The Waiting Game

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


July 29, 2016

Volume 21, Issue 3

Dear Friends and Partners,

Even if you try and avoid the news, its tough to miss the tension and turbulence globally. U.S. politics alternates top position with terrorist attacks in Europe. Sadly, the attacks are winning as they increase with atrocity and devastation. Europe is in a war, whether they acknowledge it or not. Some will argue that we are too...

War, terrorism, Brexits, oil, elections - influence one another. Local economies, currencies and economic platforms react and adjust. In our newsletter we focus on economic drivers by studying macro/microeconomics and global economic trends.

Well, the trend right now is a big, ugly war ahead. Some may call it something else, but that is what it is. You can focus locally and see how good it is, sure, but I think we’ll start to see changes in our neighbour countries that will affect us. This may bode well for financial gains in long-term but the short-term trade off could be tense, tighter and diminishing daily life, until global ‘peace' is restored.

**Summer is upon us. Our newsletter will take a break and enjoy the weather, resuming September 1st. Read our blog for  updates.**

South East Edmonton: Ekota, Legal 4-Unit Cashflow



Turbo charge your portfolio. For those wanting a low risk investment in a great area with 4 units under one roof - here it is. 4-unit each 1300 sq ft, steps from park and school. 4 minutes to Grey Nuns Hospital, 15 to UOA and down town.

This is property has many recent upgrades and is completely self contained - tenants pay all utilities. 4 X 3 bedroom units with 3 bathrooms, built in dishwashers and in-suite laundry. 1978 built, newer roof, some windows, kitchen and laundry upgrades.

Terrific access to local amenities in sought after Ekota. This property has 8 parking stalls. Purchase price to include reserve fund and light renovation budget to make it standout - rolled into mortgage. This is a turn-key deal. Excellent access downtown and in the highly rent-able neighbourhood of Ekota.

Comes complete with great tenants making this a totally turn-key property for you. Ekota is a mature neighbourhood that is convenient for tenants working in SE Edmonton. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Anthony Henday and Grey Nuns Hospital Edmonton.

Purchase price: $905,000
Total Investment: $205,200
Your Estimated 5 Year Profit $126,318
Your pre-tax Total ROI is 62% 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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Varcoe: Watching the pendulum swing on Alberta’s fragile economy

By Chris Varcoe, Calgary Herald, July 23rd., 2016

ConocoPhillips Canada will cut up to 300 jobs this fall, while Encana Corp. expects to spend an additional US$200 million on capital later this year to drill more wells.
Oil prices slip below US$45 a barrel on Friday, while Canada’s largest driller says it’s noticed a positive change in customer sentiment in the past six weeks.

Like a pendulum swinging back and forth, the Alberta economy seems like it’s moving in opposite directions on an hour-by-hour basis.

“Sentiment is quite unsure,” said economist Warren Kirkland of TD Bank, which issued a report this week on the state of Alberta’s recession. READ MORE HERE 

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Alberta’s economic downturn will be longest since early 1980s: TD

By The Canadian Press, July 18th, 2016

CALGARY -- A new report says Alberta's current recession is expected to shrink the economy by more than double the average of the past four recessions.
The TD Bank report released Monday said it estimates Alberta's economy will contract 6.5 per cent over 2015 and 2016, which would widely exceed the 2.7 per cent average retreat of previous economic downturns going back to the early 1980s.

The estimate came after TD tripled this year's expected GDP decline to three per cent, after factoring in the Fort McMurray fires and a higher than expected drop in industry activity.

"Based on our revised forecasts, the 2015-16 recession is likely to go down in history as one of the most severe using the GDP benchmark," TD wrote. GRAB THIS ARTICLE

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Paula Simons: New EI numbers paint perplexing picture of Edmonton economy

By Paula Simons, Edmonton Journal, July 22nd, 2016

Just how bad is it?
According to new Statistics Canada numbers released this Thursday, the number of Albertans drawing Employment Insurance benefits jumped by 21.1 per cent between April and May of this year. As of May, there were 77,800 people drawing EI in Alberta — up 58.6 per cent from May, 2015.

Here’s where things get a little more complicated.

Almost one-third of those new EI beneficiaries came from the regional municipality of Wood Buffalo, where the number of EI recipients jumped by a whopping 141.6 per cent, almost entirely as the result of the Fort McMurray fire.  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.

“In a sense, terrorism blossomed in the advent of television. Television promotes terrorism in religion and politics” -Marilyn Manson

Warm Regards,

Todd and Danielle Millar

Alberta This and That

Ottawa, Alberta politicians clueless on growing economy - “In speaking to entrepreneurs,” the minister added, “I’ll ask them do you want a tax cut or do you want more revenue in your business? Any day they’ll pick more revenue. If we can actually grow this economy, the possibilities are endless.”
And that’s where the cluelessness kicks in.
First, cutting taxes IS a way to increase revenue in a business. Indeed, it is the simplest and most direct way.
If governments take less of a business’ revenues through taxes, it immediately increases the revenue in that business.  Read more here

Trudeau fiddles while Alberta burns - "The longer Canada waits to build oil pipelines, the longer it will take for us to recover from the current economic downturn brought on by low world prices.
It should make Canadians’ blood boil to learn the federal Liberal government of Justin Trudeau is operating under the delusion no new pipelines are needed until 2025, so Ottawa has time to dither." Read more here

Do you have a HELOC on your home, vacation or rental property? - "If you have a Line of Credit (HELOC or LOC) on your property you are paying a much higher rate of interest to the bank.  Why not put some of that money in your own pocket instead of in the bank's? Your savings will likely be in the range of 1% or more of the outstanding balance.  That would amount to $3,000 per year or more on a $300,000 HELOC.

So let’s take a look at the details and at my philosophy around this.  I have split my thinking into two types of debt for purposes of this post." Read more here

Fort Edmonton Park Revitalization

The facelift of Fort Edmonton Park hopes to increase tourism and add more permanent jobs in a floundering economy. $33.5 Million will make the very educational park a year round facility.

I've been there quite a few times with my children. From the actual Fort to the livestock to the currency and importance of the fur trade we learned so much about Edmonton's history.

 Read more here

Cloudy with a chance of gloom

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


July 15th., 2016
Volume 21, Issue 2

Dear Friends and Partners,

The tea leaves show a continued gloomy outlook for Alberta. For my two cents worth, I’d say Q3 of 2017 should be the turn around point unless oil goes up and gets us out faster. No real surprise there. We’ll most likely see the period of Q4, Q1and Q2 to be toughest for renters and job seekers. My mantra of 'prepare for the worst…’ should be taken to heart concerning tenanting and managing rents for the winter ahead.

And for those looking to buy…? The industrial/commercial sector is pretty beat up. If you are good at vetting tenants or have a good agent to do so, you can find a deal in the Nisku area with over 80 vacant properties there alone. You need the tenant (or the ability to find a tenant) if you plan on going out for financing. A strategy is to buy (or offer) at a reduced price now and vet your own tenant, then go for financing to extract capital after lease is in place. This is definitely not for the novice, but can be lucrative nonetheless.

For residential and commercial multifamily in Edmonton, the deals are around but you still have to hunt for them and keep a realistic expectation of rents. An upside remains; low mortgage rates.
Stony Plain: Legal 4-Unit
Turbo charge your portfolio. For those wanting to explore a little bit outside of Edmonton, visit Stony Plain - 30 minutes away. Great area, 4-unit, across from the park and near the centre of town.

This is property is in great shape and boasts 4 X 3bedroom units all with in-suite laundry. 1978 built, newer roof, some windows, kitchen and laundry. Terrific access to local amenities in sought after Forest Green.

 This property has a massive lot and room for RV parking. Purchase price to include reserve fund and light renovation budget to make it standout - rolled into mortgage. This property shines! This is a turn-key deal. Excellent access downtown and in the highly rentable and desirable neighbourhood of Forest Green.

Comes complete with great tenants making this a totally turn-key property for you.  Forest Green is a mature neighbourhood that is convenient for tenants working in Stony Plain or Edmonton. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Stony Plain's growing status of a ‘bedroom community’ to Edmonton.

Purchase price: $635,000
Total Investment: $151,840.
Your Estimated 5 Year Profit: $91,074.
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!

=========================

New economic forecast suggest gloomy times to continue in Alberta

By Keith Gerein, Edmonton Journal, July 13th., 2016

The second half of 2016 will fail to bring much relief to a sour provincial economy, new economic forecasts revealed Tuesday, while noting the energy and housing markets show mild signs of recovery.
The latest quarterly outlook from ATB Financial offered another gloomy prognosis for the province, warning of continued job losses in the oil sector this summer that will push the unemployment rate above eight per cent.  READ MORE HERE 


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House prices post biggest monthly rise in a decade

By House Price Data Centre, Globe and Mail, July 13th, 2016

June showed the largest monthly rise in home prices in Canada in a decade, rising 2.3 per cent over the previous month, according to the latest Teranet-National Bank House Price Index. Year over year, prices are up 10 per cent. All markets except for Calgary and Edmonton tallied gains above the historical norm.
"What is even more striking is that this surge occurred after strong gains in the previous months. As a result, on a year-to-date basis, home prices are already up a whopping 6.8 per cent, well above the historical average of 4 per cent for the first six months of the year," said National Bank senior economist Matthieu Arseneau. — D'Arcy McGovern  GRAB THIS ARTICLE


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Bank of Canada’s Poloz delivers cautiously optimistic update on Canadian economy

By Andy Blatchford, The Canadian Press, June 16th, 2016

OTTAWA - Bank of Canada governor Stephen Poloz says the country's economy is finally making progress after hobbling through the effects of the slow U.S. recovery, feeble exports and a stubborn commodity-price slump.

In a speech Wednesday, Poloz said while the economic situation remained complicated and uncertain, he was confident Canada was emerging from its stretch of slow growth.

Poloz pointed to signs that Canada is benefiting from a stronger U.S. economy, a robust level of household spending and a rebound in many non-energy export categories.   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.

“I’d rather attempt to do something great and fail than to attempt to do nothing and succeed.” -Robert H. Schuller

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 daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

Turn it off

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


July 1st., 2016
Volume 21, Issue 1

Dear Friends and Partners,

Happy 149th Canada!

After the surprising outcome of Brexit last week, the sudden withdrawal of Boris Johnson in the Tory leadership race and the terrible attacks at Istanbul airport you bet Canada looks pretty calm. We certainly have our own problems be they political, economical, environmental or even extreme weather; the vast majority of Canadians have it pretty good. Let’s remember that (and the improvements we need to make) while we celebrate this Canada Day.

There certainly is a lot of opinion on which way oil is going. I had a good chuckle when I read ‘5 reasons why oil is going up’ right next to ‘Oil is still heading to $10 a barrel’. One thing is certain, they both will be correct at one time or another. Invest for the longterm and remember to breathe in between.

One thing that I’ve been thinking a lot about lately is how fast paced our ‘good life’ in North America is. I returned mid June from a business trip to Europe. I toured factories, breweries and visited a selection of investment properties over 3 countries. What really struck me (as it does every time) is how productive and relaxed people are.  Of course this isn’t the same for all countries and lines of work, but generally people know how to ‘turn it off’ at the end of the day. That means that they go to work and do a good job, finish and then spend more time engaged with family, friends and community be it shopping or just living.

That’s a big contrast to our way of life here and it bears consideration… I’ll continue writing about this and welcome your comments on our blog. Find the balance.

Stony Plain: Legal 4-Unit
Turbo charge your portfolio. For those wanting to explore a little bit outside of Edmonton, visit Stony Plain - 30 minutes away. Great area, 4-unit, across from the park and near the centre of town.

This is property is in great shape and boasts 4 X 3bedroom units all with in-suite laundry. 1978 built, newer roof, some windows, kitchen and laundry. Terrific access to local amenities in sought after Forest Green.

 This property has a massive lot and room for RV parking. Purchase price to include reserve fund and light renovation budget to make it standout - rolled into mortgage. This property shines! This is a turn-key deal. Excellent access downtown and in the highly rentable and desirable neighbourhood of Forest Green.

Comes complete with great tenants making this a totally turn-key property for you.  Forest Green is a mature neighbourhood that is convenient for tenants working in Stony Plain or Edmonton. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Stony Plain's growing status of a ‘bedroom community’ to Edmonton.

Purchase price: $635,000
Total Investment: $151,840.
Your Estimated 5 Year Profit: $91,074.
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!

=========================

Alberta will stay in recession this year before rebounding in 2017, Conference Board of Canada forecasts
Spring provincial outlook says real GDP will drop 2% in 2016 and rise 2.5% in 2017

By Larry MacDougal, Canadian Press, June 13th., 2016

Alberta's economy will remain in recession this year as the province struggles with its worst downturn in three decades, but there is a recovery on the horizon, according to the Conference Board of Canada.
In the federal research organization's spring provincial outlook, released on Monday, analysts predict Alberta's real GDP to contract by two per cent for 2016.

"Business investment in the oil and gas sector fell by $17 billion last year and, with oil and gas prices forecast to remain low, a recovery in 2016 is not in the cards," the report says. 

READ MORE HERE 


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Oilpatch showing signs of life after string of deals
Recession isn’t over in the energy sector, but the mood is changing

By Kyle Bakx, CBC News, June 15th, 2016

Renewed interest from investors is spurring optimism in the oilpatch and helping at least one Calgary oil company pull itself from the brink of bankruptcy.
A few weeks ago, Penn West warned it may default on its debt.

The Calgary-based oil company was struggling to turn a profit. Its production was dropping, its shares were falling, and its long-term debt was nearly four times higher than its worth on the Toronto Stock Exchange.

No wonder some people were starting to write off the company.  GRAB THIS ARTICLE


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Brad Wall Says oil and gas is losing the battle to environmentalists

By Ian Bickis, The Canadian Press, June 8th, 2016

CALGARY — The energy industry is losing the public relations battle against environmentalists and needs to redouble efforts to get out its side of the story, Saskatchewan Premier Brad Wall said Wednesday.
"Today there continues an existential threat to this industry,'' said Wall.

"It's posed by ... some who just aren't that comfortable that we have all this oil and what oil might mean. And it's also posed by some who just want to shut it down completely.''

   FOLLOW THIS STORY


 ===============

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.

“Life is really simple but we insist on making it complicated.” -Confucius 

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 daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.