Edmonton Real Estate Investor

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

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

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

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

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

Investment in fixed capital slowed and exports eased.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How does this affect Alberta?

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

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

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

Mary Pope-Handy is a haunted house specialist.

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

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

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

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

Economy

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

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

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

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

Taxes

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

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

Resources

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

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

Diverse Economy

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

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

Stability

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

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

Workforce

*Alberta has the highest worker productivity in Canada

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

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

For more information about Edmonton Click Here

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

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

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

If you have a teaching degree make way to Alberta.

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

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

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

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

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

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

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

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

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

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

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

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

Thanks Romi!

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

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

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

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

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

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

What is nanotechnology?

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

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

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

We hear this all the time.

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

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

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

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

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

Measures Used:

- Number of child welfare cases

- Number of single-parent families

- Number of people who have moved in past year

- Percentage of hospital ER visits

- Rate of hospitalization

- Number of property crimes

- Number of violent crimes

- Number of youth crimes

- Percentage of adults with less than Grade 9

- School transiency rates

- Number of dwellings needing major repairs

- Percentage of dwellings that are rented

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

- Number of households with low income

- Percentage of adult unemployed

- Percentage of food bank users

- Number of welfare recipients

- Number of hectares of parkland

- Condition of playgrounds

- Condition of sidewalk and roadway

For A Look At The Full Article Click Here

A Blurb from the Edmonton Sun online:

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

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

Slipping sales

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

Which is generally what happens in a market.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hope You Have A Great Weekend,

Danielle Millar