Edmonton Real Estate Investor

I missed this video ( video is a little wonky)because I was looking at Mt. Fuji on December 31st. As usual Don R. Campbell gives great advice for anyone interested in the Canadian real estate market.

His advice, "Market timing is a fools game." He promotes value investing. Looking for areas where you get good cashflow and good R.O.I. It's not easy to find these areas without a significant amount of research.

Real Estate Pitfalls to watch out for:
Forestry or logging towns in Canada - the industry is not doing well but may rebound in 2012-2013
Areas in the US - there are still many sub-prime mortgages coming up and the economy will remain weak for the next few years.
Pre-Sale Condos - it's not really investing it's speculating. If you line up and pay an agreed price for today's market on a product that isn't built yet it's too risky.

The Alberta website is an incredible source of information regarding everything from the province's economic forecast to investing to relocating there. For investors it provides an excellent resource for decision making.

Recent updates:
Alberta Weekly Economic Review - Some points include Alberta's inflation remains low, steady manufacturing growth, a slight decline in sales figures and Alberta leads in population growth

January 2010 Weekly Economic Review -"See monthly and quarterly indicators on the performance of the Alberta economy, and comparisons to other provinces, including":

agriculture
bankruptcies and incorporations
domestic trade
energy
exports
housing
international travel
labour force
manufacturing

This is the final part in our 4 part series Fear and the Investor. If you haven't yet go back and read Types of fear, Get educated and Get into action.

"Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy" Dale Carnegie

Make your plan and work back from it. First a 5 year plan, then break it down to 1 Year, then 1 month and then one day - today. These are your baby steps towards running.

I didn't say all this was going to be a walk in the park. In an upbeat market, there is less to fear. In an unstable market your biggest obstacle is also your greatest advantage - your mindset. Once you have adjusted your mind for success this new psychology will take over and guide you. Every supposed failure holds a success within it, as long as you learn from it. The better educated you are, the easier it is to identify potential risks and take advantage of opportunities and by doing that you'll lead a happier and more relaxed life.

Many folks get stuck before they start in the analysis-paralysis stage. Don't let that person be you.

No one ever bought a property they didn't make an offer on!

Most importantly set a time to get into action, i.e. within the next 60 days, after reading 2 books and contacting 2 investment professionals etc.

5 Great easy "get-started" actions:

1. Get a book on investing from the library.
2. Call a investor friendly Realtor and ask to buy some of their time and knowledge for lunch. Not everyone will do this but it's a great insight into the market.
3. Follow properties on the MLS learn prices for areas and property types
4. Work the numbers on a property. You can pick a property online and see how different scenarios affect cashflow, mortgage payments and sale.
5. Listen to free online or tele-seminars - they are everywhere!

Set a time and DO IT!

There are a million coulda, woulda, shouldas out there that spend their time pontificating about the market or why things won't work out. Shut out these negatrons or risk being pulled out by the tide of mediocrity.

Happy New Year! 2010 has been off to a running start. In Japan it is the year of the Tiger and you can feel a tempered optimism in the air. I say tempered because the Japanese are a fairly reserved people. Unless of course the sake is flowing and then all neckties become headbands as the warriors P-A-R-T-Y but that is another story.

I hope that your New Year is off to an amazing beginning. I was blessed to be able to watch the first sunrise of the New Year from the roof top of my good friend's 3-storey home and company. I stumbled up there early and was rewarded with the silence and stillness of a perfect winter day. In fact it was more like night as a huge waxy yellow moon hung off in the distance. It took me a while to make out the "Mon" peaks of the temple walls below.

My eyes were drawn down in that direction when an old man of about 90 teetered into the garden riding an antique bicycle. He zigzagged along the temple's pathway. He was laden with bags of gifts to welcome in the Gods. By this time I had jammed my frozen hands under my armpits so that I could keep enough blood in them to open the rooftop door and get back down after sunrise. And sure enough there it was. At first just the teasing rays appeared along the roofs and houses, then the full blown orb bobbed above the cityscape. I gave a quiet prayer for the year past and the one ahead, and turned to go back down. As I did I was astounded to see Mt. Fuji glowing behind me, luminescent with the sun glinting off the snow.

Later in the morning we all went up to the rooftop together and looked about. The old man in the temple below had been joined by five or six of his buddies. As it turned out not all of the gifts were for the Gods. Within the bags a few mikan oranges and sake had been tucked away for his friends.

I needed alarm to get up early on New Year's day. Today and yesterday, however, I woke up about 5 minutes before my 5:30 am alarm call. Why? Well, I gathered some info and it turns out that humans have an internal mechanism much like honeybees do. Combined with Pavlovian conditioning and "circadian rhythms", our body is able to get up before the alarm.

You are probably wondering why am I talking about this. Well, back on New Year's day we did our annual goal setting for the year. It is a basic overview of the four categories in our life and business that we set out to focus on for the year ahead. It's really much like setting an alarm clock isn't it? You make a plan, imprint it upon your conscious and allow your subconscious to drive it. With action and attention, you'll hit those targets. You decide on a time, set the clock and wake up when the alarm rings.

Revisit your dreams and goals for this year and see where you can add attention and let your natural energy work for you. It might be that extra bit more that helps you hit the ball out of the park in 2010.

Bank of Canada won't raise interest rates to cool housing - "Existing-home sales are up 73 per cent year-over-year, while prices have climbed nearly 20 per cent as buyers take advantage of historically low interest rates to finance purchases.

Those who fear a bubble worry that many people are taking advantage of cheap money to buy homes they wouldn't be able to afford once rates rise, leading ultimately to a crash in prices.
Mr. Lane said the bank understands the concern, but it uses its lending rate to keep inflation in check for the whole economy and the housing market is “only one of several factors” that influence inflation."

Those who are riding the variable rate can pad their bank accounts a little longer. Keep your eye on the interest rate though and lock in before the ride starts keeping you up at night.

In the Edmonton Sun article about a decade of change:

WHY DIDN'T I BUY REAL ESTATE?

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

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

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

Theodore Roosevelt said it precisely:

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

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

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

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

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

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

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

In part one of the Fear and the Investor series we looked at the different types of fear. It's important to remember: F.E.A.R. - False Evidence Appearing Real

So how do you battle FEAR?

#1 Distinct Advantage - Get Educated

The best thing to do in today's market is to learn how to take advantage of it. Not everyone around you is losing money and if they are - run far away from them. Get online and search for an investment book that focuses on the fundamentals of investing. You don't need to buy an expensive kit or attend a $10,000 seminar. You must surround yourself with a knowledgeable team and follow a proven system.

The most important key to investing in real estate now is to target your area and invest where the economic fundamentals are strong. Buy for cash flow in a city with a strong future and hold for the long term. Find someone who has a proven track record of investing in real estate and ask them how they do it. Listen, write it down and do it.

Other options include investing with Joint Venture Partners and investing in REITs. Often teaming up with a company or individual who knows the market can leverage your time and knowledge further, faster. Always do your due diligence on the person and the properties.

For detailed strategies of how to find the right property and choose the right area read these How To Articles.

"The real estate market in Alberta appears to be on the rebound, experts in the field say.

House sales will increase as by as much as 10 per cent in many communities this year, the Canada Mortgage and Housing Corp. says, with prices in Alberta predicted to rise between four and five per cent.

That means buyers and sellers will be on a more equal footing, some realtors say.

"It was a buyer's market going into the year — in sort of the fall area it had slipped into almost a seller's market," said Gary MacLean of Remax.

However, he said, current conditions suggest the market has settled considerably. "Nobody has an advantage either way, buyer or seller."

Read More Click Here

We are born with only 2 fears in our inherent make up; the fear of falling and the fear of loud noises. Their purpose is to keep you alive by alerting you to danger. All other fears are learned. Fear is often connected to pain e.g. some fear heights because if they fall, they may suffer severe injury or even die upon landing.

Ok, so you're not about to get your leg torn off by a rouge shark and bleed to death on a nameless beach in the tropics. But there are a lot of scary things going on in the world today; not surprisingly, there always have been and always will be. Now, let's break down a few of these fears in relation to investing.

3:AM-Keep-You-Up-at-Night-Pain-in-the Gut-Fears:

MONEY

Losing all your money -Becoming destitute or at least losing what you've built up

having enough money to invest- Scarcity, afraid that you can't get started

Not being able to enjoy retirement -Having to eat cat food not only for breakfast, but also for dinner
health costs -Can't afford to go to the doctor

Stock or Real Estate crash -Have all your savings wiped away

Losing all your money -Being taken advantage of by a smooth criminal

Inflation -Rising costs and taxes are pretty much inevitable

KNOWLEDGE AND EMOTION

Fear of not knowing enough -Afraid you'll make the 'wrong' choice so you do nothing

Fear of taking action -Scared if you do, scared if you don't

Fear of failure- your friends, family and maybe even you will see yourself as a loser if you don't make it

Fear of the market- the economy is awful right now, how can I ever expect to make a profit? A.K.A 'I don't know the market well enough', 'I'll buy at the bottom'

SUCCESS

Fear of succeeding- Fear that you will accomplish all that you set out to, but that you still won't be happy, content, or satisfied once you reach your goal

Fear of losing what you created- your accomplishments can self-destruct at anytime.

Ah New Year's resolutions... Are you still sticking to yours? Every year I swear I will stop biting my nails. They are horrible. I've tried everything from bad tasting nail polish to bright red nail polish. It never works and soon I'm catching myself chewing away while watching a movie or deep in thought. Why are some goals so much harder than others?

Michael Neill - "If superman needed a coach, he’d hire Michael. In this action-packed hour, Michael teaches how to succeed from the inside out and have fun doing it!"

You can listen to Michael Neill live on streaming radio on Hay House Radio

From his newsletter:

When your goal is loaded...
• Getting fit isn't about being fit and losing weight is no longer about weighing less (if indeed it ever was) - it's about "overcoming your essentially lazy, good for nothing nature and proving that you CAN do it" or "if I lose weight, that will show that I'm 'good enough' to attract a man". 

• You don't just want to have more money (though that would be nice too) - you want to prove to your spouse/parents/colleagues/self that YOU do have what it takes and YOU will triumph in the end. 

• Writing a novel isn't about telling a story, it's about "being an author" or "fulfilling your potential"

Who knows why goals are loaded? Maybe it has something to do with the upper limit problem...

Anyway Michael goes on to say that if you have a loaded goal just let it go. Don't focus on it as it takes away from all the other wonderful achievable things you could be doing. Let it sit and you may work it out all without working on it! Cool!

This article from the Hamilton Spectator (my hometown) is about blame. How it's being dished out everywhere. I can see the writer's point....

It's amazing how many times I hear "somebody made me do it", or "it's Mr. X's fault" and this isn't in the schoolyard.

In my business working as the buffer between the investor and the real estate investment, the buck has to stop with us. If there is no rent the excuse doesn't matter. There either is rent or there isn't. We have to explain why we didn't manage the property manager or the tenant.

Being accountable for our actions and how we view and think about things is the first step to controlling our life and being more successful because every time it isn't your fault you miss a golden learning opportunity.

The best quote I've heard about this recently is:

"When you point the finger at somebody there are four pointing back at you."

Try it - it's true!

It's not just that Cher designed it but that she did it exquisitely. I love this property. It's perfect.

"A seamless blend of architecture and interior design, the strong, clean lines and calming, natural color palette are a nod to the Asian influence which has been a stronghold in Hawaiian design since the 19th Century. Rich, dark woods are contrasted with elegant fabrics of varying textures and accents of whites, grays, and blues. Each custom art piece and lighting fixture is distinct and substantial. Each accessory has a sense of purpose. The result is an elegant mix of formality, drama, and simplicity."

What a decade. It started with Y2K and ended with a global recession. It seems 2010 is bringing new optimism in it's wake and the news is reflecting that.

Alberta poised to lead in growth - "Following a sharp economic contraction this year, Alberta's economy is forecast to be one of Canada's fastest growing provinces in 2010.

Scotiabank economist Alex Koustas predicts that in 2010, the energy province's GDP will grow by 2.9% after shrinking 2.6% this year.

Only B.C., at 3%, is forecast to grow at a faster rate.

Come 2011, Alberta will be firmly planted ahead of other provinces, thanks to a growth rate of 3.5%, Koustas said."

Housing market rebounds - "It turns out, the Realtors Association of Edmonton president wasn't optimistic enough.

"We predicted residential sales of 15,550 this year and exceeded it in early October," Ponde said on Tuesday as the group released its final month of Multiple Listing Service figures for 2009.

"We anticipated that single-family prices would end the year at $352,000 and condos would be at $222,500."

The average prices turned out to be $364,032 and $240,322, respectively."

Real estate market expected to remain strong in first half of 2010 - "However, the Canadian real estate market has been much quicker to recover than its American counterpart, in part because of a more stable banking industry, historically low interest rates and improving consumer confidence.

Royal LePage executive Phil Soper says Canada's real estate market enters 2010 with "considerable momentum from an unusually strong finish to the previous year."

The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity to new highs, he said in a statement.

-Edmonton: Detached bungalow, $299,286 (down 0.7 per cent); standard two-storey home, $340,557 (down 1.2 per cent)"

This was an ad posted on Ontario's Kijiji site. A one day rental for a house party. Entrepreneurial idea and hey I might do it if the damage deposit was big enough. Heck you can even go to the party - sounds "win-win" to me. Love the smokers and tokers part! They'll probably be to hungry to destroy anything.

Wanted: House Needed For 1 Day

Date Listed 02-Jan-10
Price Please contact
Address Scott St, Whitby, ON, Canada
View map

I cant throw a party at my house, but im willing to pay someone to use their house for a party. they can be present, there will be a list, and people will not be allowed in if they are not on the list. if you want you can bring your own people to this party. it is my bday and i just wanna throw a huge party. house should have a backyard for those smokers and tokers.

What do you think rent or don't rent?

After a recent conversation with a potential client, I thought this topic was good to post here. He mentioned that his mentor told him to only buy 3-D (death, divorce, debt) motivated properties.

Many of the properties we buy are undervalue and most of the reasons fall under the 3-Ds as it is a broad blanket. In real estate you call it the 'grave dancers' people who only target sellers in hardship. I'm not a grave dancer but I do look to help sellers in hard times out of their situation with dignity and yes, that sometimes means that properties are purchased under value.

Not all seller's initially jump out and say 'Hey, I'm getting a divorce and I'm totally broke- take this property now!' Some Realtors may put that spin on things, but it is not always the case.

When you train your team to ask the right questions you'll uncover these and other opportunities.

As an investor you must be active in finding your deal, not waiting passively for it to come to you. If you are only hunting the 3-Ds you miss other opportunities or pass over what appears not to be a 3-D deal only to realize later it was.

For example, a mortgage broker I know has a property that he's been trying to sell for a few months on MLS. It's priced right, but there is a lot of competition for that product.

When I spoke to him about it he told me the listing was his, he's knock the price down $15K as he was just diagnosed with a serious health condition and wants to simplify his life. He doesn't want to blast his personal life out there to anyone and let the vultures set in.

One last and important point, being active in finding your deal means that you look at 100-50-25-10 properties in your target zone. You cull the numbers down to say 10 properties based on your investment criteria (profitability). Out of that 10 you may have 1 motivated 3-D seller and 2 regular solid deals. You then work the deals by priority. If you were only targeting 3-Ds you might have missed the other 2 viable opportunities. See, you still get the 3-D deal AND you get 2 more from being active.

It's really a chicken or egg situation as you could lump most motivated sellers in the market today, as motivated by debt. Either current or impending. The first two Ds usually cause the last one.

If you were holding rental property in Edmonton 2009 is not a year you will forget for a while. It's nothing new though just another trough in a city where up and down cycles come regularly like trains.

As prices on properties dropped more and more rental properties came on the market. Many investors were left holding properties that weren't selling at the price they hoped for. They had wanted to flip but market forces changed. Some of these impromptu landlords just wanted to get the money sucking property rented.

What do you do when the market is flooded with properties that don't sell? You rent for cheap! You offer stuff! You beg you plead and you cajole renters to get into your suite. The mortgage has to be paid right? I used every technique I knew to get rented and then some new ones too. Luckily we've seen this all before and were able to get get rented. For new investors it's a hard initiation for your first few properties.

Edmonton shuts down over the winter. It's one of the coldest places on earth and no one is going to be hauling a sofa around no matter how much beer they get.

It's only 5 days into the year and things just seem more positive. Consumer confidence is higher and hiring across Canada looks very optimistic for 2010.

High vacancy rates and price drops make for motivated sellers. As you become a more season investor these are the exact dips in the market you look for to increase your portfolio.

It takes mettle when all the news is bad but mettle IS what it takes.

The Sugimotos who own a few posh wine bars in Ginza always know the best places to get a gourmet meal.

This year they introduced us to the concept of a fresh tempura bar. We sat on the top floor of a luxurious hotel and watched as a tempura chef prepared fresh hot tempura in a brass vat right before us. The Kaiseki meal was full of pleasant surprises as each new dish was a work of art for both the tongue and the eye.

The last picture? Deep fried shrimp head and tiny crabs ~ I couldn't eat mine and was properly scolded.

What a great holiday! It seems as though everywhere there is more optimism for the next year. We had such a wonderful, relaxing time over our winter break.

One of the highlights was a trip to a 300+ year old resort hotel Ranryo in the Nikko mountains. It's the second year in a row we've come here and it's just a glorious place to relax and really zen out.

The meal was awesome but hard to cook with a squirmy one year old.

We're heading off a little late for our holiday vacation. We'll be back in January! Have a wonder winter holiday and a great 2010!
Todd and Danielle Millar

A lot of money is floating around with no where to grow. People are disillusioned by the stock market by paper assets and many conventional ways of investing. Thinking about real estate but not sure what city to invest in or where to get the most bang for your investment buck?

Check out REIN's Top Ten Canadian Towns to invest in. Based on thousands of hours of research learn where, why and when to invest in real estate.

We've used this information for the past 8 years to improve our investing strategies and bring our joint venture investors returns of 100% on their initial investment!

It's worth it! Click here to get your copy.

Since Imperial Oil Ltd. and Suncor Energy Inc. have given the green light to previously shelved projects employment in Alberta is looking to pick up in 2010. It won't be the crazed hiring when there was a labour shortage but there will be jobs for skilled individuals.

What this means is that more highly skilled workers will be coming to Alberta to get jobs. They will subsequently be looking for a place to rent or live. For landlords that means houses to be rented or houses to be sold.

"What growth might happen in 2010 will be in the second half as a result of a recovery from the recession, whatever that might be," Roger Soucy, president of the Petroleum Services Association of Canada (PSAC)

Battle for the oilsands - "Across Alberta, companies have spent years developing new technologies that promise cheaper, greener production. In the next few months, some will move from the lab to the field in critical tests that could radically reshape the industry.

"  Hamilton: Alberta has wind at its back - "Alberta could even launch its own feed-in tariff program and unleash the innovation that has been demonstrated in the oil patch, and it could use slightly increased royalties from the patch to fund the program. The Stelmach government keeps talking about jobs and the need to preserve economic growth, but clearly there are just as many – probably a lot more – jobs to be created by fanning the flames of a green-energy movement than in keeping a handful of dirty coal plants open. Alberta ranchers have plenty of livestock manure that can be converted into electricity. The province is graced with ideal geology for geothermal power production, and it already has the expertise required to drill deep wells that can tap heat within the earth. The Canadian Geothermal Energy Association says low-hanging geothermal fruit in Alberta would produce 500 megawatts, but more investigation of the resource would likely reveal that much more is available."

Edmonton recognized in Copenhagen for climate leadership - "The City of Edmonton received an award for climate leadership Wednesday in Copenhagen.The award is in recognition of the city's Carbon Dioxide Reduction Edmonton (CO2RE) program as well as its new renewable energy task force.Edmonton was selected, along with four other Canadian cities, by 10 environmental organizations. The other designated cities are Calgary, Toronto, Montreal and Vancouver. Provincial winners are British Columbia, Manitoba, Quebec, Nova Scotia and Ontario.City officials are honoured by the award, saying they hope it highlights some of the good things going on in Canada, as opposed to all the negative attention the country's lack of climate-change efforts have received so far in Copenhagen."

Be thankful that you don't already have everything you desire.

If you did, what would there be to look forward to?

  Be thankful when you don't know something, for it gives you the opportunity to learn.

  Be thankful for the difficult times. 

During those times you grow.  

Be thankful for your limitations,  because they give you opportunities for improvement.

  Be thankful for each new challenge, because it will build your strength and character.  

Be thankful for your mistakes. They will teach you valuable lessons.  

Be thankful when you're tired and weary, because it means you've made a difference.

  It's easy to be thankful for the good things. 

A life of rich fulfillment comes to those who are also thankful for the setbacks.

  Gratitude can turn a negative into a positive. 

Find a way to be thankful for your troubles, and they can become your blessings.  

- Unknown

This and That
Alberta Puts Billions Into The Coffers Of Canada's Oilsands Bashers - Follow the money. It's the oldest rule in journalism.It usually explains the virtuous rhetoric that sometimes emanates from the mouths of politicians and lobbyists. You dress up crass self-interest in the garb of some lofty cause, and bingo! You've got a nice shiny message to sell.READ MORE HERE.

It's Simple Economies: Alberta Finance Minister Iris Evans - The province spent more than it made. That was the simple message delivered by Alberta Finance and Enterprise Minister Iris Evans during the Wetaskiwin & District Chamber of Commerce's Nov. 30 luncheon. She pointed out that Alberta is not in as bad of shape compared to other provinces.

"They have to borrow money to keep Ontario afloat. One hundred and eighty-four million worth of debt – that is what Ontario has got," said Evans. GRAB THIS ARTICLE.

Canada's Unemployment Rate Falls to 8.5 per cent As Economy Gains 79,000 Jobs in November
OTTAWA — Canada's economy swelled by 79,000 jobs last month, much better than many economists had expected, as the number of people with full-time and part-time jobs increased in November while the number of self-employed fell. FOLLOW THIS STORY.

Top 5 Tips To Improve Your Concentration - When TV newscaster Diane Sawyer was asked the secret to her success, she said, "I think the one lesson I've learned is there is no substitute for paying attention. "Are you thinking, "I agree, but HOW do we improve our ability to focus and maintain attention -- no matter what?"

Dear Friends and Partners,

A few days ago the temperature dropped so low that you could've thrown Kool-Aid out the window and made popsicles before it hit the ground. Edmonton was the coldest place in North America and the second chilliest in the world.

The Edmonton International Airport saw a record low of -46.1 C and -58.4 C with the windchill, outfreezing even the Arctic.

Geez, is this what I'm going back home to? At least it'll be a white Christmas if the Reindeer don't freeze before they make their landing on the 25th.

With Christmas but a few weeks away, this will be our last newsletter for 2009. You'll receive your next issue after the holidays on January 15th, 2010.

Snuggle up with a Warm Wool Blanket these holidays and connect with family and friends. Wishing you and your family a wonderful Holiday Season and the warmth, joy and success of a truly great 2010 ahead.

Thank you for this wonderful year. We appreciate all your calls, emails, thoughts and comments. You are a joy to know and work with.

Our offices will be closed from December 24th to January 5th for holidays. We're looking forward to catching up with you again in the New Year!

Warmest regards,

Todd, Danielle and Ronan.

Get our bi-weekly Alberta Oilsands Real Estate Investor newsletter for tips, facts and properties to help you find your perfect real estate investment. Sign up here

This is from Peter Kinch's email newsletter.
In case you missed it, the following is a copy of the interview between Peter Kinch and Russell Byth that aired Sunday, December 13 on News 1130

*************

Russ:

Well, as expected, The Bank of Canada held steady on their rates last week, keeping the historically low Prime rate unchanged at 2.25%. Now given that these are so-called emergency rates, it is just a matter of time before they start to rise. On the line with me is best-selling author and Mortgage Expert, Peter Kinch with Dominion Lending; Pete, what advice do you have for Canadian families faced with the inevitability of higher rates in the future?

Peter:

Well Russ, everyone should start budgeting for an increase in rates. You know, it's a well documented fact that the Bank of Canada is using these low interest rates to kick-start the economy and their goal is to get inflation back up to 2% but as soon as they feel that they are at or near that level, rates will definitely start to rise. It's not a matter of if, but when.

Russ:

So if I'm a consumer right now either thinking of buying a house or a home owner possibly looking to renew my mortgage, what should I be considering in the New Year?

Peter:

Well, the first thing I would do is sit down and draft up a family budget - especially with Christmas coming up and all the expenses that go with it. In your budget, figure out how much you can afford to increase your mortgage payments by. If you accelerate your current mortgage payment, you will accomplish two things:

You will have increased the amount of money that is applied directly to your principal balance, so that when the time does come that your mortgage is up for renewal and the rates are higher, you'll be renewing with a lower principal balance and as such, your payments may not change much.
Increasing your payments today will allow you to adjust your current budget so that you will not experience 'payment shock' a year or two from now when the inevitability of renewing into a higher rate actually happens.

Russ:

Thanks Pete, some good advice to follow. In the Business Centre, I'm Russell Byth.

My best friend came to Japan for a week to visit. She found T. Harv Eker's Millionaire Mind book on my shelf and managed to read it TWICE before going back to Canada.

That is how compelling this book is.

Anyway T. Harv Eker has a blog that is a must read. The excerpt below talks about our money programming. I remember as a child always hearing that "money doesn't grow on trees" which is true to a point however it does grow on shrubs though!

The secret is all in perspective.

"Our financial blueprints consist mainly of the “programming” we received in the past, especially as children. We aren’t born knowing anything about money; we were “taught” primarily through our family upbringing, but also through multiple cultural influences. We take this conditioning and run on it for the rest of our lives, even though we may not be aware of it.

This conditioning comes from:
1. What we heard when we were young
2. What we saw
3. What we experienced ourselves

If a phrase like “Rich people can’t be spiritual” is ingrained into you, that subconscious, negative connotation will override actions any day, even if being rich is what you really want. We’re primarily creatures who act on emotion more than we act on reason, even though we’d like to believe the opposite."

Read more click here

Wow! Time has flown this year. Can you believe that it will be 2010 in less than 2 weeks? Do you remember 1999 when the whole world was worried about Y2K? Many people stayed home with gasoline, water and food just in case civilization ended. Now we are looking back and chuckling about that one. I assume we'll be shaking our heads at Global Warming pretty soon too.

What was the most important thing of the last decade for you? Has anything special happened in your life? I’ve spent the whole decade in Japan. I’ve had too much fun to go home! It’s been a great experience that has shaped my life incredibly.

Here is a quick list of some major inventions/advances in 1900-1910 and 2000-2010.

Some Inventions of 1900 – 1910

Airplane

Teddy bears

Windshield wipers

Crayons

Vacuum cleaners

Ford Model T automobile

Popsicle

Teabag

Escalator

Instant coffee

Some Inventions of 2000 – 2010

Artificial heart and liver

Self –cleaning windows

Hybrid Cars

Youtube

iPod

Ka-on plants that play music

Murata boy – bike-riding robot

Sony’s Sugar Battery

Flying Windmills

Face transplants

In the Olympics of investing Alberta is still the gold medalist. The province got a score of 8.5 out of 10 in The Provincial Investment Climate Index.

This index has seven main components: corporate income tax, fiscal prudence, personal income tax, transportation infrastructure, corporate capital tax, labour market regulation, and burden of regulation.
"Alberta came in first place on most indicators including corporate income taxes, corporate capital taxes, personal income taxes, fiscal prudence, and labour-market regulation. However, Alberta ranked seventh on transportation infrastructure, which assesses highways, urban transit, air, rail, and marine service."

The article states that Alberta is losing ground to other provinces. Saskatchewan comes in at 6.6 and British Columbia at 6. Those two provinces saw a year over year increase of 0.7 and 0.2 certainly they are improving but still no where near Alberta's stellar 8.5 performance.

Read more here

See the smallest apartment in New York city. At $150,000 it still costs as much as an ok condo in Edmonton, but apparently micro studios are the way to go now. That says a lot about Manhattans affordability. However, I can definitely see the benefit of owning your home (however humble it may be) outright in 2 years.

If we all went smaller there would certainly be a lot less credit and cash flow problems.
So this couple has made a lifestyle choice that is both beneficial to the wallet and financial future.

This reminds me of the Y.A.W.N.S

This was forwarded from a REIN member.

This is the Greatest Christmas decoration ever!

You may not know it but Edmonton real estate is just as seasonal as a tropical resort. When dead time comes it comes. Vacancies and unsold properties are put on hold until after January. No one moves when it's -20C.

What if you have vacant properties? Two months vacant is two months too long in my opinion, so how do you get your properties rented?

1. Compelling Advertising- In this tight rental market 3br/2ba isn't going to cut it. Sell the sizzle. Get the tenant to see themselves living in their new home (your property). Describe bright sunny rooms, the convenience new appliances bring and the ease of living close to so many amenities. Adjectives are key here.

2. Get Referrals - You know people right? They probably know some people too. Like the Doublemint gum commercial our circle grows infinitely when you include everyone you know. Talk, talk talk about your listing tell everyone you know. Who knows who has a cousin moving from wherever and is looking for a place to rent.

3. Give rebates, bonuses, discounts - If possible don't lower your rent. Offer money back at the end of the lease, half months rent discount up front or help pay for moving costs. In this economy it can be hard for people to come up with a damage deposit and first months rent, especially with the holidays around the corner. Last resort lower your rent but make sure it's not putting you in a negative cash-flow position. That, my friend, is a false economy.

We all get vacancies so let's help each other out!
Good luck and stay rented!

"Asking is the beginning of receiving. Make sure you don't go to the ocean with a teaspoon. At least take a bucket so the kids won't laugh at you." Jim Rohn

If you listen to any type of self-improvement, self-help or success mastery courses you must of heard of Jim Rohn. He was one of the "grandaddies" of them all.

Anyway he passed away this weekend. He was an invaluable teacher.

"Harold Dyke, long time close friend of Jim’s for over 55 years said it best, “As Jim is ending one life he is simultaneously being birthed into a new life. One that he has talked about over the years and anticipated with great joy in his last remaining days.”

This video is very important for Canadian expats whose children are born overseas. My son was born in Japan he automatically is granted Canadian citizenship, however if he has a child outside of Canada they will not be granted Canadian citizenship.

It doesn't seem right to limit Canadian expats' children's ability to gain citizenship. I may be mistaken but Canada needs to meet a set amount of immigration every year to keep our economy healthy.

Why should Canadian citizens or their children be denied citizenship?

Real estate.

According to a Nu Wire Investor article that's the plan for those with more than $800,000 to invest.

"The prospect of strong returns in bargain real estate is driving interest, especially among the wealthiest, who are predicted to boost allocations in property to 30 percent — with portfolios of over 50 percent property holdings not uncommon. While the majority of investors see the expense of financing as a deterrent, property's perceived potential is edging out stocks and bonds. Among locations, the US residential real estate market is a top pick for investment. See the following article from Property Wire for more on this."

It's not surprising as many are really worried about were to put their money. Especially after have about 10 years of saving disappear over the last few years. One thing about real estate is it's tangible, insured and worst comes to worst you can live in it.

"Investors from Canada and the Gulf region were the most likely to increase their property allocations, with an average increase of 4% being put into real estate."

If you been on the MLS or looked at any home sales sites you know there are some pretty mediocre, bad and scary photos out there. Photos do sell the home. Most people skip listings without photos and by not posting great ones we could be pushing prospects away.

Carla Johnson is a REIN member and publish author of Magnetic Real Estate Photography

The skills in this book are a must have if you do anything in real estate!

From her site:

Discover how to take effective real estate photos.

See lots of Do and Don't photos.

Learn how to choose the right camera for you.

Find out how to compose real estate photos.

Attract more viewers to your ads.

Learn these techniques and so much more...

Absolutely must know techniques for pros!

Edmonton can now be toured online using Google Street View.

"Edmonton and eight other cities have been added to the list of Canadian cities that were photographed Google's Street View feature."

So you don't even have to leave your house to do a drive by to check out a property. Great for winter Check it out!

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

-Theodore Roosevelt (1858-1919)

How can you grow your money in real estate?

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

Take this property for example:

Case Study 1 - Cumberland Purchased 2005

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

Well situated near schools, city transit and bike paths.

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

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

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

* Inclusive of all costs from purchase to sale

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

That works out to $65.00 CAD per day.”

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

Contact us for your Free Canadian Real Investor Report!

Embrace the winter.
I don't know if I can to be honest!

I'm a tried and true winter-phobe. To the point that the crunch of walking on snow gives me the willies; much to my husband's dismay I drag my feet around like a cross-country skier.

So even for me, a staunch Edmonton promoter, it's hard to embrace the winter. Whenever I hear "but it's so cold" I agree silently, however, I know money doesn't care where it's being made.

I read this article and have to agree Edmonton should (insert I) embrace it's long, glorious, fantastic and long long winters.

Last year the tourism board announced a great line-up for the winter:

"Winter Light’s mission includes promotion and collaboration with Edmonton’s existing winter festivals, Deep Freeze; Ice on Whyte and Silver Skate Festival as well as new programming, Winter Light Welcome tents and special events will take place in the context of all three events."

"I think winter has been one of Edmonton’s best kept secrets for too long," says Anthony. "Our goal is to showcase all the wonderful aspects of our winter city – the incredible recreation opportunities, the gorgeous river valley environment, and the culture and heritage of winter peoples."

So instead of grumbling and running to our cars to avoid certain frostbite. Lets look around, smile and say, "It's the most wonderful time of the year!"