Edmonton Real Estate Investor

The first Eskimos challenge of the new season was the Edmonton housing crisis but 20 new Eskimo players have found many leads on places to live.

"Every second call we took to our administration office yesterday at the Edmonton Eskimo facility was someone in the Edmonton area, either offering up a place for a player to live, or telling us that they knew a friend of a friend who had a place, a basement suite and that kind of thing," Dave Jamieson Spokesman for Edmonton Eskimos

In a city with record low vacancy rates and high rents this situation is not uncommon.

"The province of Alberta's ascendant economy has meant that real estate prices have risen dramatically. The 40.5 per cent increase in the price of a new home over the past year in Edmonton is the highest anywhere in the country according to a Statistics Canada report." Click Here For More

Great to see that Edmontonians pulled together to help their city's CFL players find a place to live.

To those that say they aren't benefiting from the Alberta Oil Sands, perhaps your children can.

"The Alberta government is using some of its energy revenue windfall to add $227 million to the province's largest scholarship fund.

Premier Ed Stelmach has announced a 35 per cent increase to the Alberta Heritage Scholarship Fund, bringing its total value to $851 million.

The program provides annual scholarships to high school students as well as undergraduate and graduate students.

Interest from this new money will allow an additional $10 million dollars in scholarships to be paid out, starting in the fall of 2008.

This year alone, a record $57 million in scholarship funding will be paid out to about 33,000 students across Alberta." Read More

Women are leading men in entrepreneurial-ism and have contributed nearly $18B to the Canadian economy. Especially Albertan women where the number of self-employed women has risen almost 5%.

"Canadian women's entrance into self-employment and small business ownership in recent years has been nothing short of dramatic," professor Karen Hughes, at the University of Alberta, wrote in a recently published paper that explored their motivation and success.

"In a relatively short period of time, they have established themselves as a formidable presence, contributing an estimated $18 billion to the Canadian economy."Full Article

Some relief is in sight for buyers into the Edmonton market. We are still having stellar appreciation with price growth slowing only slightly to 21.6% from 28.9%. Genworth Financial estimates that the average new home price in Edmonton will reach $388,694 in 2007.

They also predict a 5% increase in 2008 and 4% annually to 2011.

Let`s do the Math

So if your house is valued at the average price now

$388,694 and it increases 5% in 2008 = $408,128.70

Then 4% every year to 2011 compounding of course

2009 at 4% = $424,453.84

2010 at 4% = $441,431.99

2011 at 4% = $459,089.26

At the end of 2011 your house would be worth $459,089.26 a $70,000 dollar increase

$48 per day.

$2 per hour

$0.03 per minute

I made $.66 just writing this post. Now that is passive income.

To be honest I think housing prices will do much much better than 4% a year. That seems incredibly conservative for this market.

Somewhere, someone is saying, "I told you so" because Edmonton Real Estate prices dropped over the last three weeks. Keep in mind the market has doubled over the past two years. Edmonton real estate skeptics aren't in for the last laugh yet, because the market isn't falling just softening, a little.

The market is less frenzied and we can say goodbye to multiple offers and offers with out conditions - a very dangerous practice. Buying houses without inspections is a good way to purchase someone else's headache and moneypit.

"Edmonton buyers were getting used to bidding wars and buying homes without inspections, but today buyers have more choice." READ MORE

If you are an investor now is the perfect time to get into the market before the next big rise in prices.

The new LRT and proposed Bitumen upgraders in the northeast are two more solid reasons why Edmonton is the No. 1 city in Canada for long-term real estate investment.

Any improvment in transportation for renters will improve property values as commutes shorten. The Bitumen upgraders set to employ 4,000 labourers during construction will put the squeeze on an already tight housing market. Full Article

Don Campbell also put out his list of Alberta Top Ten Towns:

Alberta's top places for real estate investment

1. Edmonton

2. Grande Prairie

3. Calgary

4. Red Deer

5. Sturgeon & Strathcona

6. Lacombe

7. Sylvan Lake

8. High River

9. Devon

10. Fort McMurray

Source: Real Estate Investment Network

We are in our Japan office now and after a week of trials and tribulations, successes and our wedding anniversary we went out for a celebratory dinner.

Japanese food is quite mainstream in North America but what we get there is the "mild" version. Todd and I are adventurous eaters so we always try the "wild" side of Japanese food. I think we topped it all this weekend with these culinary challenges:

1.raw horse meat thinly sliced with slivers of raw garlic dipped in wasabi soya sauce
2.raw Bonito innards (guts) mixed with olive oil, gorganzola cheese, pink peppercorns and cilantro

To be honest I have eaten horse sashimi many times but the fish innards were a challenge. It was a very complicated dish, and the texture could put some off but I appreciated the chef's chutzpah.

In our seven years in Japan these are some things we have eaten:

sweet and salty grasshoppers

raw chicken

raw pork uterus

raw liver

whole pregnant fish- eyes everything

raw everything basically

a sea creature that is orange and purple- sea squirt SEE IMAGE ABOVE
fish flavoured ice cream - surprisingly good!

pumpkin flavoured ice cream - delicious

raw octopus innards in sauce - sorry back to raw again!

fermented soya beans with mustard - Natto SEE IMAGE ABOVE

Now the odd thing is when we go to Canada I miss some of it! Anyway our motto is never say never!

The website Wealth address is doing a reality blog/podcast/show where they will turn an average guy into a millionaire by giving him the opportunity to study with the best gurus in the business.

"Each day, visitors to the site can log on to Wealth Address, read Wes’ blog, watch his podcasts, see the daily videos of his adventures, watch his bank account grow and follow him step-by-step on his journey to earning big money. Better yet, they can mimic his actions and make a huge income right along with him. It is an incredible opportunity for anyone serious about making a name for themselves in the world of real estate investing and wealth building." Read Article

What a great opportunity. To become a real estate investor with a solid portfolio takes about 5 to 7 years in my opinion. I wonder if they have the staying power? Or will it be a "get rich in a year" type thing. Granted if he is doing it full time with the help of the best gurus in the business....

New to land lording?

It isn't a walk in the park but it also isn't all 4am broken toilets. In fact it has never been 4am broken toilets for me. One reason is that our properties are managed by an outstanding property manager. Caroline is incredibly efficient and really good at anticipating any work that may have to be done. She deals with all the day to day stuff so we can focus on the big picture.

So my first bit of advice is:
1. Get a property manager- if you are too busy now with work, kids etc then adding property management into the mix will be too much. A good property manager is hard to find so get references and check them. Their rates vary but are in no way indicative of the PM's quality, an expensive PM isn't necessarily the best- just the most expensive.

Tenant blues?
Tenants are your business partners. They take care of your investment and hopefully leave it in a condition that builds equity into the property rather than decrease value. Singularly the most important part of your real estate experience should be to find quality tenants. The ideal situation is to build a relationship with your tenants where you provide safe, clean, attractive housing and they proctect your asset.

2. Screen, Screen, Screen
Check your tenants out like your are going into business with them because you are.

*Get references and call them. Past landlords not current as they might try to pass along a problem tenant with a good reference

*Photo copy their ID and keep it on file. If you can't spell their name you can't take any legal action against them.

*Know everyone who lives in the property and get their names first and last. If the person who is on the lease leaves but her roommate, who isn't stays, you are in a bad way legally. Get everyone on the lease again get ID.

*People look good and dress nicely but it doesn't mean they keep their homes that way. Visit your potential tenant at their current residence so you can see them on their home turf.

IF You have good tenants, TREAT THEM WELL.
They are like gold. Let them know that you appreciate what they are doing.

3.Treat Good Tenants Well-We give our tenants rewards for long contracts or for a house well maintained. If they have to move we try and help them get into one of our properties in their target location.

Useful Links:
REIN-an incredible group of investors who together own over $1 Billion in Canadian Real Estate
Landlord Source Center-a lot of resources for landlords including a bad tenant list.

If house prices go up then insurance prices will go up. As the Japanese say "Shoganai" which translates to "It can't be helped" or "There is no ginger" ( I am referring to the former not the latter)

I guarantee you that you would be much more upset if something happened to your home and your insurance company only covered to last year's values.

Taxes and insurance costs increase when your property value does. Think about the $82,500 you made last year and weigh it out.

A helpful tip:
"Karen Hopkins-Lee, chief underwriter at Canadian Direct Insurance, said homeowners can reduce their premiums by raising their deductibles -- from $200 to $500, for example -- and by updating roofs, plumbing and hot-water tanks." Full Article

ROARING ALBERTA FUELS RECORD MAY SALES!!
Yup, we did it again.

As I have said before, "Where Calgary goes Edmonton follows". Calgary is hitting new housing highs and Edmonton will follow the leader. CMHC released a forecast in May projecting that single detached homes in Calgary and area will hit $474,000 by the end of this year.

"Only Edmonton is forecast for a bigger percentage hike, with prices expected to jump $90,000 to $340,000 by the end of this year, up 35.5 per cent.

"We (in Alberta) have the strongest economy in the country," Vinay Bhardwaj, manager of market analysis for the prairies region of CMHC, said.

"We have virtually full employment ... just about everybody in our province who can work and who has a skillset has a job," he said, noting that makes people more likely to consider home ownership. "On top of that, you have people who are moving here."

Although Alberta has been known for its boom or bust cycles, there is little expectation of a major correction that would see housing prices collapse."Click Here For More

Good time to get into the market? Strong Yes!

Now instead of furtively trying to get into you side door basement suite apartment, you can enter your home like any full fledged member of society. Well soon anyway.

Edmonton is finally moving ahead with making basement suites legal in most residential areas of the city. Although illegal, many many people had them and just tried to hide the fact that people were living under the stairs.

"An estimated 10,000 homeowners rent out suites in their homes, but the majority are illegal. For the plan to work, thousands of existing illegal suites would have to conform to new zoning rules."

A Few Things To Keep In Mind:

*Edmonton is SERIOUSLY pressed for housing. It is so bad that even engineers can't find a place to live

*Just like in Prohibition if something is illegal, there are no rules to keep unscrupulous people from exploiting the situation - renting any hole under their house to people desperate for housing.

*Fire codes, points of access and egress and ceiling heights may not be up to standard; endangering lives.

Legalizing basement suites and standardizing them will open up a valuable source of housing for people who desperately need it. The main point is to bring the suites that are not safe up to an acceptable level of safety for their occupants.

"We need these affordable suites; we need the secondary suites approved so that they can come into the market at the fastest possible pace to assist us in the housing crisis that we're facing." Read Full Article

Edmonton prices are slowing for a mini plateau, but that doesn't mean that the prices are going to fall. In fact, Edmonton is still on track for it's 2nd best year on record. In April Edmonton led Canada with a 4.4% increase for the price of a new home.

"A tight housing market coupled with rising materials and labour costs powered Canada's largest increase, of 4.4 per cent, in Edmonton, the federal agency said.

Edmonton also led the country with the largest 12-month increase, at 40.5 per cent." Full Article

This comment came from a disgruntled Edmontonian. I planned to email him directly but Dustin's email address was a dud.

"Dustin's email: Your "real estate investments" are going to put me on the street. Unfortunately, real estate has now become something that only investors can afford. I am a professional engineer making good money and housing in Alberta is simply unaffordable. I have absolutely no idea how it is affordable for a grocer or the rest of the working class to afford a home. Why not focus your business on helping people find affordable housing regardless of socioeconomic status? Your greed disgusts me."

Hello Dustin,

Thanks for your email.

I know how you feel about the rental and real estate market in Edmonton and Calgary, it is tough!

But, I think your impression of what we do is unclear.

We help people. We're the problem solvers that help folks moving into Alberta from other provinces, people who live in our cities, and others who need housing find a home. We provide, safe clean and affordable homes for people of all incomes, especially people just starting out or having financial difficulties.

In fact, we're active in helping the city come up with solutions to offer more housing and suites in the province. That way we can ease the pressure to renters and prevent unruly landlords from jacking their rents up $400 per month. We're the guys that are trying to stop the excessive rent hikes.

We help many folks of various income brackets and social classes invest in real estate too. Many of these people are looking for a way to grow what money they have and by investing into real estate are able to afford their own homes when they couldn't otherwise do so.

Another way we help out and other groups of investors do is by helping Habitat for Humanity. In fact, a group that I belong to raised of $65,000.00 to build homes for underprivileged people in Edmonton. Perhaps you'd like to get active and donate yourself?

Habitat For Humanity

Lastly, I think you'd be surprised to see the affordability of Alberta at the moment. Please go to RBC and take a look. Housing prices are actually quite affordable for many people despite the increases.

Thanks for your email.

Sincere regards,

Todd Millar.

"Japan Canada Oil Sands Ltd. (Jacos) is pressing ahead with a three-year seismic and delineation program to drill more than 100 delineation wells and shoot over 65 square kilometres of new 3D seismic data at its lease in Athabasca's oilsands."

The efforts will be the first step toward setting up a commercial venture with capacity of up to 35,000 barrels per day -- and which ultimately could help the oil starved industrial giant meet its demand for energy." Full Article

The move was made to allow Jacos to diversify away from Middle East Oil.

So far France, China, Norway, the Middle East, America and now Japan have shifted either millions or billions of dollars to get into Alberta and the oilsands. They know this is where the next big supply of oil is coming from. Why not put your dollars in with the "smart money"?

Not only prices, but sales.

"Edmonton-area real estate sales through the multiple listing service hit $1.2 billion in May and $4.3 billion for the first five months of 2007."That's more than the entire year of 2005."Full Article

So, yes, things are really moving in Alberta. There is a large demand for housing in that is not going to slow down anytime soon.

Don't think you have missed the boat, though. The Edmonton Real Estate Boom isn't over in fact it is just beginning.

Watch What You Say About Your Competitors

"It’s easy to admire Apple’s stylish TV spots, which personify the Mac as a smart hipster bemused by the luckless PC’s endless problems. The ads highlight a Mac’s pros and a PC’s cons with irreverent glee and—some might suggest—a degree of smug self-satisfaction.

Apple can get away with it, but not many companies can take on the “leading brand” with such panache. Before using marketing dollars to call out your own competition, blogger Spike Jones has some advice: Don’t. Why?

* You’re spending your money to highlight a competitor’s features and benefits. Even worse, if you mention the company by name, you’re reminding your target audience of other options.

* It looks like you’re nervous about the competition. Small companies send the message that they’re being trounced by the big boys and larger companies give the impression that they’re losing market share. In either case, you lose. Potential customers will assume you feel threatened for a good reason.

Another point to consider: No company exists in a vacuum. Jones claims, “People are savvy. They shop around. Compare on their own. And, above all, ask their friends what they think."

The Po!nt: Dissing the competition might do you more harm than good, and the cost of doing so comes straight out of your marketing budget.

To learn more, read Spike Jones’ post at MarketingProfs Daily Fix.

If you own a home or investment properties in Alberta you made $82,500 last year. That is $226.03 per day.

"Alberta's average resale price of $359,640 was up 29.8 per cent over the April 2006 figure — the biggest percentage increase among any province. Put another way, that means that the average homeowner in Alberta made $82,500 on paper simply by living in their home over the past year." Read More

The amazing thing is in Alberta housing is still affordable. Sure it is harder to get into the market but compared to Vancouver, where an astonishing 73% of the local average household income is required to get into a two storey home and condos require 35%, there is much better affordability.

If you are worried that Alberta's hot economy will freeze any minute - don't. Taking into account the $100+ Billion of smart money investmented into the province, economic growth rivaled only but China and immigration numbers that are leading Canada; this province is in for a long hot economic run.

IF Alberta was only about oil the above graph courtesy of www.Rigzone.com should quell your fears. We aren't even at the beginning of the big increase in oil production. Alberta has an incredibly diversified economy, oil is big, but other industries like nanotechnology will help keep the boom alive.

"Strathcona County’s manager of economic development says there is still at least five to eight years left in Alberta’s red hot economy.
According to Gerry Gabinet this cycle will continue for several years because of the huge amount of oilsands investment in Alberta as well as in Strathcona County.
“We are now more of a player in the world marketplace than we were before,” said Gabinet, noting the recent investments of huge oil companies like Statoil of Norway and Total of France."

"When this economic phase ends, Gabinet said he doesn’t believe it will be a huge crash.
“It’s not going to be a downturn but a levelling off of activity,” he said.
Gabinet said he sees it more of a “plateau” as the prices for things like real estate can only go so high.
He said the levelling off won’t be a bad thing, when it finally does come around.
“We see it as a breather. All this growth has happened and we’ll have a chance to catch up on all the other projects,” he said."Full Article

Canada is the 8th most peaceful country in the world.

"Norway was rated as the country most at peace, followed by New Zealand, Denmark, Ireland and Japan. Canada placed eighth, behind Finland and Sweden."Yahoo Canada

Just a quickie here. Canada is a G8 economic powerhouse. We are going through the biggest economic boom in a long time and Alberta is leading everyone out of the gates.

"The economy picked up steam in the first quarter of 2007 as real gross domestic product advanced 0.9 per cent, more than twice the pace of last quarter.

A slight pick-up in consumer spending and an inventory build-up resulting from strong production fuelled the advance.

Investment in fixed capital slowed and exports eased.

In March, economic output was up 0.3 per cent, after increasing 0.4 per cent in February and 0.1 per cent in January.

Service-producing industries surged ahead in March while the output of goods-producing industries fell." Yahoo Canada News

"Mama may have, Papa may have but god bless the child that has his own..."
Billie Holiday

More and more Canadians do have their own. They've built their wealth on a foundation of hard work, education and drive.

"According to the 2007 Carriage Trade Luxury Properties Poll (conducted byIpsos Reid), of high net worth Canadians, almost half (46%) cite hard work as
the main driver to attaining wealth, followed by the drive to succeed (27%)
and a higher education (18%). Only four per cent (4%) of respondents chalk
their success and their financial stability to being born into the right
family, while a mere one per cent (1%) attribute it to plain old luck."

It's not really news, I mean Rags To Riches stories are what North America is made of. Your background is irrelevant as only 3% of high net worth Canadians came from affluent families.

"Rags to riches stories are being played out in the kitchens of some of Canada's best neighbourhoods. The poll results revealed that the majority of the high net worth individuals surveyed started from modest beginnings. When asked, "What was your economic status growing up?" only three per cent (3%) of
respondents reported they were raised in wealthy/affluent households, while 79
per cent of respondents came from lower middle class and middle class
upbringings. Four per cent (4%) of wealthy homeowners have risen out of
poverty and now live in a home worth at least $500,000."

The best way to become wealthy is to act and think like wealthy people. So what do the wealthy think about real estate?

"Prosperous Canadians see real estate as an important element in their investment portfolios. Demand for well-appointed properties remains strong with a trend of affluent Canadians owning more than one home. In fact, one-quarter (25%) of wealthy homeowners own two properties, and six per cent (6%) own three residences while two per cent (2%) own more than five properties."

Times are a-changing and there is no longer the big decision between renting and buying. More and more Canadians are choosing to purchase a house rather than rent. It is now easier to buy a house than it has ever been before.

"Low interest rates and attractive financing options mean Canadians are increasingly choosing to buy instead of rent, even though home prices are rising more rapidly than rents, a new study suggests.

According to a Statistics Canada report issued Friday, many Canadian households have moved from renting to home ownership during the past two decades. Lower interest rates, more attractive financing options and relatively strong economic conditions have encouraged more households to buy homes, in turn driving up house prices, the report said." Read Article

What does this mean if you are investing in real estate?

More potential buyers for your property. As it is Canada has the fasting growing population in any industrialized nation on the planet, coupled with more people buying means a increase in demand and rising housing prices.

How does this affect Alberta?

Alberta's incredible economy and booming job market is behind the nation's fastest growing population; a 10.6% increase over the last 5 years. So more people are moving to the province for work and they need a house to live in. They will either rent yours and once they save their downpayment - they will buy one of yours. WIN-WIN

The Tokyo Canadian Club is having their annual Summer BBQ at the Canadian Embassy today. It looks to be a sunny day so what else to do but have a BBQ! A great place to meet and greet other Canadians in Tokyo.

Amityville, Britannia Manor, The Hycroft Mansion are all famous haunted houses. Most people wouldn't think about buying them and then others would seek them out to buy. When you want to find that special kind of haunted house this lady is your type of Realtor.

Mary Pope-Handy is a haunted house specialist.

"Once a friend of mine and I walked into a home that just "felt creepy". There was a coldness to the house, we couldn't put our fingers on it but we agreed something really bad had to have happened there. Turns out there'd been a murder in that home not long before. That's what I mean, a place can just feel different - sometimes downright creepy." Visit Her Site

Her site is fascinating, did you know that legally you should disclose that there is a ghost in the house and the buyer could insist you take it with you to your next home? Useful tips! Great Links!

The Edmonton Real Estate market has been getting a lot of attention; especially since Real Estate prices rose over 50% last year. Everyone wonders if the market can continue and will the bubble burst.

There is no bubble in Alberta, this market is based on solid economic fundamentals which tend to be superlative to the rest of Canada:

Economy

* Alberta is Canada's Economic Tiger - this province's economic growth is rivalled only by developing countries like China and India

Alberta is a PROVINCE that can be COMPARED to CHINA! Amazing.

*Alberta has Canada's highest wages,disposable incomes, personal savings rates and new housing purchases

This means people have more money to spend and thus fuel the economy further.

Taxes

*Alberta has the lowest unemployment rate in Canada and the lowest taxes

This means people earn more and take home more of their earnings.

Resources

*Alberta has the world's largest proven oil reserves and is a major source of water and uranium

These resources are in high demand and their value will rise in the future.

Diverse Economy

*Alberta is more than oil, it's economy features
-information and communication technology
-nanotechnology
-processing of oil, gas,chemicals, agricultural crops and forest products

Even if oil prices fluctuate Alberta's economy will still be strong.

Stability

*Alberta is the only province in Canada with zero provincial debt
*Alberta is committed to free enterprise
*Provincial policies are designed to help Alberta businesses compete in the world market

The province is an economic model for a near perfect economic situation.

Workforce

*Alberta has the highest worker productivity in Canada

Many large companies are moving/have moved to Edmonton i.e 3M, Intel, Hewlett-Packard as well as many other Fortune 500 companies. This increases the need for labour and therefore housing.

It is the BEST place on the PLANET to invest. Sure the market may plateau, but the economic fundamentals point to a long, long growth trend.

For more information about Edmonton Click Here

I like this article. I look at properties with an eye to invest. Does it fit my system? Does it make sense? Even when I bought the home I intend to live in, it was hard not to run it through my system and make sure it made "sense". When really I should have just checked out the view and seen if the yard would hold an assortment of family, friends and pets.

We always ask sellers why they are selling to see what is motivating them. If we know we can tailor the deal so everyone wins. Here are three residents take on Edmonton's Real Estate market and how it is affecting their neighbourhood.

"Hit Allendale...... and you'll find a mature city neighbourhood where the buying, selling and new construction is impossible to ignore. For Sale signs sprout like dandelions along tree-lined avenues. Rejuvenated bungalows sit aside handsome new homes selling for $600,000 or more." Read Full Article

If you have a teaching degree make way to Alberta.

"Parents are sometime filling in for teachers in Alberta schools as students become the latest to experience the province's labour shortage.

In Alberta's tight labour market, substitute teachers are in short supply and administrators say they're forced to be creative."Click Here

Yes! Edmonton leads all Canadian cities again, with a year-over-year price appreciation of 51.6 per cent.

"The biggest percentage gains continued to be primarily in western cities. Edmonton's year-over-year price appreciation of 51.6 per cent leads all cities. Saskatoon's price gain of 41.9 per cent and Calgary's 23.1 per cent rounded out the top three." READ MORE

"Real estate agents have been organized in Edmonton for eighty years as of today, and to mark the occasion they've re-branded themselves with a new name and logo.

They'll now be known as the Realtors Association of Edmonton, dropping the real estate board title.

Carolyn Pratt, the group's president says the new name portrays them as a group of professional Realtors." 630 CHED

"As higher home prices bring richer sales commissions, "these are good times for Edmonton realtors," but the business is far from easy money, the president of the newly named Realtors Association of Edmonton said today.

The same short supply that frustrates would-be buyers also burdens realtors who "probably are working three times harder than before," Carolyn Pratt said.

Because many listed homes receive multiple offers, "you might make three or four offers before you get a property," Pratt explained. "It may take a month."

Or, a realtor might write several offers for a single client, never close a deal - and earn nothing."Full Article

I want to thank my Realtor in Edmonton, Romi Sarna. His attention to detail and "extra mile" service is outstanding. He works really hard to get us the best deals possible.

Thanks Romi!

Edmonton's vacancy rates will drop to an unbelievable 0.7% and are expected to fall even lower to 0.5% in 2008.

"Strong demand from newcomers and a shortage of new units entering the market will reduce vacancy rates to 0.5 per cent in 2008" Canada Mortgage and Housing Corporation

Low vacancy rates means a tighter rental market and rents will have to increase accordingly.

"The average rent for a two-bedroom unit will increase from $808 per month in October, 2006, to $970 in October, 2007," CMHC predicted. "Further gains will push the average two-bedroom rent to $1,115 in October, 2008."

Alberta, ever mindful of the volatility in the oil and gas industry, has committed $130 million to nanotechnology.

"Our strategy will ensure a robust economic future with more high-paying jobs and a reduced dependence on the most volatile revenue stream in North America, and that's oil and gas."

What is nanotechnology?

"Nanotechnology seeks to manipulate the behaviour of materials that range from one to 100 nanometres for applications in medicine, engineering, computing and telecommunications."

"The technology is already used to create tiny sensors to detect cancer cells and enhance the bonding and durability of hip implants. It can monitor the stress on airplanes and can provide pinpoint analysis of oilsands composition to improve extraction."Full Article

Detractors say Alberta is an economy based only on non-renewable fuel, however, the diversity in Alberta's economy is what is making it THE desirable type of Oil Sheikdom.

We hear this all the time.

Client: "I found a great house on the MLS for $100,000!"
GSI: "Oh, yeah That seems really cheap?!" What are the comparables?"
Client: "Don't know but it is cheap so I want it."

Of course there are more factors to investing in real estate than "Location, Location, Location" but it sure plays big in house prices and how good of an investment choice you have made.

This article from the Edmonton Journal lists the 213 neighbourhoods in Edmonton for their overall quality-of-life .

"... a wide-ranging study that looks at everything from the number of single parents to the condition of city streets, the city has amassed a huge pile of data, and a corresponding quality-of-life ranking, on 213 Edmonton neighbourhoods."

The worst was Alberta Ave and the best Henderson Estates. This doesn't mean you should rush out and buy properties in Henderson Estates nor that you should completely avoid Alberta Ave either. Each house is unique and in a city bursting at it's seams gentrification of neighbourhoods is a very likely next step.

Measures Used:

- Number of child welfare cases

- Number of single-parent families

- Number of people who have moved in past year

- Percentage of hospital ER visits

- Rate of hospitalization

- Number of property crimes

- Number of violent crimes

- Number of youth crimes

- Percentage of adults with less than Grade 9

- School transiency rates

- Number of dwellings needing major repairs

- Percentage of dwellings that are rented

- Number of households paying more than 30 per cent of their income on shelter

- Number of households with low income

- Percentage of adult unemployed

- Percentage of food bank users

- Number of welfare recipients

- Number of hectares of parkland

- Condition of playgrounds

- Condition of sidewalk and roadway

For A Look At The Full Article Click Here

A Blurb from the Edmonton Sun online:

"....the slowdown is "primarily due to the decrease in sales in single family residential lots."Ralph Young of Edmonton's Melcor- Edmonton's Residential Developer

The average lot price has increased as Melcor tries to "keep pace with rising construction costs."

Slipping sales

But sales slipped when compared to the same period last year.

Which is generally what happens in a market.

It's no time to panic, as Young pointed out in his 2007 "outlook."

"The current real estate market remains very active," he told shareholders.

"Continued investment within Alberta," he added, "aided by low interest rates and population growth continue to stimulate the economy." So it's still two thumbs up. Read The Full Article

This reminds me of The Reefer Madness movie. I know people have addictive personalities but wow. Are your kids seeing the back of your head more than the front?

"....For many people, blogging is an addiction that hinders their business and personal life. "The temptation is to devote increasing amounts of time and mental energy to blogging without realizing that your efforts could be more profitably spent elsewhere," explained Robert W. Bly, author of the new book Blog Schmog: The Truth About What Blogs Can (and Can't) Do for Your Business.

Seth Godin, the world's leading marketing blogger, echoes this sentiment, "If you have no editor, you don't know when it's done. If you have no boss, you can work too hard and do nothing else. If you don't have a filter, you might not like what you hear back."

Joi Sigers, owner of 14 blogs, explains, "You have to be on guard, because if you let it, blogging will claim more of your life than you should be willing to part with. You have to ask yourself a few questions. Does my family see the back of my head more than the front? If my Internet connection was down for a week, would I take a break or break down...." Read More

Plateaus are necessary in any rising market. Without them you would have uncontrollable growth and a possible bubble. The city still has A LOT of growth ahead of it.

"Increases in new home prices across the country flagged in March, with prices in hot residential real estate cities like Edmonton and Calgary posting only modest gains from February, Statistics Canada said Thursday.

"Prices in Edmonton were flat in the month, though still up 39.8 per cent year-over-year, while Calgary posted a moderate 0.5-per-cent rise and 30.8 per cent year-over-year," BMO Capital Markets Economics reported. Full Article

Condominiums are great purchases in the current Edmonton market. For first time buyers they are a good way to get in to quickly rising market and investors like the rentability, condo boards help with property management and they show a good return. The increase in single buyers have also made condos a hot seller.

The one point to remember about condos is they require more due diligence than other investments. Most important are the fees and reserve fund,

"The fees, paid monthly by owners, can include hydro, heating, taxes, maintaining gardens, snow shovelling, cleaning and repairs. But they may not include all of the above — each building is different. In a new building, the builder estimates the fee.

Condo buildings are managed by boards of directors that are elected and report to the shareholders — their fellow owners. Boards decide how to run the building and, among other things, draw up the yearly budgets, which determine what the monthly maintenance fees will be."

When you look into buying a condo you should definitely have the Reserve fund, Board Reserve Fund Plan, Financial Statements, Current Budget and bylaws reviewed. If it is your first condo purchase it is well worth the money to have a professional review the documents for you. Some companies will review documents and do a unit inspection at the same time, very convenient and the cost is about $400.

"I think the best protection is for buyers to have their documents looked at by condominium legal experts," Mr. Silver says.

"In the majority of cases, there are no contentious problems or issues. However, before buying, it's really vital to have condominium specialists look at all the documentation. That can help prevent surprises." For Full Article Click Here

I feel like I haven't written in a while. Last night I saw Vanessa Williams at Blue Note jazz club in Tokyo. It was pretty good. She is a great singer and I knew some of the songs she was singing but not all. To be honest I prefer the doyennes of jazz i.e. Ella Fitzgerald, Nina Simone, Sarah Vaughan and Billie Holiday. She is a good strong vocalist and I could feel the sincerity in her singing.

Anyway, it was an intimate affair about 200 in the audience and we had a lobster dinner there. It was my mentor's 61st birthday so we also shared a bottle of Veuve Cliqout. I must be getting old or the bubbly was stronger than I thought because this morning when I woke up (5:55am) I felt defeated.

But with a Brian Tracyesque "I FEEL TERRIFIC" I jumped out of bed and started my day.

Hope You Have A Great Weekend,

Danielle Millar

Title for an article in yesterday's Edmonton Journal:

Most landlords aim to be responsible, reject controls
Property owners expect reasonable return after years of small rent hikes

Of course most landlords are responsible, we are offering high quality housing to people it is not a fiefdom! I want my tenants to be happy, most investors I know realize that the tenants our are most important partner. Landlords who are raising the rents $400 a shot are not long term thinkers.

I read an article today on the TheStar.com about the silence surrounding geothermal heat as an alternative to natural gas in the Alberta oil sands.

The use of natural gas is a major source of contention to environmentalist as it requires a lot of energy to produce 1 barrel of gas from the oil sands and our green house gas emissions have been on the rise.

"Today, natural gas is burned to produce the hot steam that's needed to extract bitumen from the tar sands. Alberta's world-famous sands are already the fastest-growing source of greenhouse gases in the country, and on the current growth path, emissions are expected to jump more than four-fold over the next 10 years."

An oil industry consortium is exploring the use of geothermal heating to replace natural gas.

"Replacing much of this natural gas with clean, emission-free heat under the Earth's crust, a completely feasible option according to a recent research report out of the Massachusetts Institute of Technology, would go an enormous way toward achieving a halt, and eventually a decline, in Canada's carbon emissions.

It gets better, the energy is consistent, clean and requires a small staff load.

"Not only is geothermal a baseload resource – meaning it can provide power or heat at a predictable level 24 hours a day – but it doesn't leave behind toxic nuclear waste or carry the risk of meltdown. It also doesn't come with the uncertainty associated with carbon storage and the long-term monitoring that's required to make sure CO{-2} doesn't leak out over time, or escape in a single suffocating burst.

Sounds great doesn't it? Well it has been three months but not a word out of anyone about this. Nothing, I read the original article three months ago and not even environmentalists have mentioned it. Right now the main push is for a nuclear power plant to replace natural gas. I know nuclear power plants are said to be very safe but there are always the nagging doubts....

"......nuclear power doesn't sit well with his riding, which has a large Ukrainian community. For many, memories of Chernobyl are still vivid and the idea of putting reactors in the oil sands raises a stiff eyebrow. "A lot of people get pretty antsy about that....."

For the Full Article Click Here

"Several developers have welcomed a Calgary company's plan to build a Jasper Avenue skyscraper and say they'll compete with their own towers -- if they sign tenants.

George Schluessel of Procura Real Estate Services hopes to start construction next year of up to 40 storeys of retail, office and condominium space between 102nd and 103rd Streets on the south side of Jasper Avenue.

He said Friday that he'll proceed either if his condo pre-sales succeed or if he pre-leases the office space."

"That type of project is quite common in some markets like Vancouver and Toronto, and maybe it's time for it to come to Edmonton," Melcor Developments CEO Ralph Young said.

Looks like the big city is coming to Edmonton. It was bound to happen sooner or later with international investors and multi-national companies coming to build offices in Edmonton. We need to offer a world class city with a world class downtown area.

"Edmonton house price increases slowed in April as more inventory came on the market, Edmonton Real Estate Board reported today.

But dont expect prices to actually drop in the coming months....." EREB president Carolyn Pratt

Thank goodness. Trying to find a GOOD property in this market was incredible. Don't forget too in a seller's market people unload properties that aren't working for them. You have to be extremely careful in your due diligence!

I enjoy reading articles about investing and like to get a wide range of opinions on the best way to invest. To be honest I am wholly sold on Real Estate as a solid investment and though, yes, I hold paper assets; the bulk of my investments are in real estate. I came across this article written by David West a writer for Canadian Business Online

"Now, lest you think that doubling your money on any investment is a good thing, let me share two pieces of advice. First, if you're looking to make money in real estate, don't buy a house. And second, if you're thinking of buying a house, don't expect to make money on it if you do. Here's why.

Let's assume that CIBC's forecast is correct, that housing prices dodge the demographic bullet and rise in price in the years to come, rather than fall. Even if that happens, and you make 100% on your house in the next 20 years, do-it-in-your-head math will tell you that's a return of only five percent per year. Compounded, that's only 3.53% per year. In fact, CIBC's forecast included a 2% inflation assumption, which knocks the return down to less than two percent per year. In comparison, even lowly Treasury bills pay 4.17% annually right now, and CIBC's current dividend yield is 3.09%. CIBC's stock price is also up 1.4% so far this year, and 20.4% in the past year.

So, if you're thinking of buying a house, don't do it with the idea of making money. There are lots of reasons for owning your own home, but don't make profits one of them. Moreover, if you already own a house, don't count on it contributing significantly to your net worth as you approach retirement."Click Here for Full Article

Most people don't buy a house outright. He is forgetting about the power of leverage and the low rates at which the bank will lend you money to fund your investment. If you put down 20% down and made 2% on the total value of the property that is a good return. What do you think?

While detractors shout the market is over, real estate experts see the long economic picture of Western Canada; becoming Canada's economic center.

"High property prices in Western Canada will help spur international investment in downtown commercial markets across the country, say real estate industry leaders.

"We're going to see more pools of capital ... heading to the West, depending on the requirements or the nature of the investor," said Avtar Bains, senior vice-president with Colliers International in Vancouver, at a recent real estate forum in that city.

But Bains indicated it's also common for investors to look at Alberta and Central Canadian properties instead of Vancouver, because of the West Coast city's high property prices and low profit margins.

Alberta's idealized conditions are what are appealing to investors. Look for a region with "a future not a past", as Don Campbell often says. The economic fundamentals of Alberta are much more than Alberta oilsands. They are about a perfect economic region that constantly grows and adapts.

"Jason Clemens, a director of fiscal studies with the Fraser Institute, a Vancouver-based thinktank, said B.C., Alberta and Saskatchewan government policies are helping Western Canada's strong economy.

"It's not just about commodities," said Clemens.

He said the B.C., Alberta and Saskatchewan governments have created the right investment environment by reducing or eliminating corporate or personal income taxes - despite their ruling parties' distinct political differences - while Ontario's government has gone in the opposite direction.

He predicted Alberta, B.C. and Manitoba - in that order - will enjoy the strongest growth in 2008.

The four Western provinces will have the lowest unemployment rates while Toronto will remain around the national average."

The Globe and Mail put out an excellent article on how we can all make our homes greener. Although the information is localized for the Toronto area some ideas you can fiddle with and apply them to your own home.

The newer greener choices available out there are really interesting and frankly sound more aesthetic than what we are using today. I DO like grass though.

Click Here For The Article

"The president of the Edmonton Chamber of Commerce has added his voice to those opposing a property transfer tax.
There's no connection to service delivery, Greg Christenson said of the proposed tax. Its just a tax grab." Full Article

The chamber joins the Canadian Federation of Independent Business and the Edmonton Real Estate Board in opposing the proposed tax.

"The boards president, Carolyn Pratt, said a one-per-cent tax would take $4,000 from the sale of an average Edmonton house."

Cheryl-Lynne Braun was sentenced to seven years in jail for a "ponzi scheme" type scam that defrauded investors out of $23,000,000. She spent $11,000,000 of her ill gotten gains gambling in casinos around Edmonton. Now Braun blames her gambling addiction for the fraud of 89 people.

"In a victim impact statement, one person said the crime was a “very trying time” for their family of six because it happened right around Christmas time and made for a “minimal” celebration, especially for the children."

Click to read full article

Do your due diligence. It doesn't matter WHO it is or how legitimate it seems, this market is the perfect place to get scammed and lose your hard earned money.

We insist our investors get independent legal advice, and we offer reference letters from professionals on our team and our past clients. If you can't see/understand the deal easily then it probably isn't for you! Check with your lawyer or get independent legal advice. Confirm things for yourself. If you have to lie to close a deal and are told it is okay because "It's not really illegal" then run far and fast.

Wherever Calgary goes Edmonton is sure to follow. As the Calgary market cooled a little in the first quarter of 2007 everyone is nervously waiting for a market drop.

The rock solid economic fundamentals of both markets will not allow a big price reversal but a little cooling of the market is nothing to be afraid of.

In fact we welcome it.

Multiple offers on properties that often go unconditional (not a good thing), rapidly raising housing prices and little product have made picking up properties really hard in the current market. We need the market to slow down a little so we can position ourselves for the next big wave. Just remember cool doesn't mean bust.

Julian Koziak a politician who oversaw rent control in the final years of Alberta's last big boom is against a return to the idea.

"It's been written that rent controls have done more damage to cities than bombing Koziak was quoted on Tuesday. He also said they discourage construction.

"It was part of a national response to an economic crisis that resulted from inflation," he said. "Interest rates went through the roof and hit 21 per cent."

Alberta imposed rent controls reluctantly in late 1975 to comply with the federal anti-inflation program. The plan was to limit increases to 10 per cent in 1976 and nine per cent in 1977, then end the controls.

The scheme coincided with Alberta's last big oil boom, when vacancy rates fell almost to zero. As a result, there were fears rents would soar when controls ended, so the province ended up extending the plan, eventually phasing out controls by 1980 -- shortly before the bubble burst and vacancies became widespread."

Click Here To Read Article

Realtors have started going to job fairs in hopes of assisting newcomers to Edmonton find housing. Of the 3,000 people that attended the St. John's, Nfld job fair 200 accepted immediate job offers. Even people who take camp jobs to avoid the housing crunch soon tire of the conditions and often move to a house or rental property.

"About half of the 3,000 people at the job fair were more interested in renting than buying -- for now.

But the realtors also will assist them because "after they're here for a few months, making good money, probably 30 per cent of them will buy......"Glen Good Realtor - Edmonton Journal

So what? These people are bolstering the market, they move here rent a house for a while but soon realize that they like the city or buying makes more sense financially. They support both the rental and resale markets.

The realtors who go to these events drumming up business are avoiding losing their fees to online sell-it-yourself companies. Especially now when listings on the MLS are at record lows and demands at record highs.