Edmonton Real Estate Investor

My apologies to Gretchen and her beautiful 'Popping Poppies' painting that took me soooo long to finally hang. But, man was it worth the wait. As we're still in the middle of renos we don't have much other than Gretchen's piece, Chris Hudson's fantastic B&W print and a few smattering of handmade Vietnamese object d' art out.

I attempted to frame a very strong and serious South African picture I had, but ended up breaking the frame. It'll remain in the pile of 'stuff I really want to have on my walls' for a while longer. Anyways, thanks for the wonderful painting. I added a link to Gretchen's site so that you can check out her other works for yourself.

Those orchids look like they're in a wind tunnel!

3.7% hike forecast for this year

"CALGARY — Alberta is positioned as one of Canada’s provincial leaders in growth, according to the latest RBC Economics Provincial Outlook report released Monday.
The provincial economy is set to grow at a rate of 3.7 per cent in 2011 and 3.9 per cent in 2012, said RBC. Both years Alberta will be second overall in the country behind nation-leading Saskatchewan’s growth rates of 4.3 per cent this year and 4.1 per cent next year. "

This has had a positive impact on employment, as more than 77,000 jobs were added to the Alberta economy in the first eight months of this year, which was the strongest gain ever recorded over this period in the province.” That's like adding two Moose Jaw Saskatchewan cities to the population at the beginning of the year! One of the major headaches the oil patch is struggling with now is employment - not having enough people. With varied hiring tactics, the energy sector hopes to diminish the approaching labour crunch - let's hope they succeed."

Read More Here

"Welcome to September, traditionally the worst month of the year on the stock market calendar.

Yeah, I know. I feel your pain. We've already suffered enough nastiness since equity markets peaked in the spring.

The major indexes have been slowly grinding their way lower ever since, despite some short-lived rallies along the way." Jump

Traditionally we are in for a tough stock ride ahead. The bright side as I see it is after major downturns and historically rough trading cycles the markets tend to be blessed with positive up cycles. Let's get through the bad to get to the good.

"It's no mystery why the Alberta Progressive Conservative Party has remained in power for 40 years, even though The Journal's reporters and experts, celebrating the anniversary, do their best to make the obvious mysterious." Comment from Journal

I don't know why I'm surprised by the publication of these silly, narrow, generalizing rants - but I am. I suppose I mirror rants like these with my own...

People in politics and politics in general create, manage and grow an economy (all though many also leech and destroy one). It is a basic tenet to manage and grow a community; with infrastructure, business, economy as well as spirit. What kind of person patronizingly 'unveils the big mystery' about the big bad conservatives coming to rule in the land of plenty? Someone who remains ignorant of the system we use to ELECT our government I assume. Read More Here

You may have read my other posts here and here about our Cornerstone funded basement suite. We've now come to the point where our permit has been approved by the city and we can formally apply to get funding.

The permit took about 6 weeks and we were lucky to get it so quickly. The time-lines can actually range to 8 weeks. One crucial thing about waiting for a permit is that you can't do any renos past the framing. No dry-walling can go up so it's a veritable standstill. However if you are doing any electrical work (like the hard wired fire alarms which are mandatory) or plumbing now is the time. You can get all that done and have those permits issued well within the 6 weeks it takes to get the building permit.

We are all dry-walled and partially "mudded" and waiting to hit full speed. Turning the still rough outline of a suite to the livable modern space we've envisioned.

I've actually got my ads up and have pre-approved some tenants. When I show the space I tell them to bring their imaginations!

We've applied to the program with all our documents and hope to hear back in 10 days with the final approval. The final funding doesn't come till after the suite is finished and the housing branch does a final inspection.

Government of Canada develops innovative cancer treatment

EDMONTON, ALBERTA--(Marketwire - Aug. 17, 2011) - "The Government of Canada is supporting the development of a new cancer radiation therapy device that could lead to more precise and life-saving treatment methods.

A federal investment of $2.5 million will support the University of Alberta, Alberta Health Services' Cross Cancer Institute and industry to develop, test and commercialize a new cancer radiation therapy technology called Magnetic Resonance Real-time Guided Radiation Therapy (MRrtgRT). In addition to federal funding, the Province of Alberta is also investing $250,000 towards the initiative, while the Alberta Cancer Foundation is contributing $2.15 million. Alberta Health Services and its industry partners, ASG Superconductors and Paramed, are contributing $1.1 million."

You might wonder why I included this article in an investment blog. I heard an interview on CBC Radio about this technology and was impressed, especially with the tenacity that UOA explores cancer research, treatment and cure. I'm also interested in how the UOA/government intends to bring this technology to market. When I talk about nanotechnology and medical leadership in Alberta, this is the tangible fruit that comes from it.

Residential property sales in Canada hold steady but property prices fall slightly

Thursday, 18 August 2011

"Buyer confidence, favorable mortgage rates and a healthy economy are resulting in higher home sales across Canada, particularly in Newfoundland, Edmonton, Labrador and Montreal. Even so, national average prices slipped for the month of July, although analysts believe this may be due to the retreat of home sales in more expensive neighborhoods in Vancouver, where sales were down. The sales in these more expensive areas act to skew national averages and result in some finding them unreliable, but on the whole observers believe the market will continue showing healthy numbers in the housing market.

Sales of residential properties in Canada were stable in July compared with the previous month with just over half of local markets posting gains, according to the latest statistics from The Canadian Real Estate Association.
Major markets that saw gains compared to June include Edmonton, Montreal, Newfoundland and Labrador. Activity also held steady in Toronto, while Vancouver recorded a small decline.

‘The continued stability in national sales activity shows that homebuyers remain confident about the soundness of investing in a home. Mortgage interest rates are low and keeping home affordability within reach, making it an excellent time for buyers to take advantage of very favourable financing,’ said CREA president Gary Morse"

Lower prices and NO sales is bad news. Higher demand, lower prices are fine as we wait for the economy to strengthen, rates to increase and the pendulum to swing back towards a seller's market - which will take a few years if the (global and provincial) economies can stay on track.

This is roughly how expensive (or affordable depending on your income) a Vancouver bungalow is... Remember, there's only one Vancouver though!

"The Royal Bank of Canada said yesterday it would take 92 per cent of the median household’s pretax income to own a bungalow in the city at current prices – the highest reading yet in its quarterly national survey on affordability.

The bank said most Canadian cities offered “reasonably affordable” housing options in the second quarter compared to the first. Nationally, a condo required 29.2 per cent of pretax household income (a 0.8 per cent increase), a bungalow 43.3 per cent (1.7 per cent) and a detached home 49.3 per cent (1.8 per cent).

RBC said it would take an income of $157,800 to buy a Vancouver bungalow in the second quarter, and that the average house price in the city was $822,300 – 19 per cent higher than a year ago."

Jack Layton's Letter to Canadians

I posted Jack Layton's letter today to celebrate a passionate man's life; not to share his politics. He always spoke with so much genuine enthusiasm its hard not to like his personality and respect his conviction. Although he left too soon, he left a very positive legacy that won't be forgotten anytime soon.

Dear Friends,

Tens of thousands of Canadians have written to me in recent weeks to wish me well. I want to thank each and every one of you for your thoughtful, inspiring and often beautiful notes, cards and gifts. Your spirit and love have lit up my home, my spirit and my determination. Read More

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
www.glennsimoninc.com email: info@glennsimoninc.com

August 15th., 2011
Volume 10, Issue 10

Dear Friends and Partners,

If you're watching your stocks go further and further down... you may dub this the 'Summer of Discontent'. Unless you are very good at shorting stocks, have bars of gold and silver or cash-flowing real estate, you are feeling it. But, that is nothing new. I think since returning to Canada I am much more aware of the nonstop bombardment of negative media. Does this help me be a better investor? Only when I turn it off!

Almost all of the news you need to know your friends or family will tell you. When you're studying and researching prior to making an investment, short term events (bad news) will play a role, especially if the 'problem' can sway the market and be solved in the near future. For the next three weeks I am going to read the smiles on my family's faces and listen to the laughter generated from having time away and in the outdoors. Enjoy your summer!

-Glenn Simon Inc. will be closed for summer holiday between August 24th and September 12th. Newsletters will resume September 15th.-

West Central Edmonton: Cashflowing Three-Plex In Westmount

Turbo charge your portfolio. Upgraded 1948 built 3-plex with separate entrance to all units. 3 stylishly finished suites; One 2 bedroom unit on main, plus one upgraded 650 sqft. 2 bedroom suites down and a very cool 2 bedroom suite on the top floor. The upper suites have laminate, fresh paint and original hardwood. There is a common laundry room in basement. The lower unit has new paint, brand new tub and toilet as well. Lower suite walks out to a private grassy, fenced yard. There is a 2 car detached garage with brand new door and opener bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to Yellowhead Highway and on the 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 Central area with easy access to transit and downtown. Excellent established neighborhood featuring many heritage homes; solid value and stable rents. 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 $440 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $384K Total Investment: $115K. Your Estimated 5 Year Profit $56K. Your pre-tax Total ROI is 49% or 10% per year + $440 Cash Flow in Your Pocket Every Month

Poised for massive growth. These 3 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!

===============
Calgary Leading Charge In Carbon Capture

Local firm involved in building Alberta's first carbon capture pipeline

By Chris Nelson, Calgary Herald. August 14th 2011

As much of North America baked under record-setting temperatures this summer, few people would have considered carbon dioxide a continental resource.

Mention CO2 to the majority of Canadians and the words "global warming" spring readily to mind.

Susan Cole's mind works differently. FOLLOW THIS ARTICLE

===============
No New Taxes Or Royalties, Most Tory Leadership Hopefuls Say

By Jason Fekete, Calgary Herald. August 13th, 2011

Most of the six candidates vying to replace Ed Stelmach as Tory leader and premier are pledging no new taxes and vow not to increase energy royalties from oil and gas development on Crown land. As the race heats up to the first Tory leadership vote on Sept. 17, would-be premiers are increasingly rolling out their visions for Alberta and how they would deal with a projected $3.4-billion deficit and rapidly evaporating rainy day savings account. READ MORE HERE

===============

Low Interest Rates Good For The Economy; Not So Much For Consumer Debt

Huffington Post, Canada. August 10th, 2011

With uncertainty once again dogging the world economy, it now seems unlikely that the run of cheap credit that has made it easier for consumers to spend big in the wake of the downturn will end anytime soon.

After the Dow Jones Industrial plummeted 634 points on Monday, its sharpest one-day decline since the dark days of late 2008, the United States Federal Reserve said in a statement Tuesday that it expects to hold “extremely low” interest rates, the key factor in determining borrowing costs, until at least mid-2013. FOLLOW THIS STORY

===============

More Rental Properties Being Built In Edmonton: CMHC

INews, August 9th 2011

Apartment construction is the bright spot this month on the Canada Housing Corporation housing starts report.

Rain has been making construction difficult, and dragging down numbers of single-family starts in Edmonton. But as CMHC's Richard Goatcher tells us, multiple-unit starts more than make up for it.

"Apartments were pretty much three times the number that we saw in July of last year," he says, "so that helped to lift the total numbers up by nine percent year-over-year."

But what if the economy takes a turn for the worse? GRAB THIS STORY

===============
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.

"The quieter you become, the more you can hear." -Baba Ram Das

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 home study sets at a discount. Get your copy of the Canadian Success Stories book and the 2011 Top Ten Investment Towns of Alberta and Ontario.

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
www.glennsimoninc.com email: info@glennsimoninc.com

August 1st., 2011
Volume 10, Issue 9

Dear Friends and Partners,

My buddy Greg texted me last Wednesday to see if I was in town so that we could meet for dinner. After a few messages back and forth I picked up the phone to continue the conversation and clarify our plans; so much can get missed in a text. I like meeting up with Greg whenever and wherever I can, he is always on the go. Earlier this year Greg took his design company public and has been the center of a media storm promoting his corporation and vision - He's a charismatic, busy and eligible bachelor too.

We met up at a local kid friendly cafe so that my wife and son could join in the conversation, Greg and Danielle have been friends for years, too. We listened to Greg's stories of how rival companies jetted him to NYC and London in hopes of courting a business deal or buyout. Greg also spent 1 month traveling around Buenos Aires, learning the 'true-tango'. We sipped our organic juices and then started hitting the espressos as the Latin American stories heated up.

It was a great visit and man, did we have a case of FOMO on the way home.... I know that my friend has a bit of FOMO too when he sees our family life, especially as he's stepping into his mid-40's. To be in absolute serenity may be to live in the now; be happily in the moment. But, it isn't always that way when you are constantly striving to be, do or have something more or better; be it spiritual or physical. Essentially FOMO is the modern version of keeping up with the Joneses, it is simply augmented, or even agitated, by technology.

You may not suffer from the Fear Of Missing Out, but like anyone at some point you may find yourself pining for a week (or a year) away on the desert island of your dreams. Every summer I like to take time off and focus away from my business and into the outdoors and family activities. I aim to incorporate that into everyday I have, but often don't. Enjoy YOUR summer and remember to take time off for you.

===============

West Central Edmonton: Cashflowing Three-Plex In Westmount

Turbo charge your portfolio. Upgraded 1948 built 3-plex with separate entrance to all units. 3 stylishly finished suites; One 2 bedroom unit on main, plus one upgraded 650 sqft. 2 bedroom suites down and a very cool 2 bedroom suite on the top floor. The upper suites have laminate, fresh paint and original hardwood. There is a common laundry room in basement. The lower unit has new paint, brand new tub and toilet as well. Lower suite walks out to a private grassy, fenced yard. There is a 2 car detached garage with brand new door and opener bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to Yellowhead Highway and on the 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 Central area with easy access to transit and downtown. Excellent established neighborhood featuring many heritage homes; solid value and stable rents. 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 $440 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $384K Total Investment: $115K. Your Estimated 5 Year Profit $56K. Your pre-tax Total ROI is 49% or 10% per year + $440 Cash Flow in Your Pocket Every Month

Poised for massive growth. These 3 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!

===============
Edmonton To Get 440 Affordable Housing Units

By Keith Gerian, Edmonton Journal. July 21st 2011

EDMONTON - Five Edmonton-area affordable housing projects moved closer to groundbreaking Thursday when the federal and provincial governments announced a joint $43-million investment toward construction costs.

The projects in Edmonton, Spruce Grove and Beaumont are expected to create 441 new apartment units offering rents below market value to low-income residents. FOLLOW THIS ARTICLE

===============
Canadian Oil; Ethical, and Sensible

By Jullien Russell Brunet, Glob and Mail. Tuesday July 19th, 2011

While the Canadian government worries about the country’s dependence on oil exports to the U.S., the security of future sales there and developing a national energy strategy, the Fraser Institute’s Mark Milke offers Americans a stark choice: It's us, or someone much more unsavoury. In short, a study released Tuesday by the Vancouver-based think tank argues that “attempts to restrict U.S. imports of Canadian oil ignore the reality of U.S. dependence on foreign oil and could force America to buy oil from repressive governments.”READ MORE HERE

===============

Economy Tops Agenda For Premiers' Meeting

By Jason Fekete, Calgary Herald. July 19th, 2011

EDMONTON - Ed Stelmach heads to Vancouver this week for his final Council of the Federation conference as Alberta premier, where he’ll join provincial and territorial leaders trumpeting cornerstones of his time in office: capitalizing on Canadian resources and tapping Asian markets. The economy in its many facets — jobs, investment and trade — is a top agenda item at the annual summer meeting of Canada’s 13 premiers, which runs Wednesday through Friday. GRAB THIS STORY

===============
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.

"Even if you are on the right track, you'll get run over if you just sit there." -Will Rogers

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 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.

"In this interview on the Fanny Kiefer Show, Peter Kinch and Don Campbell bust some common 'Myths' about Vancouver real estate prices, interest rates and real estate investing in general."
What's happening with rates?
Should I float or lock in?
Can I still buy affordable housing in Vancouver?

Here's the interview on last week's Studio 4 with Kinch and Campbell - dispelling myths and trying to make sense of this market... After the Jump!

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
www.glennsimoninc.com email: info@glennsimoninc.com

July 15th., 2011
Volume 10, Issue 8

Dear Friends and Partners,

Trust that you are keeping busy and taking advantage of the summer. We're knee-deep in drywall, asbestos and concrete for our Cornerstone suite renovation. You can follow the progress on Edmonton Investor blog spot.

CBC Radio Active had a snapshot interview that centered around the very good advice of not over-"renoing". One of the most common traps that home owners get into when renovating is the add on. We're much more likely to throw in all our wish list items during a renovation project and end up way over budget. It seems easier to get the work done on your bathroom when your kitchen is being ripped out. Logical or not, don't do it. Stick to your budget and factor in additional renovations for a later date.

Often during renovations you may uncover some fault that needs remedy and it is beneficial to have a cushion in your budget for the unexpected. For example, while tearing down the walls to build a kitchen in the basement suite we found a hairline crack in the parging. Not a big deal except that it was damp at the base with a slow seep of water coming in. The parging had been done about 20 years earlier and covered up a much larger crack in the concrete wall. Better to discover this now than after you have spent $35K building the basement suite.

I ended up repairing this crack myself for about $60 in materials and 4 hours labour. You can spend anywhere from $400-$1000 for an internal crack to be repaired and much more if you attack the job from on the outside (I did a combination of both). Unexpected jobs come up and can be costly; prepare as best you can in your budget. Resist the urge to over renovate, instead, work in stages.

West Central Edmonton: Cashflowing Six-Plex In Queen Mary Park

Turbo charge your portfolio. Upgraded 1978 built 6-plex with separate entrance to all units. 4 functionally finished 710 sqft. 1 bedrooms on main, plus 2 upgraded 650 sqft. 1 bedroom suites up. The upper suites have laminate and fresh paint. There is a common laundry room in basement. The lower units have new paint and some fixtures as well. Lower suites walk out to a private grassy, fenced yard. There is a 2 car detached garage bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to Yellowhead Highway and on the 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 Central area with easy access to transit and downtown. Excellent transitional neighborhood with solid value and stable rents. 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 $676 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $525K Total Investment: $126K. Your Estimated 5 Year Profit $76K.Your pre-tax Total ROI is 60% or 12% per year + $676 Cash Flow in Your Pocket Every Month

Poised for massive growth. These 6 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!

===============

Job Gains In Alberta Top Numbers For Entire U.S.

Province Added 22,000 Jobs In June

By Kim Guttormson, Calgary Herald. July 9th 2011

Alberta's brisk employment growth continued in June as the province added 22,000 jobs, more than were created in the entire United States.
But with more people re-entering the job hunt and moving here in search of work, Alberta's unemployment rate actually climbed slightly, to 5.6 per cent.

"They're really strong," ATB Financial economist Dan Sumner said of the Statistics Canada job numbers released Friday. "It's a little bit surprising how strong."

The variety of jobs across a number of sectors also speaks to the health of the Alberta economy, he pointed out. FOLLOW THIS ARTICLE

===============
Husky Bets Big On Northern Canada Oil Drilling Rights

TEDx A Showcase of Edmonton Innovators

By Jeffrey Jones, Reuters July 5th 2011

CALGARY, Alberta, July 5 (Reuters) - Husky Energy Inc (HSE.TO) has opened its wallet to grab the lion's share of C$534 million ($556 million) of winning bids for oil-drilling rights in the central Mackenzie Valley area of Canada's far north, sparking speculation it may be chasing a rich prospect.

In the 2011 government auction of drilling rights in northern lands, Husky bid C$376 million for two parcels near Norman Wells in the Northwest Territories, vastly outspending some of the world's largest oil majors, the government announced on Monday. READ MORE HERE

===============

Energy Drives Alberta To #1 Growth

By Mario Toneguzzi, Calgary Herald July 7th, 2011

An improving energy sector will fuel economic growth in Alberta, which Scotia Economics predicts will be the strongest in the country this year and next.

In a report released Wednesday, the bank said real GDP growth in the province will be 4.2 per cent this year, the highest in the nation, followed by 3.3 per cent growth in 2012, which will tie Saskatchewan at No. 1.

Scotia Economics is forecasting Canadian economic growth of 2.7 per cent this year and 2.5 per cent in 2012. GRAB THIS STORY

===============

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.

"The more chance there is of stubbing your toe, the more chance you have of stepping into success." -Author Unknown

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.

I'm continuing my Cornerstone Project basement suite development series. Please read the first post here.
In order to get funding for the Cornerstone Project you have to provide a series of documents. Most are relatively easy to get together but timing is crucial especially with the permit.

What you need:
1. Two itemized estimates of the total construction cost of the proposed suite - easy enough it would seem. If you have contractors you trust and use regularly have them come by and took a look. We actually had 8 contractors come through to get 2 quotes that ranged by about $15k. Make sure you get a lot of estimates so you have a good idea of what's out there and what is inline for costs.

2. Copy of Development Permit and Building Permit/ Electrical Permit - This one takes A LONG time. Think 4 to 8 weeks. If you think you'll get the suite up and be rented withing 6 weeks it's ambitious. The permit requires a lot of documents of it's own so prepare well, reserve a lot of time and plan for 2-month turnover before you can even start renos.

A) Development Permit and Building Permit for the City of Edmonton requirements:
i. Pictures from all angles of the property
ii. The Real Property Report - it must show 3 parking spots NOT including street parking (I know)
iii. A drawing of the space to be renovated including

-size and uses of all rooms
-locations of doorways
-floor to ceiling height
-direction the doors open
-window size and locations
-location of smoke alarms and carbon monoxide detectors in main suite, basement suite, furnace room and top of exit stairwell
-plumbing and electrical changes
-construction materials

There must also be a true to scale drawing of the main floor above the suite. Our contractor did a basic drawing and I finished off all the details. I'm pretty artistically challenged and my walls didn't line up but as long as you "do your best" they will accept it ~ within reason of course.

The permit cost a total of $724.88 $260 of that is basic fee for Secondary Suite built within and Existing House and the rest depends on the cost of your renos.

Electrical Permit - generally the contractor pulls this.

3. Copy of land title or a valid offer to purchase to confirm the ownership of the property - an accepted offer is great or if you've owned the property for a while get title from the Registry office.

4. Copy of a current property tax notice/assessment - we just squeaked by on this as the vendors had not paid any taxes for 2011. Taxes are due by June 30 of the tax year and our closing date was June 24th. We went down to city hall and paid the arrears of course funds were credited to us in the sale. Make sure your taxes are up to date.

5. Confirmation of project financing - simply a bank statement showing you have the funds.

If you take away anything from this it's give yourself enough time to get the permit.

Alberta Oilsands Real Estate Investment News ,Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, AB Canada.
Tel 1-888-780-5940 Fax 1-888-276-4517
http://www.glennsimoninc.com/ email: info@glennsimoninc.com

July 1st, 2011 Volume 10 Issue 7

Dear Friends and Partners,

This newsletter is our compact holiday version. Please look for the full length issue on July 15, 2011.

It's a beatiful day in Edmonton. The sky is blue and sprawling as only the prairie sky can be. For the last ten years we celebrated Canada Day in a small park in Tokyo generally during rainy season. Eating hotdogs and cake with a smattering of ex-pats from across our country sharing funny stories of being the stranger in a strange land while rain poured down. Sounds dire but we never missed a single celebration.

Driving around Edmonton seeing the flags, all the celebrations and fireworks is a great reminder of why we got together every year with our fellow ex-pats. Being Canadian was our common denominator, although we spanned from British Columbia to P.E.I we were joined by the red maple leafs sewn on our packs or sometimes tattooed on limbs.

We raise a glass to all the ex-pats joined together wherever they are to celebrate being Canadian.

Click Here for Fun Facts about Canada!

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

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

"When one door closes another door opens; but we often look so long and so regretfully at the closed door, that we do not see the ones that open for us." Alexander Graham Bell 9th Greatest Canadian

Warm Regards,

Todd and Danielle Millar

living room of basement suite

For the past 2 years the City of Edmonton has offered a program to help improve the amount of affordable housing in Edmonton. The Cornerstone Project offers funding, up to 75% of $32,000 to be exact, to bring an existing suite to code or build a new basement or garden suite.

At first the program was a little lame. No funding for rentals houses had to be owner occupied and rent had to be below market average. Recently with a lot of money not going anywhere Edmonton has revised the program. Rentals are ok with market rent to a tenant with less than average income ie student etc.

So with over $6 million looking for suites to renovate we've decided to take the plunge and I'm going to chronicle the process for you here.

I've bought over 50 house but I've never bought a home. Unbelievable right? We bought our first home this month and decided to use the Cornerstone to put a suite in the basement. Even though we'll live here we'll improve the market value and make it a great rental for when we move onto our next place.

Step 1: The Inspection

So our first step was to call Cornerstones and book a inspection. A fire inspector and building inspector came out, went over the whole basement inside and out and made reports on the work that had to be done.

Including:

1. Drywall all ceilings and walls even in storage areas and under stairs
2. Ensure windows in bedrooms meet egress requirements. They also must not require special knowledge to open
3. Put hard-wired smoke alarms in suite, common areas and on the main floor
4. There should be a fan in the bathroom and proper venting in kitchen
5. Separate entrance must have easy access
6. Ceilings must be 96 inches minimum

The report also called for inspections of the hot water tank and that the furnace had property venting.

The next step PERMITS.

The riots last week in Vancouver left us all ashamed and angered at the hooligans that turned a sporting event into a national embarrassment.

One light in the darkness (isn't there always one?) is the couple who found a bit of time for romance on the street while cars burned, windows smashed and tear gas zinged around them.
Take a break to look at this truly funny photo gallery dedicated to their unbridled passion.

Click Here - the hot dog one is my favorite.

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
www.glennsimoninc.com email: info@glennsimoninc.com

June 16th., 2011
Volume 10, Issue 6

Dear Friends and Partners,

I've had a very busy month that took me to Mississauga, NYC, 3 awesome workshops and the Canadian book launch of Change Anything where I met author Joseph Grenny. The travel was fantastic and the folks that I learned with at these events, were amazing. I'd love to share with you the long list of cool experiences that I had including buying a Gretchen Fuss painting in SoHo to hanging out with a pair of very successful IT developers in a Manhattan beer garden.

But, the point that I'd like to mention is that you have to raise your hand. Initially, I didn't raise my hand to go on this Eastern trip as I have many pressing obligations back in Edmonton, but Danielle challenged me enough to look at how I could tweak my schedule to make it happen - and I did. As soon as I 'raised my hand' and committed to going, everything fell into place - well almost everything, as there are always a few hiccups.

One thing I thought about New York was the image of 'making it' there. If you have taught yoga or owned a restaurant in NYC for longer than a year, chances are you look like you've made it. In reality your day may be a struggle and you are fighting to attract customers and keep your head above water, but optically you've made it. Why is that? I think many people aren't willing to raise their hand to challenge and competition, be it NYC or any other place or form. When you 'yes' I'll try, you are already halfway there. It may turn out that you don't like NYC or that you learned a better way to do something or another place or career that you'd rather be living out, but for that moment you have 'done it'. The staying power needed in a big city, top company, specific niche is tremendous. The competition extreme, and if you can stay the course, which is always much longer than a year, you have proven your ability to play the game at a higher level.

Here's to upping the game this month or taking time to savour the view from the place you're at.

West Central Edmonton: Cashflowing Six-Plex In Queen Mary Park

Turbo charge your portfolio. Upgraded 1978 built 6-plex with separate entrance to all units. 4 functionally finished 710 sqft. 1 bedrooms on main, plus 2 upgraded 650 sqft. 1 bedroom suites up. The upper suites have laminate and fresh paint. There is a common laundry room in basement. The lower units have new paint and some fixtures as well. Lower suites walk out to a private grassy, fenced yard. There is a 2 car detached garage bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to Yellowhead Highway and on the 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 Central area with easy access to transit and downtown. Excellent transitional neighborhood with solid value and stable rents. 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 $676 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

Purchase price: $525K Total Investment: $126K. Your Estimated 5 Year Profit $76K.Your pre-tax Total ROI is 60% or 12% per year + $676 Cash Flow in Your Pocket Every Month
Poised for massive growth. These 6 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!

===============

Edmonton International Airport Terminal Expansion Under Budget, Ahead of Schedule

Original $1B Budget Reduced By 25% As Recession Reduced Cost Of materials

By Bill Mah, Edmonton Journal. June 8th 2011

EDMONTON - Construction of a massive terminal expansion at the Edmonton International Airport is coming in under budget and faster than expected.
Adding more than 480,000 square feet — roughly the size of eight football fields — to the existing terminal building was originally budgeted at about $1 billion.

===============

TEDx A Showcase of Edmonton Innovators

By Codi Wilson, Postmedia News June 11th 2011

EDMONTON -- Of all the video games former programmer Aaryn Flynn enjoys playing, Scrabble on his iPad is a favourite.

“It’s fun to play with your friends,” Flynn said. “It’s good for travelling too.”

Flynn, the studio general manager at BioWare, an Edmonton-based video game developer, spoke at the TEDx event Saturday inside the Citadel Theatre to a crowd of approximately 200. TEDx is a conference of ideas lead by technology and design industry leaders around the world.

===============

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.

"Winning isn't everything, but the will to win is everything." -Vince Lombardi

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.

"Now, the Alberta government forecasts a shortage of at least 77,000 workers within the next decade.

“We’re walking into a perfect storm,” Alberta Employment and Immigration Minister Thomas Lukaszuk says."

Is this the beginning of another labour shortage? Possibly – there are definitely more ‘Help Wanted’ signs appearing and contractors are busier.

We’ve noticed an increase in tenants looking for rentals as well. Some of this demand is seasonal with a rush to get outdoor jobs (construction) done before winter. We’re busier here in Alberta and starting on the upswing, but we still have a few valleys to cross before we get moving full swing. Next year we should really see the demand. Click Here to read more

May 31, 2011 was the day anyone holding a variable rate mortgage was waiting for with bated breath. Mortgage rates looked like they were going up but now it looks like we may have a reprieve from rate increase for the short term due to global unrest.

“The Fed is not even dreaming of raising rates in the next 12 months,” Benjamin Tal

We've got a rate lock on a mortgage for September 2011, the big dilema, wheter to go variable at great cashflow and higher stress or lock in at a great steady rate for 3 years. We've chosen to lock in on this property. There were many factors but sometimes you get sick of the ups and downs of variable rates even though they do better in the long run. In the end it's all up to you.

VIDEO : Peter Kinch on the Bank of Canada's decision to not increase mortgage rates on May 31, 2011.

"An improving Alberta economy will lead to employment growth and an increase in the number of people moving to Calgary, which will be good news for the region's housing market in the next two years.

A report by Canada Mortgage and Housing Corp. forecasts MLS sales in the Calgary region to increase by nearly five per cent this year compared with a year ago, while the average sale price will rise by just over one per cent."

We’ll still see ups and downs for a while longer while we head into improved upward momentum. The next 18 to 24 months will be steady for Calgary and Edmonton, and then we should move into full recovery cycle (meaning 2 years into a 5-7 year cycle). Calgary generally dictates the direction of Edmonton, so we watch and welcome their increase in home prices. If you factor in 3% appreciation per year over the next 5 years you should be on track.

Read More Here

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  www.glennsimoninc.com email: info@glennsimoninc.com  

June 1st., 2011  Volume 10, Issue 5  

Dear Friends and Partners,

I moderate my doses of news as so much of it is unhealthy; unhealthy reporting, topics and servings of negativity. With that said I do tune into a few CBC Radio programs and they have had extensive coverage of the Slave Lake fire. I have found the interviews of the residents powerful. CBC reporters had spoken with folks who were literally breathless from having run to escape the flames. Other coverage took place from makeshift shelters in Athabasca. And more recently from the parking lot of a nearby town, as buses departed taking residents on a trip back of the remains of Slave Lake, touring neighborhoods where fire disintegrated more than three quarters of the homes to smoldering ash.

Imagine that for a moment. You're at home with your kids when suddenly you get a knock at the door telling you you have to leave - right now. You grab the kids, your pets and not much else. As you try and flee town you realize the fire is much worse than you thought as your only escape is a dusty, smoky, potholed back road lined with an inferno of blazing orange trees, collapsing helter-skelter around you. The next couple days are a blur as firefighters from all over Canada are sent in to help put out the fire - but it is stubborn and takes days. You still don't know if your house or business survived. Fast forward to last Thursday when residents did get to go back, many of which had lost their cars, homes and places of employment.

CBC interviewed these folks and the matter-of-fact resilience was amazing. Many people were optimistic to rebuild and excited that a few landmarks remained. They might have lost almost all of their material objects save the intangible memories they shared in their homes - but they are optimistic! I certainly hope I would be. Of course there are folks rightfully bewildered by loss and despair but the overwhelming majority shares a bespoke 'Getter Done' attitude to rebuilding.

Take a bit of that resilience today and magnify it back in the things you do; let it grow and go back to those people and the people in your family and community.

===============

West Central Edmonton: Cashflowing Six-Plex In Queen Mary Park

Turbo charge your portfolio. Upgraded 1978 built 6-plex with separate entrance to all units. 4 functionally finished 710 sqft. 1 bedrooms on main, plus 2 upgraded 650 sqft. 1 bedroom suites up. The upper suites have laminate and fresh paint. There is a common laundry room in basement. The lower units have new paint and some fixtures as well. Lower suites walk out to a private grassy, fenced yard. There is a 2 car detached garage bringing in additional revenue. 10 minutes to NAIT, Grant MacEwan and Downtown. Fast access to Yellowhead Highway and on the 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 Central area with easy access to transit and downtown. Excellent transitional neighborhood with solid value and stable rents. 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 $675.87 positive cash flow per month using an investor's mortgage plan - taking advantage of current low rates.

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

Poised for massive growth. These 6 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!

===============

Calgary Rental Company Offers Free Apartments For Slave Lake Fire Victims

By Clara Ho, Calgary Herald. May 24th 2011

CALGARY — A Calgary-based apartment rental company is offering 50 Edmonton suites to Slave Lake fire victims free of charge for up to three months.

“When I was watching TV, I saw many guys sleeping in gyms, sleeping bags, in cars, and my heart bled for them,” said Bob Dhillon, CEO of Mainstreet Equity Corp., which owns 8,000 apartment units across Calgary, Edmonton, Saskatoon and Vancouver.

“What we can offer is accommodation. We want to give them an opportunity to get their life together.”

READ MORE
===============
Expect To Pay More For Food, Power This Summer: National Energy Board

By Dina O'Meara, Calgary Herald May 20th 2011

CALGARY — Be prepared to pay more for power and fuel this summer in Alberta, according to the latest price outlook by the National Energy Board.

Although gasoline prices have eased somewhat since jumping earlier in the month, oil prices averaging $100 US per barrel to $120 US per barrel over the summer likely will cause renewed pain at the pump, the board said Thursday.

Unrest in the Middle East, the crisis in Japan and China’s growing demand for energy all factored into the boards expectations of continued high prices for oil. READ MORE HERE

===============

Armed With White Stetsons, Calgary Invades China

Carolynne Wheeler: The Globe and Mail, May 27th, 2011

There will be an estimated 150 million outbound Chinese tourists by 2015. Alberta is hoping a few hundred thousand of them will be inspired to take a look at some of Canada’s natural wonders.

Armed with a new Mandarin-language tourism website and dozens of white Stetsons to give away to business leaders, Calgary’s largest-ever trade delegation has just landed in Beijing for a week of selling its city to a Chinese audience. GRAB THIS STORY

===============
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.

"The best place to find a helping hand is at the end of your own arm." -Swedish Proverb

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.

In case you missed this video when it was aired earlier this year, we bring it back again. Don Campbell puts forth a solid argument for Edmonton and Calgary's real estate future.

If you are new to investing, you'll need to add several more lines of expenses to Don's example. Perhaps his 'miscellaneous' item covers some of these but in addition to your P.I.T. (principle, interest and tax payments) you'll need to add: vacancy factor, repair factor, property management (even if you do it yourself, factor it in as one day you might pass it over to a manager), advertising costs and insurance.

We also add bookkeeping costs, but you may feel you don't need that. These additions will give you a realistic cash flow number and it will be significantly less than the cash flow number derived from P.I.T./misc. alone in the BNN video. If you have money left over from repair/maintenance at the end of the month that goes into your account to build a buffer for the unit.

Watch Video Here