Edmonton Real Estate Investor

With the holidays around the corner ( I know I am pushing it!) there is never a better time to give back. Coming out of an recession is hard on everyone's pocket books and sometimes it is most obvious during the holidays.

There are so many great charities to take part in. I have been invited via Facebook to Wrap Harder which sounds like a lot of fun.

Another one via the news Stuff a bus - the Edmonton Food Bank hopes to raise 240,000 kg of food. That's right about $90,000 or a bus full of food!

A great idea. I hope to do all I can here. Canadian Feed The Children Best Gift Ever is a great program where you can donate in someones name.

The gifts range from about $15 dental care for a child in a developing country to a $2000 new school. There are all price ranges in between. My husband and I are doing this for each other.

Some of you know that I 've lived in Japan for about a decade now. The one thing that is constant here is change. Sometimes if I don't go downtown for a month buildings have changed.

Japan leads in new technology. The coolest thing is a square called a QR code that can go anywhere (clothing tags, drink cans, business cards) it acts like a bar code when scanned with a cell phone. The cell phone owner may be led to a website or can pay for the product using the code.

That technology reminds me of this:

"The listing-sheet box may be going the way of the $150,000 house.

You know the box. It's affixed in front of homes for sale and holds brochures or sheets of paper with the property's asking price, listing details and the realtor's business card.

It's being replaced, or superseded in importance, by a 21st-century- technology version that takes advantage of younger homebuyers' love of text messaging.

Vancouver-based RealtyText is the latest text-messaging service to move into Edmonton. The company plans to move into Calgary as well.

After launching in Edmonton two weeks ago, it now has more than 20 realtors subscribing to the service allowing them to upload their listings to the system and add a special code to their for-sale signs, says president George Haddad.

Customers who see a home can punch the number on the sign into their phone. "All the information about the property comes up within seconds on their phone, including photos," Haddad says."

Read the full article here.

These are hilarious. You will definitely get a few laugh out loud guffaws. They are all from different sources on the net and are only as dirty as your mind and bad grammar. From the REIN site.

Complaints from Renters

1. I want some repairs done to my oven as it has backfired and burnt my knob off.

2. The neighbor’s 18 year old son is continuously banging his balls against my fence. Not
only is this making a heck of a noise, but the fence is now sagging in the middle.

3. I am writing on behalf of my sink, which is running away from the wall.

4. I wish to report that tiles are missing from the roof of the outside toilet and I think it
was bad wind the other night that blew them off.

5. I request your permission to remove my drawers in the kitchen.

6. The toilet is blocked and we cannot bathe the children until it is cleared.

7. Would you please send a man to repair my spout, I am an old age pensioner and need it
bad.

8. I want to complain about the farmer across the road. Every morning at 5:30 his cock
wakes me up and it's getting too much. Its all right when my husband is on day-shift,
but when he's on back-shifts or nights I get it several times a week from Mr. Docherty
next door and at my age it's too much.

9. The man next door has a large erection in the back garden, which is unsightly and
dangerous.

10. Our kitchen floor is very damp, we have two children and would like a third, so will you
please send someone to do something about it.

11. The toilet seat is cracked - where do I stand?

12. I am a single woman living in a downstairs apartment and would be pleased if you could
do something about the noise made by the man I have on top of me every night.

13. Please send a man with a clean tool to finish the job and satisfy the wife.

14. I wish to lodge a complaint against my neighbor in 211. When I get undressed at night I
can see him looking in my window with binoculars. Do I need to pull down my own
shades?

15. When I'm in the shower I turn on the water and I get hot. Could some nice repairman
fix my pipes so I don't always get hot?

Lots of good quick reads in your mid month update. Take a few moments to reflect on how businesses are using this downturn to set up labour contracts and align future projects.

This is very similar to 2002 and around the Kyoto Accord time when the market was full of fear and FULL of deals. Although I think we're a ways off from a full recovery, you can clearly see the strength and backbone to Alberta's economy.

Managing your current investments and and adding new ones at this time, will have you smiling in 2012 onwards as the economy begins to shine again.

Canada's Tar Sands Are The Future Of Oil Production: Total

By Michel Viatteau (AFP) – 11.13.09, MONTREAL

"The era of oil gushing from ground wells is over and can only be replaced by costly and complex refining of deposits such as Canada's oil sands to satisfy rising global energy needs, said a senior oil executive. Pressed about the high cost of oil sands extraction and attacks by environmentalists worried about its contribution to global warming, Jean-Michel Gires, president of French-based Total's Canadian subsidiary, told AFP he is optimistic specifically about the future of Canada's oil sands development." GRAB THIS STORY

Keyera to Spend $58M in Edmonton Area

Edmonton Journal, 13th November 2009

EDMONTON - Imperial Oil’s $8 billion Kearl oilsands project has generated a long-term deal with Keyera Facilities Income Fund to provide diluent transportation, storage and loading services in the Edmonton area. READ MORE HERE

Suncor Budgets $5.5 Billion for 2010

International Business Times, November 13th 2009

Suncor Energy Inc, Canada's biggest oil company, said on Friday it is budgeting C$5.5 billion ($5.23 billion) for capital spending in 2010 and will restart construction on its Firebag Stage 3 oil sands project. Suncor, which dominates Canada's oil sands region following its C$22.7 billion acquisition of Petro-Canada in August, will use C$1.5 billion for growth project funding at its oil sands operations and C$4 billion in sustaining existing operations. FULL ARTICLE

As you can see from the articles selected in your mid-month update, the big plans for Edmonton and Alberta continue. Many will wait until they see the economy in full recovery while the smart money continues to pick up the deals now.

"I shall make the most of all that comes: And the least of all that goes." - Sara Teasdale

I appreciate all your calls and emails. I'm looking forward to helping you put together your next deal.

Thank you,

Todd and Danielle Millar-

To get our free bi-weekly newsletter with great information on the Alberta real estate market, Alberta economy and Canadian real estate investor tips Click Here

"Meanwhile, according to ATB Financial economist Dan Sumner, the average Albertan spent more per capita on retail items since 2004 than people from any other province, yet in 2008 the average Albertan saved 13.7 per cent of disposable income, compared to a national average of 3.8 per cent. The reason for this discrepancy is that Albertans have had greater disposable income than people in other provinces, with high incomes and lower taxes. That will attract young people from Central Canada."

You can expect population growth in Alberta to continue at a steady pace. The article goes on to state that real estate is not where people will be investing in the futue.

I know that with a statement like the one above and all people generally needing a place to live - real estate will be the way to go for me. I invest in other things sure but as far as being able to control my own investments I want tangible real estate.

The days of oil rigs pumping furiously are coming to an end. Unconventional sources of oil require more manpower to get the oil out of the ground.

What does oil have to do with real estate?

Imagine if your investment property was near the next big oil reserve, workers from around the world were going there to live and work for the next few decades. Tenants were willing to pay top rents because the economy was booming and they were making oil dollars.

Alberta is that place, with vast oil sands that hold a proven 175 billion barrels of recoverable oil, second only to Saudi Arabia. The most impressive part is that Alberta has only just begun; experts say oil sands production can be sustained for at least 400 years.

"These are ambitious projects, very big projects, and thus very expensive," he said in a telephone interview from Calgary, Alberta -- Canada's oil capital.

"It's clear that cost is a problem," he conceded. "But it's also an important deposit -- several billion barrels of oil in the ground -- while more conventional sources of oil that would be relatively easier to extract are either drying up or are inaccessible to international firms such as Total."

"The price of energy is not going to collapse," despite downward pressure from a spiralling global economy, Gires predicts.

"To justify our massive investments in the oil sands, we're looking at what the world will look like in 2020, 2025 or 2030," he said.

"In the long run, despite all of the efforts to boost energy efficiency and develop alternative energy sources, the planet's appetite for energy ... will mean additional oil production will be welcomed and we'll find buyers for our output."

Think of the long-term, not an economy that in coming out of a recession but as the world starts to recover and the demand for oil increases - rents, property values will again increase. Maybe not like 2007 in Alberta but steady consistent growth that makes investors happy.

This news made my day and probably the day of every single expat living in Japan.

The prime suspect in the murder of Lindsay Hawker, Tatsuya Ichihashi, has been caught at a ferry terminal in Osaka Japan.

It was an insult to her, her family and the shame of Japan that this guy escaped barefoot in a foot chase in 2007 . His ludicrous "getaway" was made in front of a slew of police officers who were investigating the apartment where her body was found. The fact that he lost his backpack with all his money and clothes while escaping but was able to remain in hiding for 2 years is unbelievable.

I am so happy for her family that perhaps finally closure can come to them.

I was reading Dr. Demartini's Count Your Blessings. It's a really good self-help book for being appreciative of what you have even the bad things.

Once you can do this you'll notice your health getting better. For example the man with crippling arthritis never being willing to "stand" or "bend" to his employer's will. Does mental health affect physical health? You bet.

Anyway I'm getting off-track. I wanted to share the free digital radio station listed on the back of the book. HayHouseRadio.com is free for anyone. It's inspirational talk radio featuring top Hay House authors (like Dr. Demartini).

Some programs where a little much for me - I still don't believe in crystals but I found other programs very uplifting.

So give it a try!

Wherever your real estate investment is located—provided you bought it at the right price and terms—there are many ways to keep your property profitable. If you analyze your real estate, update and improve your investment team, review your long- and short-term investment plans and stay focused on the end result; your real estate portfolio will be a rock solid fortress that can weather any storm.

Analyze

The first and most important thing is to carefully analyze your portfolio.

What properties are doing well?
Are there properties that are slowly leaking dollars like a dripping tap?
If so how can you fix them?

If you don’t know the hard numbers on your properties, then you are risking everything that you have worked for. Keep your budgets in line and carefully evaluate every purchase and renovation. Once you have a better idea of where you stand, you can start to recession-proof your properties. First, your customers are your tenants, so learn how to keep them happy and decrease vacancies. For example:

Provide Internet or free cable
Give lease incentives or rewards for rents paid on time, or even the best garden.

Increase your revenue by adding rental units to your properties or other moneymaking add-ons like renting garages separately, extra parking spaces or coin-op laundry facilities. You can also refinance your mortgages with longer amortizations, increase rents where reasonable or rent your properties furnished.

Evolve and involve your team

Is your property management up to par?
Are you getting discount rates for a big portfolio?
If you have few properties are they being managed in a way that will help you grow your portfolio?
Are their rates competitive and are they keeping your property in excellent resale condition?

Streamline your team. I don’t mean fire everybody and do it all yourself, but rather make your team out of the best players available in your area. Once you have the all-star team, get their input and advice, use their knowledge and experience to protect and improve your assets and your position in the market. Accountants can help you lower your taxes, lawyers can protect your assets, bookkeepers keep you aware of money liquidity and property management can up the cash output of your investment property.

Be aware

Be aware of longer-term trends and statistics. Don’t get caught up in the moment—especially when making decisions. There are both positive and the negative things that are happening in headlines. Take both sides into account and be realistic as you evaluate what’s really going on. Review your business plan both short-term and the long-term and adjust it as necessary. Don’t knee-jerk react, but also don’t drift back and forth without any solid goal in site. Have multiple investment strategies all with a clear exit in place.

This is not the first economic downturn the world has seen nor will it be the last. What is important is to mind your business and your properties to make them profitable no matter what comes your way.

After scanning over my blog I realize we are on a lot of great mailing lists. Getting news from industry leaders is crucial to staying on top in any business. It's what separates savvy investors from "flying by the seat of my pants" investors.

One mailing list we are so grateful to be on is Garth Chapman's of Jencor Mortgages and Remasoft. Garth is a wonderful mentor to us and has helped us streamline our investments to both our and our joint venture partner's benefits. He knows real estate investing from all angles, as a successful investor, from developing a software system specifically for investors and as a mortgage broker.

An excerpt from his last mail-out:

"Here is a nice simple explanation of how fixed mortgage rates are tied to bond rates – and how to predict when they might be headed up or down.

Canadian 5 yr bond yields -.03bps to 2.73. The spread, based on the MERIX 5 yr rate published of 4.34% is 1.61. Just as a reminder, the floor and ceiling rates suggest the “comfort zone” (currently between 1.35% and 1.55%) where lenders want the spread to be.

If the “Rate Barometer” (which is the spread between the fixed 5 year rate and the 5 year bond yield) stays within the floor and ceiling range, then you likely won’t see a rate change. If the spread, dips below the floor for extended periods (over a week), then expect a rate hike.

And likewise, if the spread remains above the ceiling rate, expect a rate drop in the near future.

The yield, rate of return on your bond, can be read through a yield curve, which is the pattern of yields on bonds. This increase in bond yield is something to watch.

If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Ideally lenders are looking for a spread between 1.35 and 1.55."

My son is getting bigger everyday. He's sprouted two teeth and loves to crawl all over the furniture. My worries have gone from, "Why is he crying all the time?" to "Why is he so quiet... What's he up to?"

As babies become toddlers they stop sleeping so much - 16 hours a day becomes 10 or less. What does that mean for a work at home mom? I've got to become a time management ninja. I'm not there yet. I can still be distracted by MSN.com when I should be doing the books or I'll get stuck in the internet pit of time wasting when I should be doing paperwork.

How do successful business moms do it? How do you teach your child everything he needs to know before kindergarten and still put in the 9,10,11, 15 hours days that the home office requires? Luckily my husband is a fantastic cook so he covers the kitchen.

I found one great blog, I'm sure there are hundreds but I really like the ideas in this one.

For example:

2. There’s a sewing book that is titled “Five, Ten, Fifteen Minutes to Sew” and the premise is that you divide your sewing into tasks that will take that long to do. When you have five minutes, grab something from the five minute list and so on. This technique is brilliant for work at home mums. For those moments when you don’t have enough time to work on your high priority tasks, know what you need to do that will take only a few minutes. Or can be picked up for a few minutes and then put back down. Filing, writing lists, planning posts, can all be done in short spurts of time.

It's pure genius! I've already started to do this and my twitching eye has calmed down considerably.

Check out more of this award winning Australian Blog

I'm on Peter Kinch's mailing list because you never know when you'll need a top quality mortgage broker and you can never get enough insight into mortgage interest rates.

Here is a recent mailout:

In case you missed it the following is a copy of the interview between Peter Kinch and Russell Byth that aired Sunday, November 1st on News 1130

Russ:

There's been a lot of talk recently about Canada's economic recovery and a key component of that recovery has been record low interest rates. So, does an economic recovery spell the end of low rates for homeowners?

On the line with me is best selling author, Peter Kinch with Dominion Lending Centres. Pete, what are your thoughts?

Peter:

Well Russ, there's no question that the Bank of Canada used 'Emergency Rates' to kick start the economy and once again we've seen that the housing market was at the heart of that recovery.

Russ:

So once the Central Bank feels the recovery is in full swing, will they start to raise rates?

Peter:

Technically yes - in fact, the Central Bank's main mandate is to keep inflation at about the 2% level. If inflation is below 2% they keep rates low to stimulate the economy and if it's above 2% they raise rates to cool it off.

Russ:

But in spite of signs that we are in a full recovery, inflation is still below 2%.

Peter:

That's right and mainly thanks to the strength of the Canadian dollar. In fact, the Bank of Canada is quite concerned that if the Loonie continues to gain on the US Greenback it could dampen Canada's recovery, which will serve to keep inflation below the 2% mark, thus resulting in the Central Bank continuing to keep the Prime rate low for now.

But in the meantime Russ, remember that the long term rates are governed by the bond markets and they are starting to factor in a recovery - so we will likely see a slight rise in the long term rates over that same period.

Russ:

Thanks Pete, something to keep an eye on. In the business centre, I'm Russell Byth.

Last week, actually about 10 days ago I went shopping. I was looking for a gift for my friend's daughter's birthday. I walked into this very stylish downtown mall and was greeted by... Christmas music!

Throughout the shops you could hear the jing-jing-jingling of the coming festive season. For a second, I was lost in thought thinking"Wow where did November go?" only to be brought back to reality when I spotted all the Halloween decorations.

That's right, Xmas music - Halloween decorations.

It pays to be prepared. I read an article today about the increasing rate of business bankruptcies in the USA. Many commercial leases were being broken as the companies went under and were unable to fulfill their contracts. But at the same time there are temporary businesses looking for quick profits during the holiday booms. One such costume rental company in Edmonton is open for 2 weeks before Halloween and for a few days after.

Savvy commercial landlords offered short term leases to opportunistic business folk who only intend on riding the seasonal wave. What a sweet marriage for the two businesses. Many seasonal companies have trouble finding space to lease for the short term and these landlords were able to solve their problems and at the same time recoup some loses.

Here are the two lessons that I gleaned from my trip to the mall.

#1 It pays to prepare. Work your plan solidly. If that means buying an investment property, get out there and start your research now. The added knowledge will give you power when you are ready to buy.

#2 Look for solutions in would-be problems. The commercial property owners weren't happy about losing leases to bankrupt clients - but they looked at the challenge and rose to the occasion by meeting new client's needs.

In a world that is always two holidays ahead, make sure your business solutions aren't Easter in December.

"Take time to deliberate; but when the time for action arrives, stop thinking and go in." Napoleon Bonaparte I appreciate all your calls and emails. I'm looking forward to helping you put together your next deal.

Thank You,
Todd and Danielle Millar

To get cash flowing investment properties, Edmonton economic updates and investment tips and advice sign up for our bi-weekly newsletter.

Steffany Hanley, an incredible personal and performance coach, will be holding a Champions Seminar in Vancouver November 14th and 15th.

We've heard her speak before from REIN and been so impressed to the clarity she brings to reaching goals. She has some amazing success stories that will seriously give you goose bumps.

From her site :
"Ready to overcome obstacles, surge past plateaus and achieve new levels of success? Steffany Hanlen is a performance coach with incredibly special and unique knowledge and understanding of the “winning strategies” you need to know to succeed beyond your wildest dreams.

As a coach Steffany has worked with high-profile professional and amateur athletes, including NHL hockey players and Olympians, as well as singers, actors, ballroom dancers, business owners, CEOs, real estate investors, parents, hard-working “regular people (non-athletes)” and many others … and in each and every case her mission has been the same – to help clients expand and grow, overcome challenges, and achieve even greater success."

Click Here to read more!

Unique opportunity exists to own and invest in cash-flow producing income properties without putting up any money for the down payment.

Canadians with good credit and steady jobs are now in the driver's seat when it comes to investing in Edmonton, Alberta.

The current economic downturn is time to celebrate for savvy, forward thinking people who see opportunity amidst crisis. Owning a portion of a revenue property provides investors with a stream of cash flow and potentially large payouts all without the hassles of being a landlord.

"There are many frustrated Canadians wondering how to get involved in real estate investing. Seeing this as a market niche we started to research ways to help folks with little capital or experience get into what may be the best buyers market we have seen in a while.

I knew that there had to be a way for these would-be-investors to get started without them going into debt" said Todd Millar, investment director of Glenn Simon Inc.

This system allows investors to receive an equity position and cash compensation by holding the mortgage of a revenue property. "It's very simple.,” says Millar.

"Basically this program is suited for Canadians who have a good credit score, steady job history and not have completed too many prior real estate transactions (specifically mortgages)."

A typical structure looks like this, within a private investment program; Glenn Simon Inc. carefully selects a cash-flowing revenue property in an economically strong area of Alberta.

Glenn Simon Inc. provides all the capital needed to purchase and operate the investment, bringing years of experience and a proven track record to the table.

The investor takes the role of qualifying for and providing the mortgage in return receiving an equity position in the property and a cash bonus for each transaction completed. It's important to note, that all mortgages and property purchases strictly adhere to federal and provincial lending laws and are completely transparent.

"We are really offering a unique chance for the average Canadian to build a portfolio of real estate without using any of their money. It's a perfect route to get into the market with less exposure all the while learning about investing" says Millar.

Husband and wife team Todd and Danielle Millar, own and operate Glenn Simon Inc. The Millars are experts in the Edmonton real estate investment field and help people from all over the world safely and profitably invest in the Alberta region of Canada.

This Globe and Mail article tries to answer the question burning in every mortgage owners mind, "Should I stay variable or lock into the fixed rate?" They end by saying it's up to you. Well, what should you do?

Canadians are enjoying the lowest interest rates in history. A few of my mortgages were at 1.65% for a while providing incredible cash flow after all other expenses were paid. But around the net and on the news we're hearing that rates will rise probably in June or maybe earlier. It all depends on the economy's health.

Generally speaking variable rates will do better for you in the long run. Now, the gap between variable and fixed is so large, you might get huge increases in rates and the amount your mortgage costs you every month.

There is no clear cut answer but wait and see. It all depends Canada's economic health in early 2010.

If the global economy recovery looks strong:

“could force the Bank of Canada to raise interest rates aggressively, driving variable mortgage rates higher, but leaving fixed rate choosers unscathed.”

but if we are all still wobbly:

“Low and steady inflation, taken with a fragile global economic recovery, points to the Bank keeping its commitment to hold rates steady through June 2010 (conditional on the inflation outlook),”. “There is also some risk to locking in as fixed rates could fall if the economy performs worse than anticipated.” Mr. Douglas Porter and Mr. Benjamin Reitzes BMO economists

As for me I can hold on until spring 2010 because the savings we are getting now at these rates are phenomenal. The best thing to do is find out your bank's stand on penalties for locking in mid-term and how they affect you in the long run.

In a recession it's easy to see that buying for cash flow is the only way to go. In a hot market everyone banks on equity. Which can be a very tenuous thing.

The most important thing is how much cash flow you are getting at different rates. We are seeing the lowest interest rates in history but when they rise how will your investment perform. Will it still cash flow at 6% interest? How about when vacancy rates increase and you get a drop in rents?

This is called stress testing your property. Although many people see cash flow at one point only - today's rates and today's rents the income will fluctuate leading to some unfortunate surprises.

What to do:

1. Do your property's income and expense numbers at a range of rates and of rents
2. Know the scenario your property will and won't cash flow
3. Have a good reserve fund to cover the skinny times.

You don't retire or get rich by owning property that takes money out of your pocket every month.

Alberta REIN has a Facebook page with all the events, seminars and up to date economic information available for everyone. Take a look or become a fan to meet like minded investors.

I went and looked at some of the member's photos with the Real Estate Investing In Canada all around the world.

Good things come to those who read!

I went to the EEDC website to get updated on statistics and the city's economic outlook (sadly not updated since May) but ended up getting sidetracked by events.

There is seriously a lot going on in Edmonton. Festivals, groups, fashion shows, city wide events there really is no need to stay at home being bored.

This month there are dozens of events happening this month lots are kid friendly and all look like a lot of fun. Enjoy!

It's often said that we are all selling something. You may not be a salesperson by trade but even the act of getting married is selling yourself to someone.

Now that we can avoid the dreaded "Can I help you with something?" by shopping online, how does it affect those who sell? And those who buy?

"Stephanie Flanders asks her panel of top business guests about the fine art of salesmanship. Now we can all bypass those eager shop assistants and go online, are salesmen on the way out - or just getting a makeover?"

Listen here

Even in a recession Alberta is still more attractive than the rest of Canada. The province's population growth has lead the country between April and June.

The reason is compared to the rest of Canada where unemployment rates are in the high nines Alberta still has a lot to offer with rates in the mid sevens.

Population growth is always a good thing, it increases housing prices, retail sales and when the economy picks up again a willing labour force. It can put a strain on the infrastructure but overall the effects are positive.

If you've every played Cashflow you've probably got the "Natural Disaster/Toxic Pollution" card that wipes out your property unless you have an "All Risk Insurance" card and have been paying the $200 premium.

Image - lovelylisting.com

In Canada property insurance is structured under three types:

Standard - protects against "named perils" including such things as fire, lightning, windstorm, hail, theft, and specific types of water damage.

Broad- is a level up from named perils and is called "all risk" this includes such things as faulty workmanship and some types of wear and tear.

Comprehensive - provides all risk coverage to the dwelling and the contents

If you're renting your property you want to avoid Comprehensive as the tenant is responsible for insuring their own belongings. Although we recommend all our tenants have this insurance.

As housing prices rise and fall you must make sure that your insurance covers your property at the current value. If your house has increased in value but your coverage is to an outdated limit you may not be completely reimbursed to the value your property holds. Check with your insurance agent to make sure the values are accurate.

Let your insurance agent know if you have vacant properties. If you don't inform them you may not be covered for some types of damage. It may cost you extra money as a "vacancy premium" is often charged. However, that is the beauty of insurance as a few hundred dollars could save you tens of thousands.

Our insurance brokers have an incredible track record with us. We've only had to use them a few times but they have been outstanding. As with any service provider make sure your insurance company will give you the best value and service possible.

More Canadian specific insurance information Click Here

If you're riding the variable rate it can be scary sometimes, it can even keep you up at night. With interest rates at historical lows people are starting to wonder when and how high rates will go. Peter Kinch, The Number 1 Mortgage Broker in Canada, has insight on what to expect in the short term and in the next 2 to 4 years.

He points out that interest rates are at their lowest ever which is attracting buyers to the market in turn firming up prices. Housing affordability is very good right now so take advantage while you can.

He also expects rates to go up 3% in the next 2 to 4 years.

Watch the full interview here on CTV News.

Small piece of trivia Mr. Kinch lived in the same city I do in Japan and we have mutual acquaintances - Six degrees of separation!

This long weekend in Canada is Thanksgiving. We are hard pressed to find a whole bird here in Japan and even if I did I don't know where I'd cook it.

When we do cook Thanksgiving dinners are legendary at my house. Todd is a FANTASTIC chef and always puts out delicious meals that leave everybody wanting more. There never are any leftovers...

In the expat community there are a lot of people alone for many holidays so it's nice when we have impromptu parties with people of all nationalities bringing a dish. I guess it's a true rendition of the original Thanksgiving of sharing.

We have so much to be thankful for; even the bad things that happen teach you to be thankful. When bills come due and tenants leave or rates go up and rents go down everything is a learning experience. Every hurdle you clear brings you that much closer to your goal.

Todd, Ronan and I are really grateful for our excellent team, our mentors, our friends and family and most importantly our partners. We're looking forward to seeing you soon!

Ode to Thanksgiving

May your stuffing be tasty
May your turkey plump,
May your potatoes and gravy
Have nary a lump.
May your yams be delicious
And your pies take the prize,
And may your Thanksgiving dinner
Stay off your thighs!

Canadian real estate is on the road to recovery.

"On balance, given the recent unbelievable strength in the Canadian housing market, the modest downshift in sales in August should not be seen as anything other than a brief respite in what has been a remarkable recovery in the sector," said TD Securities economics strategist Millan Mulraine.

"Even so, we believe that Canadian housing market activity in the coming months will be relatively tepid as the sector consolidates the gains made since January." Read More

Today is my son's first birthday. You can see in the photo we've already got him hard at work answering phones.

What a fantastic year together and I'm really looking forward to all the great things to come. First steps, days at school, first tricycles and first school plays...

We've had some nice celebratory lunches with friends all over Utsunomiya. My favorite has been the lunch my mentor gave where she said, it's to award you for surviving the first year of motherhood. No kidding.

This month also brings another special day the 7th anniversary of Glenn Simon Inc.

October has become the month where great things are born!

I went to my local book exchange library today. After living in Japan for 10 years I've pretty much read all the English books at all three of my city's libraries.

The book exchange often has some reading gold that you can borrow and keep for free. I've gotten tons of business books, travel books, biographies and novels there.

Today I was pleased to find The Frugal Gourmet cook book. When I was a kid I remember watching the show and him always taking a sip of wine and well that's about all I remember. I guess it didn't make THAT much of an impression on me but I thought the book might help me overcome my sometimes unambitious cooking.

Then I got to thinking about land-lording and how you could use the Frugal Gourmet premise when finding tenants. So here it is 3 ways to get champagne tenants on beer advertising budget.

1. Place your ads wisely - Newspaper and online advertising have become cheaper over the past few years but how about spending no money at all? It's old school but placing ads with the little phone number tags attached to the bottom is a fantastic way to get tenants that are looking in a specific neighbourhood. Places like laundromats, supermarkets, schools and community centers may have bulletin boards where you can post for free. Effective? Yes. Cheap? Very!

2. For rent signs- They are cheap, highly visible to foot and drive by traffic and they let people know instantly that this property is up for grabs. Not to mention you can put them up the minute the tenant gives notice. In fact you can keep it in the property and ask the tenant nicely to do it themselves! Save gas too....

3. Referrals - You've probably got some good tenants who respect your property like it's their home. They are a goldmine of untapped potential tenant networks.
Offer all your great tenants the chance to introduce their friends to your family of rentals and offer say, dinner for two or a movie, they would be more than happy to help you fill your vacancies. You maybe saying well dinner isn't cheap but it's a lot cheaper than a vacant property with mortgage payments.

Is not what people are going to be saying when they go by our property that just had sod laid. A local Edmonton landscaping company came laid some dead sod, left sod pallets blocking the access to the garage and a pile of junk on the property.

Yes, we paid them for this.

In advance.

And that was our mistake.

How do YOU avoid this mistake?

1. Don't pay any company the full amount until a satisfactory job has been done - give them half or even a partial payment. If they insist on getting paid upfront you should start to wonder about your recourse if things don't end up as planned.

2. Get a reference list of clients and call a couple- Why not. It may take about 1 hour of your time and even if they all give raving reviews people will always tell you their opinion. If a company is reluctant to give references start to ask yourself why. Trust me one hour on the phone is much cheaper than the time and cost to you to rectify shoddy work.

3. Closely monitor the job until done - Drive by every day. That pile of pallets didn't just appear they left them over the time they were working there. You can watch the work progress and make sure all scrap is removed. At any rate you can get to know the people who are working for you for future jobs.

4. Ask around - You'd be surprised how many people will tell you their good and bad experiences. Many people have had contract work done and are willing to "show and tell". People who are satisfied will say so and those that aren't will really say so.

5. Let the world know - Companies like this keep operating because clients are unaware of their bad history. The internet age means most people surf online to find companies locally. When your review comes up or filed complaint you will be saving someone, somewhere some money and some time.

Ripoff Report,
The BBB,
The Complaints Board

I own several properties and currently provide some affordable housing. I'd like the opportunity to provide more affordable housing by suiting some of my properties.

I tried to apply for a grant to put a suite into a property of mine but was summarily rejected because I am not an owner-occupant.

Why? Why? Why?

Our friend Tim summed it up nicely. People don't want their neighborhoods getting messed up with a bunch of rental properties with suites. Really who can more effectively manage suites a landlord with experience or a home-owner who will give it a shot and then learn the hard way about tenant issues?

Chances are the investor/landlord with 10-20-30-40 homes has more skill in operating a rental that an owner-occupier. This also paves the way for better communication and less disputes between lower income tenants and owners.

The grant should be expanded to allow owners who don't reside in the prospective houses a chance to "suite"up. We can avoid tent-city as a greater amount of affordable housing will be created.

A primary owner-occupant is limited to only one home to work with whereas an landlord who owns multiple property, has the ability to reach more people by providing more suites.

Am I seriously being punished for providing housing?

If I spend my own money to put in a suite and the risks associated with it, I should be fairly compensated for that risk. That may equate to a 1 bedroom being rented for $875 at market rent.

If I were to go the route of the grant I could reduce my costs and risk, and provide housing at a reduced rent - the same suite could be rented for $721 per month, thus filling the need for affordable housing.

I own many properties that qualify for the grant, image the impact I'd have on the community compared to one owner-occupier.

Last weekend I was reminded about the quantitative reality of thought. Danielle, Ronan and I visited our friends George and Harue at their newly completed home . When George first shared his dream to build this fabulous business office-cum-home it was a few years back when we were on holiday at a hot spring resort.

We regularly get together over the New Year and plan strategies for our businesses simultaneously. It's a great way to brainstorm and hold each other's feet to the fire the following year. I had no doubt that George and Harue would reach their goal. What blew me away was the detail and velocity in which their goal was achieved. You could almost see it go from thought to action to result.

I first visited the building site last fall and it was just grass, dirt and a few old cherry tree branches strewn about. As we drove up on Saturday Harue said "Do you remember how far up the road it is?" I was about to answer 'up ahead on the left', when the car slowed and a warm neon light shined in. Illuminated in front of us (on the right I might add..) were the letters 'Seibu Net Home' in a golden orange glowing sign.

Every detail was exactly how I imagined it. Now, think about that for a minute... How I imagined it.

George and Harue had talked about the details with us and had been pretty specific, but to see their vision manifest exactly as they planned was extraordinary.

The Seibu Net Home building is three floors; the main is the Realty office, second floor is divided in to two luxury rental suites and the third floor is their finely finished home. The roof has high walls and they are developing a BBQ area, putting green and outdoor bath. You can see Mt. Fuji on a clear day too.

By the way when I say luxury what I mean is that when you open the bathroom door the toilet seat automatically pops up to greet you. As the seat warms, soothing water sounds emanate from speakers hidden in the ceiling. When you leave the toilet flushes, lid closes and it says 'good-bye'.

That my friend is comfort.

It is inspiring to see a dream come true. And this enforces the truth of 'When you believe it, you'll see it'.

Choose to believe.

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We spent a weekend in Saitama with our good friends Joji and Harue. We often spend any holiday we can with them but this time was a very special visit. We went to celebrate their moving into their dream home.

This has been several years in the making. Jorji and Harue have really succeeded with their business, meeting their goals and life dreams.

They've built a fanatastic 3 storey commercial residential mix with Seibu Net Home on the main, tenants on the second floor and a fantastic living space on the third.

The roof, which has a spectacular view, will be turned into a green space where Harue can relax and Joji can practice putting. It's all located near the bustling station

They really stayed focused, worked hard and put everything into making this dream come true. The one thing that Harue said that really inspired me was " It came a lot faster than we expected." They had some difficult times after the Lehman Brothers collapse but put their heads down and stayed on track to their goal.

What inspiration!

Cashflow. Cashflow. Cashflow. What happens when it stops? As Rich Dad Kiyosaki says the minute an asset starts taking money out of your pockets it's no longer an asset. It's an alligator that will eat you.

Not literally. But cash draining out of your pockets, bank accounts and piggy banks every month is every investor's nightmare. Chris Davies' - Two Ways to Stop Bleeding Cash helps you determine how serious the bleeding is and possible ways to staunch it. It's excellent advice.

One thing I've learned and forgot and then learned again is to buy positive cash flow properties. The constant flow of income is crucial to the health of your investment's bankbook and can be used to purchase more assets in the future or improve the assets you have.

If you have negative cash flow on an otherwise good property MAKE SURE your cash reserves are big. You'd be surprised how one big repair or a few months vacancy can eat through your cash reserves.

This is SECOND to trying to make the property cashflow by:

1. Extending amortization - this will lower you monthly mortgage payments
2. Increasing rents
3. Adding value - i.e. rent out the garage or put coin laundry in
4. Convert a garage to rental space - extreme, lots of permits

Whatever tactic you use make sure the cash starts flowing back in and not out of your investment.

The market in Edmonton is finally balanced again. Although prices are a little lower, less than 1%, than what we saw in August last year.

"Although sales numbers cooled a bit after record sales in June and July, we are still experiencing the strength of the market in Edmonton," said Charlie Ponde, president of the Realtors Association of Edmonton.

June and July saw sales rise 28% over the same period one year before; low interest rates and great deals were probably behind the jump in activity. Seasonality could be in effect as well were winter saw a near freeze. The market picked up in the warmer weather.

Alberta's economy will make a comeback in 2010--strong enough to contribute to the national recovery, yet modest enough so that we don't see the problems associated with the break neck growth we saw in the mid 2000s.

Every field has it's star professionals, those who play in the top 1 or 2% and really make the money.

Panhandling apparently is no exception. Edmonton police claim that some panhandlers make up to $400 a day and that one even lives in a high-rise condo in the downtown area.

At first I felt slightly disgusted by this. Why should this person beg other people for money and live better than some of them who generously give to him?

Then I realized people make money all kinds of ways and if his talent is begging....... It's not so uncommon apparently as a quick Google search yielded up "panhandling tips"

I personally wouldn't make my money leeching off of others. It's better to provide a service than demand money.

My biggest concern is the true poor and needy that aren't getting what they need because charity is being given out on the street rather to organizations with proven track records and history.

The only other thing I can say is you know a region has a great economy when begging brings a 6 figure income (tax-free!).

This year is the first year that a group of holidays in September is being called "Silver Week". We have always had Golden Week in April but this is the first time we've have 5 days off in a row in September. It's not a common holiday and the next time the dates fall in a row like this will be 2015 then 2026 so we better relax while we can.

Some believe it is the Democratic Party's attempt to jump start the economy with more spending and workers using up more of their paid holiday leave.

“Promoting longer paid holidays is an effective way to expand domestic demand, not only in the travel industry but in retail as well, said Yoshiki Shinke, senior economist at Dai- Ichi Life Research Institute. “Legislation and an awareness campaign for companies are necessary” to get people to take all their holidays."

We're doing our usual trip to the cabin to relax amongst the wild monkeys in Kirifuri, Nikko. I'm on a cooking and baking spree with banana chocolate chip bread, home-made pizza and curried lentils and rotis to be some of the highlights of our week away.

Have a great weekend!

There has been a lot of money changing hands this month in Edmonton. It is all good stuff too, which you can read about in the links below.
A new conference and exposition center, community health facility (a really BIG one) and a ramp up in infrastructure to name a few.

All of that creates strong short and long term jobs, which are great for kick-starting the economy.
The oilsands deal with China is pretty impressive to boot. I wouldn't say it pulls us out of a recession yet, but you can read the articles and decide for yourself.

Recession is over, says economist
By Mario Toneguzzi, Calgary Herald, September 12, 2009
Rising commodity prices will fuel modest economic growth in Alberta in the next two years as demand for energy grows in the world's emerging markets, says a national economist. Canada's recession is over and the country will lead all G-7 peers in economic growth next year, paced by Alberta's strong energy sector, said Benjamin Tal, senior economist with CIBC World Markets Inc.

"The difference in the resale housing market now, compared to the beginning of the year, is night and day and nowhere is this more evident than in the West," said Dale Ripplinger, association president.

"Homebuyers recognize that interest rates and prices have bottomed out, and are taking advantage of excellent affordability before prices and interest rates move higher."

A five-year fixed-rate mortgage, the most popular among consumers, is still available for less than four per cent at some financial institutions.

Variable-rate mortgages, tied to prime, remain at about three per cent and are not expected to rise until June. The Bank of Canada has pledged not to change its lending rate until then -- but it is not an ironclad guarantee.

The low rates seem to have worked and have the market even hotter than in 2007, a record year. July sales in 2009 were 3.9 per cent above the previous July high set in 2007.

It has been a stunning reversal for a real estate market that had almost ground to a halt over the winter." Read More

After an intensive 17 week course, 15 women are ready to go out there and move some heavy equipment around.

"Wanda Wetterberg, operations manager for Women Building Futures anticipates that the exodus of baby boomers from the workplace, combined with the student’s hands-on experience with loaders, graders and dozers, will help open the doors wider for women in the field.

“There is and will continue to be quite a heavy demand for heavy equipment operators,” she said, adding that the same holds true in other trades.

“Even if the construction industry has slowed down a bit, the demand for operators is still pretty high. And it certainly does pay well. That’s what our students are looking for,” she said"

For now gone are the days when 12 year-olds are working at fast-food chains and restaurants are closing due to restricted staffing.

Any women who are interested in taking the course should contact Olds College or Women Building Futures

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

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

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

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

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

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

RBC senior economist Robert Hogue

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

"Jeff Rubin predicts that oil prices may rise to $200 a barrel" was going to be the subject of this blog till I got this unbelievable video in the mail from my husband. Yes, we mail each other although we sit about 3 feet away from each other. Everyone does it.

I'm guessing these Welsh sheepherders had some free time and an incredible amount of creativity to come up with this wonderful display.

Somewhere between 2013 and 2015 oilsands production is set to double. Increased demand in the U.S due to the decrease in oil supply from Venezuela and Mexico make Canada's oil not only desirable but the natural choice.

The first $2Billion dollar pipeline was approved last week and many many more are coming. So what does this have to do with real estate?

At the peak of the mini-boom in 2007 Alberta oil companies couldn't find enough people to work in the tar sands now with plans to double the work force will have to increase as well.

Edmonton as the closest major city to the oil sands (with reasonable housing prices) is going to attract a lot of renters and potential buyers over the next 2 to 5 to 15 years. How does that make anyone money? By either owning the properties for sale or rent.

Don't forget -

During the gold rush entrepreneurs who filled a need serving those who panned for gold made most of the profits. Alberta is in a modern day gold rush and the strongest demand in this province is housing. Areas that are “hubs” are those that are seeing the highest increases in housing values. Edmonton’s strategic location between the multi-billion dollar Alberta Oil Sands projects in Northern Alberta and Calgary, make it the center of all the action.

So would you rather pan for gold or sell the pan, shovel and tent to the worker?

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

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

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

Sounds interesting!

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

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

Hopefully this will help reduce our greenhouse emmissons.

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

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

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

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

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

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

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

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

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

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