Invest In Edmonton
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- Last of the Wild and Free Alberta Assumables ?
In Alberta we've been blessed for a longtime time with being able to assume properties without qualifying for the mortgage.
For the past two years I've seen banks gradually tighten up their lending policies and require buyers to qualify for some assumable mortgages. In essence where we take over the existing mortgage, but still need to prove our repayment ability and that our credit is in good shape.Last June TD announced that they would cease allowing their mortgages to be assumed, and they have. A few other lenders followed suit; Rezmor and Scotia bank for example.February 26th 2008, RBC joined up stating that they too would require full qualifying.I have successfully used Agreement Of Sales in Alberta and Ontario when the market is favorable. Of course, there are many unique strategies to use as well as, rent-to-own and agreement of sale to name a couple.If you currently have deals tied up with RBC that are assumable, I believe that they will still honor them if they came in with conditions removed before 2/28.
Sat, 08 Mar 2008 01:39:00 +0000 - Edmonton Has Fat Coffers
The city had a budget surplus of $34.4 Million in 2007. Some of the excess funds are planned to go to infrastructure, a new sports complex and other projects.
"I know it's frustrating and I don't blame the public. I don't necessarily disagree with their position either, but sometimes it's hard to guess 365 days in advance what's going to happen." Mayor Stephen Mandel
Maybe we can get a rebate?
Fri, 07 Mar 2008 00:55:00 +0000 - All The Brains Are Heading To Alberta
New Statistics Canada figures show that along with tradespeople, there is a huge surge of post-secondary school graduates choosing Edmonton over trendy spots like Montreal and Vancouver. Why because smart people go where the money is!
In Vancouver you can spend close to 70% of your income on housing, Montreal you can get a job but pay higher taxes than you would in Alberta.
Or you could chose Alberta with the lowest taxes in Canada, highest salaries and enjoy quite good housing affordability.
No wonder over 160,000 people have moved to Alberta over the last 7 years.
With a higher quality of life and virtually limitless opportunities Alberta is where young smart professionals are choosing to make their home.
Wed, 05 Mar 2008 03:01:00 +0000 - Edmonton Real Estate - So What Is Wrong?
Nothing.
I read an article about the prices in Edmonton being stalled (which to me generally denotes stopped/not working/dead). Then the writer went on to say that houses are:
• selling for near list prices
• not staying on the market long
• in strong demand
These are good things right?
Ending with this quote,
"Nothing is for sure" about real estate, but sales agents "are not concerned about the health and vitality of the Edmonton market," association president Marc Perras said in a statement.
"Buyers still have lots of choice." But sellers are encouraged by the reduction of sales waiting time. "And sale prices are typically close to the listed price," Perras said.
It makes me think writers need to get a thesaurus and get their adjective usage under control.
Wed, 05 Mar 2008 00:16:00 +0000 - Greener Grasses, Warmer Sands?
What is it with us Canadians? Do we suffer from ‘the grass is always greener, the sand always warmer’ syndrome? During a -40 snap, you bet we do. And it’s not all bad either.
Due to increases in salaries and the great rise in Alberta real estate values have helped make many Albertans quite well off. Our strong dollar and the perceived bargains in the U.S. have brought droves of Realtors and salesmen from South of the border to flog their wares, when we’re feeling at our most vulnerable-bitter winter.
Albertans are prime targets.
I too admit to a weakness for a house on a palm-treed beach. Actually, I’m lucky to have two palm trees in my garden but their leaves turn brown and fall off during cold spells, far from the beach of my dreams.
The number one thing to remember is that Alberta is where you can safely and steadily grow your profits over the coming years. Let the folks with knee jerk reactions and short-term thinking get shaken out of this market.
Savvy investors think long-term strategies.
I wouldn't look at properties outside of Canada as investment at this time, but instead as a potential 'lifestyle choice', if that applies to your goals at this time, meaning, if you're ready to retire or cash-out.
Otherwise, take advantage of the current breather the Alberta market is taking and use this welcomed chance to move forward with investments that make sense.
It's easy to get sidetracked when pitched an emotional 'deal of a lifetime'; it's not so much the property down South you’re being sold, it's the ‘dream life’. When is it time to buy a retirement home outside of Canada anyway?
Here are some quick points to ask yourself that will help take the emotion out of your decision:
1) Have I reached my investment goals and am I at a stage of my life where I can realistically afford to buy and upkeep a property for pure pleasure?
2) Have I done enough research into the area that I plan to be buying in to understand what it'll be like to live there, receive medical care/coverage and visit family? How will I be taxed? Can I receive income? Can I live there permanently?
3) How will property values and neighborhoods change over the next few years in relation to the sub-prime? How will this affect my lifestyle? Have I visited the area in the peak AND off season- do I like what I see? Is the weather agreeable year round or am I in a hurricane zone?
In my opinion it's not yet time to pick up properties in America. U.S stats forecast another wave of losses to the tune of 2 million foreclosures over the next few years.
You need to wait it out longer until the final mortgages have been reset and prices begin to stabilize, probably at least fall of this year or preferably past spring of '09.
Tue, 04 Mar 2008 13:03:00 +0000 - The West - Canada's Life Jacket
Incredibly strong markets in Western Canada are keeping Canada's real estate markets buoyant even through America's housing slump.
"We expect construction, sales and price gains to moderate in 2008 due to decreasing affordability, especially for first-time buyers, and some softening in domestic economic conditions associated with the intensifying U.S. slowdown and persistently strong Canadian dollar,"Adrienne Warren- Scotiabank senior economist/ author of Real Estate Trends Report
In what is the strongest and longest postwar housing boom cities like Edmonton and Calgary are keeping the market strong and in good condition. Although both cities saw affordability drop slightly the current balancing out of the market in 2008 will bode for good deals for buyers and price increase in 2009.
Mon, 03 Mar 2008 00:08:00 +0000 - Albertan Researchers Find Gene to Slow Aids Spread
"It could prevent the onset of AIDS because if the virus can't get out of cells, it can't infect other cells and then that's where the problem comes from AIDS. It decimates the immune system, so if you prevent the virus from leaving cells, it basically locks it into cells and it can't spread." Stephen Barr, a researcher in the medical microbiology and immunology department at the U of A and lead author of the paper published in the Public Library of Science Pathogens journal
Read Full Article Click Here
Fri, 29 Feb 2008 02:19:00 +0000 - Oilsands Get Big Bucks This Year
In Alberta where investment is always spoken of in BILLIONS not MILLIONS - this year will stand out as the year we beat all manufacturing across Canada for the first time.
"That one small little area of Alberta is attracting more investment than every manufacturing industry across the country." Philip Cross, Statistics Canada economist
This money isn't invested "willy-nilly" with no idea of ROI - extensive research is done; every possibility factored including Royalty reviews, Kyoto accords and oil prices. It is long term thinking with an eye on the future.
So if all this investment is going into a tiny little area in Alberta there is going to be a boom on jobs, on retail sales and of course on housing.
That is why I can't think of a better place to buy investment property in Canada and possibly the world.
Fri, 29 Feb 2008 01:58:00 +0000 - Should I Buy A Down Jacket Or A New Fan??
Global warming or an ice age which will it be? As humanity is increasingly aware and concerned by our effect on the earth's fragile climate system; scientists are not sure if man made climate changes are even noticeable and that if fact they may even be a drop in the bucket.
After a winter that is breaking many "pre-global warming" records those in the know are starting to wonder if maybe we should get down jackets instead of solar powered fans to prepare for the earth's next climate shift. Lower solar activity may cause an ice-age that could compare with one that lasted 5 centuries and caused a lot of trouble,
"The last time the sun was this inactive, Earth suffered the Little Ice Age that lasted about five centuries and ended in 1850. Crops failed through killer frosts and drought. Famine, plague and war were widespread. Harbours froze, so did rivers, and trade ceased."
I know we have to look longer than one winter for any significant climate assumptions. I have to say that either way you are leaning- neither global warming nor a little ice age sounds too appealing.
Read Article Click Here
Wed, 27 Feb 2008 03:03:00 +0000 - Can Mentors Be Virtual?
The Financial Post has a sub-section under Small Business called "12 Weeks To Start-up" which is to help new entrepreneurs get started and motivated by successful people in business.
This week Century 21 Real Estate Canada's founder Peter Thomas was interviewed to speak on his "virtual mentors" in his early start- up days. When times were tough and there was no one to call Mr. Thomas turned to four greats: John F. Kennedy, Indira Gandhi, Martin Luther King, Jr. and Ernest Hemingway to guide him on the rocky road to success.
Each person guided him in a different way,
"For years, as he established Century 21 Real Estate Canada and became a busy property developer in Western Canada and the United States, whenever he ran into a problem he would ask himself, "What would my virtual mentors do?" For inspiration he would look at the life of JFK; as a moral compass, he would turn to King. Former Indian prime minister Gandhi supplied passion, vision and humanity. Hemingway was the "rogue" advisor, providing gung-ho inspiration whenever Thomas felt his life needed more fun or adventure."
In our business we look to Trump and Kiyosaki for business savvy and real estate acumen, Dr. Wayne Dyer and Deepak Chopra lead us spiritually and numerous travel writers and adventurers help us relax and injecting adventure into our long weeks of work.
Of course we have real life advisors who guide us through the pitfalls like lawyers, accountants and Realtors - but sometimes it is the people who you can't meet who really inspire you too new heights.
Who guides you?
Read Article Click Here
Wed, 27 Feb 2008 01:00:00 +0000 - Right To The Top
Over the last ten years Edmonton has seen and incredible 203% increase in housing prices.
"Never before have we seen such a continuous run-up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation," Michael Polzler, executive vice-president of RE/MAX Ontario-Atlantic Canada
It goes to show that real estate is a long term play, short term thinking and lack of focus can only be detrimental to investors. If you pick a market with strong economic fundamentals then buying property is sure to give you good returns over the long term. The hardest part is maintaining your focus on that area and not getting distracted by "shining little things" (read up-and-coming areas, beach front from your last vacation or a stock play tip from your brother-in-law) along your investing journey.
"If you don't have a long-term outlook, don't invest in real estate, go buy gold or stocks and roll your dice. You have to make real estate boring, because that means you're doing it right. Go jump out of an airplane with a parachute if you want excitement. Right now I am telling everybody to buy resale, to buy something built in 1997 or 1998, when there wasn't a frenzy and people had the time to finish the properties." Don R. Campbell REIN president
Sat, 23 Feb 2008 09:25:00 +0000 - How Fast Do You Burn Money?
My statement from Mackenzie Financial Corporation came today no big shocks or surprises this time but I did get a little pleasure from a link on the Mackenzie site.
Burn Rate shows how Canadians are burning through their hard earned post-tax dollars. The Denialers "a family of four that spends like fourteen" who are "experts at convincing themselves that their financial affairs are in fantastic shape" are indicative of how many families sometimes have everything - except a financial plan.
It's a good link to spend to someone who may need need a little nudge to think about their finances.
Don't miss the Burn Rater Spending Test that will tell you how much of an over spender you are.
Mon, 18 Feb 2008 01:00:00 +0000 - Edmonton Office Space Demand Rising
Due to high demand, limited supply and increasing rents Edmonton office space is in hot demand.
Prices by the square foot have increased 76% since the beginning of last year.
"Overall, office vacancy has reached historical lows, with unprecedented rental rates being achieved in both the downtown core and suburban office markets," says Canadian real estate services company DTZ Barnicke. READ MORE
Sat, 16 Feb 2008 02:04:00 +0000 - Bamboo - Steel Of The Future?
The image of bamboo for tropical huts is rapidly changing as the hollow stemmed grass is being used to build churches, bridges and luxury homes.
"The relationship to weight and resistance is the best in the world. Anything built with steel, I can do in bamboo faster and just as cheaply," said Colombian architect Simon Velez
Velez has developed special techniques to ensure that weight bearing and bugs are no problem for structures made of bamboo. The environmental material is taking the world or architecture by storm and buildings made from the super grass are going up from Hawaii to China to Bali.
Read more about the amazing building material
Sat, 16 Feb 2008 01:52:00 +0000 - Don R. Campbell For The Edmonton Journal
Bestselling author of Real Estate Investing in Canada: Creating Wealth with the ACRE System, 97 Tips for Canadian Real Estate Investors and 51 Success Stories from Canadian Real Estate Investors spoke with The Edmonton Journal to warn investors of falling for hype, thinking short-term and not looking "Behind the curtain" when investing in real estate.
He explained what we can look forward to in the Albertan market,
"Edmonton's housing prices, which fell 11.7 per cent during the last half of 2007, will dip again this spring, then rebound during the second half and be up 11 per cent on average during 2008. Calgary prices will be up 12 per cent, Red Deer 10 per cent and Grande Prairie 11 or 12 per cent."
why you should only line up for U2 concerts not properties,
"When you line up around a block with 200 people to buy the condo in the sky that doesn't exist yet, put $20,000 down and plan to sell it as soon as it's built, look in the lineup and tell me how many people have the exact same mentality. Then all you need is for one guy to panic and drop his price to get out, and the average price in the whole building goes down, and you're completely at the whim of somebody else. You should only line up for U2 tickets."
and why beetles in B.C spell trouble in the future.
"And right now I wouldn't touch a town that's only forestry, because this pine beetle thing is massive -- the Williams Lake, Quesnel, Prince George corridor is going to be devastated."
He also gives great insight on where individual markets are going in the future. If you are planning on investing anywhere in Canada then read this article.
Click Here For Full Article
Sat, 16 Feb 2008 01:25:00 +0000
