Edmonton Real Estate Investor

What Edmontonians think about the real estate market - "Eventually my house will be worth more than I paid for it. Until then I am enjoying being my own landlord. I am here for the long haul." Terry

Province promotes environmental hotline -"We have the rapid-response team, we have the emergency personnel, we have the expertise and we have the capacity to deal with it, (environmental issues)"Environment Minister Rob Renner

Alberta can handle oil-price drop: economist -"Companies are investing very prudently right now and can still make good money at $70 a barrel,"Peter Hall, economics vice-president of Export Development Canada.

We had a beautiful Golden Week this year. Golden Week is between the first week of May and the last week of April in Japan; it is a time when many companies give their employees a holiday and domestic and international travel is very popular.

"Many Japanese take paid time off on the intervening work days, but some companies also closed down completely and give their employees time off. Golden week is the longest vacation period of the year for many Japanese jobs. Two other holidays may also be observed for most or all of a week: Oshōgatsu in January and Obon in August. Golden Week is an extremely popular time to travel. Flights, trains, and hotels are often fully booked despite significantly higher rates at this time. Popular foreign destinations in Asia, Guam, Saipan, Hawaii, and major cities on the west coast of the U.S., such as Los Angeles, Seattle, and San Francisco, as well as in Europe, are affected during these seasons by huge numbers of Japanese tourists." Wikipedia

We went to a cabin in Kirifuri, Nikko and spent the days relaxing, reading books and doing exercise videos. Sunday morning we were lucky enough to see 13 monkeys climbing all over our cabin and in the forest. A mother and a baby monkey took a nap on our deck. We didn't take any photos as to not disturb them.

Reluctantly we left the cabin, met a mild traffic jam but made it home to enjoy delicious Butter Chicken and hot buttered nan for dinner.

If you're poor or relatively poor, it's possible to have many of the things the middle class has," "It's just that you have to pay for them for a longer period of time." Michael Haan, a sociology professor at the University of Alberta
Focusing on needs not wants puts a lot of people into financial debt, they have to stop digging the hole.

Perhaps this is why we have Gen Xs and Ys in so much debt. When graduates start work they are looking a minimum of $20k student loans and credit card debt. Mix that in with a poor understanding of finances and you will have a generation with all the bling but none of the bang in their bank accounts. Preparing for the future financially is something that should be taught from elementary school.

Thank goodness people like Robert Kiyosaki saw the need and filled it and by helping people he became a financial fortress.

Investing when you are young and saving money to invest is so important because once the first home, child and car come you could be looking at a lifetime of debt.

You wouldn't think so with all the negative news and complaining that goes on but compared to other major Canadian centers Edmonton is a bargain for housing and cost of living.

"With health-care premiums being eliminated next year in the latest Alberta budget, Albertans, new and established, have one more reason to feel they live in one of the most economical areas of the country. Housing prices have softened a little in the past few months, but recent figures show the average home in Edmonton is selling for $353,000. According to MLS listings, in Greater Vancouver a similar home sells for $581,000 and in Toronto, homeowners are paying $366,000. Calgary is considerably higher at $436,000. Rents vary widely, too, with Vancouver advertising one-bedroom apartments at $1,500 a month and up, and Toronto offering a similar suite for $1,250 plus utilities. Meanwhile in Edmonton, a one-bedroom apartment just west of downtown can be obtained for $895 per month on a one-year lease. When you consider the province has no sales tax and an annual economic growth rate of 5.5 percent, Edmonton continues to attract Canadians from all over the country. And the outlook is promising as projects worth billions of dollars are being planned in northern Alberta, which will keep the area in the centre of economic development. Everything considered, it’s a pretty economical city, and combined with great entertainment at more than 30 festivals a year, wonderful sports facilities, and almost-unlimited employment opportunities, it’s a great place to live and work, too." Heather Andrews Miller For Metro Edmonton

Is the only answer. I saw that oil could go as high as $200 per barrel not just a bubble but the growing demand and tightening supplies might make that scary number a reality. Along with carpooling, using the transit system and well walking we could all try "hypermile - ing":

"Fuel economy-maximizing behaviors describe techniques that drivers can use to optimize their automobile fuel economy. The energy in fuel consumed in driving is lost in many ways, including engine inefficiency, aerodynamic drag, rolling friction, potential energy required to climb hills, and kinetic energy lost to braking (absent regenerative braking). Driver behavior can influence all of these. The city mileage of conventional cars is much lower than highway mileage due to: 1) a high proportion of idling time, 2) operation mostly at very inefficient low-output engine operating points, and 3) more frequent braking" Wikipedia

Although it may seem like a drop in the bucket hypermile-ing will reduce your gas consumption and is growing in popularity among the environmentally and wallet conscious. I have tried to follow the techniques suggested i.e. slow accelerations, coasting downhill and avoiding frequent braking - My gas tank seems to lasts a little longer than it did before.

I went to the doctor here yesterday for my 17 week check-up. I actually really enjoy the whole Japanese medical process. I think we are being made wimps back home(Canada).

I don't need a lot of tests (although I see the value of having them if you are in a higher risk bracket) from what I have read on the net everyone back home is offered the test even if they are in their 20's and have no history of genetic abnormalities in their family. Sounds like a cash cow for the medical system... Plus why stress the mother more and introduce a foreign body into your baby's sanctum?

I like that I will get two midwives and a doctor who stands in the background, I like that I won't be doped unless necessary (of course I can say that now but in the throws of it who knows???) and that I should cope with the pain instead of mask it.

Trust me if anything goes wrong I'm the first to be grateful for a first class, modern medical facility but to be honest my body has been perfected to do this through evolution - surely it knows what it is doing?

Last year when prices in Edmonton rose close to 50% first time buyers were afraid they would never be homeowners. The frenzy that resulted in "conditionless" contracts, bidding wars and listings on the market for mere days left a lot of people feeling out of control in their buying. The attitude was buy it now or never see that chance again.

However since the market has cooled a little buyers can take there time picking a choosing deals. They can have terms that protect them or help them buy more easily.

"With the best selection of homes listed for sale in years, entry-level buyers have the luxury of time on their side,...""No longer forced to act in haste, first-time purchasers can make offers conditional on financing and home inspections." RE/MAX

We are certainly able to pick and choose the properties we are buying now and with better terms and a lot of room for negotiation. It's a nice time to buy.

I found a link on Web Worker Daily that offers 12 ways to use Facebook professionally. It is over a year old but I think that it is still quite relevant and useful if you haven't explored that social network as a web tool.

Here is the first tip:

"Think of it like personalizing your desk. You can’t help it. When you walk by someone’s desk, your eye is drawn to the pictures and the way they have personalized and organized their space. You pick up on clues to their lives without realizing it. Mary is a Mom whose desk is filled with pictures of two young children, and there are “To Mommy” pictures pinned to the side of her cubicle. You know what her weekends are probably like. John is still dating his high school sweetheart. He likes to scuba dive and he got some great shots of his last trip to Bonaire. You can see the paperback that Bill is reading on the corner of his desk. “Hey, I’ve been meaning to read that. Can I borrow it when you’re done?” Sally has a collection of labels from her favorite wine bottles. You know what to get her for her birthday.

Only display on your profile what you’d put on your desk. Just because Steve owns a picture his buddy took of him getting sick after an all-night party doesn’t mean he’s going to frame it and put it out for his co-workers to admire. Don’t add anything to your profile that you wouldn’t display for your supervisors, co-workers and clients to see as they’re walking by your work environment."

I think that is fantastic right now on my desk I have my goals, a day planner and a picture of my husband and I in the Philippines. They could actually all be replicated on Facebook and be used to start conversations, make connections and perhaps network with people. READ MORE

This great nugget is from www.marketwatch.com:

"A boom of unprecedented dimensions is sweeping Canada's spectacularly scenic western province of Alberta, the Texas-sized territory with a population of 3 million that is home to a pair of world-class cities -- Calgary (population 1.2 million) and Edmonton (population 1.1 million)." Marshall Loeb, Market Watch

It doesn't matter what the Edmonton property market does in the short term because all the international investors who are coming to Alberta, Canada are looking at the long-term. That is how the "strong hands" do it. For more information on Alberta Oilsands click here

But I leave you with this:

"Canada has rather rapidly become the largest supplier of oil to the U.S. Alberta is producing more than 1 million barrels of so-called synthetic oil a day, and the province is sitting atop the largest petroleum deposit outside the Arabian Peninsula (as much as 300 billion recoverable barrels).

As a result, the economy of Alberta since 2002 has been growing an average 12.2% annually. That's not far from China's average, 14.8 %. In the past decade, Alberta's per-capita GDP has almost doubled, to $66,000.

Demand for labor is so intense that Alberta has basically run out of people. Fast-food emporiums, for example, are closing down because managers cannot find folks willing to work for their modest wages." Read More

The SEO Rapper or Poetic Prophet great advice and excellent presentation.

This article is geared to stocks and day trading but I think it applies to real estate as well.

"The pros talk about nervous, quick-on-the-trigger traders as the "weak hands" in the market. But the nervousness is really just human nature. It isn't easy to hold on to an investment that's down, even if it was up for several years. When the markets are roiling, many investors panic and sell. And that's exactly the wrong approach.

When the same professionals mention "strong hands," they are talking about investors with a longer time horizon. These savvy investors swoop in when everything is beaten down, acquiring shares at bargain prices. They ignore short declines and stick around to enjoy the above-average returns that will follow eventually." MSN Finance

Don R. Campbell bestselling author and president of the Real Estate Investment Network (REIN) released their top 10 tens to invest in in Ontario. They are as follows:

1. Kitchener, Waterloo and Cambridge - Comprising Canada's Technology Triangle, the region is quickly becoming known worldwide as a competitive area in which to build a high-tech business. The area is so strong economically that the Real Estate Investment NetworkTM research team has dubbed it the "Economic Alberta of Ontario".

2. Barrie and Orillia (tie) - Barrie is an attractive community for people seeking the nearness and vitality of Toronto but with a slower pace of life. Orillia, with a rising population and expansion of post-secondary institutions, has tremendous opportunities for investors to provide student housing.

3. Whitby, Ajax & Pickering -The ripple outward from the GTA toward this region has been picking up steam over the previous decade. However, until quite recently much of this demand increase has been from commuters wishing to locate in a lower housing-cost region of the GTA. Now, the area is attracting an increasingly diverse list of local employers.

4. Markham - Markham is known as the high-tech capital of Canada, with over 900 advanced technology and life science companies. This influx has led to the area outperforming many other areas of the province, in terms of both economy and real estate.

5. Hamilton and Brantford (tie) - Hamilton is transforming itself into a more diversified economy. A revitalization of key areas, a soon-to-be-opened new transportation route, and a stock of older, quality homes, will help keep Hamilton on the top ten list for many years to come. Brantford is strategically located and offers affordable housing. The multiple satellite secondary education campuses already located in the city provide a vibrant and younger population base.

6. Brampton - The city has a diverse and growing economy that, if anything, is growing a little faster than the infrastructure. Revitalization and densification of existing older areas will be a real key to Brampton living up to its ultimate potential.

7. Ottawa - Higher home-ownership costs, immigration and youth employment lifted rental demand in Ottawa. It is forecast that the city will pass from a very hot resale market with solid price augmentation to a more balanced market that will be more sustainable in the long-term.

8. Toronto - Taken as a whole, Toronto's real estate market will under-perform many of the surrounding regions, yet key neighbourhoods will have breakout years. Older condo units and ground oriented units in the areas such as Bathurst Manor, Armour Heights, and The Junction will do well in both average price increase percentage and potential cash flow. New high-rise condos located downtown and along the waterfront will still see demand. Other great transition areas include the Danforth, Palmerston-Little Italy, Woodbine, Gerrard and Jones.

9. Oshawa - The re-development of the downtown and many other developments about to be announced for the area will put the spotlight on a previously underperforming area of the city.

10. Whitchurch-Stouffville - This continues to be a town with tremendous potential. With low vacancy rates, no substantial increase in the number of rental units planned for the future, and a rising demand for the "country in the city" lifestyle, the town's biggest problem will be dealing with its growth.

DIY Disasters are funny in the I'm glad that is not me way. This BBC comedy The Armando Iannucci show has one of the funniest DIY disasters I have ever seen.

Sales are falling across Canada while listings are surging in western Canada. Could it be the record cold winter where people just weren't interested in checking what was on the market? I think in Edmonton it's a lot of investors testing the water to see what the property they bought last year is actually worth or what they pull out with.

“Canada's six-year housing market boom is officially over. Aside from a few choice prairie locales, sales are melting faster than this year's snowpack,” Douglas Porter, deputy chief economist at BMO Nesbitt Burns

I'm not sure I agree with that blanket statement but I know this year is not the year to put your house on the market. Talking with a friend the other day she was certain she could get $450,000 for a property in Edmonton that frankly would pull 25% less with buyer incentives (vendor take backs, assumable etc). Her local "real estate expert" said put the house on the market and you will get whatever you ask.

Seems like a good example of why sales are dropping; with expectations like these no one will close the deal.

Although the cherry blossoms lasted a paltry weekend this year before being pelted to the ground by heavy rain, lightening and in one case a not too shabby earthquake we did manage to get some great shots around Utsunomiya of the beautiful annual event.

Being an ex-pat has a lot of ups and downs but this time of year always makes it seem like a gift.

Canada in the middle of a quiet oil boom -
"With oil prices hovering near a hundred dollars a barrel, there’s a major oil boom underway. It’s not happening in the sweltering heat of Texas or the dry desert of Saudi Arabia, but on the frozen Canadian tundra where oil producers are developing a new source of fossil fuel. It may seem like unlikely terrain for one of the biggest oil booms in recent memory. But Canada’s “oil sands” have helped make it the leading supplier to the United States." The amazing thing is that at 3 million barrels a day we have enough oil to last 400 years.

Numbers Tell The Truth- Count On It
"and what about climate change? Now there's a nice juicy topic for number crunchers like me. When it comes to the we're-all-doomed file, the spinmeisters have got a big hate on for Alberta's oilsands.

According to a recent front-page Globe and Mail story, the oilsands generate fully 25 per cent of Canada's carbon emissions. Except, well, they don't. In a subsequent correction, the Globe admitted the number was just eight per cent.

Now let's see. Since Canada accounts for two per cent of the global total, that means the oilsands generate between one and two tenths of one per cent of the worldwide tally. Horrifying, really." Climate change is important and Alberta is doing amazing things to reduce its emissions.

Wooing European Workers A Goal Of Mandel's Trip
Mayor Stephen Mandel is leaving Friday on an eight-day trip to Eastern Europe that he hopes will make it easier to attract workers for the booming local economy.

"It's to solidify some ties in Europe with Edmonton so we not only have opportunities for trade, but also recruiting labour," he said today.

The only thing slowing oil sand production is a lack of labour.

What an area to be investing in!

Some environmentalists think Alberta Oil Sands are a prime example of greed over nature and should be shut-down until Northern Alberta emmissions are under control.

"The reason nobody except a handful of academics, self-serving lobbyists and publicity-seeking politicians cares about this issue is that Canada produces slightly more than 2.5 per cent of the world's greenhouse gas emissions.

That's right. When it comes to big time emitters we rank . . . oh let's see, we pretty much don't rank.

Let's talk about carbon dioxide, one of the most pernicious greenhouse gases and the current cause celebre with the environmental lobby.

The U.S. and China produce slightly more than 40 per cent of the world's annual carbon dioxide emissions. Our production numbers rank light years behind both of those countries and well behind industrial giants such as Russia, India, Japan and Germany."

Read Full Article

alberta closes borders

As you’ve probably already heard, the Alberta provincial government announced last Wednesday that the province would be shutting down its borders for the next 18 months beginning April 2nd 2008.

The announcement was made after repeated complaints by citizens that the economy was growing too fast, salaries increasing too rapidly (along with housing values) and that the higher demand for oil was contributing to a sense of ‘overwhelm’ in the province of 3.48 million people.

The government reacted after receiving requests such as these from its Eastern neighbors, from Newfoundland Irene Casey said “ It’s been nearly 12 days since I’ve seen by husband Tim and our son Ryan”. The two set off to work in the manufacturing supplies center NE of Edmonton. They aren’t due back for another 3 days, but Mrs. Casey is feeling nervous after receiving a telephone message from husband Tim.

“Don’t bother boiling any ‘taters for Ryan and me. We sent our first cheque back for $21,000 (2 weeks work) and are staying on for another month so we can pay of the mortgage”.

A message from an anonymous MP in Ontario read…

“We would rather slip into recession than have Alberta stoke the nation’s economy- please stop employing our unemployed, we want to keep them here and as miserable as possible”

The list of hate mail grew. Disgruntled Saskatchewanites chimed in, threatening the province to “back off and share some of the wealth. ‘Cause if you don’t we’ll embed all males between the ages of 14 and 45 under the skin with self destructing chips that will detonate whenever a Saskatchewanite tries to cash a pay cheque earned in Alberta”

B.C. said that Albertans looking for vacation homes on the sunny West Coast would now be charged a ‘Yankee Tax’, forcing ‘rich’ Albertans to pay 12 times the price for property in B.C. that B.C. residents would. New (Albertan) residents would be required to garden in the nude for the first 3 years as well.

But perhaps the worst news of all is that Albertan’s will be forced to eat a vegetarian diet, walk to work and make all their own electricity by using hand held generators for the next 18 months. What will this do for property values?

April Fools' Day or All Fools' Day, though not a holiday in it's own right, is a notable day celebrated in many countries on April 1.

The day is marked by the commission of hoaxes and other practical jokes of varying sophistication on friends, enemies and neighbors, or sending them on fools' errands, the aim of which is to embarrass the gullible.

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So which is it? Is Saskatchewan the next mecca for life, work and investment or is the affordable housing, great jobs and incredible salaries just another wheat field in the sky?

I am not sure.

Saskatchewan has a lot of potential; there are large oil deposits, significant uranium and potash deposits and a diamond mine that but the economy isn't THAT huge and from what I can tell the reverse in-migration was about 150 people more going back to Saskatchewan than moved to Edmonton.

First you read this:

"The Canada West Foundation has published it's State of the West report - it's the first in five years.

Author Brett Gartner says what stood out most for him was the net migration out of Alberta and into Saskatchewan.

It's the first time this has happened since the mid-80's.

The reason for this high job availability and having cheaper real estate than our western neighbour.

Gartner also points out there is also a net migration from the countryside to the city within the province.

He says both trends have everything to do with enormous job opport unity in Saskatoon and Regina. Benson McCulloch

Then you read this:

"If Tracy Mercier could do it all over again, she would never have given up her west-end apartment.

The former Edmontonian packed up her family last August and moved to Saskatoon, lured by the promise of low-cost living and an easy lifestyle. But what she discovered were sky-high rents and low wages.

Now Mercier, 32, wants to warn others planning a similar move that the grass isn't greener next door.

"We took a chance and we thought, 'OK, it looks pretty cheap,' and we moved," said Mercier. "I tell you, every day I kick myself."

"It promised a lower cost of living and a higher quality of life," said Mercier.

That wasn't entirely true, she said.

Mercier said that in Edmonton, they paid $650 a month in rent compared to $689 in Saskatoon. It's going up to $830 this summer, she said.

She said her husband got a job changing oil for $10 an hour, compared to the $16 he made working for the City of Edmonton. Taxes, meanwhile, are "a killer," she said.

Mercier, who isn't working because of a medical condition, said the experience has taught her there's no place like Alberta.

"You have to work harder there, but the rewards are worth it." The Edmonton Sun

Perhaps in a few years the economic fundamentals of Saskatchewan will be able to support residential investment interests but for now I am sticking with the "800lb gorrila" in the blue corner.

An Edmonton landlord struggles to keep the school near his complex open and is willing to pay to make that happen.

"Reg Appleyard, Meadowcroft Housing Society of Edmonton's executive director, told public school trustees that he will guarantee 110 students are enrolled in Woodcroft Elementary School by Sept. 15, and the society will pay nearly $5,000 for every student short of the goal, up to $98,224 or a shortfall of 19 kids." Photo courtesy of Edmonton Journal.

Relying on 30 years of accumulated reserve funds, Reg sees this as the biggest crisis the complex has had to face, and is willing to pay to keep the school and his units tenanted.

"We bought this complex 30 years ago, and we've always set aside funds each year for crises or emergencies," he said. "We feel that this is probably the biggest crisis we've faced in 30 years, and so we are prepared to use some of our reserve funds to try to solve the Woodcroft Elementary School problem." Reg Appleyard

What a reserve fund!
Reg seems determined to get those seats filled and has already signed up children.

I can't help but wonder if his reserve funds could be spent in a way that could revitalize the community or help tenants who can't find housing rent in his building. The $5000 shortfall per child could actually equate to a $416.00 monthly rent reduction for a year in his building.

That might attract a lot new tenants, fill the school and offer subsidized housing.

Read the full article here

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This is taken from Star Publications of Malaysia.

"WITH crude oil hitting a record price of US$108 per barrel recently, the search for oil and gas has been more intense than ever due to its high profit margin.

In recent years, investing in the extraction of oil from sand or oil sands is gaining popularity because of the strong demand and high prices of oil.

It was reported by Time Magazine in a recent article that second only to the Saudi Arabia reserves, Alberta's oil sands deposits were described as “Canada's greatest buried energy treasure,” which could satisfy the world's demand for petroleum for the next century."

So that brings the countries investing in Alberta to France, China, Norway, the Middle East, America, Japan and now Malaysia. They see something that is a sure bet with the price of rising and demand constantly increasing.

Read more about Alberta's HOT economy Click Here.

Good question if you think in a Boom and Bust mentality...

This is a reply to "Is Edmonton Real Estate Too Hot?"

In reality what you have happening in the province of Alberta, specifically Edmonton, Calgary and Red Deer cities is a healthy slow down in the market. It's not a Boom and Bust. It's not a 'Too Hot', in fact it has slowed enough to become a buyer's market- opening up the market for the first time in the past 2 years.

When a market is firing on all cylinders it has growth stages and moderating stages where it absorbs the outflow of energy produced. It's a self-regulating safety valve so that the economy doesn't get overheated.

As a sophisticated investor you don't want to target a market that is doing double digits year after year... you want to target a market that has a diverse, multi-tiered economy that is set to grow year after year.

Too many novice investors (read: Speculators) chase the percentages. They look for the next 'Big Town' that is going to BOOM. When in reality, seasoned investors look for a growth market where real estate appreciation is between 6% and 8% per year, sustainable. When your market goes above your targeted 6% to 8%, it's gravy- a nice bonus.

My job as an investor is to study the Edmonton market and the province of Alberta's economic fundamentals. When the economy can't support the growth, then you begin to research other areas or property types that will support that growth.

In a nutshell, the economy remains diverse in Edmonton and will prove to be a very stable place to invest for the next 5 years. Of course as the market shifts you may need to adjust your target property type and check to make sure that it still makes sense. For example, if single family homes are no longer priced in your target range of affordability, look at Town Houses or Condos, which still remain quite affordable.

Too often in the media, regional areas and investments get painted with one big brush. On one hand that may be good, because it shakes out the inexperienced and continues to regulate the market. Look at year over year averages and check the fundamentals to decide what is a 'Boom or a Bust'.

Here are a few quick facts below:

Alberta's unemployment rate is the lowest in Canada at 3.20% . An incredibly healthy employment percent is 3% (11/07 to 2/08 Stats Canada)

Alberta's GDP: $290 Billion- yes, Billion. In a province of 3.4 Million people.

If you still think Alberta's economy is on the slide, then read the RBC (Royal Bank of Canada) Report released February 2008:

http://www.rbc.com/economics/market/pdf/provfcst.pdf

"Alberta's economy remains the 800-pound guerilla of Western Canada. At some $290 billion, Alberta's GDP -- gross domestic product -- is almost 15 per cent larger than that of B.C. and Saskatchewan combined.

So when housing starts in Saskatchewan's two major cities soar by 60 per cent -- as they did in 2007 -- it's from a tiny base. Even with a slowdown, Alberta's housing starts will top those in Saskatchewan by six or seven to one in 2008.

Indeed, although home builders in Edmonton plan to curtail new construction in the first half of 2008, some are already worrying that they won't be able to meet new demand by this fall, when inventories are likely to be depleted. In short, rumours of Alberta's economic demise are greatly exaggerated."

Affordability: Although Alberta's housing affordability has increased the past few years, so have the wages. Alberta leads Canada in job growth and average median salaries are the highest in Canada at $854.28 (with the exception of hardship posts in the Yukon and NWT)

Despite the high Canadian dollar and manufacturing/export slowdown related to the slow in the U.S. market as well as cyclical slowdown, the GDP is still up 0.02% Alberta's GDP far outpaces nearly all Canadian provinces and has been pacing slightly behind China's growth. Although it will slower this year- which is what healthy markets do, enabling them to continue moving forward at a sustained pace.

http://www.statcan.ca/Daily/English/080303/d080303a.htm

"Looking forward, although Alberta’s outlook for growth has eased, given the large number of major projects that are still underway, the province is still likely to outperform the rest of the country for the next several years. CanaData is forecasting the province’s real (inflation-adjusted) Gross Domestic Product (GDP) growth to be 4.4% in 2007 and 3.7% in 2008."

Economic Indicators - GDP Alberta vs. Canada

Is Alberta diverse? Yes. It's not just Oil and Gas- although they make up a fair percentage of the current growth. In fact investment dollars into the Oil Sands were LESS than other areas of investment. Read the Report Here: http://www.alberta-canada.com/statpub/

Recently a lot of people are asking what exactly is a joint venture investment and "What DO you guys do?"

To put it simply:

We leverage our time, knowledge, expertise, contacts and education for investment capital and we own the asset/property we buy 50/50.

OUR ROLE

1. Choosing quality revenue properties using a proven real estate system - this often means searching through 100's of properties in select areas. It takes time to find a good property in an appreciating area that is a deal. Most people look at a maximum of 10 properties we look at 100s.

2. Purchased undervalue and/or with a decreased down payment - Close to 90% of the deals we do are less than 25% down deals heck they are often less than 20% down. Second mortgages, assumable mortgages and agreements of sale are a few savvy strategies that let investors leverage money further and further.

3. Evaluate potential properties using A.C.R.E. system - beautiful scenery doesn't make a house appreciate ask people in the U.S about that now. There are many markers that you must look for in a property to increase the return you get in the future. Yes, location is but one of them!

4. Inspect, negotiate and conduct exemplary due diligence on property - I knew and "investor" who would go to a house and roll marbles around to make sure it wasn't sinking. I say leave the toys at home and the job to the pros. Often what you can't see in a house is what comes back to bite you.

5. Finance, insure and hold mortgage on investment property - This is the biggest relief for most investors they don't want the burden of getting a mortgage.

6. Cost effectively renovate property up to a top standard of rent readiness - dealing with contractors, need I say more?

7. Choose quality, equity building tenants that improve the property’s value - Tenants are more important than anyone in the deal if your house isn't rented well it's eating your money. Plus did you ever see Pacific Heights? Luckily in Alberta tenancy laws would never allow that nightmare to happen.

8. Appropriately market time and sell to maximize profits - People want to sell now because they think it's over. The only thing that is over is a blip in a long term increase. If you sell now you lose if you wait the market out, use economic factors as a guide when to sell and buy in a strategic location you'll never leave money on the table.

INVESTOR’S ROLE

1. Fund Investment Account - Sounds easy doesn't it?

"The outlook remains extremely positive for the underlying strength and stability of our economy and will continue to make real estate in Calgary a prudent long-term investment," Susan Thompson, research manager at Avison Young Commercial Real Estate (Alberta) in Calgary

Calgary's real estate market is incredible. It is the headquarter central for many huge international companies and the workforce is young, growing and highly paid but lowly taxed. It's a small wonder that big money investors are flocking to put their money into the city for the long term.

However the residential investor is going to Edmonton. Why? Well one point is the difference in income between the two cities is marginal but the difference in real estate prices are an incredible. Edmonton average single family residential house price is about $381,965 and in Calgary the price is $481, 287. More and more people will relocate to Edmonton as a result of more affordable housing. As the demand increases the prices will move closer and closer to Calgary's.

So for the residential market Edmonton is your top choice. Who knows with more and more leading business locating there headquarters in Edmonton (CN Rail, Finning, GE and Neiman Marcus are a few) Edmonton is giving Calgary a run for it's money.

After 4 months of blood, sweat and tears we are proud to present our new website at www.glennsimoninc.com. Our old site had a lot of incredible information about Edmonton, Alberta and the Alberta Oil sands but was starting to get hard to navigate and a little to bulky.

The new site has all the same great information, plus informative videos, over two years of newsletter archives and our featured property sheet where you can find the hot new deals we are offering our JV partners.

Take a look!

In Alberta we've been blessed for a longtime time with being able to assume properties without qualifying for the mortgage.

For the past two years I've seen banks gradually tighten up their lending policies and require buyers to qualify for some assumable mortgages. In essence where we take over the existing mortgage, but still need to prove our repayment ability and that our credit is in good shape.

Last June TD announced that they would cease allowing their mortgages to be assumed, and they have. A few other lenders followed suit; Rezmor and Scotia bank for example.

February 26th 2008, RBC joined up stating that they too would require full qualifying.

I have successfully used Agreement Of Sales in Alberta and Ontario when the market is favorable. Of course, there are many unique strategies to use as well as, rent-to-own and agreement of sale to name a couple.

If you currently have deals tied up with RBC that are assumable, I believe that they will still honor them if they came in with conditions removed before 2/28.

The city had a budget surplus of $34.4 Million in 2007. Some of the excess funds are planned to go to infrastructure, a new sports complex and other projects.

"I know it's frustrating and I don't blame the public. I don't necessarily disagree with their position either, but sometimes it's hard to guess 365 days in advance what's going to happen." Mayor Stephen Mandel

Maybe we can get a rebate?

New Statistics Canada figures show that along with tradespeople, there is a huge surge of post-secondary school graduates choosing Edmonton over trendy spots like Montreal and Vancouver. Why because smart people go where the money is!

In Vancouver you can spend close to 70% of your income on housing, Montreal you can get a job but pay higher taxes than you would in Alberta.

Or you could chose Alberta with the lowest taxes in Canada, highest salaries and enjoy quite good housing affordability.

No wonder over 160,000 people have moved to Alberta over the last 7 years.

With a higher quality of life and virtually limitless opportunities Alberta is where young smart professionals are choosing to make their home.

Nothing.

I read an article about the prices in Edmonton being stalled (which to me generally denotes stopped/not working/dead). Then the writer went on to say that houses are:

• selling for near list prices

• not staying on the market long

• in strong demand

These are good things right?

Ending with this quote,

"Nothing is for sure" about real estate, but sales agents "are not concerned about the health and vitality of the Edmonton market," association president Marc Perras said in a statement.

"Buyers still have lots of choice." But sellers are encouraged by the reduction of sales waiting time. "And sale prices are typically close to the listed price," Perras said.

It makes me think writers need to get a thesaurus and get their adjective usage under control.

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.

Incredibly strong markets in Western Canada are keeping Canada's real estate markets buoyant even through America's housing slump.

"We expect construction, sales and price gains to moderate in 2008 due to decreasing affordability, especially for first-time buyers, and some softening in domestic economic conditions associated with the intensifying U.S. slowdown and persistently strong Canadian dollar,"Adrienne Warren- Scotiabank senior economist/ author of Real Estate Trends Report

In what is the strongest and longest postwar housing boom cities like Edmonton and Calgary are keeping the market strong and in good condition. Although both cities saw affordability drop slightly the current balancing out of the market in 2008 will bode for good deals for buyers and price increase in 2009.

"It could prevent the onset of AIDS because if the virus can't get out of cells, it can't infect other cells and then that's where the problem comes from AIDS. It decimates the immune system, so if you prevent the virus from leaving cells, it basically locks it into cells and it can't spread." Stephen Barr, a researcher in the medical microbiology and immunology department at the U of A and lead author of the paper published in the Public Library of Science Pathogens journal

Read Full Article Click Here

In Alberta where investment is always spoken of in BILLIONS not MILLIONS - this year will stand out as the year we beat all manufacturing across Canada for the first time.

"That one small little area of Alberta is attracting more investment than every manufacturing industry across the country." Philip Cross, Statistics Canada economist

This money isn't invested "willy-nilly" with no idea of ROI - extensive research is done; every possibility factored including Royalty reviews, Kyoto accords and oil prices. It is long term thinking with an eye on the future.

So if all this investment is going into a tiny little area in Alberta there is going to be a boom on jobs, on retail sales and of course on housing.

That is why I can't think of a better place to buy investment property in Canada and possibly the world.

Global warming or an ice age which will it be? As humanity is increasingly aware and concerned by our effect on the earth's fragile climate system; scientists are not sure if man made climate changes are even noticeable and that if fact they may even be a drop in the bucket.

After a winter that is breaking many "pre-global warming" records those in the know are starting to wonder if maybe we should get down jackets instead of solar powered fans to prepare for the earth's next climate shift. Lower solar activity may cause an ice-age that could compare with one that lasted 5 centuries and caused a lot of trouble,

"The last time the sun was this inactive, Earth suffered the Little Ice Age that lasted about five centuries and ended in 1850. Crops failed through killer frosts and drought. Famine, plague and war were widespread. Harbours froze, so did rivers, and trade ceased."

I know we have to look longer than one winter for any significant climate assumptions. I have to say that either way you are leaning- neither global warming nor a little ice age sounds too appealing.

Read Article Click Here

The Financial Post has a sub-section under Small Business called "12 Weeks To Start-up" which is to help new entrepreneurs get started and motivated by successful people in business.

This week Century 21 Real Estate Canada's founder Peter Thomas was interviewed to speak on his "virtual mentors" in his early start- up days. When times were tough and there was no one to call Mr. Thomas turned to four greats: John F. Kennedy, Indira Gandhi, Martin Luther King, Jr. and Ernest Hemingway to guide him on the rocky road to success.

Each person guided him in a different way,

"For years, as he established Century 21 Real Estate Canada and became a busy property developer in Western Canada and the United States, whenever he ran into a problem he would ask himself, "What would my virtual mentors do?" For inspiration he would look at the life of JFK; as a moral compass, he would turn to King. Former Indian prime minister Gandhi supplied passion, vision and humanity. Hemingway was the "rogue" advisor, providing gung-ho inspiration whenever Thomas felt his life needed more fun or adventure."

In our business we look to Trump and Kiyosaki for business savvy and real estate acumen, Dr. Wayne Dyer and Deepak Chopra lead us spiritually and numerous travel writers and adventurers help us relax and injecting adventure into our long weeks of work.

Of course we have real life advisors who guide us through the pitfalls like lawyers, accountants and Realtors - but sometimes it is the people who you can't meet who really inspire you too new heights.

Who guides you?

Read Article Click Here

Over the last ten years Edmonton has seen and incredible 203% increase in housing prices.

"Never before have we seen such a continuous run-up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation," Michael Polzler, executive vice-president of RE/MAX Ontario-Atlantic Canada

It goes to show that real estate is a long term play, short term thinking and lack of focus can only be detrimental to investors. If you pick a market with strong economic fundamentals then buying property is sure to give you good returns over the long term. The hardest part is maintaining your focus on that area and not getting distracted by "shining little things" (read up-and-coming areas, beach front from your last vacation or a stock play tip from your brother-in-law) along your investing journey.

"If you don't have a long-term outlook, don't invest in real estate, go buy gold or stocks and roll your dice. You have to make real estate boring, because that means you're doing it right. Go jump out of an airplane with a parachute if you want excitement. Right now I am telling everybody to buy resale, to buy something built in 1997 or 1998, when there wasn't a frenzy and people had the time to finish the properties." Don R. Campbell REIN president

My statement from Mackenzie Financial Corporation came today no big shocks or surprises this time but I did get a little pleasure from a link on the Mackenzie site.

Burn Rate shows how Canadians are burning through their hard earned post-tax dollars. The Denialers "a family of four that spends like fourteen" who are "experts at convincing themselves that their financial affairs are in fantastic shape" are indicative of how many families sometimes have everything - except a financial plan.

It's a good link to spend to someone who may need need a little nudge to think about their finances.

Don't miss the Burn Rater Spending Test that will tell you how much of an over spender you are.

Due to high demand, limited supply and increasing rents Edmonton office space is in hot demand.
Prices by the square foot have increased 76% since the beginning of last year.

"Overall, office vacancy has reached historical lows, with unprecedented rental rates being achieved in both the downtown core and suburban office markets," says Canadian real estate services company DTZ Barnicke. READ MORE

The image of bamboo for tropical huts is rapidly changing as the hollow stemmed grass is being used to build churches, bridges and luxury homes.

"The relationship to weight and resistance is the best in the world. Anything built with steel, I can do in bamboo faster and just as cheaply," said Colombian architect Simon Velez

Velez has developed special techniques to ensure that weight bearing and bugs are no problem for structures made of bamboo. The environmental material is taking the world or architecture by storm and buildings made from the super grass are going up from Hawaii to China to Bali.

Read more about the amazing building material

Bestselling author of Real Estate Investing in Canada: Creating Wealth with the ACRE System, 97 Tips for Canadian Real Estate Investors and 51 Success Stories from Canadian Real Estate Investors spoke with The Edmonton Journal to warn investors of falling for hype, thinking short-term and not looking "Behind the curtain" when investing in real estate.

He explained what we can look forward to in the Albertan market,

"Edmonton's housing prices, which fell 11.7 per cent during the last half of 2007, will dip again this spring, then rebound during the second half and be up 11 per cent on average during 2008. Calgary prices will be up 12 per cent, Red Deer 10 per cent and Grande Prairie 11 or 12 per cent."

why you should only line up for U2 concerts not properties,

"When you line up around a block with 200 people to buy the condo in the sky that doesn't exist yet, put $20,000 down and plan to sell it as soon as it's built, look in the lineup and tell me how many people have the exact same mentality. Then all you need is for one guy to panic and drop his price to get out, and the average price in the whole building goes down, and you're completely at the whim of somebody else. You should only line up for U2 tickets."

and why beetles in B.C spell trouble in the future.

"And right now I wouldn't touch a town that's only forestry, because this pine beetle thing is massive -- the Williams Lake, Quesnel, Prince George corridor is going to be devastated."

He also gives great insight on where individual markets are going in the future. If you are planning on investing anywhere in Canada then read this article.

Click Here For Full Article

Stelmach unveils green plan - Stelmach announced that if re-elected March 3, the provincial Tories will spend $50 million turning the river valley into the world's largest continuous park, running from Devon to Fort Saskatchewan.

Beneath university's land there lies a mystery - and possible oil riches - Nobody knows quite how it happened, but the University of Calgary and its students are about to get some first-hand experience in the energy business.

By chance, a staff member uncovered information last summer that showed the school owned the mineral rights to two sections of land south of Lethbridge near the U.S. border - an area rich with both oil and gas reserves.

Tight market fuels winter retreat boom - "Supply in most regions of the country is expected to balance demand in regular housing, but in the recreational property markets, demand should still be quite a bit greater than what is available," Phil Soper, chief executive officer of Royal LePage Real Estate Services.

Real estate affordability to improve, experts say -Housing affordability is likely to improve this year as house-price growth eases and falling interest rates make mortgages cheaper, economists say.

Real estate values returning to normal - After two years of sky-rocketing prices, numbers in the residential real estate market are beginning to return to normal, according to real estate agent Mike Gouchie.

"I think we're going to see a stable, healthy market in Central Alberta, heading into 2008," said Gouchie. "There will still be increases to the value of homes, but in the seven to eight per cent range, which is closer to normal than increases have been."

"Near-record January sales indicate that housing sales will remain strong in the Edmonton area as buyers and sellers adjust to the new pricing levels," Realtor Association of Edmonton president Marc Perras

Purchasing a property with great terms or at a reasonable price is a lot easier now than it was 6 months ago. Sellers are willing to make properties assumables or give you a nice reduction because they don't want their property sitting on the market any longer.

"Prices are stable and are not expected to drop sharply despite the large inventory," Perras said.

Single family dwellings showed a minuscule drop at 0.6%, duplexes and townhouses fell 1.7% and condos rose 1.9%. Overall residential properties rose 1.7%.

Yesterday I found a gold nugget in the boot of my car. My friend asked me over to his place to get a second set of eyes on it before he listed it for sale.

He’s spent the good part of a year renovating the 2 houses on both sides of his. And now it’s almost time to put them on the market. He’s added several nice touches including a Koi pond and a gazebo in the back garden. As the weather gets colder and the ice starts to thicken, it’s a perfect place to sip coffee and watch the carp swim about drunkenly. Somehow the fish survive - though the temperature is as mild as a Vancouver winter. These additions are more from the heart than for the wallet. Carl’s embellishments may be just the right touch to sway certain buyers and perhaps even deter a few.

The recovering alcoholic photographer for instance, loved what he could do with the wine cellar. It's true, he didn’t see a wine cellar he saw a darkroom: cool and temperate for his sensitive films. He was the one that brought up the fact that he no longer drinks.

But, what about the chunk of gold in my trunk you ask?

I found an old Robert Allen book, Multiple Steams of Income. I’d read the revised version a few years ago. Challengingly I flipped it open and dared Robert to show me a new stream- and he did in about 30 seconds. It was a copywriting niche that with a bit of time and research could pay off for the right person. What really impressed me was the “idea” of creating multiple streams of income. That book and others like it are brilliant because they teach you to “fish“ and therefore, never go hungry.

If you depend on a single revenue source to provide for your future you’re supported on a stool that could topple at any time. Can it take the weight of a recession, unexpected illness or worse? Probably not, your table needs 3, 4 or more legs so that if one is eliminated, you won’t even wobble.

Building multiple streams of income will not only strengthen your reserve but also help protect from the risk of a sudden amputation and keep your table standing. Stocks toppling and U.S. Subprime woes, reinforces the fact that having cash flow coming from multiple sources is crucial.

Some properties you’ll own for capital gains, others for cash flow, some stocks for dividends and others for wealth creation, a few online stores for passive income and so on. These building blocks form an excellent foundation enabling you to safely shift, but not crumble, if a financial earthquake should hit.