Edmonton Real Estate Investor: January 2016

If you really want to see what's going on in Edmonton you can take a look at the Citizen Dashboard. It covers transportation, livability, environment, urban form, economy and finance.

Not to much to complain about I would say. View slideshow here

Here is a cool video of a 100 year old man who concisely reflects on his 75 years in the real estate market JUMP

Owning a company called Alberta Oilsands Real Estate you'd think the fall of oil would be nerve wracking. Well it is. It's not the first time we've been through a recession - in fact it's my third. No matter how many you go through you don't enjoy them, but you see the possibilities.

I remember in 2007 watching a young Realtor on TV saying "we've never seen this in Alberta". (I thought maybe not the 20 year olds) We ARE used to this in Alberta. It's kind of part and parcel with living in a commodity driven province.

Most Albertans will tell you to put funds aside for the next downturn and don't over extend yourself. When you get to the really savvy Albertans they will tell you "Don't waste a good recession"

It's a time for re-evaluation and re-development. For example giving out of work oil geologists and engineers funds to start new green companies. It's a time to change your focus and redirect your energy, open all the doors that you never looked in because oil was $100 a barrel.

Alberta IS about oil but that's not all it's about. Todd and I talked about this recently if the oil were gone would Edmonton still be a great place to invest in? YES. The population is growing (not at record amounts but its moving), there are world class universities, great innovation and a lot entrepreneurial spirit.

Todd Hirsch wrote about all the economic juju Alberta has aside from oil. You must read this.

Alberta's not going to close its doors and shut down. We might just get new better doors.

There is a big downturn coming but it will turn around eventually - "We need to take a much more aggressive stance and make sure this industry, which has been our bread and butter in this province for so long, needs to continue to be invested in and be competitive at those lower prices," (Edmonton Economic Development Corporation CEO Brad Ferguson) said, adding even if oil ends up at less than $20 a barrel, it still promises to be a money-maker for provincial coffers." Read HERE

Notley rethinking the budget to create jobs and stability for Albertans. There is a great video here too of Brad Ferguson - JUMP

Yes unemployment is rising, housing prices are dropping. It's to be expected. For investors the question is how to make this an opportunity for you - HERE

Liberals looking at Alberta because a weak Alberta is a weak Canada - HERE

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 15th., 2016
Volume 20, Issue 1

Dear Friends and Partners,

I hope that you enjoyed your break over the holidays. I’ve heard many conversations at home, events and socials where the talk varies from the Chinese economy to death of oil. Most of the conversations are gloomy, and why wouldn’t they be - it’s a gloomy time in Canada.

My American friends seem more optimistic, while being cautious. Friends in the EU are concerned about terrorism and whether the UK will dump the Euro, triggering a decline. I’m sure that in your circle of friends, you’ll find different opinions too.

Right here in Canada people speak with conviction whether they have insight or just experience to share. Bottom line = No one can predict the future.

As I’ve said for over a year, we have tough times ahead; it’s time to make well calculated financial decisions. Remember, there are many strategies to employ during a down-turn that can be very successful with both paper assets and bricks and mortar.

Stay calm, mind your assets, take the news with a grain of salt and your eyes open and do remain in action.

South Central Edmonton: Hazeldean 2-Unit Cashflow

Great, 1200 sqft bungalow with suite; a winner to add to any portfolio. 1957 built, located a few blocks from 99th St., on an inner road insulated from traffic. Terrific access to local amenities in trendy Hazeldean. Walking distance to schools, transport and close to downtown. This property has separate entrances to each suite; 1 X 3 bd up and and 1 X 2 bd, there is also a double garage and small driveway.

This property has a tried and true layout and was built to last. Included in purchase price is an estimated $30K in renos to legalize suite and make the property shine! This is a turn-key deal. Good access to downtown and in a highly rentable and desirable neighbourhood.

Comes complete with great tenants making this a totally turn-key property for you. Hazeldean is a mature neighbourhood that is desirable for tenants working in the South 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: $380,000
Total Investment: $90,120
Your Estimated 5 Year Profit $51,057
Your pre-tax Total ROI is 56%

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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The death of the Alberta dream
Large-scale layoffs, empty office towers, falling house prices: Alberta has been gutted by the glut.
By Jason Markusoff, Maclean’s, January 6th, 2016

Late last year, Brandon MacKay listed his Kawasaki dirt bike for sale on Kijiji, the online classifieds site. It was the only treat the 25-year-old had given himself in three years living in Fort McMurray. The rest he’d spent on supporting and visiting his wife and kids in Pictou County, N.S. But in crafting the ad for the bike—$4,400 or best offer—MacKay did what any sales agent would advise against: he revealed his desperation to sell. “I lost my job and am in need of money for my wife and kids for Christmas.” GRAB THIS STORY

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Alberta needs an oil price "sweet spot"

By Kevin Maimann, Edmonton Sun, January 6th, 2016

An oil price "sweet spot" - not another boom - is what Alberta's economy needs, according to ATB Financial's chief economist.

Todd Hirsch said the ideal price for oil would be $65-70 per barrel.

"I know most people in the energy sector would say 100 is the sweet spot. But I actually think that something counter-intuitive happens when oil prices are too high, and that is the petroleum sector turns into this sort of black hole of gravity that pulls everything into its orbit - labour and office space and investment capital.

"It's really difficult for other non-energy sectors to do well when the energy sector tends to be pulling everything in," he said. READ MORE HERE

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Alberta’s economy forced to ‘recalibrate': economist

By CTV staff, CTV News January 4th., 2016

Low oil prices took a toll on the Alberta economy in the latter half of 2015. But the price of crude is forcing a "recalibration" which will better prepare the province's petroleum sector for when oil prices eventually rebound, says one economist.

Low oil prices have resulted in mass layoffs in the oilpatch.

In July, 2014, a barrel of crude was priced at just over US$100 a barrel. It now sits below US$40.

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.

“We’re still in a recession. We’re not going to get out of it for a while, but we will get out” -Warren Buffett

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.

Every January first my family makes a dream board. They encompass all the things we hope to do in the upcoming year. From our kid's "running as fast as a Power Ranger" to our mature "eating healthy, delicious food".

Dream boards are so much fun to make. They erase the anxiety that comes at the beginning of a new year and replaces it with positive expectations and focus.

We do a business one as well and they are empowering to look back on. From planning for one property to the portfolio we hold now. It's amazing but over the last 15 years we've reached 75% of the goals we wrote down. Not necessarily in the year we anticipated to reach them but it does happen. Your goals are usually met when you can handle them.

So by all means do your goal sheets, write specific tangible goals and see where you go.

"When people tell you that they hope you reach your potential, they are usually talking about the future. But the best use of your potential is not in the future. It's now. Because your potential is just another word for your hidden, under-utilized talent. And the best use of your talent is right here, right now. " Steve Chandler