Invest In Edmonton Real Estate Blog

Walton Event At The Imperial Hotel Tokyo

2008-07-25T19:52:08Z

As former investors we were invited to Walton's opening of their Tokyo office last night. Actually this is the second time they've had an office in Tokyo but the first one closed about 3 or 4 years ago.

We watched a presentation on Walton's goals for the future, enjoyed a buffet dinner, Taiko drumming and a performance by a western band. The event was interesting but I feel that Walton missed some prime chances to impress on their clients WIIFM (What's In It For Me). Nowadays people don't care how long your company has been around or what your plans are for the future; they want to know how it affects their returns. They completely focused on WMCIG (Why My Company Is Great) not customer centric enough in my opinion.

It was a fine enough evening and we were lucky to meet some interesting people who had invested in Alberta or were aware of the oil sands.

Canada's Outlook For The Next 5 Years

2008-07-24T21:07:45Z

The Conference Board of Canada has released it's 5 year outlook for Canada. Alberta performs superlatively in all areas.

Economic Growth - Alberta will be surpassed only by Saskatchewan in 2008 but from 2009 to 2012 Alberta will lead the nation, including Saskatchewan, by a solid percentage point

Population Growth - In 2008 Alberta will lead the nation by a full 2% at 2.5%. The closest contender is Saskatchewan at 1.4%

Unemployment Rates - No surprise here Alberta has the lowest unemployment rate in Canada and beats Ontario, Saskatchewan and B.C by a huge margin.

Personal Income per Capita - Albertans enjoy a $10,000 spread over the rest of the nation. Although they may feel that things are tough they are the richest Canadians with the best prospects.

To download your own copy go to the Conference Board of Canada website great reading when you can't sleep!

Oil Fuels Calgary's Office Space

2008-07-24T01:21:50Z

"The energy sector, and the related services to it, are the prime drivers of office space demand in the downtown core without question,"

"We're also seeing growth in the financial services sector as well. And we're seeing a lot of interest as the capital budgets continue to increase for not only conventional, but also oilsands related development, and the staggering budgets for those projects. The financial services sector is also increasingly looking, from frankly around the world, (to locate) branches here and increasing the size of the offices they have here." Richard Pootmans, business development manager of real estate for Calgary Economic Development.

So the market isn't totally in the dumps, (I don't believe it is and this is further proof to the point) if you are buying in the right sector. I am sure as Calgary's office space starts to feel the pinch Edmonton's market will pick up.

Read Article Here

Immigrants To Canada Head To Alberta

2008-07-22T00:09:39Z

Canada relies on immigration to keep the economy and country functioning. Since Alberta is the economic powerhouse of the country tens of thousands of skilled workers are heading west to find their fortune in the booming oil industry

"Workers holding Canadian skilled worker visas have been highlighted as a driving force behind the recent population growth seen in Alberta, according to new research. The study, by Statistics Canada, shows an inflow of immigrants, refugees and temporary foreign workers has turned the province into the country's fastest growing, reports the Calgary Herald." Canadian Visa Bureau

Of course new immigrants mean a steady stream of renters and as they grow to love the Canadian way of life eventual home buyers.

If the prospect of living in Canada appeals to you then fill one of these online assessments

This And That

2008-07-18T21:18:01Z

Canada should play big role in new world oil order -"This is good from an energy security perspective. However, the increasing attention to climate change, and the very fact that the Canadian oilsands in general have higher carbon dioxide emissions compared to conventional oil is a significant problem for Canada,"

"And I think more and more work is needed to make use of this very important oilsands in an environmentally friendly way."

"He said oilsands production could reach as high as 10 per cent of total world supplies - significant but not enough to alter the so-called new world order. " IEA chief economist Fatih Birol

10% of the world's supplies IS significant if you think that it is coming from Canada a country whose population is just over 31,000,000. With the oil sands producing most of the oil in Canada that brings the focus to a province with a population of 3,000,000 looks like the economy will be quite good there.

Hot-cold house sales steadying - "By the end of the year, Edmonton could get something it hasn't seen for several years -- a "normalized" housing market, as homes for sale dry up and prices drop..."

"The high inventory levels will dwindle into the second half of the year, and as affordability improves, subsequent market conditions will continue to normalize," House Price Survey and Market Survey Forecast by Royal LePage Real Estate Services.

So by 2009 we should see prices completely leveling out with rises anticipated for the year.

Edmonton cultural venues get $6.5 million - "This investment in Edmonton's thriving arts district will help these facilities continue to showcase Edmonton's and Alberta's arts and cultural community for generations to come."

"The Alberta government gave $2.4 million to the Citadel, and $500,000 to the Winspear. The City of Edmonton is contributing an additional $3.6 million to the Citadel."

Edmonton is turning into a world class city with a fantastic arts infrastructure.

New City Website Calculates Carbon Footprint -"For anyone who has ever wanted to know how much a flight to Europe really costs, or the net worth of a daily 25-minute commute, City Hall is offering new answers online.

An element of the city's website launched this afternoon allows residents to calculate their environmental footprints.

A carbon calculator - found by visiting www.edmonton.ca/ecovision - works out the total cost of everyday activities by tonnes of carbon used."

Long Term Is Best

2008-07-17T00:25:03Z

Every Google alert I got today was about "spiraling" house prices or the Canadian real estate market hitting the brakes. After scanning quite a few they all boiled down to a 5% drop in housing prices in Alberta, leveling in Vancouver and Ottawa saying no to 40 year mortgages.

Vancouver was bubbly for a long time with the never ending condo market and the incredible lack of affordability, Ottawa and Ontario are suffering high dollar blues and Alberta is leveling out after an incredible increase that threatened to erode affordability.

If you own a home and aren't trying to sell then no problem, if you own investment property then keep it rented and make sure it's covering the bills. However, if you are trying to sell now then you have some pretty bad timing! Why not wait a year, try and make your property cash flow then put it on the market??

Alberta Oilsands Commitment To The Environment

2008-07-15T23:04:05Z

"It's being invested for the future in a way that will help Alberta take meaningful action on climate change without endangering jobs, the economy or our ability to support public services," Ed Stelmach on $4Billion set aside to reduce greenhouse gas emissions

Alberta oil sands have had some pretty bad knocks in the press recently. Alberta is leading the world in recycling and consistently strives to improve it's image as a source of clean oil. This new allotment of serious funds will help to show the world that Alberta is taking climate change seriously.

Edmonton Has It Too!

2008-07-10T17:18:07Z

"CBRE's second quarter 2008 report says investment sales volume year-to-date was $1.65 billion, compared to $2.2 billion for all of last year. The numbers show "continued investment confidence" in the Calgary real estate market, said Bruce Irvine, vice-president of business development and retention for Calgary Economic Development. " Click Here

The reason is Alberta and Calgary and, yes, Edmonton have great economic fundamentals. The article states that Alberta has "mojo" and is the shining star of the Canadian economy.

Funnily enough when talking to our Realtor and property manager (the on the ground team) the say the area is rife with pessimism and that many Albertans just can't see the Alberta Advantage. If you are someone that can see the advantage then you have a clairvoyance that can set you up for life.

Where others see crisis successful people see opportunity.

New Apple Store Largest In Canada

2008-07-07T00:47:01Z

West Edmonton Mall used to have the largest everything. Although it has lost a lot of it's superlative status it does once again have a biggest - The largest Apple store in Canada.
The opening saw 600 people lined up some as early as the day before.

I can only assume Apple feels that Edmonton ranks along with Toronto, Vancouver and Montreal as crucial sales points due to it's growing population and strong economy.

FREE MP3 Download From Canadian Insider Real Estate Report

2008-07-03T19:28:46Z

Click Here And Listen in to 90 minutes with Don Campbell as he breaks down what is REAL and what's not in real estate markets from B.C. to Ontario. You can even download the MP3, all for FREE!

Leading The World In Sustainable Energy

2008-07-01T16:43:05Z

Alberta and the oil sands get a pretty dirty rap from environmentalists. When you are running the biggest project on earth you are always under scrutiny and of course everyone has an opinion. Yet every month or so I find an article about how Alberta is leading the world environmentally one way or another.

"Edmonton will soon become the first city in the world to start turning its solid waste into liquid fuel.

The city has signed an agreement with two Canadian biofuel companies to build a plant that will take regular garbage out of landfills and turn it into ethanol.

Those behind the initiative are calling it a huge step towards sustainable, environmentally friendly energy. "

Although there is a lot of talk about ethanol and how we should be using it, why is an area that is getting so much flak leading the WORLD in this initiative? More action and less talk perhaps??

Find the full article here

This And That

2008-06-30T01:16:31Z

Real estate meltdown? Not likely - "It's true that a few Canadian cities are showing much smaller price declines - Edmonton down by 4.9 per cent in the past year, Calgary down 2.4 per cent and Windsor down 5.5 per cent - but only in Windsor does this reflect economic distress. In Alberta, the price reversals look more like a hiccup after huge run ups.

So is Porter really suggesting that Canada's housing market is about to follow that of the U.S. down the drain? Apparently not, despite the provocative words. "No, we don't think we're headed for a U.S-style bust, said a colleague at BMO Capital Markets, senior economist Sal Guatieri."

Alberta's business owners optimistic - "Despite worrisome economic signs in the United States and Central Canada, optimism among Alberta businesses is rising, suggests a new provincial survey.

The business sentiments index, released Thursday by ATB Financial and the Western Centre for Economic Research, asked 403 companies across Alberta to gauge their opinion for the third quarter of 2008."

Alberta posts highest earnings growth - "Albertans continue to earn more than other Canadians, according to figures released Friday by Statistics Canada.

April figures show average weekly earnings for Albertans were $873.25, including overtime.

That's up six per cent from the same month last year -- the fastest growth in Canada."

Good Points If You Are A Seller

2008-06-27T00:23:22Z

First of all if you are trying to sell in Edmonton better make the deal pretty sweet because about 11,000 other properties are on the market looking for a new owner. To be frank I wouldn't sell now unless I had a pretty good reason.

If you are an investor then why not ride out the dip and wait for the low unemployment, high provincial in-migration and stupendous economy to see you right?

For those of you who are just trying to sell your home then this advice is quite useful:

"What about the seller? Should he despair? Not at all! Firstly, if, as is frequently the case, the seller is planning to buy a replacement home immediately upon selling, the difference that he can expect to pay remains relatively constant, regardless of the market condition. That is the precise reason to at least be in the market, and not on the sidelines.

To achieve a best-value sale in today’s market, the seller must face a number of realities that may not have been as critical to a successful sale over the past few years.

Realistic pricing tops the list. With much greater competition for fewer buyers, pricing even one or two per cent over market may dramatically reduce the chances of an offer. Testing the market with a higher price is not a great idea." Peter Dolezal

Population Growth = Growing Market

2008-06-27T00:07:37Z

graph courtesy of StatsCan

Alberta again led the country in population growth in the first three months of 2008. The province now weighs in at 3.5 million. Although there was a small exodus from Alberta in 2007 the net in-migration is still the highest in Canada.

"Alberta's population rose by 0.41 per cent over the January to March period to reach an estimated 3,512,400, mainly as a result of strong immigration and net inflows of non-permanent residents," Statistics Canada

Simple math tells me that more people means a continued demand for housing, whether it be rentals or purchases. If anything the buyer's market that the two major cities find themselves in now will attract people to the area as a bonus to great jobs at national high wages.

I've heard of people picking up properties for the legal cost out in Edmonton. Of course deals like that are hard to find but with a little motivation and a list of properties that aren't selling it shouldn't be too hard. If you are moving out west with a great job waiting for you who wouldn't pick up a home rather than renting?

This Sounds Useful

2008-06-26T23:50:38Z

Two U of A graduate's real estate trending software may help in your buying decision.

"The entrepreneurs unveiled Wednesday the latest version of their Internet-based real estate program, RealPageMaker 3, that gives prospective buyers a bird's-eye view of listings plotted on a Google map of a city block or neighbourhood. The program will be available for Calgary and Vancouver.

The software also pulls a snapshot of real estate trends for that block or neighbourhood using real-time statistics."

READ FULL ARTICLE

Alberta Wealth Sets Prices In Okanagan

2008-06-22T20:33:11Z

When Albertans are looking for a recreational property they often go to British Columbia. The province's overflow of wealth has increased prices in the Okanagan area so much that until now there was multiple offers and double digit increases on recreational properties. Now that Alberta is cooling down so is this area.

"Alberta buyers are a very important part of our market, and not just southern Alberta, but northern Alberta as well," Rob Shaw, Vernon Realtor and director of Okanagan Mainline Real Estate Board (OMREB)

What that means is the beautiful Okanagan valley is also leveling out and becoming a buyer's market. Alberta's stellar economy is effecting the real estate market across Canada - from B.C to the east coast. People who have made their wealth in Alberta go back to their home province and buy their dream house.

Most importantly is to know when to buy where. Alberta is in a slow cycle and has leveled to a buyer's market, giving investors the opportunity to pick and choose their terms on an incredible selection of properties. When your Alberta property increases in value over the next 3 years, you can buy your dream house from the proceeds.

Fort McMurray Price Rocket Continues

2008-06-18T21:31:16Z

If you want to get into hot sustainable market then Fort McMurray is your bet - just be prepared to pay for it. This little town on the edge of the world's largest oilsands deposit has seen that proximity cause housing prices to rise and rise and rise. House prices rose from $518,934 last year to an incredible $$692,127 in May.

"Oil prices are at record levels," adding that a number of oilsands mines are being built in the region, requiring a large influx of workers to migrate to the area. "It's going to keep investments in that region at a high level and if that's going on, the market will do well."Richard Cho of Canada Mortgage and Housing Corp

If the Fort McMurray is too rich for you look to Edmonton the hub between the oilsands and oil distribution.

5 Tips Learning A Language vs. Purchasing Investment Real Estate

2008-06-18T21:10:38Z

Living in a country where English is not the first language enforces a learning curve that you don`t get when you can communicate in your native tongue. When I came to Japan 6 years ago my Japanese extended to Domo Arigato Mr. Roboto courtesy of Devo`s hit in the 80`s. I had to assimilate to live. Now that I can speak Japanese I look back on those days cringing at what passed for "speaking Japanese".

The same holds true for investing in Real Estate. I started investing 5 years ago, I read all the books, joined Cashflow circles and ventured boldly ready to make "deals". With all the information and opportunity available on the web it seemed mere months until I held my dream portfolio.

Boiling down my experiences to the purest essence. I have come up with 5 tips for Learning Another Language and corresponding tips for Purchasing Investment Real Estate. They surprisingly overlap!

5 Tips For Learning Another Language vs. 5 Tips for Purchasing Investment Real Estate

1. Never ever repeat words until you know the meaning - I once had a catchy tune that a few little boys were singing stuck in my head. They roared with joy when I repeated the song and sang along with them for the remainder of our time together. For the next few days I would alternately hum and sing the easily pronounced words feeling quite pleased that I had picked up the language. It wasn't until days later a concerned co-worker actually explained the meaning of the dirty ditty did I learn this valuable lesson.

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1. Do your own homework - It doesn't matter if the property you are looking at is in a great area and really cheap. You are responsible for your financial future. You must never take anything at face value. My mentor Don Campbell always says "What's behind the Curtain?" Research your property, the area where you are, go there at different times of the day. Research other houses on the block or in the area, How much did they sell for? Ask impartial realtors, lawyers and people in the know for their input then sift the results. In the end only you will be paying for your real estate negligence or reap the benefits of your diligence.

2. Mimic the language of people around you- A direct contradiction to my first tip! However you can be sure that if I had emulated my successful 60 year old business lady friend I would have been singing a different tune. In Japan especially, age and sex are very important in determining the type of speech you use. If you hang around 50 year old business men your Japanese will reflect that. So choose with care whose speech you emulate.

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2. Mimic successful people around you - Research the people in your area who are doing what you want to do. Find the multi-plex buyer and take him to lunch that meal could make you a millionaire or at least help you on your next deal. The best way to succeed at anything is to copy the people who are already successful at it. Most people who are successful want to give back and help people who are starting out.

3. Supplement a formal education- You CAN learn new languages by yourself. In fact I spent my first two years in Japan watching Japanese T.V. with a dictionary and notebook so that I could learn the colloquial Japanese. Speak what the real people speak. It paid off I have excellent listening comprehension and can converse readily on many t.v. celebrities and programs- a useful ice breaker. However, my spoken Japanese didn't really take off until I attended a formal language school. The teachers guided me around pitfalls and I could practice with people that spoke that language rather than talking to my T.V.

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3. Join an investment group and take seminars - Sure it costs money, sure there are scams out there. Some gurus only hold seminars to sell their products or courses. That is a chance you have to take but when you find the right group you will be connected to a wealth of experience, information and like minded people. I am a member of REIN- Real Estate Investing Network in Alberta. That allegiance has propelled my business like nitro in those cars in the Triple X movie series. My sphere of influence now includes best selling authors, people who hold millions of dollars in real estate and some of the best tax specialists, lawyers and realtors in Canadian Real Estate. I have avoided some mistakes because someone in my group already made them and that resource was readily available to me.

4. Making mistakes makes you a better speaker - This only works if someone corrects you! If you don' t say anything then your speaking ability won't improve at all. In my first baby steps in learning the language I know I said some pretty far out things. Times when I wanted to say "This meal is delicious!" I came out with " I am delicious" or my favorite pointing to a little girl and saying "scary" when I meant to say "cute" actually it could have gone either way with that one. It happens but luckily I had friends who took me aside and pointed out the grammatical, pronunciation or syntax errors of my ways. Now I only say "I am delicious" when I want to.

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4. Making mistakes makes you a better investor - You cannot learn until you make a mistake. Granted you can have a mentor who helps you and guides you around the mines of investing. What you are getting there is the benefit of him or her making mistakes in the past. Babies don't walk without falling, bicycles aren't mastered without scraped knees and investors aren't made without those "Holy #&("! " deals. Be thankful for them. They are what separate the Trumps from the chumps.

5. Speak Speak Speak- Just do it. Talk to the grocer, the mailman, the neighbour and anyone who will humour you. It is learning by action. Immerse yourself in your new language. I listen to the NHK National Japanese Radio whenever my ipod's batteries die while I am driving. I watch Japanese T.V. and study in my free moments. And you know what? Sometimes I can speak Japanese pretty darn well.

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5. Just do it- Don't be a perpetual student. Go out there and invest. If you don't have the finances just look at properties on the MLS. It is free and you can quickly get a feel of the market and what is availabe. Using a city map you can compare market values for properties in the same neighbourhood, street or complex. If funds are low then partner with friends or other people who want to invest in the same area. You can always Joint Venture with a professional so that your first deal isn't so daunting.

With time you will be surprised at how far you have progressed in becoming a polyglot or an investor.

Alberta In For Record Surplus

2008-06-15T22:05:20Z

While Alberta only estimated for $1.6 Billion surplus this year it looks like high gas prices will bump that sum up another $10 Billion. Not exactly loose change you find in the couch.

One third of the funds will be alloted to savings while the other two thirds are to build and maintain capital projects. The main worry is that windfalls like these will be used up and when Alberta's non-renewable resources , oil-sands and natural gas, are depleted the big windfalls of the boom years will be only a distant memory.

To plan for future generations the province set up a provincially appointed Financial Investment and Planning Advisory Commission whose recommendations to the government on how it should invest petroleum riches for the future include long term savings plans.

"Make sure the money that is coming in at this time isn't just viewed as something that's good for the current generation..." Financial Investment and Planning Advisory Commission chairman Jack Mintz

Before You Buy With Your Brother

2008-06-13T19:15:05Z

When I hear people say that buying investment real estate is dangerous or risky it makes me wonder what could have happened to make them feel that way. Sometimes its a sour deal or bad tenants but more often than not it's who they bought the property with.

It's easier to buy a house if you split the down payment with a family member or friend but it's also a great way to ruin a perfectly good relationship. So how do you avoid the troubles that may come in purchasing together?

Excellent legal advice, a clear strategy and a clear separation between the private a business relationship is crucial.

"The most important thing is to do your planning," "A house is something that has an emotional tie to it, yet people want to go out and do things very quickly, especially if a real estate market is booming, and if you dawdle along you're not going to get that house you're after."

"What if one of them dies; what if one of them gets married; what if one of them takes a job transfer and moves out of province? You have to set out in advance what those what-ifs could be and try to document them into a co-ownership agreement. It could be a simple thing like who pays for some of the expenses." Investors Group financial planner Murray Pituley of Regina

IF you shudder at the idea of making a legal document with your brother, mother or friend then imagine what will happen when everything unravels and nobody has a clear idea of what should be happening

Alberta - Key To Diversification Is Technology

2008-06-13T17:54:16Z

Alberta's economy is more diversified than it has every been however a large part of the booming economy is based on the oil sands. Depending too closely on harvesting and shipping resources could cause Alberta to miss other opportunities to sustain the province's incredible wealth.

The government of Alberta has launched a $178 million dollar strategy to help the province commercialize it's technological expertise built up through development of its oil and gas resources

"The Alberta government is serious about a future that is diversified, in order to create long-term prosperity in the province,.....It's important to build on our strengths in the resource sector, but technology is the key that can reach into every area of our economy." Premier Ed Stelmach

It's a great way to avoid relying on a non- renewable resource, no matter how many years of proven supply you have left.

Learn more about the strategy and to read the newsletter from the Alberta Council Of Technologies Click Here

This And That

2008-06-09T00:57:59Z

Alberta Needs To Increase Presence Globally - "An Alberta government committee is recommending the province sell itself on a grander scale around the globe -- beyond its 10 current international offices -- by opening several new bureaus on four different continents."

Alberta currently has offices in Munich, London, Beijing, Hong Kong, Washington and Tokyo. It's incredible to imagine a province with so much to offer that it has 10 international offices promoting it.

Alberta Bitumen to reach 2 Billion Barrels by 2017 -"A new report by the Energy Resources Conservation Board (ERCB) reports that Alberta’s annual production of bitumen (oil sands) is forecast to increase to more than one billion barrels by 2017, more than two and a half times the amount produced in 2007."

All the oil sands require is a steady labour force and a labour force requires quality rental or single family properties. Real estate is a basic necessity that must be provided.

Alberta's Oil Called Dirty - "..Canadian officials said it doesn't really matter who wins the election; Alberta oil will continue to remain an important source of supply south of the border. Canada regularly alternates between Saudi Arabia, Venezuela and Mexico as the No. 1 exporter to the world's largest oil consumer."

Canada is one of the few countries who joined the Kyoto Accord, remains one of the lowest producers of greenhouse emissions and Alberta is constantly improving it's environmental impact. However we have become a "hot environmental topic" for one of the biggest polluters in the world.

Alberta's Unemployment Rate Up But Still The Lowest - "Alberta's unemployment numbers nudged up slightly to 3.6 per cent in May, but the province still leads the nation with the lowest rate."

Calgary has the lowest unemployment rate and Edmonton has the fourth lowest in Canada.

Three Years To Belize

2008-06-06T20:20:58Z

As REIN members one of the best parts of belonging to a group of highly focused investors is that you constantly hear success stories that fuel you to reach your goals.

One story that has really inspired me can be found on the ONE LIFE blog spot. After three years of hard work and laser beam focus to their end results this Canadian family was able to follow their dream of seven months sailing around the Caribbean and Bahamas.

The best part is all the wonderful things they do; from touring a nutmeg factory to scuba diving to burying a treasure chest to be unearthed in 20 years. Their journey seems like the perfect way to bring a family closer and really and truly spending quality time together.

It's a must read and so interesting you'll want to be booking a flight as soon as you leave the blog.

For Canadian Stagers

2008-06-05T22:27:36Z

From Canada.com:

"How does a home that has been on the real-estate market for months suddenly sell for $100,000 over the asking price? The answer, according to a new HGTV series, is home staging, the art of neutralizing a home with upscale furniture and art to create a showroom perfect space. The Stagers exposes the high-pressure world of home staging, going behind the scenes at DEKORA, a leading Canadian home staging company.

The Stagers airs Tuesdays at 11 p.m. beginning July 1 on HGTV Canada."

I'll be sure to watch this because no sane seller would say no to $100k over the asking price.

2-For-1 Houses In San Diego

2008-06-05T22:03:19Z

I found this interesting article on Reuters about a savvy developer who is offering Buy One Get One Free on row houses in the San Diego area. With the purchase of a $1.6 M luxury home in the upscale city of Escondido in northern San Diego County, you can get a $400k row house for free! Great marketing and a gutsy way to improve your sales figures.

The townhouse aren't too shabby either; with four bedrooms, four baths, six car garages and swimming pools they aren't exactly sheds.

"We are targeting a niche market of investors who are interested in the opportunity to buy a new home for themselves and get a free rental property or second home for family members," developer Michael Crews