Edmonton Real Estate Investor: why alberta real estate is good

Owning a company called Alberta Oilsands Real Estate you'd think the fall of oil would be nerve wracking. Well it is. It's not the first time we've been through a recession - in fact it's my third. No matter how many you go through you don't enjoy them, but you see the possibilities.

I remember in 2007 watching a young Realtor on TV saying "we've never seen this in Alberta". (I thought maybe not the 20 year olds) We ARE used to this in Alberta. It's kind of part and parcel with living in a commodity driven province.

Most Albertans will tell you to put funds aside for the next downturn and don't over extend yourself. When you get to the really savvy Albertans they will tell you "Don't waste a good recession"

It's a time for re-evaluation and re-development. For example giving out of work oil geologists and engineers funds to start new green companies. It's a time to change your focus and redirect your energy, open all the doors that you never looked in because oil was $100 a barrel.

Alberta IS about oil but that's not all it's about. Todd and I talked about this recently if the oil were gone would Edmonton still be a great place to invest in? YES. The population is growing (not at record amounts but its moving), there are world class universities, great innovation and a lot entrepreneurial spirit.

Todd Hirsch wrote about all the economic juju Alberta has aside from oil. You must read this.

Alberta's not going to close its doors and shut down. We might just get new better doors.

In the Edmonton Sun article about a decade of change:

WHY DIDN'T I BUY REAL ESTATE?

- - Average Edmonton house price, 1999: $120,254

- - Average Edmonton house price, 2009: $318,482

My thoughts exactly, well, except I DID buy real estate over this period and helped many other people invest easily. Over the long run owning a quality property in a stable market with strong economic fundamentals is like having your own perpetual money machine.

Theodore Roosevelt said it precisely:

"Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth."

It's only 15 days into January of this year but the feeling everywhere is of positive expectation, the economy looks great, the real estate market is balanced and Edmonton is preparing to go off.

So tell me again, "Why don't you want to buy real estate?"

2010 is the year to prepare because the oilsands are going to really bounce back by 2011. Enbridge has planned $10.2B in oilsands projects between 2009 and 2013.

"THE GLOBAL recession has, at least temporarily, put the brakes on for Canada's oil sands industry. But it can bounce back, says a November 2009 report from the France-based International Energy Agency (IEA), if environmental and economic challenges are met.

Canadian oil sand resources are located almost entirely in the province of Alberta, occurring primarily in three areas - Peace River, Athabasca and Cold Lake. According to the Government of Alberta, current capacity is 1.757m bbl/day, up from 2008's 1.2m bbl/day - itself a doubling of 2000's capacity, and a tripling of 1990's capacity." Read More

"Because of the disappointing results in the US and the expansive reserves in Canada, the technical expertise and financial resources for oil sands development has shifted almost exclusively to Canada and [they] are likely to stay in Canada for the foreseeable future," Marc Humphries, energy policy analyst for the US-based Congressional Research Service.

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.”

-Theodore Roosevelt (1858-1919)

How can you grow your money in real estate?

Owning a quality property in a stable market with strong economic fundamentals is like having your own perpetual money machine.

Take this property for example:

Case Study 1 - Cumberland Purchased 2005

Attractive home near developing portion of the Anthony Henday ring road. When ring road is finished, accessibility to city center and oil refineries will be greatly increased, furthering profits.

Well situated near schools, city transit and bike paths.

Purchased Price: $160,000 Current Value: $360,000

Total Investment: $65,000* Monthly Cashflow: $350

Partner’s R.O.I is 146% - $100,000 profit to date.

* Inclusive of all costs from purchase to sale

“If you would have invested in Case Study #1 in Edmonton September 1, 2005 by September 1^st, 2009 you would have realized a $94,900 CAD profit (before taxes).

That works out to $65.00 CAD per day.”

Of course not all years are like this and that is why we are conservative in our estimates. We know that markets go up and down. We balance our investments to perform well in both up and down cycles allowing us to deliver consistent returns.

Contact us for your Free Canadian Real Investor Report!

$2 billion investment in Alberta oilsands - A Chinese energy giant is making a nearly $2-billion investment in the Canadian oilsands. Athabasca Oil Sands Corp. says PetroChina is buying a 60 per cent working interest in its Mackay River and Dover oilsands projects in northeastern Alberta.

Although Canada's economy is tied to the U.S our oilsands are bringing interest from around the world. It is a valuable safe source of oil.

New online service makes home buying smarter, swifter for Canadians - Zoocasa.com -- a recently launched online site promises to make searching for a new home an exhilarating and productive experience for Canadians. Zoocasa offers a wealth of "neighbourhood information" for its more than 100,000 home listings.

Sounds interesting!

Location Selected For Alberta Nuclear Plant - According to a report by the CanWest News Service, Energy Alberta Corp. has said that it has formally requested permission from the Canadian Nuclear Safety Commission to construct a pair of twin-unit Candu reactors about 500 kilometres northwest of Edmonton.

"Building a nuclear power facility is a long and rigorous process. This is the beginning of a public and regulatory process that will include environmental, health and safety assessments," said Wayne Henuset, Energy Alberta's president and co-chairman, who termed the application a "historic moment" for the province's nuclear power industry.

Hopefully this will help reduce our greenhouse emmissons.

The emerging energy superpower - Canada's oil and gas industry is surviving the economic downturn. The boom times may be over, but stories of a bust are wide of the mark

AS A MEMBER of the G8, Canada is an anomaly: it is the only member of the rich nations' club that depends on a resource-based export industry to support its economy. Oil and gas are both central to this and Canada's energy sector increasingly influences the way it deals with the world. Prime minister Stephen Harper calls his country an "energy superpower". Notwithstanding the temporary slowdown in the US economy, Americans increasingly depend on imports of Canadian energy to support their lifestyle.

And, like much of the rest of the world, Canada depends on the US: its consumers almost monopolise Canadian energy exports and the political decisions made in Washington – like whether to adopt a cap-and-trade system to fight carbon emissions – will shape the Canadian energy industry and politics

"We are proud to be pioneers in bringing the benefits of clean, safe, reliable nuclear power to Alberta."

Canada is the economic leader in the G8 and Alberta is the leader in Canada, where else in the world should you put your investment money?

Alberta economy predicted to grow 3.3 per cent next year — "Alberta’s struggling economy will recover next year and grow 3.3 per cent, the Conference Board of Canada predicted Thursday.

Gross domestic product will contract 2.7 per cent in 2009 after a 0.2 per cent decline in 2008, the board said in its summer provincial outlook.

“Higher energy prices and lower construction costs should spur oil and gas activity, which will support a rebound in the domestic economy,” the report said.

Scotiabank also predicted that rebounding oil prices and falling inflationary pressures will bring a return to growth for Alberta in 2010, with GDP rising 2.8 per cent after a predicted 2.3 per cent contraction in the economy this year. The bank said the Canadian economy’s output will shrink 2.2 per cent in 2009 and grow 2.5 per cent in 2010."

By next year Alberta will be leading the nation out of the recession.

Alberta's economy was hit by the recession as was the rest of the country. The province saw record job losses, debt and housing prices declines but when it comes to rejuvenating the countries economy it will be oil that gets things going again.

Oil prices have yet to rebound to the anticipated figures for this period so Alberta's deficit will get that much bigger. The stability that is necessary for the province to rebound is still not happening and may not happen till 2010. Alberta may be diversified but it is still a resource based economy.

We're all waiting for the upturn in international economic activity that starts to drive oil and natural gas prices upward when that happens let the good times roll again. For now the long term view, late 2010, is the best bet before we see the boom years again.

When they go, and they will, oil will save the country:

"The oilsands production would result in $1.7 trillion in incremental GDP growth for Canada, $78.1 billion alone for Ontario and Quebec, the study concludes, adding it translates into 700,000 jobs being created across the country and additional tax revenues for Canada of over $306 billion.

When conventional gas and oil developments, plus LNG (liquid natural gas) development, pipelines and offshore facilities are added in, the industry will boost Canada's GDP by $3.6 trillion ($144 billion in Ontario alone)and will create 980,000 new jobs, contributing additional tax revenue of $429 billion in Canada."

Where do you think you should put your money for best growth?

There is now one convenient location to get news and videos from Don R. Campbell, REIN and other real estate experts. We've updated our Alberta News section and posted crucial videos to help you get all the facts you need to invest with confidence. It's all laid out in an easy to use format.

Click here to get informed.

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,"