Edmonton Real Estate Investor

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

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

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

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

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

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

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

What an area to be investing in!

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

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

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

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

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

Read Full Article

alberta closes borders

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

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

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

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

A message from an anonymous MP in Ontario read…

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

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

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

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

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

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

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

I am not sure.

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

First you read this:

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

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

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

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

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

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

Then you read this:

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

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

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

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

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

That wasn't entirely true, she said.

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

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

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

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

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

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

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

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

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

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

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

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

Read the full article here

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This is taken from Star Publications of Malaysia.

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

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

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

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

Read more about Alberta's HOT economy Click Here.

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

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

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

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

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

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

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

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

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

Here are a few quick facts below:

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

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

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

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

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

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

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

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

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

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

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

Economic Indicators - GDP Alberta vs. Canada

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

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

To put it simply:

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

OUR ROLE

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

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

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

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

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

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

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

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

INVESTOR’S ROLE

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

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

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

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

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

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

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

Take a look!

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

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

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

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

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

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

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

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

Maybe we can get a rebate?

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

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

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

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

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

Nothing.

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

• selling for near list prices

• not staying on the market long

• in strong demand

These are good things right?

Ending with this quote,

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

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

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

What is it with us Canadians? Do we suffer from ‘the grass is always greener, the sand always warmer’ syndrome? During a -40 snap, you bet we do. And it’s not all bad either.

Due to increases in salaries and the great rise in Alberta real estate values have helped make many Albertans quite well off. Our strong dollar and the perceived bargains in the U.S. have brought droves of Realtors and salesmen from South of the border to flog their wares, when we’re feeling at our most vulnerable-bitter winter.

Albertans are prime targets.

I too admit to a weakness for a house on a palm-treed beach. Actually, I’m lucky to have two palm trees in my garden but their leaves turn brown and fall off during cold spells, far from the beach of my dreams.

The number one thing to remember is that Alberta is where you can safely and steadily grow your profits over the coming years. Let the folks with knee jerk reactions and short-term thinking get shaken out of this market.

Savvy investors think long-term strategies.

I wouldn't look at properties outside of Canada as investment at this time, but instead as a potential 'lifestyle choice', if that applies to your goals at this time, meaning, if you're ready to retire or cash-out.

Otherwise, take advantage of the current breather the Alberta market is taking and use this welcomed chance to move forward with investments that make sense.

It's easy to get sidetracked when pitched an emotional 'deal of a lifetime'; it's not so much the property down South you’re being sold, it's the ‘dream life’. When is it time to buy a retirement home outside of Canada anyway?

Here are some quick points to ask yourself that will help take the emotion out of your decision:

1) Have I reached my investment goals and am I at a stage of my life where I can realistically afford to buy and upkeep a property for pure pleasure?

2) Have I done enough research into the area that I plan to be buying in to understand what it'll be like to live there, receive medical care/coverage and visit family? How will I be taxed? Can I receive income? Can I live there permanently?

3) How will property values and neighborhoods change over the next few years in relation to the sub-prime? How will this affect my lifestyle? Have I visited the area in the peak AND off season- do I like what I see? Is the weather agreeable year round or am I in a hurricane zone?

In my opinion it's not yet time to pick up properties in America. U.S stats forecast another wave of losses to the tune of 2 million foreclosures over the next few years.

You need to wait it out longer until the final mortgages have been reset and prices begin to stabilize, probably at least fall of this year or preferably past spring of '09.

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

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

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

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

Read Full Article Click Here

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

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

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

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

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

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

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

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

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

Read Article Click Here

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

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

Each person guided him in a different way,

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

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

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

Who guides you?

Read Article Click Here

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

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

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

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

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

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

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

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

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

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

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

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

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

Read more about the amazing building material

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

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

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

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

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

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

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

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

Click Here For Full Article

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mark Milke wrote this excellent article for the Edmonton Sun. If you are unhappy with the economic boom in Alberta now, then perhaps 1988's statistics will help you see the light - 9.7% unemployment and 18% interest rates. Seems unbelievable doesn't it?

"So let's keep present problems in perspective, even with the environmental or social problems -- which I don't downplay -- that accompany the energy industry's success.

Whether you're an Albertan who works in the resource industry, a doctor whose salary is paid partly by the existence of energy royalties, a trades guy or gal who doesn't have to beg for jobs -- unlike in the 1980s, an artist who received an Alberta government or corporate grant, or the recipient of a welfare cheque itself funded partly by oil and gas royalties, we're better off in this province with the resource industry than without it." READ MORE

Edmonton, Alberta: How Do You Heat Your Igloo? (Todd Millar) I replied in a lighthearted way that spending my money on sunsets and sandy beaches is what I do when I'm on holiday, not when I plan and weigh out an investment option. Sunsets sizzle, and when we imagine the lifestyle associated with them, emotion takes hold and reason leaves the room.

Quality-job creation: Another area where Canada outshines US
The bad news is that, like the United States, Canada's economy is shedding manufacturing jobs. The good news is that, unlike the U.S., Canada is replacing them with high-quality work in the public administration and energy extraction sectors.

Canadians vote like mad for Monopoly real estate
It may sound like fun and games, but some people are taking getting their cities into Monopoly's upcoming World Edition rather seriously. Full-blown campaigns on social site Facebook and other Internet sites have boosted the fortunes of Canada's three candidate cities vying for spots on the game board.

CPP buys big chunk of Scotia Place
The Canada Pension Plan Investment Board has bought a 40-per-cent interest in Scotia Place at 10060 Jasper Avenue for $63.5 million.

"The Edmonton market is strong and getting stronger, and obviously has a long-term future," Graeme Eadie, CPP senior vice-president of real estate investment, said today.

Silver lining to expected slowdown
The Canadian dollar has, overall, surged in value for two reasons:

First, the demand for Canadian energy -- oil and natural gas -- continues to remain high. Second, the U.S. housing market has been hit by the sub-prime lending crisis, which has dampened confidence in the American economy, devaluing its currency against others -- including the loonie.

The immediate effects of a high Canadian dollar are felt in manufacturing, which has come to depend on the lower loonie and a strong U.S. economy for steady exports south of the border. In November, 16,000 jobs were lost in Canada's manufacturing sector, according to Statistics Canada.

Canada is getting a lot of first prizes among the G8 countries. We rank first in quality of life, have the lowest cost of living, and the lowest unemployment rate.

Canada has diverse resource driven economy that, less than a decade ago saw significant proportions of all exports heading for our neighbours to the south. Due to Canadian government's tireless support of businesses diversifying their exporting focus and incredible foresight, now, nearly a quarter of all exports are destined for non U.S locations which has helped us to avoid the economic slump now prevalent in the U.S.

Canada’s economy has often trailed the US economy, however today it is leading the US - as is the Canadian dollar which has seen the most gains since at least 1971 because of a surge in investor interest and confidence in commodity-exporting countries according to a Bloomberg report.

Statistic released by the Canadian Real Estate Association show clearly that Canada has just finished the best year ever for sales of existing homes; with records being set for house prices and new listings.

"Those lower interest rates will also help temper any erosion in housing affordability in Canada because of additional home-price increases," "The challenge for the Canadian housing market will be the extent to which consumer confidence is affected by a slowdown in the U.S. economy." Ann Bosley, president of The Canadian Real Estate Association

Now more than ever is the time to invest in Canadian Real Estate.

A Japanese friend I spoke to the other day was disgruntled because the price of soy sauce is increasing. It's all because we are trying to reduce consumption of fossil fuels .

Interest in using food crops (ethanol is derived from sugar beets, wheat, corn or sugarcane) to produce alternative fuel sources for cars is causing many nations to fear subsequent increases in food prices.

For example soy bean oil is heavily relied on to make biofuel - the renewable diesel fuel additive. Cooking oils and many other products prices are increasing because the price of soy beans, corn and cereals are increasing. Milk prices increased 3% in Japan because it is more expensive to feed cows and beer will increase because the price of malt has risen.

Think tanks predict prices may even rise 80% as crops and farmland are diverted to producing biofuels. However other experts predict that with increasing technology we may only see a 5% -15% increase.

A Possible Solution....
Japan has taken steps to produce ethanol for cars out of inedible biomass like straw and chaff.

"We already have the technology to make ethanol from straw and chaff, but we've only succeeded at the laboratory level......"

"What we are trying to do is to collect straw and chaff on a relatively large scale in a local community to make biofuel and then use it for the first time for vehicles and other uses...."

"If we can use biofuels from inedible parts of crops, then markets for biofuels and markets for foods would not have to compete," Eiichiro Kitamura- official in charge of Japan's Ministry of Agriculture, Forestry and Fisheries innovative project

A rental property has to have a lot of things going for it to ensure it puts money in your pocket. Nice location, above average amenities, sturdy construction, neutral yet stylish design and the list goes on. However, none of this will mean much if your property is overpriced.

The "put the For Rent sign out" and they will come mentality doesn't work in every market. If the market is tight and your vacancy rate is low you can rent for a little more but if the vacancy rate is increasing then your rent not only has to be in line with the market but also cover your expenses and reflect the quality unit that it is.

So...?

Someone brilliant has invented Rent-o-meter.com you simply fill in the fields for address, province or state, postal code, current rent, number of bedrooms and units in the building. Press the Analyze My Property and you get a clear spectrum of the average, high and low rents in your particular area.

The site not only shows you where you unit is on the "Rent-o-meter" but shows other rents of comparable properties in the area with pictures and addresses on a Google map. The property I put in was compared to 103 other units within 5.39 miles (8.67km) of my property.

Mind you there is nothing wrong with being on the high-end if you property is a real beauty.

Rent-o-meter works for Canadian, American and London locations.

“It’s Time To Cut Through The Hype and Opinions That Surround The Canadian Real Estate Market and Get To The Truth”
Don R. Campbell, Author of Real Estate Investing in Canada.

Rookie & Veteran Investors Have Purchased
over $2,292,700,000 (Billion) of Canadian
Positive Cash Flow Real Estate
Using The Strategies They Discovered From Don R. Campbell.

Now It’s Your Opportunity to Get The Truth and Learn the
2008 Top 10 Canadian Towns to Invest In
And the 9 Questions You MUST Ask
Before You Buy Your Next Piece of Property.

Is It Time For The Market
To Crash or Continue Upwards?

No more guessing, no more hoping, no more wondering if you’re missing out (or making a mistake) and, most importantly, NO MORE FEAR! “How is this possible?” you may ask. Well, there has finally been a breakthrough –- an unprecedented breakthrough -- that allows ANYONE to become a success in real estate investing.

Next Quickstart LIVE!

~ V A N C O U V E R ~
REIN Members only Workshop Friday Night February 15^th
Sat, February 16^th 8:30am – 7:00pm AND Sun, February 17^th 8:30am – 7:00pm
Location: Hyatt Regency Vancouver – 655 Burrard Street.

To Grab One of These Seats,
Click Here!
In fact, previous attendees of the "Real Estate Investors' Quickstart Program" have purchased over $2,292,700,000 (billion) worth of Canadian investment real estate. And before they attended, some didn’t even own their own homes – while others already had a strong portfolio but wanted to make it even better! This program makes huge differences in people’s lives… both veteran and rookie investor alike….

RBC's latest provincial forecasts:

"Alberta leads all provinces with above-average economic growth, followed by Saskatchewan and Nova Scotia. On the opposite end of the scale, and showing a complete turnabout with its mega-projects now in maturation, Newfoundland and Labrador is posting the slowest economic growth rate of 0.5 per cent, and on its heels is P.E.I., as well as Quebec and Ontario with its manufacturing woes. However, a more bullish outlook is in store by the end of this decade for Newfoundland and Labrador, New Brunswick, Nova Scotia and, in particular, Saskatchewan, where there is a possibility for a triple play of diamond mining, rich uranium deposits and a massive oil strike in the southeastern part of the province."

Get Your Copy Of Report Here

If you still think Alberta's economy is on the slide,

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

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

Indeed, although home builders in Edmonton plan to curtail new construction in the first half of 2008, some are already worrying that they won't be able to meet new demand by this fall, when inventories are likely to be depleted.

In short, rumours of Alberta's economic demise are greatly exaggerated."

READ MORE HERE

Ask any Realtor and they'll tell you that winter is a time to prepare for the next year. Plant the seeds on the sales they plan to make in the spring because real estate comes to a near grinding halt over the winter months. But not this year.

Royal Lepage Real Estate Services reports that the last quarter of 2007 saw the Canadian market slowing down only a little rather than the full on braking that has come to be expected in last quarter.

Edmonton can expect a moderation and balancing of prices and that is ok by me because I'm looking to significantly increase our investment portfolio and overpriced homes need not apply.

"In Alberta, where Edmonton’s prices were rising at a 50 per cent annualized clip early in 2007, the breakneck rise in recent years "has moderated demand," the Royal LePage report said.

Edmonton and Calgary now have "a surplus of inventory," it added, and "while demand is strong, the increased supply has impacted the resale market and homes that are not priced appropriately will take longer to sell."

Soper said the Alberta econ-omy needs time to adjust to the "frankly unhealthy increase" in home prices between late 2005 and early 2007." Royal LePage president Phil Soper

Realtors' Association of Edmonton president Marc Perras predicts Edmonton-area home prices are to rise four per cent over the next 12 months while a CMHC market analyst, Lindsay Kendall, predicted that Edmonton prices for all forms of resale housing will rise 6.5 per cent in 2008 to $360,000.

Now, I like to manage expectations and prefer to factor in a conservative rate of appreciation at 8% per year- which is a safe average in an up or down market.

I am a contributing writer for Nu Wire investor. I have a new article out on The Fundamentals of Real Estate investing.

This site has such good information for a variety of interests (I am not just saying that because i write for them) take a look at Nu Wire Investor or to directly view my article click Real Estate Investing: Focus on the Fundamentals

Have A Great Weekend!

We just got back from 19 days in Vietnam with a quick excursion into Cambodia. It was a great trip with lots of surprises and delights, beautiful sunsets spent on white sand beaches and excellent food.

Anyone planning to go should visit Ha Long Bay for the incredible caves and kayaking also don't miss Ho Chi Minh it's one of the most interesting culinary cities I have been to - try the street vendors if you are up for it.

After the hectic and successful year we had in 2007 it was nice to be able to take a trip like that. (Actually what I am most thankful for is a business where proven systems and an incredible team allow me to leave, come back nearly 3 weeks later and find everything going like clockwork)

As an avid traveler the writing in International Living or Conde Naste invokes countless dreams of villas in Greece or a secret beach front hideaway in Costa Rica.

This lovely write up for a $59,000 Belize beach front property makes me want to sell up now and head south,
"This little English-speaking Caribbean gem is tucked just under Mexico’s east coast behind the second-longest reef on the planet, making it an ideal scuba destination. The reef keeps the beaches smooth and inviting, and the hundreds of cayes, or islands, off the mainland are a treasure trove for explorers and island-hoppers." International Living

We spent a lot of time on the trip playing our own "International Living" game. We would pick a property, any property and give it a write up like it had never seen before.

My favorite on the 6 hour cruise we took up the Mekong River:

"Live your retirement dreams overlooking the majestic Mekong. Just steps away from the river banks, watch fisherman float by in wooden dugouts as they go to catch tonight's dinner. Spend your days in a hammock or exploring the beautiful historic town you live in...."

There are properties like that all over Vietnam but perhaps at dusk and dawn you must "Deet" yourself against the swarms of malaria carrying mosquitoes, or maybe the swell from the river deposits about 1 ton of discarded plastic onto your river bank each day.

Different seasons, different times of the day and even local festivals can turn your paradise into hades for a while. You should visit your property night and day, rainy season and dry season to make sure you are buying your dream home and not a nightmare.

For example one boutique hotel we checked into at night was gorgeous, great furnishings and a balcony that looked over a bustling street filled with cyclos and street vendors energetically selling their wares. The next morning the cacophony was unbelievable. If you know anyone who has been to Vietnam ask them about the "honking".

My point is that if you are looking at buying an international property your due diligence must go above and behind what you did for your home, back home. The romance you read in the property description may elude you at times.

International Living or another organization like it can certainly offer a wealth of information and local knowledge. But, like any investment it's important to realize what the motivation of the promoter is. Perhaps their expertise lies in the information or services to help you locate your dream property or on the other hand, perhaps they profit purely from commissions brought by inducing a sale. There's nothing wrong with that either- if you're getting what you paid for (I've never purchased a property through International Living or any other similar organization; therefore I am not endorsing nor criticizing their services) in fact this may be EXACTLY the expertise needed to get you started on your second home or new retirement home dreams.

"....you'll be introduced to real estate agents who can tell you about the local market and take you to see properties currently for sale; expatriates already living in the country, who can tell you why they decided to make the move and what they like (and don't like) about their adopted homelands; bankers; economists; attorneys; businessmen..." International Living

What I learned on my vacation is one great sunset does not make an awesome investment property. You've got to come back and visit it during the off-season, festival times and see what the locals are like when you're not just a tourist spending your money... Quite often you may find that a month long holiday is enough time, you don't need to buy the ranch too.

Our next trip will take us to mainland China - I can't wait to find out what I will discover there..