Owner: Edmonton Real Estate Investor URL:http://edmontonrealestateinvestorabroad.blogspot.com/ Join Date: Wed, 17 Oct 2007 04:37:54 -0500 Rating:0 Site Description: Focused on the economic power house region of Alberta, Canada, we use an incredible team of lawyers, realtors and property managers to purchase revenue real estate. From our dual offices in Japan and Edmonton, we manage a multi-million dollar portfolio fo Site statistics:Click here
Royalties- What Changes Are In Store? 2007-10-26 06:09:00 Ed Stelmach's proposal includes:OIL SANDS*Introduce price-sensitive formulas before and after capital costs are paid out. The payments will slide between 1 percent and 9 percent of revenues with increases starting at an oil price of $55 a barrel and a cap set at $120 a barrel. Post-payout, royalties will be 25 to 40 percent of net profits.NATURAL GAS*Gas royalties will be set on a formula using price and production volume. New royalty rates will range from 5 percent to 50 percent with rate caps at C$17.50 per million British thermal units.*Royalties
for natural gas liquids will be set at 40 percent for pentanes and 30 percent for butanes and propane.CONVENTIONAL OIL*Royalties will be linked to well production and price with the government's take rising as high as 50 percent. Rates to be capped if the oil price hits $120 per barrel.Source: Government of AlbertaRead Factbox Uk Reuters Article Here Read more:Store
Royalties - Doom And Gloom or...? 2007-10-26 04:52:00 I would be off my game if I didn't at least mention the very important, some would say shocking, announcement Ed Stelmach made announcing that, yes, Alberta will increase oil sands royalties by January 1, 2009.The increases mean that the money Alberta collects from the energy business could be a staggering 20% higher than the original forecast for 2010, which would equate to a $1.4-billion increase into the province's treasury. What started it all?A report by Alberta's provincial panel said royalties had not kept pace with world energy markets, that all projects in the booming oil rich region should be paying more. "Albertans do not receive their fair share from energy development.""The energy industry has been a phenomenal driver," "It not only affects Alberta ... It's going to set the direction for where this industry goes and where Alberta goes the next five to 10 years." Greg Stringham, vice president of the Canadian Association of Petroleum ProducersAlberta has been negativel Read more:Royalties
, Gloom
What Have You Done? 2007-10-26 03:31:00 Time flies when you’re having fun, right? Well it also flies when you’re just getting by and that’s why it’s essential that you stop, take inventory and adjust accordingly.News flash: It’s already November! You have just 2 months ahead before 2008. Forget about the proverbial glass being half empty, make sure it’s overflowing.Have you ever thought about your own mortality? As hard as it is to get your head around, you may not be here forever, at least not in body.How we choose to live each day is critical. I have to admit; sometimes I’m dreadful at this. I allow myself to get sucked into a current of work, doing deals and so forth. I must be careful not to neglect my family and friends. Don’t let something all encompassing come into your life, be the wake up call you need to slow down. As cliché as it sounds- stop and smell the roses. Take the time to nurture relationships and maybe even enjoy a few days relaxing in the sun. Preparation and continuous evaluation can he
Jungle Lessons 2007-10-26 03:08:00 When I was younger I used to live wildly impulsively, within a set course plan. For example… I had an idea to travel to Indonesia and live in the jungle with an untouched, un-jaded ‘tribe’. I did so for six and a half weeks. I spent these days near starving, eating grubs and trying to hunt monkeys with poison darts. I kid you not. I trekked through the wettest jungle in the world to befriend not-so-long ago headhunters. I ran for my life while nearly being gored to death by wild boar…My hired guides and I trekked through the mud, took dug out canoes up and down the muddy, leech ridden rivers. I remember wading across a deep creek while freezing cold rain pulverized my scalp. I held up my pack, throwing it repeatedly against the slippery clay slope all the while clawing my way along, trying to get a grip. After making it out onto the bank I looked at my body, covered in what appeared to be fat, black welts that were visibly growing into gluttonous banana slugs. Leeches. I would Read more:Jungle
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Shuck Alberta 2007-10-26 02:53:00 Alberta is one big sandy irritant, well at least that’s what Al Gore would have you believe. I’ve been hearing a lot from Mr. Gore recently about the oil sands and their role in contributing to global warming.First and foremost I think we as Canadians care about the environment and have always taken the steps needed to protect our beautiful country. Secondly, in my opinion the off shoot of the economic world growth, especially in China and India, will ultimately help improve living conditions around the world and over time, better equip us as a global community to deal with climate changes as well as decrease global warming.Alberta is an irritant, just not the kind Mr. Gore implies. As a kid I remember going to Hawaii and on every street corner there were Hawaiians selling oysters from big icy barrels. They were something like 3 for $5, maybe more I can’t remember exactly. You had a chance to grab an oyster with a pearl in it. Every tourist bought them. Sure enough, every time, y Read more:Shuck
, Alberta
This And That 2007-11-03 03:21:00 Alberta premier urges oil sands firms to negotiate - "I'm sure, at the end of the day, those companies will realize it is in the best interests of their shareholders ... to sit down with the government and look at the two agreements and discuss how we can reach a solution," Ed StelmachAlberta launches initiative to attract skilled labour - “We’ll work on the apprenticeship strategy and make sure that people that want to retrain, earn new skills and get opportunities to get engaged in construction get that chance.” Slim majority favours nuclear power in Alberta - "What we see are a slim majority in favour of building a plant, but there are also 25 per cent who are very unfavourable which is a fairly large group to have strongly opposed to something, and it is larger than the group that is very in favour (20 per cent),"Alberta tops survey with largest pay increases - "Alberta's labour shortage is creating a "ripple effect" that is driving up wages across the country with pay inc
Rabid Over Royalty Taxes 2007-11-03 01:09:00 Don’t be surprised by the Royalty tax. It’s short-term pain for long-term gain, by the gain; I’m referring to the extraction and economic spin-off that the oil sands create in general. The royalty tax is like when you buy your kids the hottest pair of ‘must have’ sneakers and a few months later they outgrow them (both on the cool factor and on the growth factor). You had to buy the shoes, because your kids needed something to wear. It would be great if they last 2 years, but if they don’t maybe you can pass them down to your younger son if they’re not too trashed.If the $1.4B annual collection from the royalty tax is put to good use, then Albertans will benefit both in the short and long term (we’ll all get new shoes). If the cash is squandered and we’re only left with some grotty old ‘hand me downs’ to pass along to our younger generation, we’ll be pretty teed but we’re still not too bad off because the revised royalty taxes aren’t extreme Read more:Taxes
Skeletons In My Closet 2007-10-30 20:58:00 What ‘skeletons’ do you have hidden away that may come out to haunt you? Sounds scary doesn’t it? And it could very well be….I was recently negotiating on a fairly large character conversion/reno project for an associate of mine. He had considerable experience with rezoning and land utilization but not so much with actual conversation and restructure of the buildings. He was so ‘pumped up’ about the potential project that I wondered how much in depth research he had conducted, as there seemed to be some sizable obstacles to overcome before getting the project to the final stage.I felt an icy hand on my shoulder and heard a deathly whisper in my ear ‘Do the due diligence now, run the costs and speak with your team, get the written quotes…’ What was going on? The voice was just my ‘friendly’ skeleton reminding me of the lessons learned 5 years ago. See, I had been doing a sizable reno deal where the costs and time frame kept on extending. I had done the usual ground Read more:Closet
Haunted Alberta - Spooky Real Estate 2007-10-30 19:04:00 Who could resist? I should write about ROI's or the two great new properties we have picked up recently but all work and no play makes people axe murders! With help from two great sites, The Shadowlands and Zuko - Weird And Spooky
Places, I was able to compile a few Alberta
n haunted houses.From Zuko:1.Banff Springs Hotel - "One very sad and tragic tale involves a young bride and her elegant wedding party in the hotel's grand ballroom. It seems that on the day of the young woman's wedding, she was descending the ornate marble staircase in her beautiful flowing white wedding gown. And, as the story goes, an unexpected breeze (presumably from an open door or window) twisted the gown's flowing train into her path, causing her to stumble. Attempts by the groom to catch-hold of his young wife were in vain, and she fell to her death on the polished marble tiles below. To this day, there are recurring reports of a fleeting vision of a beautiful girl in a long flowing white dress dancing i Read more:Haunted
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Loonie At A 33 Year Peak 2007-10-30 09:09:00 "Canada's dollar touched the highest since 1974 on surging demand for the nation's commodity exports, with oil reaching an all-time high.The Canadian currency strengthened as the U.S. dollar fell against 11 of 16 most-actively traded currencies. The Federal Reserve is forecast to cut borrowing costs on Oct. 31 to prevent the world's largest economy from slipping into a recession, which would eliminate the U.S.'s interest-rate advantage over Canada."Read Full ArticleOne U.S dollar buys 96.02 Canadian cents. Look out for the snowbirds!
Here Comes The 1% Vacancy Rate 2007-11-06 23:16:00 According to the CMHC Edmonton's apartment vacancy rate is at 1% with a forecast 0.8% next year. We hold a lot of mid to upper end units and we see a higher vacancy rate. Our units priced from $1600 (half duplexes or townhouses) to $2000 (3 to 5 bedroom houses) are renting but not as quickly as about 5 months ago. The vacancy rate amongst that range of units is closer to 4%.A lot of houses on the rental market are those that investors couldn't sell in the current plateau. Some new landlords are not aware of the market conditions are are asking too much or too little for their property. However that "just right" is quite hard to find.So if you are in low to mid range apartments you should have no problem renting if you unit is quality. Mid to higher end units now is the time to use a bit more effective marketing to get the perfect tenants. And remember winter is a harder time to rent.
Edmonton And Calgary Great Investments 2007-11-06 22:54:00 Wondering how your area of the country is doing as far as real estate value and investment goes? The leading real estate analysts at PricewaterhouseCooper have released their annual Emerging Trends in Real Estate 2008 report. Here is how Calgary
and Edmonton
fare: Canadian Markets to Watch"The report comments on how Canadians like to live and work in central cities, as long as they can afford it. If housing is too pricey in 24-hourneighbourhoods, people move to inner-ring suburbs or beyond and commute back into the cores. Investors, especially the institutions, are concentrated indowntown areas too. Planners and developers focus on infill and more vertical projects, which reinforce the urban cores. The hot-growth energy cities outwest - Calgary and Edmonton - score the highest ratings for investment prospects, development, and for-sale housing, although it is not certainwhether the recent announcements on royalties will have any effect on this. Toronto, Canada's premier global path Read more:Great
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CREA - 3rd Quarter Just Behind Record Second 2007-11-06 21:55:00 All though the sales are down in the third quarter of 2007 CREA says not to expect a crash because we are still in line for a record year. "The Canadian Real Estate Association, which represents boards across the country, says sales in the third quarter were down 3.2% from the second quarter. However, the second quarter was the best quarterly period ever for housing sales. The third quarter decline was driven by a relatively minor slowdown in Alberta, Ontario and Quebec. British Columbia saw a jump in sales in the third quarter. For the first nine months of the year, there were 419,342 sales across the country, an 8.4% increase from a year earlier. There were 213,547 new listings in the third quarter, the second highest level ever." Read Full Article Click Here Read more:Record
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This And That 2007-11-10 02:41:00 Alberta premier wants provincial trade barriers dropped -"Premier Ed Stelmach says Alberta is feeling the economic pinch from the soaring dollar, so it's time for the premiers to start talking about eliminating trade barriers between provinces..." " Stelmach says that eliminating this barriers would Stelmach says eliminating such barriers would increase productivity and competitiveness, build a bigger economy and help Canada compete with other trading nations." Hotel tax boosts tourism budget -"With that 23 per cent increase, there will be an increase in attention to Western Canada, with a really a strong focus on Alberta. There will also be a very strong focus on Canadian and American leisure business." "The plan is to continue to attract Albertans, given that a booming economy, higher salaries, disposable incomes and growing populations in Edmonton, Calgary and Fort McMurray all point to huge potential for both leisure and business travel to Banff." Council Mulls Big Tax Hike -"
It's Not Hard To Believe - US Realtors Down In The Dumps 2007-11-10 01:33:00 PricewaterhouseCooper's Emerging Trends in Real estate indicates that people in the real estate industry in Canada are more positive about their prospects for 2008 than their counterparts in the United States. "The annual Emerging Trends in Real Estate report, from PricewaterhouseCoopers and the Urban Land Institute, shows 36 per cent of respondents in Canada who participated in the study viewed their prospects for profitability next year "very good," and another 22.4 per cent said they are "excellent." By comparison, 34.3 per cent of U.S. respondents said the chances of a profit in 2008 are very good, and 19.3 per cent said they are excellent. The report is based on interviews with more than 600 real estate professionals -- including investors, developers, brokers and lenders -- in Canada and the U.S." Full Article Click Here I especially like at the end of the article where they propound Calgary and Edmonton's forecast for 2008- "Calgary and Edmonton rate the highest as far as in Read more:Realtors
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Come On Gen X - What's Up? 2007-11-08 20:52:00 I am worried about my generation. They didn't want anything and now when they realize, "Hey money is all right!" They are so in debt that they can't get ahead nor can they save for their future.This article is such an eye opener for me, I am so happy that I made the choice to give up new clothes, that cool car and nice furniture for a few years to pay off my student loans and all my credit card debt. I am also happy that I learned to invest and wait, to not let my current appetite steal from my future feast.Facts From OppeinheimerFunds* 62 percent say they live paycheck to paycheck * 56 percent have an outstanding credit-card balance of $3,000 or more. * 62 percent of women say they have not bought any investment products. * 45 percent of women would buy 30 pairs of shoes before saving $30,000 in retirement assets.* 65 percent of women and 48 percent of men said they do not know how a mutual fund works.* Nearly 65 percent did not know that when interest rates go up bond prices typic
Transportation Is Key People! 2007-11-15 21:04:00 The Edmonton Transportation
Effect a report released by Don R. Campbell shows how real estate price increases due to proximity to transportation can be applied to Edmonton.The results show that homes near new extensions of the LRT and Anthony Henday Drive could see prices rise by 10 to 20 per cent above the Edmonton average over the next three to five years"When people look for a property to purchase, be it their primary residence or an investment property, they take into consideration affordability, commute times and commute costs," Don R. Campbell President of REIN, author and real estate researcherMr. Campbell expects areas like Parkallen, Twin Brooks, Ermineskin, Belgravia, McKernanand Sky Rattler all in Edmonton's South side to see the biggest impact.Wayne Mandryk, Edmonton's manager of transit projects, confirms that the LRT will likely have a positive effect on adjacent property values. "Generally speaking research shows that land near transit stations rises in value," he s
A Motivational Success Story 2007-11-15 20:37:00 Neither Todd nor I come from ostentatious beginnings. We were born to first generation Canadians who become solidly entrenched in the middle class and made their way in this new cold country. I wouldn't say we ever had it rough. Well sometimes it was a little rough.Don Lam, now he had it rough. His family fled from Vietnam in 1975 on a leaky boat with about 170 people crammed from one end to the other, they ran out of water after 6 days, managed to avoid pirates and storms. They left to escape persecution when the communist north took over southern Vietnam and finally made their way to Canada.Now he manages a $1.8 Billion US investment fund in Vietnam.Now that is success.Click Here to read his incredible story Read more:Motivational
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Edmonton Market Report 2007-11-15 20:13:00 Edmonton's market is still is a plateau which means if you are a buyer you can get some incredible deals. Financing , down payment and terms are all open for negotiation. Especially if you are adept at trawling older listings many people want to sell now."Price increases in both Calgary and Edmonton will be more in line with a balanced market. We've had a huge increase in listings in both of those markets. The big run-up in prices has affected affordability and, with it, the number of people who can qualify to purchase."Gregory Klump, CREA's chief economistCurrently 9,753 active listings on the Edmonton market which means you can pick and choose. This won't last long - CMHC predicts price increases in 2008. Read more:Edmonton
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Fear Doesn't Equal Paralysis 2007-11-15 19:03:00 What were you afraid of last year? Do you even remember?Yesterday I was driving to a meeting and listening to my newest REIN CD's. REIN is a real estate investment group that focuses on Canadian specific real estate investing led by bestselling author Don R. Campbell.REIN has monthly meetings across Canada but because Todd and I are out of the country so often we get the meetings on CD sent to us at our Japan office.No matter where you are you have heard of the Alberta Royalties Tax Revision and if you are an investor in Alberta then perhaps you are concerned about what will happen and how it will affect your properties. If you were thinking of investing but the Royalties are holding you back; then you must read on.Don R. Campbell summed it up nicely. People worry every year, day and minute. There is a no shortage of things to worry about, many people let this stop them from acting. However, if you do let things stop you, you will never get anywhere."I can't invest now the ___ Read more:Equal
Alberta Housing Affordability 2007-11-22 17:51:00 It's not B.C but it's almost Toronto. Alberta
's affordability has suffered in the last year due to incredible housing price increases. Although we haven't become one of Canada's worst areas we moved up the ranks. The thing is affordability declined across most of the country. Alberta is doing terribly but we need caution. This RBC report went on to say that the economics in Alberta are supportive."Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home.Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Alberta is still, however, avoiding British Columbia’s stressed affordability conditions."Read More From RBC Reports Read more:Housing
, Affordability
Edmonton Office Space 2007-11-22 17:17:00 Some of Edmonton
's most prestigious office space has increased in value close to 43% over the last year and are projected to shoot up another 8 to 10% next year. Bringing this city's global rank 93 places at $46 per square foot. Even with the incredible jump we are still on the discount side though.Calgary tops Canada's offices with total occupancy costs of $64 per foot. Toronto comes in at $63.35 and $49.98 in Vancouver. The world's most expensive office space is West End London at $326.67 Cdn, trailed by Bombay's $188.22, London City at $179.57, Moscow at $179.55 and Central Tokyo at $177.40.The office space in Edmonton will be getting tighter as more companies expand their bases in Canada. Read more:Space
The Ripple Effect 2007-11-22 16:59:00 Alberta's boom is affecting it's neighbouring provinces in many ways. From borrowing their young workforce to increasing their property values. The ripple of the billions of dollars invested in Alberta is obvious.In B.C not only are they catching the run-off of smaller oil companies that can't bear the new Royalties Revision but rich Albertans are buying up water front property like it is going out of style.The other way Saskatchewan has seen property values rise as native Saskatchewans who have made their money in the oil sands return home and bolster up. The province hopes to attract more of its 125,000 youth lost to the boom province and to scope up some oil sand overflow.Our neighbours are doing well but it is still Alberta that everyone is investing in now. The Royalties Revision is said to have cost Alberta $10 Billion in projects but there is still close to $170 Billion in projects that are on the way. Read more:Ripple
Geo-Thermal Energy 2007-11-22 16:56:00 A few month ago there was some talk of reducing the use of natural gas in the oil sands and instead using geo-thermal heat to steam the bitumen out of the sticky tarry sand.The energy is consistant, can reduce the emissions of greenhouse gases and requires a small staff load. "People are becoming more aware of it...." "Also, the biggest reason would be the energy cost of (conventional sources) and the cost savings with (prices of) fossil fuels rising rapidly." Rick Nelson, general manager of Kelowna-based GeoTility Systems Corp.Rick Nelson hopes that geo-thermal energy will supply 20 to 30 per cent of Canada's energy needs within 5 to 10 years.To Read This Article Click Here Read more:Thermal
, Energy
More Smoke And Mirrors 2007-11-22 07:00:00 "Cheng and Wong admitted to the panel that they raised approximately $3.5 million from roughly 150 Alberta investors, as part of thedevelopment of three real estate projects to be undertaken by Carling Development Inc. and Carling Development (BC) Ltd. None of the projectshas been completed." CNW Group"At the height of the gold rush, a gang of con men operated in Skagway underthe leadership of Soapy Smith. One of Soapy's best cons involved his "telegraph office."Recent arrivals were greeted by men who offered to send telegrams to their families for only $5.Most people did not look behind the "telegraph office" to notice that the wires ended a few yardsout." Postal Museum Like the Gold Rush in the late 1890`s Alberta's oil boom is bring con - men out of the woodwork. If you are investing then you should take care to do due diligence and get independent legal advice. Make sure your investment isn't like Soapy's telegraph wires that end a few meters behind a facade. Read more:Smoke
, Mirrors
Life Expectancy Calculator 2007-12-02 19:16:00 What would be the point of being highly successful, surrounded by a loving family and living a gorgeous lifestyle if you were sick or in poor health? Our everyday choices that seem innocuous now will lay our future health and longevity.This fantastic Life Expectancy Calculator
was forwarded to me by a friend who found it very thorough. I took the test and felt the personalized detailed report was the most in depth I had seen yet."The Living to 100 Life Expectancy Calculator uses the most current and carefully researched medical and scientific data in order to estimate how old you will live to be. Most people score in their late eighties... how about you?Thomas Perls MD, MPH is the founder and director of the New England Centenarian Study, the largest study of centenarians and their families in the world. More can be learned about the study at www.bumc.bu.edu/centenarian." Click Here To Take The Test
Neil Waugh On Affordable Housing 2007-12-01 23:52:00 "Developers packed a public hearing and told the council Pollyannas their "affordable" housing strategy is a no-go. Especially if they expect them to commit 5% of every project to multi-family projects where rent, presumably, would be capped. The same seriously flawed policy has already encountered stormy seas when property owners learned the pleasant school space in their neighbourhoods will now be jammed with low-rent condos. Edmonton Urban Development Institute director Michael Mooney said some developers might play along, but only if council slashes taxes or shrinks the size of arterial roads so developers can bring on more lots. And now the whole mess is going back to city hall's long-suffering bureaucrats for an overhaul." Read Article Here Read more:Waugh
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Canada's Layer Cake of Housing 2007-12-01 23:40:00 Vancouver and Victoria are the icing too sweet and rich for most tastes but tempting I will give you that. Calgary Edmonton and Toronto are the cake substantial and Ottawa, Hamilton and Montreal are the pan lower cost ( I know I am grasping for that one). "Three cities are leading in terms of year-over-year percentage gains in house prices, both new and existing — Saskatoon, Edmonton and Regina. Price advances in Alberta’s other major centre, Calgary, have eased. Winnipeg’s new home sellers are finally participating in better housing markets. Windsor, due to its auto sector woes, is the only city in the country with declining house prices. As for absolute house prices, there are three obvious tiers in Canada
. House prices in Vancouver and Victoria, on average, are in a class by themselves, at approximately 50% above any other city in the country. Calgary, Toronto and Edmonton house prices form a second tier. Ottawa, Hamilton and Montréal are in a third lower-priced grouping." Read more:Housing
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Edmonton Market Letting Off Steam 2007-12-01 23:24:00 Edmonton market is letting off some steam and i will too.PRICES ARE PLUMMETING! - I would hardly call a 6.5% price correction over 5 months plummeting, especially since prices have risen 74% over the last 17. Price correction anyone? THE ROYALTIES HAVE RUINED THE ECONOMY! - Many articles say the Royalties are balanced and not half as severe as proposed in the original review or even close to other oil rich countries. Hugo Chavez anyone?THE MARKET IS FLOODED! - Sure there are more listings than say this summer when multiple offers where the norm and a frenzy made the market not a nice place for buyers. People are out there now trying to see what they can get or maybe they bought a new house, are moving or want to cash out. At any rate the market is getting more and more balanced. Buying opportunity anyone?WE ARE BUST PRICES WILL DROP! - Sure you may have to reduce your asking price $10k to sell right now but prices fluctuate and there are a lot of people trying to sell now. "...price Read more:Edmonton
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Are They Lining Up To Buy? 2007-12-01 22:47:00 Saskatchewan real estate values/investing has increased in value recently whether it is due to native Saskatchewan returning home, speculative buyers lured into the market now that Alberta has softened or an exodus due to fear of the effect on Royalties on the Alberta Oil Sands is unclear. I know I say this all the time but - as my mentor says, "What's behind the curtain?"Take this news release I found on CNW Telbec on the 2007 Property Tax Assessment and Tax Analysis of 2006 Data.A little background on the assessment it is released by REALpac and prepared by Altus Derbyshire, Realty Tax Consulting and hopes to show both the range of commercial and residential property tax assessments coast to coast in Canada and to determine the trends amongst urban centres, allowing REALpac to extrapolate which cities taxes are going up, going down, and how quickly.This is their take on Regina Saskatchewan:"Employees won't be standing in line to move to Regina, since the city also has the highest r
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