Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com
May 2nd, 2014
Volume 16, Issue 7
Dear Friends and Partners,
The last couple of months we've talked about the lack of quality inventory in the Edmonton Real Estate market. Typically more properties get listed in spring and this year is no exception. The residential (SFR) sales to listings ratio is 60%, it takes approximately 44 days to sell a home and Edmonton’s Q1 is up approximately 5% from last year: stats thanks to EREB.
I want to stress that the market is stable and firmly based in the economic fundamentals of Alberta. There will be a time when prices go wonky and I’ll be the first to let you know, but we’re not anywhere near there. There’s a pressure created on sourcing new buys. But an equally positive pressure exists for smart sellers. Now is a good time to clean up your portfolio and reposition properties, be it to sell smaller ones to get into larger ones, or cull pack to keep the highest performers.
Despite the Condo/Town House market pricing remaining flat, there still exists a premium to be paid for clean, nicely renovated, turn-key properties. We’re on reno-mode for several of our Town Houses that have successfully completed the buy-hold cycle and are cashing out. Of the two (of six) we’ve listed so far, they’ve gone pending at or slightly over list price within the first 48 hours. Now, a lot went into creating these results, but you can do it too. Remember to; renovate to sell, list for the right price (don’t over list!), present your property vacant, stage it, use a marketing system to sell, professional photographs and an outstanding Realtor. In any market there are deals to be had for both buyers and sellers.
If you’re waiting to add to your portfolio my advice is to do it now as we are on a pricing upswing and its a challenge to find quality property at the moment. If you have some to sell and re-invest the profits with, now is a good time (to take advantage of buying at a lower price). If you are trying to max out your sell price, you can probably hold on a while longer depending on the property type and quality - remember not even the greatest investors are able to predict and time the market 100% of the time.
Strathcona Character Tri-Plex
Turbo charge your portfolio. This 100 year old, 3 floored and 3 suited property is located on a treelined street, 1 minute from park, school and 5 minutes from trendy Whyte Ave. This 1914 built property has a covered porch entrance for the 1 X 2BD main floor unit and the 1X 2BD upper unit. The 1X 1BD basement suite has it’s private entrance around the back of the property. This is a legal non-conforming triplex and is in great shape with an effective age of about 1980. Our renovation team will add a few tweaks to modernize the lower unit while retaining the character of there suite. Shared laundry down, parking for 3 cars, fenced yard and garden, 2 balcony/patio suites and fireplace. Great access to UOA, Whyte Ave., downtown and Saskatchewan Drive.
Comes complete with great tenants making this a totally turn-key property for you. Convenient and extremely sought after area with easy access to UOA, Whyte Ave., transit and downtown. Strathcona is a high demand area with plenty of schools, parks and amenities. Highly rentable; solid value and increasing rents. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.
Purchase price: $475K
Total Investment: $125K
Your Estimated 5 Year Profit $85K.
Your pre-tax Total ROI is 68% or 13.5% per year
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Hotel Investment in Alberta see strong hike 2013
By Mario Toneguzzi, Calgary Herald, April 3rd, 2014
CALGARY - Investment in Canada’s hotel market in 2013 was one of the strongest annual performances in a decade with a healthy showing from Alberta.
The 2014 Canadian Hotel Investment Report, by Colliers International Hotels, said buoyed markets, easy access to capital, investor optimism and demand for hotel properties propelled deal activity by 72 percent year-over-year as 115 transactions were recorded in Canada, surpassing $2 billion in volume, which was significantly higher than the $1.2 billion and $1.1 billion in deal volume recorded for 2012 and 2011 respectively.
The Colliers International Hotels’ report also forecasts a robust 2014 with a solid level of deal activity ranging between $1.25 billion and $1.75 billion. FOLLOW THIS ARTICLE
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Edmonton revitalization project gets cash - Journal of Commerce
By Richard Gilbert, Staff Writer - Journal of Commerce, April 28th, 2014
The plan for the revitalization of downtown Edmonton has secured a long-term source of project funding, as a result of a new joint initiative between the city and the provincial government.
“By approving the Community Revitalization Levy (CRL), the Government of Alberta is showing its commitment to helping Edmonton build a stronger downtown,” said Edmonton Mayor Don Iveson.
“The CRL is a vital piece in implementing the catalyst projects outlined in the city’s award-winning downtown plan. We’ve seen that investments in public infrastructure encourage growth, and using that strategy, Edmonton is dedicated to building a vibrant capital city.” READ MORE HERE
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Canadian oil and gas touted for Europe amid Ukraine troubles
The Canadian Press, April 23rd, 2014
The Russian invasion of Crimea is making Alberta's oil and gas more attractive in European capitals, says Poland's ambassador to Canada.
Poland supports the idea of importing Canadian oil and gas, envoy Marcin Bosacki said Wednesday prior to the start of a two-day visit to his country by Foreign Affairs Minister John Baird.
"This point of view is being shared in a growing number of European capitals in the last two months since the Crimea invasion," Bosacki said.
"Of course, we are absolutely in favour of increasing the abilities of ... western Canada oil and gas to be exported also to Europe."
Earlier this week, Polish Prime Minister Donald Tusk argued in an article in the Financial Times that the European Union should become less dependent on Russian energy sources. READ MORE HERE
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I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.
“One secret of success in life is for a man to be ready for his opportunity when it comes." - Benjamin Disraeli
Warm Regards,
Todd and Danielle Millar
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P.S. Stay ahead by checking out Danielle's blog at Edmonton Real Estate Investor for all your cutting edge market news and information.
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