Edmonton Real Estate Investor

There's a lot going on in 2011. Already the whoppers include mortgages rules changing effective March 2011, stronger and stronger indications of rising interest rates and a new Premier for Alberta - sometime.

So what? There always is a lot going on. The best action is not reaction but positive pro-action (I just made that up- look out Sarah Palin!) In our case we started locking in all our variable rate mortgages, where it made sense. I'm not going negative cashflow for the sake of a little peace of mind. I can ride the variable until maturity and probably pay less negative cash flow in the long run.

We're also re-evaluating our political choices. It's a second look at the political landscape to figure out which way to go.

If it's not one thing it's another you've just got to roll.

Premier Ed Stelmach will not lead his party in the next election. It comes as a shock and will certainly bring about a leadership race in the future. A quick look at the comments on any newsite shows that people are very polarized about his decision to quit. Examples here and here

I found a great breakdown on what seems to be the consensus for 2011 - Cautious Optimism.

Optimism - includes consumer confidence and a strong rental market. I've seen these myself more calls for rentals especially from people moving here for work - even in the dead of winter. I'm hearing it too. Talking to the man on the street (and the woman) everyone "feels" things are going to pick up this year.

Cautious - foreboding consumer debt, foreclosures and a slew of listings coming on the market. I've always known that many start their year with a big debt load after the Christmas/holiday shopping frenzy. I'm seeing it in rents paid later due to salaries coming in later due to the employers not having the cash to pay up.

Increases in listings will affect the sale price of your house. Every one has the same idea when can I unload this negative equity property I bought in 2007. Spring will bring a lot of listings of "investors" tired of dealing with rentals and just wanting to get out at any price.

Anyway in my mind this quote says it all:

"Rod's Opinion -
Bottom line is that economically Alberta is the best place in the world to be and everyone knows it and I feel consumer confidence will have the biggest impact on Edmonton's market this year. The message is getting through that there are a lot of great deals out there and with the threat of rates going up I expect buyers to get off the fence in the first two quarters."

I'm certainly buying and not selling this year!

Happy New Year!

Are you back in the swing of things after the holiday break? I know I am. For me the first part of the year is dedicated to 'clean up' and that means getting the big and ugly jobs underway and cleaned up to make way for new plans, systems and fine tuning.

In December, Edmonton had a typically slow month for home sales with prices dipping slightly lower than November by about $10K. Meaning that it is a relatively poor time to sell, but a great time to buy. 4-Units and up in size will remain the sweet spot this year and there are several good ones coming up, for smaller investors suited half duplexes will also offer great returns.

I see 2011 as a slow and steady year that will lay a solid foundation for increased growth from 2012 onward - in other-words, a great time to start picking up more property. Lower prices, low rates and an increase in jobs that will bring more renters, bodes well.

What do you see for 2011?

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 TODAY, let me help you build upon it.

"What lies behind us and what lies before us are tiny matters compared to what lies within us." -Walt Emerson

Warm Regards,

Todd and Danielle Millar

For many the big splurge over the winter holidays makes a financial dent in their accounts. Often to the point where regular bills can't be maintained. Here is a great article on How to Deal with Mortgage Payment Difficulties from CMHC:

"When unforeseen financial circumstances impact your ability to make regular mortgage payments, it’s important for you to take quick action. With early intervention, cooperation, and a well executed plan, you can work together with your mortgage professional to find a solution to your financial difficulties."

Some solutions include
1. Talk to your mortgage professional
2. Clarify the financial picture
3. Stay informed

There is also a link to a great Government of Canada site Take Charge of Your Debts

Hopefully none of you need this but can pass it on to someone you know!

Read More Here

Best in 2011,
Danielle Millar

I hope everyone had a great holiday season. We spent Christmas with our family in Vancouver. And you know what... Vancouver is not colder than Edmonton!!!

I always hear "Oh it's a damp cold it feels colder." I can say for a fact that a damp 8C is still much, much warmer than a dry -20C!

We're off again for a few days to relax in the Rockies. Everyone have a very prosperous and healthy 2011. It's going to be a great turnaround year!

HAPPY NEW YEAR!

Todd and Danielle Millar

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A big Congrats! to CBC Radio 1 raised over $80,000 for the Edmonton Food Bank. What a great way to give this year! Visit the Turkey Drive site here.

Pretty darn soon, judging by the Suncor, Total $1.8 Billion Oil Sands deal....

What was originally thought to be a cyclical downturn, turned into a much deeper and widespread recession. However, the turning point falls in step with the cyclical upswing that was earlier projected. From the Billions of dollars that has been sat on in Alberta, we can start to see signs of life. 2012-2016 will be another growth period, although more tempered than the boom and 'bust' you've seen before. I suppose you can't accurately call it a 'bust' if it does, in-fact, keep going. The meat of this article is the MASSIVE and progressive deal that Total/Suncor have struck. This isn't a tentative toe in the water, it is a big a** cannon ball jump.

"A new partnership between oil sands giants will pour tens of billions of dollars into new bitumen projects over the next decade, as the world’s biggest energy companies increasingly train their attention on northern Alberta’s massive reserves."

PARIS (Reuters) - France's Total said on Friday it would spend C$1.75 billion ($1.8 billion) to forge a partnership with Suncor Energy in Canada's oil sands, the latest foreign push into a booming new source of oil wealth.
The French oil giant and Canada's largest energy company announced deals encompassing three projects in Alberta, where Asian investors have already been pouring funds into tarry deposits which have opened a new frontier in oil supplies.

Read more here and here

Dear Friends and Partners,  

Get ready for an awesome New Year 2011 as we move forward with an investing period akin to the early 2000's. You'll see; steady economic growth, modest property prices, low mortgage rates, ample supply of residential buildings, positive in-migration and increasing rents.

These key indicators among other factors, put you in the right position to be for the next 5-7 year cycle, which will start showing momentum from 2012. If you feel the fear, challenge and uncertainty of the times, take a big chunk of Steve Chandler's advice along with you into the New Year.

This will be the first Christmas that we've had together with our Canadian family in well over 10 years, and I envision it being very special. My main goal this holiday season is to shut up. That's right, shut up.

I want to be 'in the moment' and really connect with my family and friends, and I think the way to really, truly do this is by listening to all they have to say and then some.

If your gatherings are like mine, you might find yourselves good-naturedly talking over one-another. I know I do. We all have busy, creative lives and feel the biting urge in sharing them with each other; we enjoy the banter and wit of joking together. And that'll still happen, but my goal is to really 'hear' what is going on with my loved ones this holiday season, so shutting up is what I'm going to do. (Yes, me zipping it will also be a precious gift to some family and friends ;)

Looking to do a little more? You can help a hungry family have a better holiday season by donating to CBC's 15th Annual Turkey Drive right here.

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 TODAY, let me help you build upon it.  

"Be always at war with your vices, at peace with your neighbors, and let each year find you a better man." -Benjamin Franklin

  Have a wonderful Holiday Season. Thank you for allowing us to serve you for the past 8 years and counting!

This will be your last Newsletter of 2010. Newsletters resume from January 15th, 2011. Glenn Simon Inc. will be closed for the holidays from December 23rd 2010 until January 4th, 2011. Happy Holidays!

Warmest Regards,  

Todd and Danielle Millar

I've always been a huge fan of the library and now I'm a huge fan of their newsletter. It's got so much great information, recommended books and interviews with your local librarian. Great job Edmonton Public library!

This month they've given 5 ways you can cut your holiday spending:

1. Make your own egg nog at home. And cookies. And gingerbread houses. Pick up the how-to guides free at your local library.

2. Make your own decorations and Christmas cards at home instead of buying them at the store.

3. Give loved ones a Library card for Christmas - at only $12/year for adults, you'll be helping them to save money all year. Pick up a gift card at your local branch.

4. Don't rent - borrow. Music, movies, video games and of course books. EPL carries everything you care about, so avoid the high rental fees by picking up fun for free.

5.5. Avoid the high-priced enterainment options - and the cold - by staying home. Pick up a sing-along video game from EPL and find out if the next Justin Bieber is in your living room!

What great practical ideas! I'm going to make a vat of eggnog- I forgot how addictive that stuff is.

Home sales rise for fourth month - "In particular, Great Vancouver posted gains of 11.3%, while Montreal was up 8.2%, Edmonton rose 6.9% and Toronto increased 6%. Ottawa saw gains of 4.2% and Calgary advanced by 2.6%."

Edmonton market is currently a strong buyer's market. The prices are soft due to the amount of product on the market and seasonal effects. Even if it wasn't a buyer's market December and January are great times to buy.

Industry touts benefits of Canadian oil sands - "Canadian oil sands development is some of the best energy and economic news America has heard in years," Cindy Schild, the institute's refining issues manager, to reporters on a conference call Wednesday. "Americans will continue to consume a lot of oil, and oil sands have the potential to supply much of what we will need while also creating many new U.S. jobs."

The Canadian oil sands produce the safest, friendliest oil in the world. Alberta and oil sands producers are constantly looking for innovative and environmentally friendly ways to extract this incredibly huge source of oil.

Moving oil across B.C to thirsty foreign markets - "...the proposed Enbridge pipeline project. It would stretch more than 1,000-kilometres from the oil sands near Edmonton to the northwestern B.C. coastal town of Kitimat, before crude would be loaded onto tankers for export across the ocean.

Proponents of the pipeline make a persuasive case. Without tankers being allowed on the North Coast there is no pipeline. No pipeline, no way to take Alberta’s oil to thirsty Asian markets. And with that, tens of billions of lost investment and lost jobs for Canada."

This article is about a fascinating idea to build a train line to move oil rather than the heatedly debated pipeline. The idea and spin off uses such as tourism are very compelling.

Click here to hear Realtor Rod Thompson give an update on Edmonton's real estate market.

He confirms it's a buyer's market but points out that selling and getting your price takes a lot more skill in these times. Buyer's take your pick because it's a great time for you. I'm buying now too!

He also touches on the importance of staging, the new mls.ca listing rules and 2011 market forecast.

You know I feel like I've written this blog before like here and here and here.

There are so many similarities between now and when we started investing in 2002. The soft real estate market prices, the low interest rates, the Alberta economy being praised as a star and the in-migration of workers to jobs in Alberta.

"With Canada's lowest corporate and personal income taxes, most flexible labour market, smallest government and relatively low level of red tape, Alberta continues to offer an investment climate that is the most attractive nationwide," Charles Lammam, senior policy analyst with the Fraser Institute. Read more

I've noticed a lot of people coming from B.C, Ontario and the States - I get their calls all the time looking for rentals. 2011 really is going to be a turnaround year.

You may hear about this investment strategy this is what it means:

Hold A Mortgage – YOU are the Bank

You Have Control On Investment Selection, Direction and Return On Investment (ROI)

Truly A “Self Directed” Sophisticated Investment

You Can Physically SEE Your Investment

Invest in REAL Property ..not Ideas!

Why would you hold a mortgage?

“Solid Secure Superior Investment Return”

Gets You Into The Real Estate “Investment”Game Easily & Safely

Guaranteed Returns Not Available From Mutual Funds & Stocks with Less RISK!

Cash In On Alberta's Real Estate and World Leading Economy

What are your options?

“2nd Mortgage” Investing

Cash And Savings Investments

Create Financing For Well Selected Superior Properties

Short and Long Term Investments

1, 3 or 5 Year Terms

Contact Todd or Danielle for more information.

Take advantage of the REIN "Blowout Sale“ all the programs, books, kits and other resources produced by Canada's #1 real estate investment education company are on sale at 20 -50% off regular prices.

For example, you can get $200 off the regularly-priced $587 A.C.R.E. Homestudy kit, the incredibly effective introduction to real estate investing in Canada.

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I've been going over old newsletters that I get from a score of industry leaders. The Bett's article outlines that the price of your home is determined by more factors that you might think. They list:
1. Location
2. Features
3. Condition
4. Home Improvements
5. Market Conditions
6. Seller Motivation
7. Marketing

In a buyer's market, in the middle of winter, you need to look at all the aspects and excel at them all. Trying to sell now is what we call motivated - that means you'll need to allow you MAY get less than you expect.

You can't change the location but you can make a lot of changes and renos that will increase the perceived value. Try HGTV's list to get the most bang for your bank.

The most important in my opinion is marketing. A little pokey sign on your lawn won't do anything, you need an incredible marketer working for you.

If you're like me, over the next few weeks you won't just be checking your Christmas list - but your goal list for '10 and '11. What works best for me is to track and measure my progress in a 90 day format, breaking goals down to weekly and daily targets. At the end of the year Danielle and I sit down and plan the New Year goals we have, both business and pleasure.

I read an interesting interview about a South African band that I like. Upon finally getting their 'big break' in the U.S., the interviewer asked the band what had happened to lead to that break? The singer replied that he'd been watching an old video where Deborah Harry of Blondie fame was being interviewed by the director, and at one point, the frustrated director snapped "Stop making these clever jokes and say something real that people can connect to emotionally."

And from that point the South African singer committed to 'connecting emotionally' with his audience and then 'got his break', which he pays credit to his new-found authenticity.

What will you be more or less of in 2011?

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 TODAY, let me help you build upon it.  

"The secret of success in life is for a man to be ready for his opportunity when it comes." -Benjamin Disraeli   

Kind Regards,  
Todd and Danielle Millar

We have a new family member!

Yesterday was Edmonton Humane Society's famous Wish Upon a Whiskers Wednesday . In the spirit of Christmas/ the holidays all cats with white markings were up for fee free adoption. We went but fell in love with a beautiful black cat so we paid but it's for a great cause!

I looked at their site today and they hit an all time adoption record of 124 animals! What a huge success. We barely made it out of there with only one new friend (some chincillas were beckoning).

"124 animals were adopted out of the Edmonton Humane Society on Wednesday, December 1 setting a new adoption record for most animals adopted in one day. 45 cats, 72 kittens, 6 dogs and 1 puppy found their forever homes....

The previous adoption record of 82 was set on December 26 (Boxing Day) in 2008."

I can't find my camera to showcase our new kitty cat so I've put up another little guy that needs a home.

Please call The Edmonton Humane Society to donate or give a beautiful animal a home.

I've obviously got very strong ties to Japan. We've only been out for 6 months so I'm still closely drawn to Japan's economic situation.

When we left things were looking dire. All the close friends we keep in contact with say they are getting worse. It looks like the Japan's economy is stuttering and may not ever start again.

The power is shifting to China and many young Japanese people will have to change drastically how the are educated and expect to live. The current economic structure is so archaic and aged heavy that young people must wait years to advance.

Here is a really interesting story of the power of choice in Japan.