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 September 2006

 
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Welcome to the Edmonton Revenue Property Investors Monthly Newsletter

It's time again and the monthly association meeting of our group has arrived. For those of you new to this e-mailing here are the particulars.

            Once a month on the second Tuesday of each month a like-minded group of real estate investors meet on the second floor at Rosie’s Restaurant. Located at the corner of 105 St. and 80 Ave.  Arrivals at 6:30 and the meeting starts at 7:00 pm. You are cordially being invited to attend. Attendees are required to pay $5 at the door. There is no annual membership charge yet. All attendees and visitors are asked to buy $5 worth of food to support the use of Rosie’s Restaurant 2nd floor meeting room, and please generously tip your server, this helps to support our free use of the meeting room. Please bring a few of your used real estate or self help books that you no longer require to donate to our library or door prizes.  If you park to the east of Rosie’s in the strip mall parking lot, please pick up a free parking pass from the bar to put on your windshield. 

            Each meeting is different as we may bring in special guest speakers for each meeting. Each speaker is uniquely qualified in his or her own specific field of expertise. Even a seasoned investor will be pleasantly surprised with the knowledge gained from attending our meetings. We encourage all attendees to participate at the meetings by asking our speakers your pertinent questions. We need and appreciate your input at all meetings. Like-minded investors can and do learn and help each other to achieve success.

               We really do look forward to seeing you and please bring a friend to our next meeting. If you have a friend that you feel would like to be put on our e-mail list send their e-mail to me.  

Our guest speakers this month will be: 

This is to confirm that the Landlord and Tenant Advisory Board will be attending on Tuesday, September 12th, 2006 starting at 6:30 pm at Rosie's Restaurant, 2nd Floor, 105 St. and 80 Ave.

I know we talked about maybe having a power point presentation unfortunately, the equipment we used has been taken over by another part of the City and we don't seem to be able to obtain equipment to do a presentation.  We will bring the tipsheet and Voluntary Code of Practice for each person and what I usually do is go through the tipsheet and expand on each area.  I also indicate where to find the appropriate sections within the Act and I will bring documents that we sell to show what is required in different scenarios.

I will send you a quick bio as to who is attending tomorrow morning.  Unfortunately, we have been extremely busy and are short staffed at the moment so I wanted to send this off to you today and will work on the rest tomorrow morning.

If you have any questions or concerns please let me know and we will try to work out a solution which will help in the presentation on September 12th, 2006.

Thank you.

Michele Trudeau
Consultant
Landlord and Tenant Advisory Board
(780) 496-2961
8904 - 118 Avenue, Edmonton

Our second guest speakers will be :

 Edgeworth Properties Inc. sources, evaluates and purchases undeveloped land in the path of urban growth. Our Real Estate and development experts specialize in prospecting land only in high growth markets like those found in Fort McMurray and Edmonton, Alberta. These regions are precisely where our primary investment focus is concentrated.  

“Opportunities come and go;  but once you’ve seen enough of them, you begin to recognize when an opportunity has arisen. That’s what’s going on in Western Canada, Fort Mc Murray and Edmonton.

Oil prices will remain high for the foreseeable future. China and India, alongside the rest of the world are going to be aggressively bidding for oil. Western Canada has it. It is to be mined, refined and delivered.

None of this can be done without people; a lot of people. They must be housed, fed and entertained. We are in the right place at the right time.”

www.edgeworthproperties.com 

Edgeworth Properties Inc.
Suite 705, TD Tower
10088-102 Avenue NW
Edmonton, AB
T5T 2Z1

(780)990-1777
(780)990-1778 Fax

  We will also be talking about the real estate market, landlording, present housing prices and trends for Edmonton real estate, and many more topics. If you have any real estate for rent or for sale please make up some hand outs to give to any attendees and be prepared to stand up and tell us about your handouts. Please network and socialize with the other members and guests before and after the meeting. If you want to list your for rent or for sale real estate online please visit  Rentex Homes  and  Buy Sell Rent Ads ...register and post your properties.  Please visit our approved contractors site  Bookmark this list as it is not easy to navigate to it from our home page. If you know good contractors email me and I will add them to the site.  I am still looking for good south side apartment and commercial buildings, if you hear of any please contact me ASAP!!

If you have any questions at all please e-mail me at admin@rentexhomes.com or call me at 780-433-1481 regarding any of the above.

    See you all at the next meeting,

    Your cordial President, Les Michaelson

About the Author: Les Michaelson has been an Edmonton Real investor since 1978. His interests are in the hands on operation of acquiring managing and selling of revenue properties of all types. 
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Edmonton Revenue Property Investors Association   August 10, 2006 Meeting Highlights

Les opened the meeting at 7:18 p.m. We are planning an evening out social before Christmas. After the Buy/Sell Les gave us an update on the current market conditions. Apartment vacancies have fallen to 1.5% putting a squeeze on renters. No new apartments are being built. Rents are up: $ 675 for a one bedroom. 2 bedrooms are $800.00 and up to $1100.

Our first guest speaker was Lyle Mortimer, a very well qualified Licensed Mortgage broker. He does private lending, syndicated lending and offers mics mortgage Investment Corp., which is similar to a mutual fund of mortgages. His first mortgages go up to 75 or 80 % Loan/Value Second mortgages go to 85% L/V. They pay 11 to 12.5% on firsts and 14 to 16% on seconds. Mortgages range in the amounts of funds required   - anywhere between $10,000 and $2 million.

Les said the average single family home is going for $303,000. A paycheck of $20.00 hr won’t qualify for an average home. Condos are up to 188,000 average and duplexes are $228,000.

 Other guest speakers were Ray Zadry and Nick Fournier from Walton International. They bank raw land, rezone it and sell to developers.  It’s low risk. They maintain a 5% interest in each project. Their head office is in Calgary. Our meeting closed at 9:45 p.m.

Katherine Callfas 

FEEDBACK

After our August meeting an attendee sent me the following e-mail. Please read it so we may all discuss rent increases and offer our own views on the subject:

Good day,
 
I appreciate being there at the meeting at Rosie's because I learn when I'm there and I get to network with interesting people sharing the same ideals as me. Thank you for holding the meetings and offering great information on the real estate market.
 
Les, I do have some criticism that I want to share in regards particularly to the increase in rents that are ridiculously outrageous to the average family.
 
When I heard that you had raised rent on an "apartment" up to $1,100 because people were willing to pay that price just to live here, I was not pleased.  I understand that landlords are able and willing to drive up rents right now when the market is hot and the demand for housing is incredible. I get that. I know that in-migration is the investor's asset and renter's are competing like mad to find a home here. But it saddens me that with so many other costs going up as well, that families won't really be able to afford to live here even if at first they try. I know that debt is crushing families in Canada. People are using credit for disposable income that is only hurting them more in the long run. I think we all heard many cases of this.
 
I know Les that you are a true business man who has every right to make a profit and take advantage of the market right now. But I have to question a landlord's humanitarian interests if those business decisions will hurt people financially to the point where that financial strain causes family breakdown and mental stress.
 
Yes, I feel for those people who think they can afford that kind of rent but later are fighting to pay debts and survive.
 
What's your take on this?  Do you turn the other cheek because it's not your problem? Or do you take into consideration that people really aren't earning enough to live in this great city of ours.
 
(Name withheld by editor)

Here are a few responses by readers:

1. Well, you're not in the Social Services business, and I highly doubt that those families would help you out if tough times hit you. You are a businessman and our economy works on a free marketplace.

2. A landlord takes risks in buying properties, maintaining them, repairing them after brainless tenants trash them, and weathering vacancies when the rental market is soft (not to mention chasing deadbeats who use every trick in the book to avoid paying rent). If people sign a lease and agree to pay a certain rent, it is a decision made freely. If they find the rent is too much to handle they can move. I don't understand how any rational person can blame landlords for raising rents. "Profit" is not a four-letter word ... "Loss" is.

3. My intention is not to gouge tenants, but I will raise rents when possible because I am running a business and the objective is to have positive cash flow.

4. Debt is not crushing families in Canada. Bad money management is. We live in the freest country in the world and people are spoiled and live with a “me” mentality. If you can’t afford an $1100 place then you get a cheaper place. This gets defined by NEED or WANT. I don’t see anyone complaining about paying $130.00 for a hotel room for one night when they go skiing. They REALLY ought not to be doing this activity if they are in such financial dire straits. Really, this applies to the hundreds of consumer categories in which our brilliant society fritters away their money. Just turn on the TV to see where people are sending their paychecks. ... I can’t count the times I have referred people to read the book “Rich dad Poor dad” and people have just said, “naw, I’m too busy”, or “I’m not interested”. Usually I tell people who actually need it. The point is……people don’t care and selfishness for other “DooDads” cause them to be lacking in the financial area of their lives. Now as a business owner myself and also knowing Les, I can say with confidence that the $1100 apartment is probably in a very desirable part of Edmonton. It is not by any means the ONLY place to rent in Edmonton. There is a huge demand to rent where Les has most of his properties, so therefore the rents will be higher (kind of like the expensive hotel rooms eh?). I guarantee that the mortgages of buying such properties and the carrying costs of such properties are higher as well. If it’s worth it to someone, then they will rent it. If it’s too high, then they must live in another place. Simple. I just thought of something as I was typing. There would be no apartments had some landlords not made some money at one point. They are just better stewards of this thing called money. If you have a problem with someone making money then how can you live with the fact that every product in your household and life makes someone else money……..and lots of it.

This months Real Estate News Articles And Links
 

Scotiabank expands Edmonton operation
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... expect any realestate collapse in Edmonton, where home prices are merely "catching up" to those in other cities, he said. "Long-term, real estate will continue ...

20 homeless as building condemned (4:05 pm)
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... “If you’re going in that direction, don’t rent out the property without having enough money for its upkeep,” Brooks said. ...

Okanagan is full of Alberta plates
Edmonton Sun - Alberta, Canada
... Taking advantage of the large urban populations of Edmonton and Calgary, those ... winter," said Surinak, who's president of the Okanagan Mainline Real Estate Board ...

No meltdown expected in housing market
Montreal Gazette - Montreal,Quebec,Canada
... Soaring real estate values over the last decade have created a wealth ... Explosive price gains in Edmonton, Calgary and Vancouver appear unsustainable, although ...

Alta.'s good times drive poor towards housing crisis
Canada Western Catholic Reporter - Edmonton,Alberta,Canada
... are concerned that the housing pressures are severe at the bottom end of the market," Madeline Sarafinchan, president of the Edmonton Real Estate Board told ...

COMMENT On the sunny side of Mainstreet
National Post - Canada
... Dhillon and Darrell Cook -- owned fewer than 300 apartment units in Calgary and Edmonton. ... some cases, it will sell them.) This time it charges a higher rent. ...

Home at the campground
Edmonton Sun - Alberta, Canada
With few available apartments and rent prices skyrocketing, some newcomers to Edmonton have been forced to live in tents and RVs while they look for more ...

Housing bubbles in Western Canada set to burst
Regina Leader-Post - Regina,Saskatchewan,Canada
... bubbles in some Western Canadian cities, especially Calgary, Vancouver, and Edmonton, a major ... "In contrast, the other major Canadian real estate markets appear ...

Home inspection uncovers dirty truth
Edmonton Sun - Alberta, Canada
... Weary of continuing to pay rent and having nothing to show for it, the mother of three figured that in Edmonton's scorching real estate market, she had better

'It always stinks in here'
Edmonton Sun - Alberta, Canada
... Dumigan, who pays $350 rent out of the $647 in social assistance he receives monthly, said he moves into his new place near 95 Street and 103 Avenue on Tuesday ...

No place to live
Edmonton Sun - Alberta, Canada
... The 50-year-old woodworker and his wife JoAnn, a 46-year-old cook, were lured from Orillia, Ont., to Edmonton by the ... One demanded three-months' rent upfront. ...

Meth registries a good idea
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... production. Landlords can check the registries to see if a prospective tenant is listed before agreeing to rent to that individual. ...

Klein says big growth in Fort McMurray doesn't justify oilsands ...
Brandon Sun - Manitoba, Canada
EDMONTON (CP) - The beating heart of Alberta's petro-powered economy is struggling to house and ... The average rent is $1,500 a month for a two-bedroom apartment. ...

Finding shelter student's first test
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... The super-heated Edmonton economy that has been a boon to the home-buying ... and her roommate decided to make some modifications to the McKernan house they rent. ...

Condominium developer uses horse sense for latest project
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
UNBRIDLED ENTHUSIASM: Biri Nikhanj and real estate agent Larry Meincke are behind the West Wind Condo estates and Equestrian Club west of Edmonton. ...

Bank report sees Edmonton as affordable despite demand
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... Madeline Sarafinchan, president of the Edmonton Real Estate Board, said increases already are moderating. While average Edmonton ...

Vancouver, Calgary on realty slump watch
Globe and Mail - Canada
... activity in Western Canadian cities is easing a little, but say their real estate bubble-watch indicators suggest Calgary, Vancouver and Edmonton bear closer ...

Alberta Liberals want emergency debate on Fort McMurray (11:10 pm)
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
Edmonton – Alberta Liberal Leader Kevin Taft will be asking ... scale oil sands development to increase at an ... for an affordable apartment to rent, quality health ...

Couple lose chance at dream home
Edmonton Sun - Alberta, Canada
... rules.". According to Edmonton's Real Estate Weekly, the average single family home in this city now costs $303,304. Since January ...

Office space in Calgary's core virtually nil
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... the real estate market so much, the city has the lowest downtown office vacancy rate on the planet. Registered 7-day subscribers to the Edmonton Journal ...

Albertans find home away from home in BC
Canada.com - Hamilton,Ontario,Canada
EDMONTON -- Cash-flush Albertans are taking advantage of their province's recent oil ... neighbours at unprecedented rates, according to a real estate research firm ...

Summit REIT Acquires 131 Acres of Land in Edmonton, Alberta
Canada NewsWire (press release) - Canada
... in the strong and growing Edmonton market," stated Lou Maroun, President and Chief Executive Officer. As one of Canada's largest real estate investment trusts ...

Parkers get pinched
Calgary Sun - Canada
... pay for the same service, according to figures compiled by real estate giant Colliers ... because Calgary has as much downtown office space as Edmonton, Regina and ...

Anger builds over unfinished homes
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
EDMONTON - The view from Waldo McPhail's luxury condo in southwest Edmonton is anything but luxurious. For the past four years, the real estate agent and his ...

Land titles slow home sale pace
Calgary Sun - Canada
... people trying to help them do the deal as paperwork that used to take two to six days is now taking as long as three weeks, says local real estate lawyer Brian ...

Brisk house sales cause backlog in land titles
CBC.ca - Alberta, Canada
People buying homes in Edmonton and Calgary are now waiting three weeks or ... Kenny, spokesman for Alberta's Government Services, says brisk real estate sales and ...

Real estate
Edmonton Sun - Alberta, Canada
... they entered a March 24, 2004, agreement with Bay Equities and Bayliss for joint development, construction and marketing of certain real estate properties. ...

Hot real estate market burns home inspectors
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... Right now, more houses are being sold and at higher prices than ever before in Edmonton's history, according to the Edmonton Real Estate Board. ...

A few tips on appropriate negotiating posture
The News-Press - Fort Myers,FL,USA
His real estate agent had advised him to keep a poker face as he walked through the house, and to ask no questions of the listing agent. ...

Hot market shuts out new workers
Edmonton Journal (subscription) - Edmonton,Alberta,Canada
... shortage has pushed prices so high that people making $20 an hour cannot get a mortgage for an average house or condo, Edmonton Real Estate board president ...

Greater Montreal Real Estate Board Statistics
CCNMatthews (press release) - Toronto,ON,Canada
3, 2006) - The resale market grows another 3% and reaches yet another record with 32,311 transactions recorded in the Greater Montreal Real Estate Board (GMREB ...

Investment niches attract growing interest
Business Edge - Calgary,Alberta,Canada
... Using figures from the Edmonton Real Estate Board, Uzelman predicts today's market hasn't reached its peak. Nor are today's price increases unprecedented. ...

Housing's so hot
Edmonton Sun - Alberta, Canada
... About the same time the Yanks were putting up the shutters, Edmonton Real Estate Board president Madeline Sarafinchan released her July stats. ...

Calgary house prices down slightly in June
CBC.ca - Alberta, Canada
... as the Calgary Real Estate Board tends to lump all of those sales together to get their average selling price.". Meanwhile, home inspectors in Edmonton say they ...

No fizzle for real estate market sizzle
Burnaby Newsleader - British Columbia, Canada
... Surrey-Langley-Abbotsford area covered by the Fraser Valley Real Estate Board, prices ... numbers came on the heels of TD Economics' latest "bubble watch" report ...

Eyewitness News Uncovers A Local Landlord With A Checkered Past
Eyewitness News Memphis - TN, USA
Eyewitness News uncovers new information about a local landlord who's a crook. We first told you on Thursday about Dee Cannon. He ...

Real estate stays hot
Toronto Sun - Canada
... the second-best August in the history of the Toronto Real Estate Board (TREB ... deepest, darkest days of a deflationary spiral, after a speculative bubble burst in ...

Housing‘bubble’ watch
Edmonton Sun - Alberta, Canada
By NEIL WAUGH. It’s official, Edmonton’s percolating residential real estate market is now under a “bubble watch.”. And the ...

The housing collapse heard round the world
Globe and Mail - Canada
... States comes to grips with the aftershocks of another post-bubble shakeout, so ... How Potomac real estate became a leading indicator for the global economy is the ...

REAL ESTATE: Now is good time to buy, say Ridgefield experts
Ridgefield Press - CT, USA
... While not as drastic as the imploding real estate bubble predicted by some financial analysts, the dip in the housing market here means that now “is not a ...

Housing slump slashes jobs
Baltimore Sun - United States
... Fewer homes sold means less work for real estate agents, loan officers, appraisers, architects and other professionals. It also means less money for retailers. ...

The sky isn't falling
Globe and Mail - Canada
... Good news first: Despite the nosedive that the real-estate market is taking south of ... market this past year in a series of reports called Housing Bubble Watch. ...

Housing bubble, debt bubble or same thing?
Blogging Stocks - USA
... And Sheldon, if you do continue to write about this subject , I would like to know your thoughts on who would lose if the real estate, or debt bubble goes bust ...

 
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