Edmonton Real Estate Investor: alberta real estate investments

"Meanwhile, according to ATB Financial economist Dan Sumner, the average Albertan spent more per capita on retail items since 2004 than people from any other province, yet in 2008 the average Albertan saved 13.7 per cent of disposable income, compared to a national average of 3.8 per cent. The reason for this discrepancy is that Albertans have had greater disposable income than people in other provinces, with high incomes and lower taxes. That will attract young people from Central Canada."

You can expect population growth in Alberta to continue at a steady pace. The article goes on to state that real estate is not where people will be investing in the futue.

I know that with a statement like the one above and all people generally needing a place to live - real estate will be the way to go for me. I invest in other things sure but as far as being able to control my own investments I want tangible real estate.

....another opens.
I read an article today on how Hard Times Generate Entrepreneurs. Basically during an economic crunch we have to be more innovative and aggressive. Focus on a niche market within your customer base and serve them well.

"Small business have to adapt or die.So you have to look at your customer base, modify who you cater to if it's needed, and cater to that demand. . . . People will still need certain services, and the smaller the niche you serve, the more successful your business can be." Vance Gough, instructor of entrepreneurship at Mount Royal College's Bissett School of Business

In our case that would be helping people, who don't have the time to invest or to learn how, create wealth in Alberta oil sands real estate. It's pretty focused - it probably could be more focused like "... helping 30 - 50 year old professionals..." You get the idea - clarity is key.

If you aren't sure who you would be best serving look at your business and see where most of your revenue comes from. Pareto`s Principle (commonly known as the 80/20 rule) applied here would state that 80% of your revenue comes from 20% of your clientele or actions. Pinpointing that 20% would greatly increase the money you earn and decrease the time you spend trying to earn it.

Since my mom and aunt are here I am trying to maximize my time in the company, rest and show them around even more than before. It's easy to let something slide and more often than not it's the resting part. My greatest discoveries have been:

1. Schedule your day into time blocks
2. Rest is crucial- if the baby comes you need stamina to get through labour
3. Give your guests a map and set them on their way

I give myself 2 or 3 important jobs a day to do and make sure I get them done. In that way I have actually done a lot of my tasks, made time for the nap and shown my family a pretty fine time during their stay in Japan.

Only 6 days left!

REIN (Real Estate Investment Network) has released it's Alberta Top Ten Towns and once again Edmonton is the best place to invest in Alberta. A market full of fear and many banks tightening up lending due to the sub prime mess in the states doesn't negate the fact that some markets in Alberta will perform better than others.

Edmonton's economic fundamentals, excellent future and continuous infrastructure improvement will keep the city at the top this year. If the current plateau scares you, it's only been a year, look further at the many billion dollar projects planned for the next 15 years. They will keep the economy vibrant and growing.

"If there were no strong economic fundamentals supporting the market, it would be a good thing to be afraid," However, when you study the long-term strength you will be able to relax and not let those from outside the country take up all of the good deals and look like geniuses five years from now." REIN Alberta Top Ten Towns Report

TOP ALBERTA RESIDENTIAL REAL ESTATE INVESTMENT TOWNS

1. Edmonton
2. Calgary
3. Red Deer
4. St. Albert
5. Grande Prairie
6a. Lethbridge
6b. Fort McMurray
7. Airdrie
8a. Cochrane
8b. Sylvan Lake
9a. Lacombe
9b. Devon
10. Sturgeon & Strathcona Counties

For the detailed report with specifics on each town click here

"It's being invested for the future in a way that will help Alberta take meaningful action on climate change without endangering jobs, the economy or our ability to support public services," Ed Stelmach on $4Billion set aside to reduce greenhouse gas emissions

Alberta oil sands have had some pretty bad knocks in the press recently. Alberta is leading the world in recycling and consistently strives to improve it's image as a source of clean oil. This new allotment of serious funds will help to show the world that Alberta is taking climate change seriously.

Two U of A graduate's real estate trending software may help in your buying decision.

"The entrepreneurs unveiled Wednesday the latest version of their Internet-based real estate program, RealPageMaker 3, that gives prospective buyers a bird's-eye view of listings plotted on a Google map of a city block or neighbourhood. The program will be available for Calgary and Vancouver.

The software also pulls a snapshot of real estate trends for that block or neighbourhood using real-time statistics."

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What is it with us Canadians? Do we suffer from ‘the grass is always greener, the sand always warmer’ syndrome? During a -40 snap, you bet we do. And it’s not all bad either.

Due to increases in salaries and the great rise in Alberta real estate values have helped make many Albertans quite well off. Our strong dollar and the perceived bargains in the U.S. have brought droves of Realtors and salesmen from South of the border to flog their wares, when we’re feeling at our most vulnerable-bitter winter.

Albertans are prime targets.

I too admit to a weakness for a house on a palm-treed beach. Actually, I’m lucky to have two palm trees in my garden but their leaves turn brown and fall off during cold spells, far from the beach of my dreams.

The number one thing to remember is that Alberta is where you can safely and steadily grow your profits over the coming years. Let the folks with knee jerk reactions and short-term thinking get shaken out of this market.

Savvy investors think long-term strategies.

I wouldn't look at properties outside of Canada as investment at this time, but instead as a potential 'lifestyle choice', if that applies to your goals at this time, meaning, if you're ready to retire or cash-out.

Otherwise, take advantage of the current breather the Alberta market is taking and use this welcomed chance to move forward with investments that make sense.

It's easy to get sidetracked when pitched an emotional 'deal of a lifetime'; it's not so much the property down South you’re being sold, it's the ‘dream life’. When is it time to buy a retirement home outside of Canada anyway?

Here are some quick points to ask yourself that will help take the emotion out of your decision:

1) Have I reached my investment goals and am I at a stage of my life where I can realistically afford to buy and upkeep a property for pure pleasure?

2) Have I done enough research into the area that I plan to be buying in to understand what it'll be like to live there, receive medical care/coverage and visit family? How will I be taxed? Can I receive income? Can I live there permanently?

3) How will property values and neighborhoods change over the next few years in relation to the sub-prime? How will this affect my lifestyle? Have I visited the area in the peak AND off season- do I like what I see? Is the weather agreeable year round or am I in a hurricane zone?

In my opinion it's not yet time to pick up properties in America. U.S stats forecast another wave of losses to the tune of 2 million foreclosures over the next few years.

You need to wait it out longer until the final mortgages have been reset and prices begin to stabilize, probably at least fall of this year or preferably past spring of '09.

Everyday we hear about the strong Canadian dollar and the slowing US market. Now seems to be the perfect time to pick up your winter snowbird retreat or get an investment property in an otherwise fundamentally sound region.

Brian Wruk, co-author of The Canadian Snowbird in America has some great points for Canadians looking to head south.

California, Nevada, Arizona and Florida all have foreclosures at all time highs and the place you were looking at on Vancouver Island is now close to $1 million.

"People can sell there, buy here (Phoenix, Ariz.) for $500,000, and put the difference in their pocket."

Once you get your financials in order there are some easily forgotten points that you should consider:

Take your meds: But remember that drugs with codeine require prescriptions in the U.S. If you must take prescription medicine, ask your doctor for a letter explaining why and the recommended dosage. Take only as much as you need.

Satellite TV: If you want to watch Hockey Night in Canada, you'll need a Canadian satellite receiver. BellExpressVu says it's illegal to use their system in the U.S. -- but StarChoice says there's no problem.

Gambling disasters: Win or lose, keep a diary of dates, locations, games played and outcomes. Your winnings will be taxed but you can claim a refund by proving offsetting losses.

Driver's licence: Be sure your licence, vehicle registration and passport will not expire while you're away.

Travelling with a pet: You'll need a health certificate from a vet and a letter confirming your pet is from a rabies-free zone or, for a dog, proof of a rabies shot at least 30 days earlier. Don't even try crossing with an exotic pet.

Perogies: Eat your fill before you go because, in the U.S., you won't find perogies, ginger beef, Oh Henry! bars, HP Sauce, Shreddies, Clamato juice -- or Canadian beer.

Source: Terry Ritchie with Brian Wruk, The Canadian Snowbird in America

Read The Entire Article Here

Oilpatch braces for new arrivals - "New census details from Statistics Canada show that Alberta hasn't lost its grip as the province considered by Canadians as the country's promised land.

More than 225,000 people moved to Alberta from other parts of Canada between 2001 and 2006, the latest census figures show.

A slight drop from the last census period, the figure still maintains Alberta's status by far as the province with the highest net gain of population due to migration from other provinces."

Growth in population means increases in housing prices

Calgary's property tax plan half of what they want here! - "While Edmontonians could be clobbered with a 10.9% property tax hike in the new year, our Cowtown (Calgary) cousins are being asked to pony up less than half that - 4.5%."

Edmonton has a smaller population to pay taxes that's why Calgary pays less

For Big Cities A Taxing Dilemma- "Mr. Brooks said he fears Vancouver could end up losing some of its head offices to friendlier tax jurisdictions in other provinces, such as Calgary and Edmonton, which ranked much better in the REALpac study as the country's second- and third-friendliest cities in property tax terms behind St. John's."

Business friendly cities get the business it's common sense

Credit Crunch Won't Affect Real Estate - “Fundamentals remain strong and are capable of weathering a slowing global economy, while tighter lending requirements in North America and Europe are putting moderate-leverage investors in a better position to secure deals at improved pricing,” says Jacques Gordon, global strategist at LaSalle Investment Management. “The future offers a return to more normal leverage and margin levels that will enable those who truly understand the property markets to prosper.”

Real estate is a safe solid investment

It's not B.C but it's almost Toronto.

Alberta's affordability has suffered in the last year due to incredible housing price increases. Although we haven't become one of Canada's worst areas we moved up the ranks. The thing is affordability declined across most of the country. Alberta isn`t doing terribly but we need caution. This RBC report went on to say that the economics in Alberta are supportive.

"Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home.

Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Alberta is still, however, avoiding British Columbia’s stressed affordability conditions."
Read More From RBC Reports

Wondering how your area of the country is doing as far as real estate value and investment goes? The leading real estate analysts at PricewaterhouseCooper have released their annual Emerging Trends in Real Estate 2008 report.

Here is how Calgary and Edmonton fare:

 Canadian Markets to Watch

"The report comments on how Canadians like to live and work in central cities, as long as they can afford it. If housing is too pricey in 24-hour
neighbourhoods, people move to inner-ring suburbs or beyond and commute back into the cores. Investors, especially the institutions, are concentrated in
downtown areas too. Planners and developers focus on infill and more vertical projects, which reinforce the urban cores. The hot-growth energy cities out
west - Calgary and Edmonton - score the highest ratings for investment prospects, development, and for-sale housing, although it is not certain
whether the recent announcements on royalties will have any effect on this. Toronto, Canada's premier global pathway city, and Vancouver also have high
ratings. Ottawa and Montreal follow, with Halifax lagging."

   Calgary/Edmonton

"Calgary is the Canada's "resource" capital and North America's number-one boomtown. Survey respondents foresee strong buys for all sectors: 53.5% give a
buy recommendation for Hotel Property, 52.8% for Industrial/Distribution, 48.1% for Retail and Apartment Residential and 44.6% for Office Property.
Furthermore, on average the majority of respondents see Calgary For-Sale Homebuilding prospects as very good. Edmonton is closely mimicking the
Calgary-style growth wave and as long as demand for energy resources stays strong, this market will continue to do well."

For Vancouver, Montreal, Ottawa or Halifax market info read here .

I would be off my game if I didn't at least mention the very important, some would say shocking, announcement Ed Stelmach made announcing that, yes, Alberta will increase oil sands royalties by January 1, 2009.

The increases mean that the money Alberta collects from the energy business could be a staggering 20% higher than the original forecast for 2010, which would equate to a $1.4-billion increase into the province's treasury.

What started it all?

A report by Alberta's provincial panel said royalties had not kept pace with world energy markets, that all projects in the booming oil rich region should be paying more.

"Albertans do not receive their fair share from energy development."

"The energy industry has been a phenomenal driver," "It not only affects Alberta ... It's going to set the direction for where this industry goes and where Alberta goes the next five to 10 years." Greg Stringham, vice president of the Canadian Association of Petroleum Producers

Alberta has been negatively compared to Venezuela where President Hugo Chavez ran out foreign oil companies first by incredible royalty increases followed by nationalization.

Many oil companies have threatened to stop and or delay future work in Alberta if the panels recommendations were followed to a tee. However, they may have already taken the increase in royalties into account as this is not a new phenomena but something that has been happening in all oil rich countries over the past 5 years.

"Our first reaction to the Alberta government's recent royalty review panel report was that it was authored by a visiting delegation of Venezuelans," Deutsche Bank North America analyst Paul Sankey

However, Ed Stelmach is generally seen as being modest on the panel's recommendations and perhaps he has come to a decision that is both balanced and fair for our province.

Though there may be some layoffs in the oil sands there is still enough boom out there that in a year this will all be forgotten. Only time will tell how much of an impact this will have for the oil companies and exactly what there reaction will be.

"We will adjust to any royalty changes and we can do so with the confidence that we have an array of very good investment opportunities that will allow us to continue adding shareholder value over time," Petro Canada CEO Ron Brenneman

Some Articles of Interest:

A Quagmire in Alberta over Royalties - Interview with Dr. Brownsey a political science professor at Calgary's Mount Royal College

Alberta increases royalties charged to energy companies- "We recognize energy is a volatile industry. There is risk and there is reward. So when oil prices go up, the royalty goes up,"Ed Stelmach

Is Alberta out of step with the world? -"You would think from the anguished cries of the oil companies that the Alberta government's decision to increase royalties was a bolt from the blue. Far from it."

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.

For many Canadian cities 2007 was incredible year of real estate price gains. Real Estate markets cooled with the weather and the four biggest Canadian markets have slowed since August.

Saskatoon, Calgary and Edmonton all saw big increases over the last year and thanks to the slight cooling in these cities, buyers have a lot more choices to pick and choose from.

"Buyers in [Alberta] will likely take more time to shop and remove some of the steam from price increases," CREA chief economist Gregory Klump.

This shift to a buyers market is a "long time no see" event in the Edmonton market; CREA records show that the last sellers market was in 1997.

Sellers wanting to cash out are flooding the Edmonton market with their "investment" properties, giving investors who know and understand the economic fundamentals of the area a chance to pick up great deals.

For those who are looking to invest, getting your price or terms is more likely than it was five or six months ago.