Edmonton Real Estate Investor: edmonton alberta real estate market

Every few months I got to the Edmonton Stories site. I love reading about people moving to Edmonton and what brought them here.

Recently we've seen a huge transition of tenants moving to home owners. I've had about 8 vacancies this month half of which are tenants moving into their own home.

It proves the transition that you'll hope to see in your rental property. People come to the city and rent your home, then they move and buy a home. That means that your property has two sources of income either as a rental or at sale. It's a natural transition.

Alberta Oil Sands Investment Real Estate News®
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April 2nd., 2012
Volume 12, Issue 3

Dear Friends and Partners,

What 'they' won't tell you will hurt you. If that 'they' is the knowledgeable people you love, in your center of influence. Otherwise, you don't need to hear it.

Do you notice that whenever you read blogs or articles where people can comment that 99% of the time (if the article gets any form of traffic that is) that the comments quickly turn into a ridiculous (blame based) argument? The story might be about how baby Vicky received a heart transplant and there is some joker with an off-the-wall negative comment to share that incites a flash-mob of angry readers (or perusers, more accurately) to battle.

Some articles are worth challenging and others not worth commenting on. What's more disgusting than the downward diatribe is the fact that I allow myself (albeit rarely) to get sucked in! Usually I skip the comments altogether, but sometimes I get suckered and reluctantly give up 5-10 minutes like a wad of bills to a belligerent panhandler. Now I'm not encouraging you to prove me right and go and read a bunch of crappy, negative comments on the web - but to stop and think about who and what, values to you.

Your Aunt Martha might have a ton of sage advice when it comes to being a single, employed Mom, and rearing kind, generous children; but she might not know a thing about using a HELOC to make improvements in your kitchen and bathroom before you list your home to sell. My point being? Take some (not all) the advice you need from the experts in your life or the experts in the greater circle around you (books, speakers, teachers, etc.) and use it.

Listen to LESS, or better yet NONE, of the noise from 'unqualified' people around you. Making this one shift in your day will reap benefits of time and positive energy that if used well, will earn dividends in the areas you need it most.

South West Edmonton: Cashflowing Two-Suiter in Queen Alexandra

Turbo charge your portfolio. Upgraded 1960 built legal 2-plex with separate entrance to lower suite. 2 stylishly finished suites; 1200 sqft upper 3 bedroom unit with beautiful oak floors, plus a spacious 3 bedroom 1000 sqft. suite down. The upper suite has new dishwasher, ceramic bathroom and fresh paint. There is a common laundry room in basement too. The lower unit has new laminate, carpet, some newer windows. The home has 2 furnaces and 2 electric meters. There is a shared fenced yard and a 2 car detached garage with automatic door and opener, bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to the Yellowhead and 137th Ave., and on the bus routes. These pictures show the detail and care that went into building this quality home.

Comes complete with great tenants making this a totally turn-key property for you. Convenient North central area with easy access to transit and downtown. Established neighborhood featuring strong rental base; solid value and stable rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's improving downtown area.

Produces $261.61 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $335K Total Investment: $79,467K. Your Estimated 5 Year Profit $41,158K. Your pre-tax Total ROI is 52% or 10.4% per year + $261.61 Cash Flow

Poised for massive growth. 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 Booming Again: RBC

GDP Up 4.7% Last Year, And Momentum Likely To Last

By Mario Toneguzzi, Calgary Herald March 21, 2012

Alberta's economy underwent a remarkable expansion last year, with real GDP growth estimated at 4.2 per cent, "flashing unmistakable signs" that the provincial economy is booming once again, says RBC Economics.

In its latest provincial outlook report released Tuesday, RBC says the momentum is expected to continue. It forecasts real GDP growth of 3.9 per cent in both 2012 and 2013.

"Alberta's economy is firing on all cylinders, with real GDP growth in 2011 climbing above the four-per-cent mark, the highest it's been since 2006. We anticipate that this pace will be largely sustained over the next few years," Craig Wright, senior vice-president and chief economist for RBC, said in a statement.

READ MORE HERE

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Oil Sands Sector Could Reap Big Benefits In Alberta Election

By Claudia Cattenco, Financial Post, March 23rd, 2012

A heated provincial election is in the air in Alberta, two strong women are fighting for the top job and the oil industry and its sugar daddies are being courted for financial and political support.

It’s a sharp U-turn from the days of former premier Ed Stelmach, who picked an acrimonious fight with the sector to squeeze a greater share of its revenue through higher royalties.

But the oil love fest was in full display this week, as Alison Redford, the new Tory Premier of Alberta, made a strategic stop in Calgary before an audience of 600 senior oil and gas industry leaders where she vowed to “stand up for your interests” and not “let you down.”

Ms. Redford, who replaced Mr. Stelmach in a leadership contest last fall, is expected to call the election as soon as Monday, paving the way for an April 23 vote.

“I know you will surpass our expectations,” Ms. Redford gushed at the glittering event organized by the Canadian Association of Petroleum Producers to recognize industry initiatives that improve environmental, social, health and safety performance.

“As an industry, we thank you for putting your best foot forward.”

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Edmonton's PCL Aims For Record $7.3B in Billings

By Gary Lamphier, Edmonton Journal. March 21, 2012
EDMONTON — When Paul Douglas took over the top job at PCL Construction in 2009, the global economy was just starting to recover from the deepest slump since the 1930s.

But since the construction sector often continues to languish long after an economic rebound takes hold, Douglas knew that PCL’s troubles were just beginning.

Indeed, after years of spectacular growth, the Edmonton-based construction giant — Canada’s largest builder — was heading straight into a brick wall.

The collision came in 2010, when PCL’s billings (project revenues) shrank by 19 per cent and its profits fell by more than 35 per cent, compared to the previous year.

Meanwhile, PCL’s backlog of new work, which had soared in the years leading up to the 2008-2009 recession, was stalled at $5.3 billion, 25 per cent below the 2007 record high of $7.1 billion.

For Douglas, who was carefully groomed for the top job at PCL after more than 20 years in management, year one in the corner office proved to be a bit of a cold shower.

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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.

"When prosperity comes, do not use all of it." -Confucius

Warm Regards,

Todd and Danielle Millar

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Next year looks to be the year when Edmonton's housing market really starts returning to balance.

"Modest," "moderate," "stable" were all words used to describe the Edmonton housing market in 2011 at a Canada Mortgage and Housing Corp. conference Tuesday."

If you been driving on a road full of 6-foot potholes then a road with small ones seems like a smooth ride. Even though the real estate market may be better than the last few years there are still some bumps ahead. Some bumps are bigger than others - like if the US economy doesn't kick into gear. It will drag many sectors in Canada down including employment, energy and retail.

As a buyer it's a good chance to pick up properties as prices aren't set to increase until 2012. However, if your selling, that is one bump that will rock you if you need a certain price because it's a buyer's market and looks to be one until late 2011.

Read more HERE

Until this recession housing prices where slowly and steadily creeping out of the territory of affordable for many first time buyers.

The truest example of this was a "starter home" in Vancouver for $700,000. Of course location and other market comparables would set aside this property from the rest, it's still not in my idea of the starter home region. Vancouver's housing affordability is still an unbelievable 63%. That means 63% of income must be devoted to mortgage payments.

Now we now why Vancouverites are so svelte - they can't afford food!

Housing prices cooled and low interest rates brought back affordability but how long will it last? According to some experts not so long.

"The two major contributors to the significant improvement during the past year or so — the decline in mortgage rates and the drift down in prices — appear to have reached turning points."

"Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country."

RBC senior economist Robert Hogue

We are in a one-of-a-kind situation to pick up great properties with low interest rates at incredible prices. There is such demand in Canada and especially in Edmonton, Alberta for quality housing, price increases are going to return in the next year.

Today evidence came that Edmonton house sales are seeing a small increase.

We tried to get an inspection done and were told it would be at least one week before that was possible. They are being "swamped" with inspections and "it seems like everyone is buying".

It's partially seasonal, warm weather means more sales, partially the "W" effect- where the market will go up and down for the next 18 months and probably a lot to do with the record low mortgage rates and low house prices.

People know a good thing when they see it.

I hope that everyone celebrating Easter had a wonderful weekend. Spring seems to have blown in like a breath of fresh air and lifted spirits. We'll get some good news, then temper it with a bit of bad. I imagine that we'll ping-pong this way for another year or so before deciding that things will be ok and we can get on with a healthy economy.

I was speaking with a partner and good friend of mine last night who is based outside of Canada. He said, "So, how are things going to be in Alberta over the next few years - is Edmonton still the best place to be investing in?" I replied that there will be some ups and some downs, then the economy will start moving forward again and gain momentum.

He quipped, "I know that! - 10 years from now will this still be a good place to be invested based on the economy today?" My answer to that question is and was a resounding YES.

When traveling abroad, I'm often reminded how North American attitudes tend to be so focused on the now. For many a 5 year investment period can be such a longtime. My friend, a successful investor (he has a substantial Edmonton portfolio) isn't rocked by short fluctuations, but instead studies bigger cycles and longer blocks of time which he accredits as the building blocks of long-term wealth and security.

Spread out your investment game plan to encompass longer holdings mixed with a few shorter term investments that pay out in-between. This will create balance in a portfolio and should match anticipated lifestyle changes that are predictable, business expansion, kids graduation, retirement and so on. An added bonus of this planning structure is that it reduces stress during turbulent times.

My last post focused on negative media and find what the real story is behind the "negative- speak" headlines. Also make sure the articles are about your region and not a national piece, especially when it comes to real estate.

In 2007 Edmonton single detached home prices reached a peak at around $420,000 which was unsustainable and grossly affected affordability. In the second half of 2007 prices started to slump and stayed low for most of 2008.

Now Edmonton is starting its recovery from the housing slump earlier than the rest of the country. The city's real estate market is more stable and Edmonton will continue to lead the country in 2009.

While the rest of Canada faces further cooling in real estate prices Edmonton will remain solid and even see a price increase by the end of 2009.

"There's a lot of negative press going around particularly because they're using nationally aggregated numbers .........The national numbers don't mean a whole lot unless you're looking locally." Marc Perras president of the Realtors Association of Edmonton

Housing moves to sellers market - "After hovering in buyers' territory for much of this summer, home resale markets in Alberta's two largest cities are on the verge of slipping back to a sellers' market, thanks to pronounced drops in new listings."

I wouldn't rush out tomorrow and put your house on the market there are still a lot of listings out there. Wait till mid to late 2009 then if you must list then. Personally I'm holding for the long term.

Real estate a time tested investment - "Well, if you ever wanted to know what it was like to be a yo-yo, with a tight string around your neck and someone else in complete control of your destiny, now you know.

The dizzying ups and downs of stock markets in have choked trillions of dollars out of personal and corporate assets and no one is sure if the worst is over.

It brings to mind an adage from Mark Twain: Buy land, they're not making it anymore."

A perfect follow-up to the last article, after the horrendous last few weeks of the stock roller coaster real estate is an appealing tangible asset. There are so many people with funds to invest yet no idea where to put there money. The only answer is real estate and specifically real estate in Edmonton, Alberta.

Edmonton-Based Real Estate Agent Review Site Cuts Through Clutter - "What-Customers-Say.com, a newly launched site developed by four Edmontonians, is changing the game for real estate agents and home-sellers by providing a new way to find great agents: with customer ratings and reviews."

I haven't tried the service myself but it sounds like a good idea. A rate your agent service would certainly reward the ethical agents and reveal the duds.