Invest In Edmonton Real Estate Blog

Read this if you are worried about rising interest rates!

Todd & Danielle Millar (Glenn Simon Inc.) — Mon, 23 Nov 2009 17:47:40 -0600

We are all enjoying a reprieve from big mortgage payments but what how do we prepare for rising mortgage rates?

Here from Peter Kinch's mail-out is a transcript of the interview between Peter Kinch and Russell Byth that aired Sunday, November 22nd on News 1130

*************

Russ:
There's been a lot of talk this past week about the inevitable rise in interest rates and its effect on the housing market.

On the line with me is best selling author, Peter Kinch with Dominion Lending Centres. Pete, is the quick recovery and suddenly booming housing market setting us up for another fall?

Peter:
Well Russ, there's certainly that potential, but again we need to keep some perspective. Just a year ago everyone was worried about how much equity they lost and a year later the headlines show a double digit growth in prices.

Russ:
Clearly the housing market recovered faster than most expected. Do you think that was fuelled by the record low interest rates?

Peter:
Well absolutely, that's a major factor. I mean, the Bank of Canada accomplished exactly what it set out to do and that was to stimulate the economy and the housing industry represents a major component of that economy.

Russ:
So here's the question: if low rates spurred the recovery in the first place, could the inevitability of higher rates create a crash in the housing market 5 years from now when all these low rate mortgages come up for renewal?

Peter:
That's a very legitimate concern; but remember, the same people who lowered rates to stimulate the economy will be very careful not to undo their hard work by letting them rise too fast.

Having said that, the prudent thing, for anyone getting a mortgage today, would be to budget for an increase of about 3% upon renewal. So my advice is to take advantage of these current low rates and increase your mortgage payments as much as your budget can afford. That way you will accelerate your debt reduction and when the day comes that you have to renew into a higher rate, you will do so with a lower principal balance.

Russ:
And that will help you keep your payments down. Thanks Pete, some good advice. In the Business Centre, I'm Russell Byth.

Quick Facts About Edmonton Alberta Canada

Todd & Danielle Millar (Glenn Simon Inc.) — Sat, 21 Nov 2009 01:07:16 -0600

Some things you probably never knew about Edmonton, Alberta:

The name "Edmonton" is a Latinized version of a Saxon word meaning "Happy Hamlet,” and was used to honour the home of HBC governor James Winter Lake who was from Edmonton, England.
The city's population stands at 782,439 people as of April 2009; while Edmonton’s metropolitan population is more than a million people.
Edmonton is the gateway to a land of majestic mountains, pristine lakes, historic rivers and northern adventures and northern industries of oil, gas, lumber and mining. Edmonton is located on the TransCanada Yellowhead Highway, a route that offers the easiest and most scenic drive across western Canada.
The city of Edmonton began as a North West Company fur trading post in 1795.
During the Klondike Gold Rush of 1897 prospectors and adventures travelled by rail to Edmonton and then began the long overland journey to the Yukon. Edmonton became the last supply centre on route.
Edmonton is Alberta’s capital city. The Legislature is an iconic building of grand architecture where people flock to wade in or skate on the outdoor ponds.
Edmonton’s Waste Management Centre of Excellence has one of the world’s highest standards in recycling, composting and minimizing landfill. The Clover Bar facility diverts 60per cent of its solid waste, the highest diversion rate across Canada.
Edmonton won the 2009 Corporate Knights Sustainable Cities Ranking for the large city category.

There's more at the EEDC

Now is the season to be charitable.

Todd & Danielle Millar (Glenn Simon Inc.) — Thu, 19 Nov 2009 07:06:56 -0600

With the holidays around the corner ( I know I am pushing it!) there is never a better time to give back. Coming out of an recession is hard on everyone's pocket books and sometimes it is most obvious during the holidays.

There are so many great charities to take part in. I have been invited via Facebook to Wrap Harder which sounds like a lot of fun.

Another one via the news Stuff a bus - the Edmonton Food Bank hopes to raise 240,000 kg of food. That's right about $90,000 or a bus full of food!

A great idea. I hope to do all I can here. Canadian Feed The Children Best Gift Ever is a great program where you can donate in someones name.

The gifts range from about $15 dental care for a child in a developing country to a $2000 new school. There are all price ranges in between. My husband and I are doing this for each other.

Look out technophobes! Changes in real estate.

Todd & Danielle Millar (Glenn Simon Inc.) — Tue, 17 Nov 2009 17:32:30 -0600

Some of you know that I 've lived in Japan for about a decade now. The one thing that is constant here is change. Sometimes if I don't go downtown for a month buildings have changed.

Japan leads in new technology. The coolest thing is a square called a QR code that can go anywhere (clothing tags, drink cans, business cards) it acts like a bar code when scanned with a cell phone. The cell phone owner may be led to a website or can pay for the product using the code.

That technology reminds me of this:

"The listing-sheet box may be going the way of the $150,000 house. You know the box. It's affixed in front of homes for sale and holds brochures or sheets of paper with the property's asking price, listing details and the realtor's business card. It's being replaced, or superseded in importance, by a 21st-century- technology version that takes advantage of younger homebuyers' love of text messaging. Vancouver-based RealtyText is the latest text-messaging service to move into Edmonton. The company plans to move into Calgary as well. After launching in Edmonton two weeks ago, it now has more than 20 realtors subscribing to the service allowing them to upload their listings to the system and add a special code to their for-sale signs, says president George Haddad. Customers who see a home can punch the number on the sign into their phone. "All the information about the property comes up within seconds on their phone, including photos," Haddad says."

Read the full article here.

Funny Tenant Complaints

Todd & Danielle Millar (Glenn Simon Inc.) — Tue, 17 Nov 2009 07:23:02 -0600

These are hilarious. You will definitely get a few laugh out loud guffaws. They are all from different sources on the net and are only as dirty as your mind and bad grammar. From the REIN site.

Complaints from Renters

1. I want some repairs done to my oven as it has backfired and burnt my knob off.

2. The neighbor’s 18 year old son is continuously banging his balls against my fence. Not only is this making a heck of a noise, but the fence is now sagging in the middle.

3. I am writing on behalf of my sink, which is running away from the wall.

4. I wish to report that tiles are missing from the roof of the outside toilet and I think it was bad wind the other night that blew them off.

5. I request your permission to remove my drawers in the kitchen.

6. The toilet is blocked and we cannot bathe the children until it is cleared.

7. Would you please send a man to repair my spout, I am an old age pensioner and need it bad.

8. I want to complain about the farmer across the road. Every morning at 5:30 his cock wakes me up and it's getting too much. Its all right when my husband is on day-shift, but when he's on back-shifts or nights I get it several times a week from Mr. Docherty next door and at my age it's too much.

9. The man next door has a large erection in the back garden, which is unsightly and dangerous.

10. Our kitchen floor is very damp, we have two children and would like a third, so will you please send someone to do something about it.

11. The toilet seat is cracked - where do I stand?

12. I am a single woman living in a downstairs apartment and would be pleased if you could do something about the noise made by the man I have on top of me every night.

13. Please send a man with a clean tool to finish the job and satisfy the wife.

14. I wish to lodge a complaint against my neighbor in 211. When I get undressed at night I can see him looking in my window with binoculars. Do I need to pull down my own shades?

15. When I'm in the shower I turn on the water and I get hot. Could some nice repairman fix my pipes so I don't always get hot?

From Backburner to Stovefront

Todd & Danielle Millar (Glenn Simon Inc.) — Sun, 15 Nov 2009 18:32:37 -0600

Lots of good quick reads in your mid month update. Take a few moments to reflect on how businesses are using this downturn to set up labour contracts and align future projects.

This is very similar to 2002 and around the Kyoto Accord time when the market was full of fear and FULL of deals. Although I think we're a ways off from a full recovery, you can clearly see the strength and backbone to Alberta's economy.

Managing your current investments and and adding new ones at this time, will have you smiling in 2012 onwards as the economy begins to shine again.

Canada's Tar Sands Are The Future Of Oil Production: Total

By Michel Viatteau (AFP) – 11.13.09, MONTREAL

"The era of oil gushing from ground wells is over and can only be replaced by costly and complex refining of deposits such as Canada's oil sands to satisfy rising global energy needs, said a senior oil executive. Pressed about the high cost of oil sands extraction and attacks by environmentalists worried about its contribution to global warming, Jean-Michel Gires, president of French-based Total's Canadian subsidiary, told AFP he is optimistic specifically about the future of Canada's oil sands development." GRAB THIS STORY

Keyera to Spend $58M in Edmonton Area

Edmonton Journal, 13th November 2009

"EDMONTON - Imperial Oil’s $8 billion Kearl oilsands project has generated a long-term deal with Keyera Facilities Income Fund to provide diluent transportation, storage and loading services in the Edmonton area." READ MORE HERE

Suncor Budgets $5.5 Billion for 2010

International Business Times, November 13th 2009

"Suncor Energy Inc, Canada's biggest oil company, said on Friday it is budgeting C$5.5 billion ($5.23 billion) for capital spending in 2010 and will restart construction on its Firebag Stage 3 oil sands project. Suncor, which dominates Canada's oil sands region following its C$22.7 billion acquisition of Petro-Canada in August, will use C$1.5 billion for growth project funding at its oil sands operations and C$4 billion in sustaining existing operations." FULL ARTICLE

As you can see from the articles selected in your mid-month update, the big plans for Edmonton and Alberta continue. Many will wait until they see the economy in full recovery while the smart money continues to pick up the deals now.

"I shall make the most of all that comes: And the least of all that goes." - Sara Teasdale

I appreciate all your calls and emails. I'm looking forward to helping you put together your next deal.

Thank you,

Todd and Danielle Millar-

To get our free bi-weekly newsletter with great information on the Alberta real estate market, Alberta economy and Canadian real estate investor tips Click Here

In-migration to Alberta to continue.

Todd & Danielle Millar (Glenn Simon Inc.) — Fri, 13 Nov 2009 19:38:28 -0600

"Meanwhile, according to ATB Financial economist Dan Sumner, the average Albertan spent more per capita on retail items since 2004 than people from any other province, yet in 2008 the average Albertan saved 13.7 per cent of disposable income, compared to a national average of 3.8 per cent. The reason for this discrepancy is that Albertans have had greater disposable income than people in other provinces, with high incomes and lower taxes. That will attract young people from Central Canada."

You can expect population growth in Alberta to continue at a steady pace. The article goes on to state that real estate is not where people will be investing in the futue.

I know that with a statement like the one above and all people generally needing a place to live - real estate will be the way to go for me. I invest in other things sure but as far as being able to control my own investments I want tangible real estate.

Alberta's Oilsands- the future of oil production

Todd & Danielle Millar (Glenn Simon Inc.) — Thu, 12 Nov 2009 20:08:14 -0600

The days of oil rigs pumping furiously are coming to an end. Unconventional sources of oil require more manpower to get the oil out of the ground.

What does oil have to do with real estate?

Imagine if your investment property was near the next big oil reserve, workers from around the world were going there to live and work for the next few decades. Tenants were willing to pay top rents because the economy was booming and they were making oil dollars.

Alberta is that place, with vast oil sands that hold a proven 175 billion barrels of recoverable oil, second only to Saudi Arabia. The most impressive part is that Alberta has only just begun; experts say oil sands production can be sustained for at least 400 years.

"These are ambitious projects, very big projects, and thus very expensive," he said in a telephone interview from Calgary, Alberta -- Canada's oil capital.

"It's clear that cost is a problem," he conceded. "But it's also an important deposit -- several billion barrels of oil in the ground -- while more conventional sources of oil that would be relatively easier to extract are either drying up or are inaccessible to international firms such as Total."

"The price of energy is not going to collapse," despite downward pressure from a spiralling global economy, Gires predicts.

"To justify our massive investments in the oil sands, we're looking at what the world will look like in 2020, 2025 or 2030," he said.

"In the long run, despite all of the efforts to boost energy efficiency and develop alternative energy sources, the planet's appetite for energy ... will mean additional oil production will be welcomed and we'll find buyers for our output."

Think of the long-term, not an economy that in coming out of a recession but as the world starts to recover and the demand for oil increases - rents, property values will again increase. Maybe not like 2007 in Alberta but steady consistent growth that makes investors happy.

Radiofor the soul

Todd & Danielle Millar (Glenn Simon Inc.) — Mon, 09 Nov 2009 21:21:12 -0600

I was reading Dr. Demartini's Count Your Blessings. It's a really good self-help book for being appreciative of what you have even the bad things.

Once you can do this you'll notice your health getting better. For example the man with crippling arthritis never being willing to "stand" or "bend" to his employer's will. Does mental health affect physical health? You bet.

Anyway I'm getting off-track. I wanted to share the free digital radio station listed on the back of the book. HayHouseRadio.com is free for anyone. It's inspirational talk radio featuring top Hay House authors (like Dr. Demartini).

Some programs where a little much for me - I still don't believe in crystals but I found other programs very uplifting.

So give it a try!

How to keep investment real estate profitable in any economy.

Todd & Danielle Millar (Glenn Simon Inc.) — Mon, 09 Nov 2009 03:15:38 -0600

Wherever your real estate investment is located—provided you bought it at the right price and terms—there are many ways to keep your property profitable. If you analyze your real estate, update and improve your investment team, review your long- and short-term investment plans and stay focused on the end result; your real estate portfolio will be a rock solid fortress that can weather any storm.

Analyze

The first and most important thing is to carefully analyze your portfolio.

What properties are doing well?
Are there properties that are slowly leaking dollars like a dripping tap?
If so how can you fix them?

If you don’t know the hard numbers on your properties, then you are risking everything that you have worked for. Keep your budgets in line and carefully evaluate every purchase and renovation. Once you have a better idea of where you stand, you can start to recession-proof your properties. First, your customers are your tenants, so learn how to keep them happy and decrease vacancies. For example:

Provide Internet or free cable
Give lease incentives or rewards for rents paid on time, or even the best garden.

Increase your revenue by adding rental units to your properties or other moneymaking add-ons like renting garages separately, extra parking spaces or coin-op laundry facilities. You can also refinance your mortgages with longer amortizations, increase rents where reasonable or rent your properties furnished.

Evolve and involve your team

Is your property management up to par?
Are you getting discount rates for a big portfolio?
If you have few properties are they being managed in a way that will help you grow your portfolio?
Are their rates competitive and are they keeping your property in excellent resale condition?

Streamline your team. I don’t mean fire everybody and do it all yourself, but rather make your team out of the best players available in your area. Once you have the all-star team, get their input and advice, use their knowledge and experience to protect and improve your assets and your position in the market. Accountants can help you lower your taxes, lawyers can protect your assets, bookkeepers keep you aware of money liquidity and property management can up the cash output of your investment property.

Be aware

Be aware of longer-term trends and statistics. Don’t get caught up in the moment—especially when making decisions. There are both positive and the negative things that are happening in headlines. Take both sides into account and be realistic as you evaluate what’s really going on. Review your business plan both short-term and the long-term and adjust it as necessary. Don’t knee-jerk react, but also don’t drift back and forth without any solid goal in site. Have multiple investment strategies all with a clear exit in place.

This is not the first economic downturn the world has seen nor will it be the last. What is important is to mind your business and your properties to make them profitable no matter what comes your way.

Predicting Fixed Mortgage Interest Rates -Garth Chapman

Todd & Danielle Millar (Glenn Simon Inc.) — Fri, 06 Nov 2009 19:53:25 -0600

After scanning over my blog I realize we are on a lot of great mailing lists. Getting news from industry leaders is crucial to staying on top in any business. It's what separates savvy investors from "flying by the seat of my pants" investors.

One mailing list we are so grateful to be on is Garth Chapman's of Jencor Mortgages and Remasoft. Garth is a wonderful mentor to us and has helped us streamline our investments to both our and our joint venture partner's benefits. He knows real estate investing from all angles, as a successful investor, from developing a software system specifically for investors and as a mortgage broker.

An excerpt from his last mail-out:

"Here is a nice simple explanation of how fixed mortgage rates are tied to bond rates – and how to predict when they might be headed up or down.

Canadian 5 yr bond yields -.03bps to 2.73. The spread, based on the MERIX 5 yr rate published of 4.34% is 1.61. Just as a reminder, the floor and ceiling rates suggest the “comfort zone” (currently between 1.35% and 1.55%) where lenders want the spread to be.

If the “Rate Barometer” (which is the spread between the fixed 5 year rate and the 5 year bond yield) stays within the floor and ceiling range, then you likely won’t see a rate change. If the spread, dips below the floor for extended periods (over a week), then expect a rate hike.

And likewise, if the spread remains above the ceiling rate, expect a rate drop in the near future.

The yield, rate of return on your bond, can be read through a yield curve, which is the pattern of yields on bonds. This increase in bond yield is something to watch.

If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Ideally lenders are looking for a spread between 1.35 and 1.55."

Time Management Ninja Mom

Todd & Danielle Millar (Glenn Simon Inc.) — Tue, 03 Nov 2009 18:11:49 -0600

My son is getting bigger everyday. He's sprouted two teeth and loves to crawl all over the furniture. My worries have gone from, "Why is he crying all the time?" to "Why is he so quiet... What's he up to?"

As babies become toddlers they stop sleeping so much - 16 hours a day becomes 10 or less. What does that mean for a work at home mom? I've got to become a time management ninja. I'm not there yet. I can still be distracted by MSN.com when I should be doing the books or I'll get stuck in the internet pit of time wasting when I should be doing paperwork.

How do successful business moms do it? How do you teach your child everything he needs to know before kindergarten and still put in the 9,10,11, 15 hours days that the home office requires? Luckily my husband is a fantastic cook so he covers the kitchen.

I found one great blog, I'm sure there are hundreds but I really like the ideas in this one.

For example:

2. There’s a sewing book that is titled “Five, Ten, Fifteen Minutes to Sew” and the premise is that you divide your sewing into tasks that will take that long to do. When you have five minutes, grab something from the five minute list and so on. This technique is brilliant for work at home mums. For those moments when you don’t have enough time to work on your high priority tasks, know what you need to do that will take only a few minutes. Or can be picked up for a few minutes and then put back down. Filing, writing lists, planning posts, can all be done in short spurts of time.

It's pure genius! I've already started to do this and my twitching eye has calmed down considerably.

Check out more of this award winning Australian Blog

Will a Rising Canadian Dollar Help Homeowners?

Todd & Danielle Millar (Glenn Simon Inc.) — Mon, 02 Nov 2009 18:12:07 -0600

I'm on Peter Kinch's mailing list because you never know when you'll need a top quality mortgage broker and you can never get enough insight into mortgage interest rates.

Here is a recent mailout:

In case you missed it the following is a copy of the interview between Peter Kinch and Russell Byth that aired Sunday, November 1st on News 1130

Russ:

There's been a lot of talk recently about Canada's economic recovery and a key component of that recovery has been record low interest rates. So, does an economic recovery spell the end of low rates for homeowners?

On the line with me is best selling author, Peter Kinch with Dominion Lending Centres. Pete, what are your thoughts?

Peter:

Well Russ, there's no question that the Bank of Canada used 'Emergency Rates' to kick start the economy and once again we've seen that the housing market was at the heart of that recovery.

Russ:

So once the Central Bank feels the recovery is in full swing, will they start to raise rates?

Peter:

Technically yes - in fact, the Central Bank's main mandate is to keep inflation at about the 2% level. If inflation is below 2% they keep rates low to stimulate the economy and if it's above 2% they raise rates to cool it off.

Russ:

But in spite of signs that we are in a full recovery, inflation is still below 2%.

Peter:

That's right and mainly thanks to the strength of the Canadian dollar. In fact, the Bank of Canada is quite concerned that if the Loonie continues to gain on the US Greenback it could dampen Canada's recovery, which will serve to keep inflation below the 2% mark, thus resulting in the Central Bank continuing to keep the Prime rate low for now.

But in the meantime Russ, remember that the long term rates are governed by the bond markets and they are starting to factor in a recovery - so we will likely see a slight rise in the long term rates over that same period.

Russ:

Thanks Pete, something to keep an eye on. In the business centre, I'm Russell Byth.

Easter in December

Todd & Danielle Millar (Glenn Simon Inc.) — Sun, 01 Nov 2009 22:50:15 -0600

Last week, actually about 10 days ago I went shopping. I was looking for a gift for my friend's daughter's birthday. I walked into this very stylish downtown mall and was greeted by... Christmas music!

Throughout the shops you could hear the jing-jing-jingling of the coming festive season. For a second, I was lost in thought thinking"Wow where did November go?" only to be brought back to reality when I spotted all the Halloween decorations.

That's right, Xmas music - Halloween decorations.

It pays to be prepared. I read an article today about the increasing rate of business bankruptcies in the USA. Many commercial leases were being broken as the companies went under and were unable to fulfill their contracts. But at the same time there are temporary businesses looking for quick profits during the holiday booms. One such costume rental company in Edmonton is open for 2 weeks before Halloween and for a few days after.

Savvy commercial landlords offered short term leases to opportunistic business folk who only intend on riding the seasonal wave. What a sweet marriage for the two businesses. Many seasonal companies have trouble finding space to lease for the short term and these landlords were able to solve their problems and at the same time recoup some loses.

Here are the two lessons that I gleaned from my trip to the mall.

#1 It pays to prepare. Work your plan solidly. If that means buying an investment property, get out there and start your research now. The added knowledge will give you power when you are ready to buy.

#2 Look for solutions in would-be problems. The commercial property owners weren't happy about losing leases to bankrupt clients - but they looked at the challenge and rose to the occasion by meeting new client's needs.

In a world that is always two holidays ahead, make sure your business solutions aren't Easter in December.

"Take time to deliberate; but when the time for action arrives, stop thinking and go in." Napoleon Bonaparte I appreciate all your calls and emails. I'm looking forward to helping you put together your next deal.

Thank You,
Todd and Danielle Millar

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Steffany Hanley - Dare To Be A Champion

Todd & Danielle Millar (Glenn Simon Inc.) — Thu, 29 Oct 2009 01:45:13 -0500

Steffany Hanley, an incredible personal and performance coach, will be holding a Champions Seminar in Vancouver November 14th and 15th.

We've heard her speak before from REIN and been so impressed to the clarity she brings to reaching goals. She has some amazing success stories that will seriously give you goose bumps.

From her site :
"Ready to overcome obstacles, surge past plateaus and achieve new levels of success? Steffany Hanlen is a performance coach with incredibly special and unique knowledge and understanding of the “winning strategies” you need to know to succeed beyond your wildest dreams.

As a coach Steffany has worked with high-profile professional and amateur athletes, including NHL hockey players and Olympians, as well as singers, actors, ballroom dancers, business owners, CEOs, real estate investors, parents, hard-working “regular people (non-athletes)” and many others … and in each and every case her mission has been the same – to help clients expand and grow, overcome challenges, and achieve even greater success."

Click Here to read more!

How To Invest in Revenue Properties Without a Penny of Your Own Money

Todd & Danielle Millar (Glenn Simon Inc.) — Sun, 25 Oct 2009 20:00:06 -0500

Unique opportunity exists to own and invest in cash-flow producing income properties without putting up any money for the down payment.

Canadians with good credit and steady jobs are now in the driver's seat when it comes to investing in Edmonton, Alberta.

The current economic downturn is time to celebrate for savvy, forward thinking people who see opportunity amidst crisis. Owning a portion of a revenue property provides investors with a stream of cash flow and potentially large payouts all without the hassles of being a landlord.

"There are many frustrated Canadians wondering how to get involved in real estate investing. Seeing this as a market niche we started to research ways to help folks with little capital or experience get into what may be the best buyers market we have seen in a while.

I knew that there had to be a way for these would-be-investors to get started without them going into debt" said Todd Millar, investment director of Glenn Simon Inc.

This system allows investors to receive an equity position and cash compensation by holding the mortgage of a revenue property. "It's very simple.,” says Millar.

"Basically this program is suited for Canadians who have a good credit score, steady job history and not have completed too many prior real estate transactions (specifically mortgages)."

A typical structure looks like this, within a private investment program; Glenn Simon Inc. carefully selects a cash-flowing revenue property in an economically strong area of Alberta.

Glenn Simon Inc. provides all the capital needed to purchase and operate the investment, bringing years of experience and a proven track record to the table.

The investor takes the role of qualifying for and providing the mortgage in return receiving an equity position in the property and a cash bonus for each transaction completed. It's important to note, that all mortgages and property purchases strictly adhere to federal and provincial lending laws and are completely transparent.

"We are really offering a unique chance for the average Canadian to build a portfolio of real estate without using any of their money. It's a perfect route to get into the market with less exposure all the while learning about investing" says Millar.

Husband and wife team Todd and Danielle Millar, own and operate Glenn Simon Inc. The Millars are experts in the Edmonton real estate investment field and help people from all over the world safely and profitably invest in the Alberta region of Canada.

Stay variable or lock into fixed rate mortgage?

Todd & Danielle Millar (Glenn Simon Inc.) — Fri, 23 Oct 2009 19:58:08 -0500

This Globe and Mail article tries to answer the question burning in every mortgage owners mind, "Should I stay variable or lock into the fixed rate?" They end by saying it's up to you. Well, what should you do?

Canadians are enjoying the lowest interest rates in history. A few of my mortgages were at 1.65% for a while providing incredible cash flow after all other expenses were paid. But around the net and on the news we're hearing that rates will rise probably in June or maybe earlier. It all depends on the economy's health.

Generally speaking variable rates will do better for you in the long run. Now, the gap between variable and fixed is so large, you might get huge increases in rates and the amount your mortgage costs you every month.

There is no clear cut answer but wait and see. It all depends Canada's economic health in early 2010.

If the global economy recovery looks strong:

“could force the Bank of Canada to raise interest rates aggressively, driving variable mortgage rates higher, but leaving fixed rate choosers unscathed.”

but if we are all still wobbly:

“Low and steady inflation, taken with a fragile global economic recovery, points to the Bank keeping its commitment to hold rates steady through June 2010 (conditional on the inflation outlook),”. “There is also some risk to locking in as fixed rates could fall if the economy performs worse than anticipated.” Mr. Douglas Porter and Mr. Benjamin Reitzes BMO economists

As for me I can hold on until spring 2010 because the savings we are getting now at these rates are phenomenal. The best thing to do is find out your bank's stand on penalties for locking in mid-term and how they affect you in the long run.

Don Campbell on The Close

Todd & Danielle Millar (Glenn Simon Inc.) — Fri, 23 Oct 2009 02:15:16 -0500

Why cheap houses don't always mean good deals.

Keep investment real estate cash flow positive.

Todd & Danielle Millar (Glenn Simon Inc.) — Wed, 21 Oct 2009 18:35:46 -0500

In a recession it's easy to see that buying for cash flow is the only way to go. In a hot market everyone banks on equity. Which can be a very tenuous thing.

The most important thing is how much cash flow you are getting at different rates. We are seeing the lowest interest rates in history but when they rise how will your investment perform. Will it still cash flow at 6% interest? How about when vacancy rates increase and you get a drop in rents?

This is called stress testing your property. Although many people see cash flow at one point only - today's rates and today's rents the income will fluctuate leading to some unfortunate surprises.

What to do:

1. Do your property's income and expense numbers at a range of rates and of rents
2. Know the scenario your property will and won't cash flow
3. Have a good reserve fund to cover the skinny times.

You don't retire or get rich by owning property that takes money out of your pocket every month.

REIN on Facebook!

Todd & Danielle Millar (Glenn Simon Inc.) — Wed, 21 Oct 2009 02:13:33 -0500

Alberta REIN has a Facebook page with all the events, seminars and up to date economic information available for everyone. Take a look or become a fan to meet like minded investors.

I went and looked at some of the member's photos with the Real Estate Investing In Canada all around the world.

Good things come to those who read!

REIN on Facebook!

Todd & Danielle Millar (Glenn Simon Inc.) — Wed, 21 Oct 2009 02:09:51 -0500

Edmonton the city of entertainment

Todd & Danielle Millar (Glenn Simon Inc.) — Sun, 18 Oct 2009 23:30:36 -0500

I went to the EEDC website to get updated on statistics and the city's economic outlook (sadly not updated since May) but ended up getting sidetracked by events.

There is seriously a lot going on in Edmonton. Festivals, groups, fashion shows, city wide events there really is no need to stay at home being bored.

This month there are dozens of events happening this month lots are kid friendly and all look like a lot of fun. Enjoy!

We're all selling something.

Todd & Danielle Millar (Glenn Simon Inc.) — Thu, 15 Oct 2009 21:17:39 -0500

It's often said that we are all selling something. You may not be a salesperson by trade but even the act of getting married is selling yourself to someone.

Now that we can avoid the dreaded "Can I help you with something?" by shopping online, how does it affect those who sell? And those who buy?

"Stephanie Flanders asks her panel of top business guests about the fine art of salesmanship. Now we can all bypass those eager shop assistants and go online, are salesmen on the way out - or just getting a makeover?"

Listen here

Alberta #1 in Population Growth

Todd & Danielle Millar (Glenn Simon Inc.) — Tue, 13 Oct 2009 17:13:45 -0500

Even in a recession Alberta is still more attractive than the rest of Canada. The province's population growth has lead the country between April and June.

The reason is compared to the rest of Canada where unemployment rates are in the high nines Alberta still has a lot to offer with rates in the mid sevens.

Population growth is always a good thing, it increases housing prices, retail sales and when the economy picks up again a willing labour force. It can put a strain on the infrastructure but overall the effects are positive.

Rental Properties and Insurance Coverage

Todd & Danielle Millar (Glenn Simon Inc.) — Mon, 12 Oct 2009 20:17:52 -0500

If you've every played Cashflow you've probably got the "Natural Disaster/Toxic Pollution" card that wipes out your property unless you have an "All Risk Insurance" card and have been paying the $200 premium.

Image - lovelylisting.com

In Canada property insurance is structured under three types:

Standard - protects against "named perils" including such things as fire, lightning, windstorm, hail, theft, and specific types of water damage.

Broad- is a level up from named perils and is called "all risk" this includes such things as faulty workmanship and some types of wear and tear.

Comprehensive - provides all risk coverage to the dwelling and the contents

If you're renting your property you want to avoid Comprehensive as the tenant is responsible for insuring their own belongings. Although we recommend all our tenants have this insurance.

As housing prices rise and fall you must make sure that your insurance covers your property at the current value. If your house has increased in value but your coverage is to an outdated limit you may not be completely reimbursed to the value your property holds. Check with your insurance agent to make sure the values are accurate.

Let your insurance agent know if you have vacant properties. If you don't inform them you may not be covered for some types of damage. It may cost you extra money as a "vacancy premium" is often charged. However, that is the beauty of insurance as a few hundred dollars could save you tens of thousands.

Our insurance brokers have an incredible track record with us. We've only had to use them a few times but they have been outstanding. As with any service provider make sure your insurance company will give you the best value and service possible.

More Canadian specific insurance information Click Here