

Gail's Story:
"Gail is a friend of mine and she was relating to me for the hundredth time about the situation her brother was in. Gary is a nice enough guy. He's hardworking, honest and a good father. His only flaw is that he is extremely negative. After a five minute conversation with him, you feel like you've been hit by a bus." READ MORE

Houses are still homes - "Falling home prices can actually result in positive change. For one, people will be less inclined to borrow against the equity in their homes to pay for things that don't appreciate in value -- and that they don't really need -- such as vacations or home renovations. Too many people, when their equity was growing faster than a properly pruned hydrangea, treated their homes like shingle-clad credit cards.

Home buyers will also, one imagines, be more reluctant to purchase houses they can't really afford. In recent years, many people worried little about buying well beyond their means because they believed home prices could only go up. A homeowner who lost a job or experienced some other financial calamity could always sell and reap a tidy profit. Why worry? But now, with home sales falling alongside prices, we now know that no plan is free of risk.

Another benefit to a more rational housing market is that people learn to diversify their investments. It is not uncommon for homeowners to have the vast majority of their net worth wrapped up in their houses. But buying a big house is an inadequate retirement plan. After accounting for expenses -- property taxes, insurance, repairs, renovations -- it becomes clear that a house, while a sensible investment, should not be one's only investment."

No, a house isn't an investment unless you have planned for it to be. It's true many people use their home equity to buy depreciating goods then complain when markets fluctuate (as they do) and they are left with huge mortgages. Buying an investment property and using your home as a credit card are two entirely different things.

Market worries take whack at your wallet - " Frugality is the new black. A financial meltdown has sent markets and consumer confidence sliding.

An October report from the Conference Board of Canada ranks faith in the economy at its lowest level in more than 25 years.

Even the once-ravenous shopping appetite of Albertans is shrinking, with retail sales dropping about 18 per cent from August 2006 to August 2008.

Alberta is the only province where retail sales in August fell from the year before, Statistics Canada says.

Sales here remained below year-ago levels for the fourth straight month as retailers head into the crucial holiday season.

Some economic observers say Albertans are reacting to bleak headlines about troubles elsewhere, not to hard times at home. Locally, at least, they think the crisis is mostly in our heads.

"The pendulum tends to swing to the fear side, and we're right at the extreme end of fear right now," Canadian Western Bank president Larry Pollock said."

Alberta is a financial island in Canada. The province is strong economically and there is a lot of demand in the real estate market. However seeing paper assest drop will makes consumers wary of spending freely.

Condos going ahead More private capital being used than borrowed - "The last few weeks have seen condo projects in Calgary, Kelowna and Canmore grind to a halt. But developers behind some of Edmonton's most high-profile projects insist it's business as usual.

"We're building those first two phases," "I think the fundamentals in Alberta haven't changed. I think we're better off than the rest of the world so we haven't noticed even in our Calgary projects any cancellation of deals." George Schluessel, CEO of Procura Real Estate Services."

With more and more focus devoted to how bad we have things, I thought I'd dig up a mini version of the Hot Dog Parable.

The Hot Dog Parable: There once was a man who lived by the side of the road and sold hot dogs. In fact, he sold very good hot dogs....

He put up highway signs telling people how good his hot dogs tasted. He stood by the side of the road and called out, “Buy a hot dog, mister?” And people bought his hot dogs. They bought so many hot dogs, the man increased his meat and bun orders. He bought a bigger stove so he could meet his customers’ demands.

And finally, he brought his son home from college to help out in the family business.

But something happened. His son said, “Father, do you not watch television, or read the newspapers? Do you not know we are heading for recession? The European situation is unstable, and the domestic economy is getting worse.”

And the father thought, “My son is a smart boy. He has been to college. He ought to know what he is talking about.”

So the man cut down his meat and bun orders, took down his highway signs, and no longer stood by the side of the road to sell his hot dogs. His sales fell fast overnight. “You’re right son,” said the father, “We certainly are in a serious recession.”

If you're worried about the man who sold hot dogs, his story has a happy ending. Luckily for him, he had a daughter too. His daughter was able to show him that attitude, commitment and belief are what it takes to change, succeed and even sell hot dogs. After all, there are many folks who still want to buy them, 'recession' or not.

The latest economic forecasts from the government of Alberta proves the province is an economic rock in Canada.

Some highlights include:

Alberta's population growth continues to outpace the rest of the nation

Increased crop production expected in 2008

Drilling activity picking up

Canadian Real GDP rises for the second straight month

Latest string of data paints a gloomy U.S. economic outlooks

Download your copy here

I felt worried about our personal losses in the stock market until I read this.

"Falling stock prices have sliced roughly $1 billion from the value of Alberta's rainy-day savings account, the Heritage Savings Trust Fund.

Finance Minister Iris Evans told the legislature Tuesday that the value of the Heritage Fund has been reduced to $16 billion since June, a drop of roughly six per cent. But she's downplaying the loss."