Waves we must ride

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


January 31st., 2015
Volume 18, Issue 2

Dear Friends and Partners,

Wringing your hands over low oil prices? Fair enough. The tone of the media is certainly off to a gloomy start for 2015.  It’s looking like we will have a good buyer’s window for Q2/Q3 as oil prices stay down. This is great news for long-term investors as well as those looking to strategically build up their portfolio; not such good news for sellers. You can hear Don Campbell’s take on oil prices here.

In a recent economic update Don Campbell joked about the tongue-in-cheek abbreviation emerging on social media:

 F.W.F.A.Y.S. = Follow Wrong Feed And You're Screwed.

That speaks to the concern of getting bombarded with negative news and following the spiral of depressing messages downward. It’s crucial to remain informed and have a balanced opinion of what is going on.

Personally, I read and listen to people that deliver the facts in as much of an unbiased way as possible. I also tune into stations that ‘report’ more than they ‘spin’ media messages. Still, some days it's tough and you need to unplug and/or get a dose of something positive (Danielle likes Hayhouse) to counter balance.

 Central Edmonton: Inglewood 4-Unit Cashflow

Turbo charge your portfolio. This 1977 built Side X Side Duplex with fully finished basement suites is located a few blocks from the old municipal airport, which is to be redeveloped into an urban living/green space. Inglewood offers easy access to Downtown, Grant MacEwan and Yellowhead Highway as well as many parks and schools to enjoy in this desirable, mature neighbourhood.



This property has front entrances to each side of the 2 X 3BD halves.  This property was built as a duplex and features 2 x 1BD (non-conforming) basement suites. Slated to renovate and modernize to improve value and rent-ability. This will become a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and parks.

Comes complete with great tenants making this a totally turn-key property for you. Inglewood is a great mature area that is a desirable for tenants working in the city or attending Grant MacEwan. 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: $679,000
Total Investment: $158,900
Your Estimated 5 Year Profit $96,725
Your Estimated 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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Simons: In spite of lower oil prices, Edmonton economy still chugging along

By Paula Simons, Edmonton Journal, January 10th., 2015

“The cyclical collapse of oil prices is as predictable as death. We all know we are going to die. The only surprise is when.”

— Former Alberta finance minister Ted Morton in the Globe and Mail.

EDMONTON - Through Edmonton, a cold wind is blowing.
Not the kind Environment Canada predicts. This is the kind of wind chill forecast that gives people the financial shivers.

Oil prices have plummeted to $48 a barrel. The provincial government has changed its budget projections from a $1.5-billion surplus to a $500-million deficit. Oil producers are starting to talk about layoffs.

It’s the most serious fiscal circumstance we’ve seen in a generation in this province,” Jim Prentice said Thursday.   FOLLOW THIS ARTICLE

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Alberta cannot just sit and wait for the next oil boom

By Andrew Leach, Globe and Mail, January 23rd, 2015

That Alberta is dependent on its resource sector is hardly news – the province has long relied on both the economic activity and the direct revenue from royalties and land sales to underpin government budgets.

However, to listen to many opining on Alberta’s finances and offering solutions to our fiscal “crisis,” you’d think that Alberta was more dependent on resources than it has ever been – and that’s not at all the case.

Alberta’s government revenue story is best summed up by three words: growing; cyclical and diversification. For that story to continue, however, Alberta is going to have to do a lot more than pray for another oil boom to come along.  GRAB THIS STORY


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Will oil’s big drop pop Canada’s housing bubble?

By Megan McArdle, Bloomberg News, January 27th, 2015

If you watch any amount of HGTV — which is to say, if you are a middle-aged married person — then you’ve probably noticed something funny: A lot of the people on shows such as “Property Brothers” seem to have Canadian accents. And you’ve probably noticed something else a bit funny:

Those people are paying a heck of a lot for claustrophobic row houses on so-so streets.  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 way to get started is to quit talking and start doing."  - Walt Disney

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.

Let your imagination take the tour

Edmonton mature neighbourhoods are revitalizing at a great pace.  You can see a lot of the old bungalows and military housing replaced by big beautiful houses all around the city.

"From straw-bale insulated homes to extremely narrow, yet spacious 1,200 square foot homes, the tour looked at several examples of infill homes in mature Edmonton neighbourhoods including Bonnie Doon, Westmount, Riverdale, and Queen Alexandra." Read More


IDEA (Infill Development in  Edmonton) held a tour on Saturday to showcase some of the most impressive infills. You can view the slideshow and even sign up for the follow up (Jan 27) workshop here

The upside of the downslide of oil

 In Alberta we are used to oil's ups and downs, however, it still causes a lot of emotional turmoil.   There are upsides to the lower costs of oil including easing the strain on short staffed industries, time to build infrastructure and giving workers a chance to re-educate.


CBC highlights the silver lining to lower oil

and the Mayor of Fort McMurray has some insight:

"When you go through a slowdown as a municipality, we’re grateful for them….We actually get to catch up on these things that we fell behind on." Fort McMurray Mayor Melissa Blake

"She says for those who make Fort McMurray their home the latest bust cycle will help rein in the high cost of housing and allow small businesses more opportunity to build, grow and find much needed staff."Read more here

A warning to Female Realtors

Female Realtors in Toronto please be careful meeting that "perfect" client. It might be  much more dangerous than just a waste of time.

"Warning! Fake client trying to lure agents to properties.
Industry leaders are cautioning agents working Toronto’s west end, warning them about a seemingly ideal client intent on luring them to vacant properties.

In Etobicoke, this individual is posing as a buyer and is targeting female agents, aiming to find them alone at a vacant property. The Toronto Real Estate Board released a member alert via its intranet, detailing the attempts made on at least five women in a single office.

The individual claims to be a doctor relocating from British Columbia, and is looking for an $800,000 home for his wife – a fellow doctor – and their two children.

The deception is a reminder of the tragic kidnapping and murder of a real estate agent in Arkansas. The man arrested for the crime said he targeted the agent “because she was just a woman that worked alone, a rich broker.”

News of the scam came to light when one female agent told her colleague that she received the same request from a similar buyer. That interaction, she said, turned sour and the buyer began harassing her with phone calls and rude text messages.

The agents looked further into the individual’s story, and found that no hospitals – whether downtown or in Etobicoke – were planning to hire a doctor by the name the individual provided. Read More"

Oil Woes

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

January 14th., 2015
Volume 18, Issue 1

Dear Friends and Partners,

2014 feels like a blur to me. The exception was where unforgettable memories were made; truly engaging conversations, planned adventures and the spontaneous ones that happened in between.

So, I have my business goals, my health goals, my financial goals and now I’m working on my ‘crazy fun and memorable goals’. It's just too hard to plan spontaneous. What about you? Do you have a list of FUN things to do in addition to the serious goals, have you found a way to make the serious goals fun? Share them in an email, post to our blog or a link to yours.

Did you notice the falling oil prices? Yeah, I meant that sarcastically.

It’s a peculiar shift to go back and read the news from a few months/years ago when oil prices were up. The general worry was how BAD the oil sands are and how we collectively ‘must' slow, correct, stop, monitor, penalize, cancel (to various degrees) oil production. As soon as oil starts to tank, the same reporters sing a song of woe about how the goose is dying, heck you’re in the kitchen sharpening the knives or at least across the road badmouthing how bad that goose is…

Nonetheless, we’ve seen a sharp downfall in crude prices. My take is that barring a series of major geopolitical events, such as what happened last week in Paris, economic downturn in U.S.A and/or China. We will see a rebound sometime later this year. Not to where it was, but hopefully over $60/b. The biggest factor is emotional, what will WE, the global community,  feel like in 2015? Scared, Rebellious, United? This will play a big role in where oil goes.

Softer housing prices for 2015 in areas that rely on oil and gas production is very likely. That can mean a good buying opportunity for long-term investors. Flatter prices will inevitably frustrate those that wish to sell. Looking at the current situation and economic fundamentals in Edmonton, AB, the housing market should remain stable - but no one can ever forecast 100% accuracy. Alberta, specifically Edmonton, remains the best spot in Canada to invest; however it goes without saying that risk is consistent everywhere.

Building a portfolio than can weather up and down cycles is key when buying.

Do some reading:
RBC’s well laid-out Housing Report PDF
CMHC’s report

South East Central Edmonton: King Edward Park 2-Unit Cash flow 

Turbo charge your portfolio. This 1969 built Side X Side Bungalow with fully finished basements is located a few blocks off Whyte Ave. in King Edward Park. Easy access to Downtown, UOA and Wayne Gretzky as well as many parks and schools to enjoy in this neighbourhood. This property has front entrances to each side of the 2 X 5BD halves.  This property was built as a legal duplex and has substantial renovations done throughout, finishing the basement with bedrooms and kitchenettes. No repairs are needed; this is a turn-key deal. The property has a double car garage and driveway. Excellent access to downtown, transit and Mill Creek Ravine.

Comes complete with great tenants making this a totally turn-key property for you. King Edward Park is a great mature area that is a desirable for tenants working in the city or attending U.O.A.. 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: $685K
Total Investment: $158,330K.
Your Estimated 5 Year Profit $88,418.56K.
Your pre-tax Total ROI is 55 % or 11% per year

These 2 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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Energy economist Peter Terzakian takes a bullish view on Alberta oil

By Gary Mason, Globe and Mail, December 25th., 2014

In your travels around the world, what do you hear most often about Canada?
“It’s cold in Canada, isn’t it?” is the universal conversation opener. Responding to the stereotype becomes annoying after countless meetings abroad, but I don’t mind when put in a global context. At least I don’t have to answer to questions about civil war, corruption, political instability or other domestic nastiness that is so prevalent in other countries. People see us as a very safe place with a lot of integrity. Yet from a business point of view, those who sit on the other side of the table view Canada as an unknown expanse. They always want to know about Canada in the context of the United States – a free-market point of reference they understand.  FOLLOW THIS ARTICLE

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Ewart: Oil price rout dominates energy sector

By Stephan Ewart, Calgary Herald, December 27th, 2014

"The chill of winter hasn’t saved Canada’s booming oil and gas industry from “a good sweating” as the year comes to an end.

The top story in the Canadian oil and gas industry in 2014 wasn’t even on the radar in mid-June when West Texas Intermediate crude was trading for more than $107 US a barrel. Then, with little warning, the price of oil plunged nearly 50 per cent in six months.

The far-reaching implications of the oil price decline — from spending in the oilpatch and the falling price of gasoline to the value of the dollar and the performance of the stock market — shows up repeatedly in my choices for Top 10 stories in the energy sector in Canada from the past year."   READ MORE HERE

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Calm before the storm in Alberta?

By Mario Toneguzzi, Calgary Herald, January 9th, 2015

Is this the calm before the storm for Alberta’s labour market?
One national economist was speculating that on Friday as Statistics Canada reported that both the Calgary region and Alberta saw employment growth in December while the rest of the country shed jobs.

In fact, Alberta’s 2.9 per cent hike in employment from a year ago was the best in the country.

Robert Kavcic, senior economist with BMO Capital Markets, said the employment situation is “likely to change in the coming months as the steep slide in oil triggers a wave of cost cutting across the energy sector.”

He said it will take some time for unemployment rates in Calgary and Edmonton to rise in response to the oil price shock.  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.

“Adversity causes some men to break; others to break records."  - William Arthur Ward

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.

2015: Alberta and Futurist Forecast

After a wonderful few weeks off. We come back to oil prices still falling. I went to the pump and had a moment of glee when I saw the price at $.72 per litre, then I realized the impact on me and Albertans as a whole.

This isn't the first time in Alberta has ridden a roller coaster and it won't be the last. In fact it may not be that bumpy at all.

Low gas prices are still nothing to take lightly. Here are some big risks to the Canadian economy JUMP

A Futurist forecasts the unexpected. One of them isn't a Hoverboard.... HERE


I’m not a fan of Maclean’s overall, but there are of course some good opinions and ideas inside the magazine. There are far too many charts here to get an idea of anything, but it is still worth looking through and examining key charts that paint a picture of Canada and your province. JUMP HERE