Holding Steady

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


April 15th., 2016
Volume 20, Issue 7

Dear Friends and Partners,

Q: What are Mcdonald's employees now asking customers? 
A: Can you afford fries with that?

Ok, I know, bad joke. We’re seeing a small percentage of tenants not renewing their leases because they are looking for something cheaper. Guess what we’re seeing with new applicants?  A percentage of them moving to a unit with lower rents. This makes economic sense for some.

When we started this decline we talked about preparing for a slower market and how to manage vacancies, now that we’re in the middle of it I think prudence is paying of for those that applied it. Matching market rents,   ensure units are looking good and using a plethora of ways to advertise is essential.

Keeping communication open with tenants is important too so that you can retain the good ones. During a downturn, renovating your units can be more affordable and is a must for staying competitive in the market.

Bonnie Doon: Side by Side, 4-plex Conversion - Cash-flowing diamond in the rough

Turbo charge your portfolio. Great, soon-to-be 4-plex (side by side duplex style) is 7 minutes to downtown; in the heart of Bonnie Doon. I won’t lie, it’s a bit ugly right now and that’s where the opportunity is. This is a renovation deal where we use PPI to add a suite and improve this building. 1971 built, with good bones. Terrific access to local amenities in sought after Bonnie Doon.

We will add new furnace, windows, full upgrades, fire prevention system and complete suite. This property has potential for 4 X 2 bd suites. Includes a double garage, pad and large lot. Purchase price includes reserve fund and large renovations put into mortgage, to make the property shine! This is a turn-key deal. Excellent access downtown and in the highly rentable and desirable neighbourhood of Bonnie Doon.

Comes complete with great tenants making this a totally turn-key property for you.  Bonnie Doon is a mature neighbourhood that is convenient for tenants working downtown and attending UOA. 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 includes $100K in renovations.

Purchase price: $625,000
Total Investment: $149,170
Your Estimated 5 Year Profit $88,841
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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Edmonton house prices hold steady despite economic downturn

By Gordon Kent, Edmonton Sun, April 4th., 2016

Edmonton-area home prices rose slightly in March compared to the same month last year despite Alberta's economic downturn, new Realtors Association of Edmonton figures show.

The average home in the region sold for $379,524 last month, up nearly two per cent from $372,289 in March 2015, according to statistics released Monday. READ MORE HERE 

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Varcoe; Miserable Alberta recession no match for 80’s upheaval

By Chris Varcoe, Calgary Herald, April 5th, 2016

If you’re a fan of losing sports squads — hello Toronto Maple Leafs, Chicago Cubs or Cleveland Browns — you might be compelled in some dark moments to compare just how bad things are today with the past.

It might be masochistic, but looking back on a losing streak is often the only way to see if the situation is truly as painful as it seems, or if there’s a way out.  GRAB THIS ARTICLE


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Oil and gas sector says investment will drop by $50B
Canada’s energy industry says it’s facing its biggest drop ever in capital spending

 By Tracey Johnson, CBC News, April 7th, 2016

Capital spending in Canada's oil and gas industry will drop by more than half — $50 billion — by the end of 2016 as compared to 2014, according to a forecast released by the Canadian Association of Petroleum Producers.
In 2014, capital spending in the oil and natural gas sector amounted to $81 billion.

In 2016, that number is set to drop to $31 billion, a 62 per cent decline, as companies continue to cut back because of persistently low energy prices. FOLLOW THIS STORY

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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.

“You’ve got to stay strong to be strong in tough times.”  -Tilman J. Fertitta

Warm Regards,

Todd and Danielle Millar