Edmonton Real Estate Investor

Alberta Oil Sands Investment Real Estate News®
Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
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May 1st., 2011
Volume 10, Issue 3

Dear Friends and Partners,

On Monday we will have a Federal election. If you didn't cast your vote early, you can cast your ballot on Election Day - May 2nd. For young adults or folks that aren't that familiar with the current party positions, a simple albeit rough guide to finding which party most matches your values can be found at CBC's Vote Compass. It is tool mainly designed to get Canadians interacting (voting) and deflate some of the recent apathy towards voting people have felt. After all, it really is your $300M being spent on this election, so you should at least have a say ☺

With spring finally here you see more for sale signs popping up and tenant inquiries as they shift from one rental to another. A small percentage may move as sellers list their property, another group have leases coming up in May (winter moves are brutal) and perhaps others have spring fever. It is a dance of sorts; buyers wait for sellers to list, sellers list expecting buyers. Tenants give notice to find another property, landlords post vacancies. The duration of a well matched tenancy in Edmonton is approximately 2 years. That is fairly short with many tenants rotating after a 1 year lease. In other parts of Canada I have seen a 4 year average period for rentals. Here we are in spring; a Royal wedding, an election and a couple more For Sale signs in the lawn.

West Central Edmonton: Cash-flowing Four-Plex In Prince Rupert

Turbo charge your portfolio. Upgraded 1961 built 4-plex with separate entrance to lower units. Beautifully finished 1280 sqft. 3 bedroom up, plus 2 upgraded 840 sqft. 1 bedroom suites down. The upper suites have laminate and fresh paint. There is a common laundry room for up and down suite, 1 per side. The lower units have had windows replaced as well. Lower suites walk out to a private grassy, fenced yard. There is a 2 car detached garage bringing in additional revenue. 10 minute walk to neighborhood park and fast access to Yellowhead Highway, NAIT, Grant MacEwan and bus routes. These pictures show the detail and care that went into building this quality home.

Comes complete with great tenants making this a totally turn-key property for you. Convenient West Central area with easy access to transit and downtown. Excellent neighborhood that demands high resale value and stable rents especially with the city airport' improvement project. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this home in relation to Edmonton's developing core.

Produces $980 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Poised for massive growth. These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: renovation costs, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

Purchase price: $525K Total Investment: $126K. Your Estimated 5 Year Profit $76K. Your pre-tax Total ROI is 60% or 12% per year + $980 Cash Flow in Your Pocket Every Month

“Get into action and realize secure, long-term profits”

Already producing a great RETURN. Visit for the full FEATURE sheet and call 1-888-780-5940 to get started.

-Please remember: All investments carry RISK. Be sure to seek your own independent legal advice-

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Western Premiers Worry Ignatieff-led Coalition Will Threaten Energy Energy Industry

By Darcy Henton and Jason Fekete, Calgary Herald April 21st 2011

EDMONTON — The premiers of Alberta and Saskatchewan teamed up in British Columbia on Wednesday to rail against the prospect of a federal opposition coalition and the threat of energy policies that will hurt the West.

Brad Wall and Ed Stelmach, clad in Vancouver Canucks jerseys along with new B.C. Premier Christy Clark, used a New West partnership meeting to deliver a one-two punch assault and call for a majority government, or at least one formed by the party that wins the most seats on May 2. READ MORE HERE

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Thriving in Good Times And Bad:
Edmonton's Clarke Builders More Than Weathered The Recent 'Correction' With A Crowded Slate Of Local Projects

By Gary Lamphier, Edmonton Journal April 21st 2011

Seasoned business execs who have survived Alberta's volatile economic cycles tend to be a circumspect bunch.
After riding the oil-and-gas rollercoaster for decades, they know how quickly the world can change -for better or for worse.

Back in 2008, when oil prices hit nearly $150 US a barrel, no one expected prices to drop by nearly 80 per cent within months. But that's exactly what happened. READ MORE HERE

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Growing Interest in Energizing Downtown Just What The City Needs

By David Staples, Edmonton Journal. April 8th 2011

It's that rarest of days, a truly good news day for Edmonton's downtown.
This mediocre, unlovely part of the city is much closer today to getting two key facilities that belong downtown, a new $340-million Royal Alberta Museum, twice as big as the old one, and the city's main hockey arena.

It's the goal of city council to create a more vibrant downtown. One sound strategy is to group major cultural institutions close together in the downtown. The thinking is that you bring together the people who visit such amenities, thus creating vibrancy and safety in numbers, as well as opening up opportunities for nearby restaurants and shops to have enough customers to thrive. FOLLOW THIS ARTICLE

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I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.

Your success continues EVERYDAY, let me help you build for tomorrow.

"Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family." -Kofi Annan

Warm Regards,

Todd and Danielle Millar

===SPECIAL NOTICE: NO CASH, BUT GOOD CREDIT? CALL US TODAY TO LEARN HOW YOU CAN OWN INVESTMENT PROPERTY===

P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start homestudy sets at a discount. Get your copy of the Canadian Success Stories book and the 2011 Top Ten Investment Towns of Alberta and Ontario.

"The Alberta government wants aging workers to put off retirement instead of putting golf balls as a way to stave off a looming labour shortage.
Employment and Immigration Minister Thomas Lukaszuk released Wednesday a strategy aimed at encouraging more mature workers to stay on the job."

As we gear up for a busy stretch in the economy, labour shortages loom. This is a good problem to have, much better than not enough jobs. We'll see more folks drift back to Alberta as the economy starts and an influx of new Canadians pouring in that will help the shortages. I already see an incredible variety of plates every day driving around town.
Read More Here!

Dave Collyer sees growth in the oilsands benefiting developing countries through the support of global demand. He touches on the keystones of making the oilsand's growth environmentally balanced and he takes out a lot of the 'emotion' associated with them. Good article.

Calgary mayor highlights the way municipalities have been ignored in the campaign - "Whatever happens in this federal election, voters in cities like Edmonton aren't likely to come out as winners. No major party is consistently standing up for the interests of city voters. They all need to do better.

Calgary's progressive new mayor Naheed Nenshi recently studied the platforms of the three major parties and found little in them for the 80 per cent of us who reside in the cities of this country."

Take the political posts with a grain of salt... I think the basic idea here is in the title and worth repeating 'Commit To Big Cities'. We must remain active shaping the direction of our federal, provincial and municipal riding so that we get leadership in place that will help our city grow and expand thoughtfully. Edmonton has so much opportunity and a plan to see LRT expansion coupled with revitalizing the city core are basics. How we spend, reinvest and distribute provincial money to create art and community building activities is also key.

Last night I had the pleasure of attending a small gathering at the U.O.A Listner Hall to hear Dr. DeMartini speak. I have read 2 of Dr. DeMartini's books and found them both to be immensely insightful, practical and potent. He bridges many concepts from business to philosophy.
There were less than 100 people in attendance and I was able to meet Dr. D and talk to him for a few minutes.

My uncle Bill is South African and lives in the Karoo desert. One of his dreams was to build the pension he has out there so that guests can come and see the great expanse of this off the beaten path place. One year Danielle and I spent Christmas in Kloof, S.A. with my family there. It was then that my uncle gave me the Dr. DeMartini book 'How to Make One Hell Of A Profit And Still Get To Heaven'. It became my reading companion throughout the trip from Kloof to Paternoster and circling the Cape of Good Hope. I remember being on Robben Island where Nelson Mandela spent 18 years imprisoned and reflecting upon Dr. D's insights.

Last night's talk was about the 'Hierarchy of Values' and how your highest values will be your most organized and position you with your number one goals. These goals might be family, relationship, money, health, business or social. You may not even beware of what those values are if you're not careful - that is where many folks spend there time in delusion.

On the lower scale of Hierarchy lives your neglected values, often in chaos. Dr. DeMartini breaks down what drives you to have your current values, identifies them and shows you ways to replace or hone them to meet your highest intrinsic value; the one thing that serves others and makes you happy.

If you like what you read here and want to see Dr.. DeMartini in action, he will be in Calgary, Alberta over the weekend. Check him out - you will be changed.

I imagine the transition from fighting in a war to civilian life must be extremely difficult. In many cases battle haunts solders throughout their life. If you have been wounded abroad it adds the pressure of rehabilitation and the reworking of family dynamics. Edmontonians have gotten together to raise money and create this unique 'home' You can also donate here.

"Valour Place will provide “hope away from home” for injured soldiers, veterans and their families when in Edmonton, Alberta for medical treatment and rehabilitation.

The first facility of its kind in Canada, Valour Place will enable Canadian military families to live together in a supportive environment during a difficult time."Read more here

Alberta Economic Optimism is the Highest in Nation -"Last year Alberta was one of two provinces that saw a decline in employment so you were late in this employment recovery story but that all changed in January as you had the best job numbers in a month since May of 06," RBC Senior Vice President and Chief Economist Craig Wright

I’ve heard leading economists Todd Hirsch and Mary McGregor speak this year. The news for Alberta looks to be one of stable and long growth. 2013 to 2019 really show the economy expanding and projects being built. From 2020 to 2030 many of the larger projects currently booked will come to completion. From 2030 onwards the building growth simmers down, but maintenance and operation continue steadily.

Premier Shells Alberta Economy - "Last week, Stelmach ambushed the oil industry by rolling out proposed regulations to halt oilsands production on two million hectares - including land that had already been leased to two dozen different oil and mining companies.

Those companies had followed all the rules. They went through the necessary hearings, complied with all the regulations, paid their fees and were approved.

That's a contract. And based on that contract, those companies spent money and hired workers."

Stelmach isn’t leaving soon enough… Regardless if you are pro, anti or in the middle when it comes to Alberta’s Oilsands – what you DON’T do is rip up a contract. Then again, some would say you’d stay your term as Premier too, without bailing out in the middle, but in this case, the sooner an unstable Premier such as Stelmach leaves, the better.

Edmonton Stories - A great site to get insight into living, visiting and working in Edmonton. There are some pretty interesting stories.

You'll notice that these articles continue to resurface as the mood and economy change. You'll see pro-oilsands and anti-oilsands as the political climate swings back and forth from boom to doom. Quite often the core information doesn't change; just the spin on it. At any rate this article outlines the oilsands and the use of natural gas in extracting it - there is some good general info here.

We did just see a rate hike about 2 days ago. Luckily I've been able to lock in rates with my bank for my next purchase. Peter Kinch thinks October for the next one. I think buy while you can because prices will rise and interest rates make a huge difference in your cashflow. Lock in if rates increasing worries you and if it doesn't ride the variable over the long term it's proven to cost you less.

It's Millar Time! - Canadian Real Estate Magazine features Todd and Danielle Millar in their Annual Special Edition. Get insight into how we got started, our lessons passed on to you and Todd Millar's Top 5 hints so you get an expert's knowledge boiled down into useful information. On Sale at most retailers near you!

"After being particularly affected by the recession and late to the recovery, the Alberta economy is once again hitting its stride with “robust crude oil prices” and an increase in drilling activity, says a report by TD Economics." Calgary Herald

I think we are. It is a long, dark walk out of the recession though. Will the next 'boom times' be sweet enough to erase and make us forget the sourness of the down-times? Probably not, and that is a good thing.

The growth ahead seems to be much more steady than the big spikes of 2006 and 2007. I also think this growth period will stretch out much further too - leading into a bigger, more diversified province.

According to the article from 'Kick Ass Canadians' Don does. Don has helped me align specific elements of my business and has offered invaluable solutions to a few particularly complex real estate questions. Believe me, stuff gets complex when you work with partners outside of Canada, never mind the regular hurdles an investor faces daily. After time you begin to roll with things or get out of the game.

The best investors (the most profitable ones at least) invest without emotion - that is true. But, all the while tenants, employees, partners, husbands, wives, children and the world - are running around emotionally charged. It can get overwhelming at times.

One of the many likable traits Don has is his bluntness (well, I like that about him). He calls it like he sees it. If you like unbridled doses of truth, Don is your guy.

Now, Don may not look like a massive He-man, but he isn't a sissy either. He is a verbal ninja with words like razor-sharp throw stars, he defends the good. I would go as far to say if Don Campbell and Chuck Norris were in a fight.... Never mind.

Yes, Don is a kick ass Canadian.

I'm so behind blogging it's taken me two weeks to write this. Todd and I had an incredible weekend at the I Can Do It conference in Vancouver.

We had our minds blown and opened by Dr. Wayne Dyer, Caroline Myss, Louise Hays and other outstanding Hay House speakers. The highlight Dr. Dyer shook Todd's hand and gave me a book!

It was well worth it and we came back determined to live our biggest self!

There's a new 6 lane freeway in talks for South Edmonton. I've taken the Anthony Henday and I'm always surprised at how quickly I can circumnavigate the city. Well this proposed route will take things to a whole new level. Anyway the most apparent is Edmonton is really thinking ahead for population growth, increased traffic and commerce.

Strong oil, wheat prices buoy Alberta's economy - "A new survey suggests happy days are here again for Alberta's economy with crude oil and grains poised to be the hottest commodities in the coming year.

According to the report by Barclays Capital, investors are increasingly bullish on both oil and grain, with prices for both viewed as likely to continue to rise amid geopolitical uncertainty and weather challenges around the world.

"The fact of it is agriculture is a good news story today," said Richard Phillips, the head of the Grain Growers of Canada"

Good signs in agriculture are good signs for Alberta. Remember Don Campbell saying "Food, Fuel and Fertilizer will drive the western region"? You've seen potash highs and lows in Saskatchewan, oil prices regain to above $100 a barrel and now food - agriculture begin its accent. The job new job numbers are terrific too.

Totem builds on it's Canadian roots with sixth Edmonton store - "Before the new Edmonton Ellerslie Totem opened its doors for the first time Thursday, company officials and Royal Canadian Legion members raised a big Canadian flag outside the building supplies store.

It was a not-so-subtle reminder to customers that Totem Building Supplies and its corporate owner, Rona Inc., boast Canadian roots — unlike U.S. imports The Home Depot and the under-construction Lowe’s a few blocks north at South Edmonton Common."

I've posted about a few other stores opening up in the Edmonton area. Some come from the U.S.A. or even further abroad from Europe or Asia. But the one constant to note here is that Edmonton is again on the map for growth. Predictably more stable and spread out growth, but growth nonetheless.

TD forecasts banner year for Alberta in 2010 - "Alberta is expected to lead the country in Real GDP growth in 2012 after a strong 2011.

A report by TD Economics, released Wednesday, projects gross domestic product (GDP) growth of 3.2 per cent in Alberta in 2012, but only 3.2 per cent nationally.

For this year, TD Economics predicts 4.2-per-cent economic growth in Alberta, behind Newfoundland and Labrador at 4.7 per cent and Saskatchewan at 4.3 per cent, but ahead of the three-per-cent national forecast."

Oil will probably stay around the high $90's and step above the $100 mark until the political environment stabilizes in the middle east. Profitable oil (for both the U.S. buying and Canada exporting) is around $85 a barrel. Temporarily high priced oil ads gains, but doesn't help in the long term as it is too expensive for importers especially if the CDN dollar is higher. Hovering around the mid $90s for a few months creates a decent cushion for Alberta as long as we can get down a few dollars to the $80s.

Economic spring appears to have bloomed for Alberta - "Over the past six months, more than one-third of the new jobs created in Canada have been in Alberta, which is home to just over 10% of the country's population. This clearly indicates the Wild Rose province is starting to bloom once more following an extended economic winter. Across major industries, manufacturing has, by far accounted for most (+41.7%) of the new jobs added followed by health services (+25.5%), professional and business services (+18%), natural resources (+10.9%) and agriculture (+8.2%). Reflecting this strong pattern of employment growth, Alberta's unemployment rate fell to 5.7% in February, the second lowest in the country and well under the national average of 7.8%."

Tuesday morning CBC Radio announced that Flint Energy was hiring 1000 immediate positions for jobs with skilled and semi-skilled labour. You show up, you get job. Some of the jobs are in Red Deer and others in Sherwood park, just outside of Edmonton in the modular building site. I heard Mary MacGregor, the chief economist of Alberta speak last week. Mrs. MacGregor outlined the growth indicators showing 2013-2019 to have exceptional growth. Being an economist, these numbers were tempered that there are always unexpected events that can damper the best of economies (remember back to 2008?). Needless to say, the real job numbers are solid.

I spent more than a decade living in Japan, very close to the area where the Tsunami hit. This mid-month newsletter will be a brief one and my message simple. Turn off your T.V. and news radio. Donate some money, time or energy to be in positive action in helping the people of Japan.   

It does no one any good to be caught up watching the news and worrying about Japan; simply send a positive vibe and any action you can. The collective consciousness of disaster won't help. We need to be positive and move towards helping and healing.  

I have added a link to charities below that you can donate to followed by the monthly Edmonton updates.

Where Canadians Can Donate For Japan Earthquake,

Pacific Tsunami Aid   Passengers sleep at a lobby as they wait for their transportation at Haneda Airport in Tokyo, March 12, 2011. A devastating tsunami triggered by the biggest earthquake on record in Japan killed at least 1,000 people along the northeastern coast on Friday after a wall of water swept away everything in its path. GO HERE TO DONATE

Take care, be well and help our friends and family abroad.
Todd and Danielle Millar

"Sales have been pretty slow in Edmonton housing market since last spring and although the market wasn’t a hotbed of activity in February, it is showing some life." Read More

For my 2 cents worth.... We will continue to see-saw for the better part of 2011. In Alberta, economically we are very strong, emotionally we are fragile. Once we get through the better part of 2011 and really see the strength of the economy continue momentum, Albertans will become emotionally invested and beginning to buy, spend and invest. 2012 should reflect that and continue upwards barring any major world crisis.

"KMS Tools and Equipment Ltd. is fixing a hole in Edmonton for car buffs, contractors and hardcore home handymen it says was left when the House of Tools chain went under.

The family-owned, Coquitlam, B.C.-based company — whose Edmonton presence has been limited until now to a small distribution outlet — will hold the grand opening of its first Edmonton store next week." Read More

I read this and think - $6,750.00. Why $6,750.00? That is the average rent paid for a 2.5 year garage tenancy, very affordable compared to any other secure storage of the same size. I have been providing safe and affordable service for years to folks that want to restore collector cars.

Many car buffs restore their old beauties over the winter and take them out in the warmer months. In-turn I welcome KMS Tools to town and encourage them to deliver awesome service to the many car buffs of our city.

Alberta Emerging As Safe Haven Among Growing Economic Volatility

"It will morph into something that will not be very kind to financial assets, but may be kind to Alberta. One solution is to take a shot of Novocain, invest in Alberta, and I have a suspicion you will come out ahead. A second approach is to hold real assets or proxies for real assets, such as TIPS (Treasury Inflation-Protected Securities) and inflation-linked bonds. A third way to approach things is to play by the rules as they're written, which demands being cautious, but I don't mean buying bonds. I mean it is incumbent on all of us to maximize complexity in your portfolio, which is the responsiveness of your portfolio to macro-economic outcomes." Vinay Pande, chief investment adviser for global markets research with German-based Deutsche Bank

I think you can spare the Novocain if you are investing directly into real assets (like owning a revenue property) that you control. once again the Provincial, National and Global economies are looking at Alberta as a safe haven. The only risk you have investing in Edmonton is looking to make too fast a buck and not stay the course. When you are prudent and invest into a cash-flowing asset, in an expanding market - you will do well.

Final Anthony Henday Drive Gets Green Light

The massive project — named Anthony Henday Drive Northeast — will be Alberta’s single largest highway construction project to date with 47 bridges, eight interchanges and 27 kilometres of six- and eight-lane divided road that will connect Whitemud Drive East to the Manning Freeway. It’s expected to ease the traffic crush on Yellowhead Trail and, to some degree, the Whitemud.

“I really do believe another period of rapid growth is coming, and it’s coming quicker than you think,” Stelmach said of the province’s continued investment in infrastructure. “It’s no secret that Alberta wasn’t ready for the last one, but we will be ready for the next one. We are moving forward as a province. The world is changing, and Alberta is changing and we’re meeting the demands of the new economic order.”

I second that Mr. Premier, we are on the cusp of another wave of growth. A nice 3-5-7 year cycle I hope. The Anthony Henday has already proven to link up areas of the South East, particularly Millwoods and Ellerslie. And the South West areas have grown, like Terrwilligar, Rutherford and the Hamptons into nice, beautiful communities. Along with the great connectivity, real estate prices have followed and birthed some really scenic areas with upscale shopping and eateries that is still affordable to live. The NE will also experience a price jump in homes and a jump in value by being better connected.

Edmonton could earn more than $6.5 million a year in property taxes, which would help pay off the debt it would incur if it covered one-third of the cost of a downtown arena, city administrators told council Wednesday.

Mayor Stephen Mandel said councillors need to make up their minds to ink or tear up the deal within a month. "It's enough already. I think we're going around too many circles and let's make a decision."

Anthony Hendlay construction (5 year project), Upgrader in Fort Saskatchewan (3-5 year project), Proposed downtown bridge (3 yrs?), Various LRTs and of course don't forget the possibility of a new arena. Even during the recession Edmonton continued with infrastructure but has certainly stepped up the pace now. I think a new arena will vitalize the downtown area, but isn't necessary. Built with private money... I like that idea too.

Here on the South Side there is another interesting project in the works and that is transforming the old Molson brewery into character town-homes with a mix of commercial business and restaurant space. Great idea. I can't wait to see that. Lots of building = strong economy.