Edmonton Real Estate Investor: edmonton real estate investment

We've been locking into many of our variable rate mortgages because the rates are so incredible right now. I was offered 3.69% for a 4 year rate the other day at the TD.

While riding the variable is always a good way to increase the cashflow a property produces there comes a time when you have to determine how high your variable rate threshold is. Everyone is saying mortgage rates are going to start rising. If you can withstand that then keep going with the variable.

Rates like this remind me of the early 2000`s when we moved our investment focus from Winnipeg and Hamilton to Edmonton. With the lower prices and low interest rates it's a perfect time to purchase in Edmonton.

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.

Edmonton, Alberta: How Do You Heat Your Igloo? (Todd Millar) I replied in a lighthearted way that spending my money on sunsets and sandy beaches is what I do when I'm on holiday, not when I plan and weigh out an investment option. Sunsets sizzle, and when we imagine the lifestyle associated with them, emotion takes hold and reason leaves the room.

Quality-job creation: Another area where Canada outshines US
The bad news is that, like the United States, Canada's economy is shedding manufacturing jobs. The good news is that, unlike the U.S., Canada is replacing them with high-quality work in the public administration and energy extraction sectors.

Canadians vote like mad for Monopoly real estate
It may sound like fun and games, but some people are taking getting their cities into Monopoly's upcoming World Edition rather seriously. Full-blown campaigns on social site Facebook and other Internet sites have boosted the fortunes of Canada's three candidate cities vying for spots on the game board.

CPP buys big chunk of Scotia Place
The Canada Pension Plan Investment Board has bought a 40-per-cent interest in Scotia Place at 10060 Jasper Avenue for $63.5 million.

"The Edmonton market is strong and getting stronger, and obviously has a long-term future," Graeme Eadie, CPP senior vice-president of real estate investment, said today.

Silver lining to expected slowdown
The Canadian dollar has, overall, surged in value for two reasons:

First, the demand for Canadian energy -- oil and natural gas -- continues to remain high. Second, the U.S. housing market has been hit by the sub-prime lending crisis, which has dampened confidence in the American economy, devaluing its currency against others -- including the loonie.

The immediate effects of a high Canadian dollar are felt in manufacturing, which has come to depend on the lower loonie and a strong U.S. economy for steady exports south of the border. In November, 16,000 jobs were lost in Canada's manufacturing sector, according to Statistics Canada.

Some of Edmonton's most prestigious office space has increased in value close to 43% over the last year and are projected to shoot up another 8 to 10% next year. Bringing this city's global rank 93 places at $46 per square foot. Even with the incredible jump we are still on the discount side though.

Calgary tops Canada's offices with total occupancy costs of $64 per foot. Toronto comes in at $63.35 and $49.98 in Vancouver. The world's most expensive office space is West End London at $326.67 Cdn, trailed by Bombay's $188.22, London City at $179.57, Moscow at $179.55 and Central Tokyo at $177.40.

The office space in Edmonton will be getting tighter as more companies expand their bases in Canada.

What were you afraid of last year? Do you even remember?

Yesterday I was driving to a meeting and listening to my newest REIN CD's. REIN is a real estate investment group that focuses on Canadian specific real estate investing led by bestselling author Don R. Campbell.

REIN has monthly meetings across Canada but because Todd and I are out of the country so often we get the meetings on CD sent to us at our Japan office.

No matter where you are you have heard of the Alberta Royalties Tax Revision and if you are an investor in Alberta then perhaps you are concerned about what will happen and how it will affect your properties. If you were thinking of investing but the Royalties are holding you back; then you must read on.

Don R. Campbell summed it up nicely. People worry every year, day and minute. There is a no shortage of things to worry about, many people let this stop them from acting. However, if you do let things stop you, you will never get anywhere.

"I can't invest now the _______ have ruined the economy/world" or "Everything is going to a hot place (I don't mean Tahiti) in a hand basket because_____!" can be the excuse de jour.

His Summary of 2000- 2007 will bring back memories:

2000 - Y2k
2001 - Kyoto Accord/9-11
2003 - SARS/ WMD's
2004 - BSE/ Bird Flu/ West Nile Virus/ US Terror Alerts
2005 - Tsunamis, Katrina/ London Subway Bombings
2006 - Oil Crisis $60 a barrel oil
2007 - Rent controls/ Royalties

Of course many were terrible events for those directly affected. How did they affect you then?

His point is if we let every monster under the bed stop us from acting where will we be when the Royalties are just a memory, like the rent controls are today?

Hello Friends and Partners,

I'm sure you know how important it is to buy during the 'slow time'.

And I'm here to prove it to you with this great deal...

Check out the details:

*1956 Built 4 bedroom home, complete with in-law suite AND double detached garage.

*Newly reformed throughout with top-notch touches and design: demands high rent and easy resale.

*Listed at $378,000 and we have an accepted offer for $365,000. ($13K off list price and into your pocket!)
(Next door is listed at $410K and isn't as nice)

*Great mature area of Sherbrooke in West Central Edmonton. Desirable for resale and rapid appreciation (capital gains)

*Highly Rentable area near transportation improvments, access to Oil refineries and Downtown.

The Deal:

*ALL financing FULLY ARRANGED, No need to qualify. You can leverage your money further.

*Total estimated investment required: $84,133.00

*Your Profit is estimated at: 23% annually

*Approximately 23% of PURCHASE price. Now that includes all legal, closing costs and reserve funds.

*Partnership deadline before Friday 11/02/07 (Closing date 11/23/07)

Wondering what to do?

It's simple. I've done all the work. Now all you have to do is pick up the phone and give me a call because this deal will not sit around and wait.

Thank you and have an EXCELLENT weekend.

To your success,

Todd and Danielle Millar-

-Please remember: All investments carry RISK. Be sure to seek your own independent legal advice-

GOLD REIN MEMBERS