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 16th., 2014
Volume 17, Issue 2
Dear Friends and Partners,
If you’ve been reading our newsletter for more than a few years (we started it in 2005) you’ll remember how dire the early news headlines were. We started investing in Edmonton around 2001 and it was tough to find 'good news' stories then. As we edged into 2005 almost all the stories were good, and by 2007 it appeared everything was golden. Of course we all remember the global recession that followed.
Granted Alberta fared much, much better than other cities, provinces, heck - places, in the world. The "good news" articles are solid and so are the underlying economic fundamentals.
We DO have a unique and resilient economy, coupled with a balanced affordability rate - these things make Edmonton an excellent short and longterm investment.
What I DO want you to remember is that rates to go up, tenants do leave, projects get cancelled, terrorists set off bombs… And like all good things in life, there are up and down cycles.
When you buy correctly and are prepared to hold for the long-term if necessary, you will do well. There are many good properties out there now and with the right mortgage structure, renovations and plan in place, you can build a relatively ‘recession-proof’ portfolio. Get out there and do it!
South Central Edmonton: King Edward 4-Unit Cashflow
This property has front entrances for the 2 X 3BD main floor units and rear entrances for the 2X 2BD lower units. This property was built as a 4-Unit but has RF-3 zoning.
Lots of modern touches and very good square footage. Shared laundry down, 2 x double detached garages . Excellent access to UOA, downtown and the Whitemud.
Comes complete with great tenants making this a totally turn-key property for you. King Edward is a much sought after, mature area that will benefit further from the proposed LRT near Bonnie Doon.
HUGE upside potential due to the quality of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.
Purchase price: $705K
Total Investment: $171,400 K
Your Estimated 5 Year Profit $103,785K.
Your pre-tax Total ROI is 60% or 12% per year
These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, 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!
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Alberta economy hot but nothing like the boom of 2006-2007: BMO
By Mario Toneguzzi, The Calgary Herald, July 10th, 2014
CALGARY - Alberta’s economy is hot and inflation is clearly warming up, but we’re not yet at the point where massive upward wage and price pressure in the province will debilitate the economy, says a special report by BMO Capital Markets.
“In many areas, such as housing, commercial real estate and the labour market, the supply side has had much more time to respond to strong demand than during the overnight boom experienced through 2007 — and that might be a good thing,” said the report by senior economist Robert Kavcic. FOLLOW THIS ARTICLE
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Edmonton housing prices on the rise, report says.
By Andrea Ross Edmonton Journal, July 10th, 2014
EDMONTON - It’s a seller’s market in the city, as Edmonton’s growing middle class and strong economy have led to a boost in both price and demand for housing.
Condominium prices have increased the most, according to a report from real estate company Royal LePage. The average price of a condo in Edmonton has increased 7.8 per cent year-over-year to $236,429, while two-story homes also increased 3.8 per cent, to $372,112. Detached bungalows took a hit, dropping 0.2 per cent year-over-year to $350,401. READ MORE HERE
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Alberta leads country in job creation thanks to ‘perfect storm’ of economic factors
Edmonton unemployment numbers remain steady
By Mario Toneguzzi, Postmedia News, July 11th, 2014
CALGARY — Alberta has once again bucked the national trend and led the nation in job creation in June, according to Statistics Canada.
While overall employment dipped across the nation during the month, it rose in Alberta, although there was a slight downward tick in the Edmonton census metropolitan area.
Between May and June, employment in Edmonton dropped by just 200 on a monthly basis, but is up 31,000, or 4.3 per cent year-over-year, in the Edmonton CMA, the federal agency said on Friday. In Alberta, employment was up 0.4 per cent or 9,400 jobs from May, while it climbed by 3.7 per cent, or 81,800 jobs, from last year. READ MORE HERE
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I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.
“The only real failure in life is not to be true to the best one knows" - Buddha
Warm Regards,
Todd and Danielle Millar
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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 2010-2014 Top Ten Investment Towns of Alberta and Ontario.
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