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
November 2nd., 2015
Volume 19, Issue 7
Dear Friends and Partners,
There has certainly been a lot of change with the Federal election and the Alberta budget tabled earlier this week. Oil doesn’t seem to be improving and we’ve definitely sailed into stormy, or at least unpredictable weather. The best advice which we gave earlier still stands; batten down the hatches.
Investors should place close attention to keeping their units in good condition, quality tenants in place (renew leases) and actively market units while keeping expenses low. It looks as though residential real estate will continue on a downward trend, industrial/commercial will trend lower as some leases will be broken due to downturn in the industry. This will make it more challenging for banks to value and approve certain commercial real estate loans as they see more risk.
Downtown Edmonton continues to grow with new projects beginning, underway and a few coming to completion. Most of the money has been allocated so this growth will continue, privately funded projects may be mothballed until more stability in the market.
Opportunities are always around if you look hard enough. Residential and multifamily properties in the downtown core and around can offer good value. Commercial and office will be tricky to navigate for junior investors but offers some upside. Cycles tend to last 5-7 years, some longer.
Hang in there… for the long, longterm.
North West Edmonton: Canora 4-Unit Cashflow
Turbo charge your portfolio. This bright and open four-unit is listed as a side by side Duplex with condo titles (I interpret that to mean that the lower suites are non-conforming and not legal). 1997 built, located a few blocks from 107th it has good access to local amenities.Walking distance to schools, transport and close to downtown. This property has separate entrances to each suite; 2 X 3 bd and 2 X 2 bd, single garages, plus pad. This property was well designed for light and spaciousness, it’s in good condition.
This is a turn-key deal. Good access to downtown and in a rent-able, working-class neighbourhood.
Comes complete with great tenants making this a totally turn-key property for you. Canora is a mature neighbourhood that is desirable for tenants working in the Westend and downtown. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.
Purchase price: $664,000
Total Investment: $153,540
Your Estimated 5 Year Profit $89,900
Your pre-tax Total ROI is 58% or 11.7% 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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Gary Lamphier: Carlo Montemagno’s Plan to save the Alberta economy
By Gary Lamphier, Edmonton Journal, October 30th, 2015
The NDP government’s plan to revive Alberta’s struggling economy basically boils down to this: Let’s hope oil prices recover while we spend bags of money we don’t have on public infrastructure, with billions more aimed at juicing the growth of early-stage companies.
I hope the NDP approach works. Seriously. Short term, the options seem rather limited.
But here’s the thing. Real, sustainable economic growth only comes when the private sector is able to make products or provide services the world wants and needs, at prices that generate a healthy profit. Alberta used to do that. Now, not so much. GRAB THIS STORY
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NDP to table the largest deficit in Alberta history as provincial revenues plummet with oil prices
By Darcy Henton and Chris Varcoe, Postmedia News, October 25th, 2015
Lost in the hullabaloo over Rachel Notley’s NDP snuffing out the 44-year Tory dynasty has been the magnitude of the fiscal squeeze now facing the province.
The collapse of crude oil prices that had former Progressive Conservative premier Jim Prentice warning Albertans to brace for a $7-billion hole in provincial revenues will result in his NDP successors tabling a budget Tuesday that forecasts the largest-ever deficit in the province’s history.
Finance Minister Joe Ceci hinted this week the deficit will be just shy of $6.5 billion — nearly $1.5 billion more than Prentice forecast last March in a budget that was never passed. MORE HERE
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Edmonton home prices flat as sales decline
By Bill Mah, Edmonton Journal, October 2nd., 2015
Home prices in Edmonton held relatively steady in September despite nearly a double-digit sales decline, MLS figures released Friday by the Realtors Association of Edmonton show.
The average residential price for the Edmonton census metropolitan area last month was $368,874, down 0.75 per cent year-over-year. FOLLOW THIS ARTICLE
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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.
“Thinking will not overcome fear, but action will.” -W. Clement Stone
Warm Regards,
Todd and Danielle Millar
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P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.
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