Edmonton, Great Investment Returns And Appetizing Yields

Edmonton is now Canada’s fastest-growing major city, and with that comes immense opportunity for Canadian real estate investors to lock into great investment returns and appetizing yields.
Edmonton, Alberta’s capital city, has seen its population explode in recent years. According to coverage in the Edmonton Journal, data show 151,000 new residents being added between 2001 and 2012.
Still, this is likely just the beginning of this trend, and a number of evolving factors keep pushing people to Edmonton from across Canada and around the globe.
As the emerging housing crash hits other Canadian provinces, scaring Canadian and global investors out of Toronto and Vancouver, many more are expected to land on Edmonton’s doorstep. Some will come to visit or invest and stay, while others are looking for the best place to establish businesses or relocate office headquarters. Many more will be desperately seeking jobs and homes in which to store their wealth as property values plummet in Ontario and British Columbia¬—so watch out for the stampede ahead.
While some might be concerned about crowding and upward pressure on property prices, plans for improving Edmonton’s infrastructure are already in progress.
The city’s Light Rail Transit network is already undergoing major expansion. The downtown area is being revamped and seeing plans come to fruition for new hotels, condominiums, a museum, and the highly anticipated Edmonton arena. In all, these projects total almost $5 billion in development already in the works, and it will ultimately end up being many times that.
Once these projects really get underway, Edmonton will be more vibrant and attractive than ever. This will make Alberta’s capital not just a major draw for more Canadians, but for a growing number of international businesses and individuals as well.
The Canadian economy added a massive 50,700 jobs in February, six times the amount anticipated. Of course, Alberta was certainly a major contributor. According to Statistics Canada, 52,000 jobs have been added in the province over the last 12 months, up 2.5%. This puts AB at a low unemployment rate of just 4.5%, almost half that of the nation as a whole and the U.S. Furthermore, wages have grown steadily.
Expect this upward spiral to keep lifting the market up, boosting local business, bolstering the economy, and raising consumer spending and property prices.
This all makes Edmonton a hot spot for commercial real estate investment in the months and years ahead. Expect the economy, property values, and commercial real estate investment returns here to outpace Calgary and keep climbing for years, with a significant increase in incoming capital expected mid-2013.

Pay Off Your Mortgage -vs- Investing In Real Estate

Should you pay off your home mortgage now or invest in more real estate?

The debate over whether paying down the mortgage on a primary residence is the wisest financial move right now or not is heating up and catching more media attention.

With rumors of a cooling off in the housing market in some areas of Canada some may think paying down their home loans fast is the most prudent fiscal move that they can make.

There is certainly some wisdom in this strategy. It is always smart to have some wiggle room and equity cushion in your home just in case you need to sell during a down period. Plus the end goal for most is to have their homes paid off, free and clear eventually right?

However that doesn’t mean panicking and making poor financial moves and investment decisions that will hurt you in the long run. You can’t get that time back, ever.

If you have a reasonable equity position in your home or have reasonable job security or never plan to move, or at least don’t anticipate having to move even in the worst case scenario, then make the best use of your money by putting it to work.

Even if there is a correction happening elsewhere in Canada there is little question that Alberta real estate is only headed up. Not only is it remaining strong, Alberta property has been posting some of the best investment returns in the world.

Clearly the returns on commercial real estate in Alberta and in Edmonton in particular far exceed the amount of interest you’d save on paying down your mortgage today. Most Canadians are enjoying the lowest interest rates anywhere, and seen, for a long time and they are only likely to go up. That means those that prematurely pay down their home loans and have to re-mortgage to tap that equity later will likely be paying far, far more for the privilege.

Then factor in the time value of money. Calculate the value of compounded returns on the yields being brought in from commercial real estate investments now versus equity in a home which may just balance out inflation at the time you plan to sell later.

For the doubters and those Canadians really convinced that paying off their homes and being debt free earlier is a must, there is another option.

Why not have your cake and eat it to? You can have the best of both worlds and invest in prime commercial real estate in Edmonton, take part of your extra cash flow and make extra principal payments on your home and have money left over to spare.

Blonde, Brunette or Redhead. All Enjoy High Returns In Alberta's Commercial Real Estate Market

Do blondes really enjoy more real estate returns than everyone else?

They say that “blondes have more fun”. Many would argue this is true, regardless of the reason for it. And when it comes to retail ‘blondes’ seem to be a lot more popular too.

In case you missed the news, coffee retailer Starbucks is planning a major move into Canada alongside Target with a bold 150 new locations, with 124 set to open this year alone.

A large part of the reasoning behind this massive invasion is due to incredible popularity of their ‘blonde’ brew. Apparently Starbucks ‘blondes’ are preferred by 60% of Canadians and the coffee giant sells more of its light brew in Canada than in the U.S.

We’ll definitely be seeing a lot more blondes on the streets of Edmonton as one of Target and Starbucks’ main markets.

In fact we’ll likely be seeing a lot more of everyone in Edmonton as the latest data busts the spin that politicians and Realtors in other provinces have been trying to sell about there being no crash.

The latest statistics show housing down, construction starts down and jobs failing, at least everywhere except for Alberta.

Alberta is not just carrying the nation; the country’s numbers would be a lot worse if not for the province. AB added 41,000 jobs year over year as of January 2013 almost the same number as was lost in ON & BC put together.

Jobs continue to grow, and Edmonton enjoys the 2nd lowest unemployment rate in the nation, just 0.2% behind Regina, and among the best in the world today, by a long shot.

The most recent numbers from the Canadian Mortgage and Housing Corp. show an almost 50% decline in housing starts in Ontario and a 30% drop in Quebec. Contrast that with the same number up 8% in Alberta.

This all means more real estate growth in Alberta and in Edmonton in particular. This means rising property values, rents and perhaps most important for those reading this, rising yields and returns for commercial real estate investors.

So blonde, brunette or redhead, and no matter what brand of coffee you are drinking, if you are invested in commercial real estate in Edmonton, AB the chances are you will be enjoying some of the best investment returns and financial security in the world, and be having a lot more fun in the months and years ahead too.

How Does The Weather Impact Your Investment?

Will the latest super-blizzard slamming the Northeast U.S. actually help to boost Canadian investors’ returns and work to further concrete Edmonton and Calgary as new ‘world cities’ that can’t be beat?
Dubbed the ‘snowpocalypse’, the almost record breaking blizzard bringing 3 feet plus of snow, flooding and power outages to 650,000 businesses and residents in New England could be the last straw for many and mark a major shift in the U.S. real estate landscape, as well as global business trends and property investment.

This latest natural disaster causing massive evacuations, multiple states declaring a state of emergency around 5,000 flights being cancelled, at least 4 major airports shut and stacking up huge financial losses on top of the $50 billion plus from Sandy could change many things for good.

Residents, businesses and commercial real estate investors in NY, RI, NJ, MA and CT just can’t seem to get a break and the future doesn’t look any brighter either. Peak hurricane season is essentially only a matter of weeks away for the Atlantic coastline and 2013 is expected to be an incredibly active year in terms of major storms.

The realization that individuals, businesses and even the government can’t hack it anymore is really setting in, in earnest. Even if able to pull it through it means businesses losing their edge and dying a slow death and the old financial and business hubs of NYC and Boston could well find themselves mortally wounded too.

Our weather might not seem much warmer in AB, but it's not having the devastating consequences on business growth, personal wealth, and certainly does not bring the same risks for real estate investors.

It doesn’t matter what returns are promised or could be potentially possible up the east coast of the U.S. it’s all for nothing if wiped out by a storm or government decides to buy out property owners for less than land is worth or seize it by eminent domain as NY Gov. Cuomo hopes to do.

Safety? No way; not with any ‘discount’ or low interest rate.

Sure Toronto and Vancouver may have their issues but it doesn't seem to matter how cold it gets in Edmonton, the commercial real estate returns are hot, and seem to be just warming up as a flurry of new development plans are set to push up values and rents.

Invest at home, make the big money, enjoy more time off to go and visit the beach or go skiing, without having to worry about having a home to go back to and paying the bills.
It’s no wonder U.S. retailers are loving Edmonton and don’t be surprised if we see more companies moving north in addition to tech startups as well as the geeks to fuel them.
As more invest and move here they’ll realize they can have their cake from Starbucks and enjoy it too, and have plenty of income coming in to travel as much as they like as well.

Analysts Widely Agree That Edmonton Boasts The Best Opportunities For Investing In Commercial Real Estate

Canadians and investors worldwide are opening their cash hoards and readying to plow into new investments in 2013. Is it that the fear and uncertainty is finally over or something else, which is driving the new rush, and does a new surge in commercial real estate investment really mean that every opportunity, is a good one?

The Globe and Mail recently ran an article on ‘The End of Fear’ highlighting how many are unlocking their cash stashes and are preparing to make bold new investments in the months ahead. It is certainly true that there is a brighter outlook for many commercial real estate markets and vehicles but there is definitely more than this which is motivating a new stampede.

Some may have decided that nothing can prevent the new upward real estate swing; not elections, not fiscal cliffs, new mortgage rules or weak foreign economies. There may be some partial truth in this, as real estate markets decidedly turn on their own timeframe. However, more than shedding fear, desperation to find yields and safety for capital is surely behind this new surge as well. Many are tired of playing it too safe and still missing out and they are ready to make moves and calculated risks to get results.

Still, this doesn’t mean that investing wildly is the way to win. Following the herd can still be dangerous if the proper fundamentals are not lined up. Those still investing in Toronto are a great example of this. By next year there will be more office space in Toronto than New York. There might be a couple of first class tenants like Google hungry for downtown space but as many bail as the residential market falls apart there could be vast areas of vacant apartments and office space, with those that can find tenants seeing rents and yields fall.

For many sophisticated, heavy weight investors 2013 is a year for repositioning. Current strategy is focused on shedding unwanted units in those markets not key to their long term plans and which are not positioned to deliver good returns over the next 5 to 10 years.

Economists and analysts are now widely in agreement that many of the best opportunities for investing in commercial real estate and where the best gains and returns are to be found is increasingly in secondary markets like Edmonton, Alberta.

Not only is there little fear of any downside of investing in Edmonton right now, it is hard to find another market which is positioned for as much growth and offers the same level of security. Of course you aren’t the only one getting this, so it is a matter of who gets in first that will reap the largest rewards.

Commercial Real Estate Market: Why are the analysts getting it all wrong?

A new report forecasts a huge surge in Canadian commercial real estate investment in the second half of 2013. No doubt this is accurate but exactly how it is expected to play out and where that money will go seems to be way off base.

So why are the analysts getting it all wrong?

The report recently covered in a story by the Vancouver Sun has it half right, at least in terms of increased investment in Canada’s commercial real estate sector. So where are Canadians and international investors being misled?

Some analysts are still attempting in vain to convince Canadians and the world that Toronto and Vancouver are going to bounce back this year following a softening at the end of 2012.

Considering we have only just begun the slide and a look at proven real estate cycles suggests just the opposite. It’s more likely we’ll be seeing an extended downturn period in BC and ON for a while, with diving housing prices taking down consumer spending and investment. That may curb spending and taking on new debt, but it will also chop wealth and growth off at the knees by taking down spending and burying Canadians in those provinces in negative equity. Certainly that will not result in the ultimate outcome desired and will not bode well for the popularity of those in charge today.
The above mentioned report also points to a coming stabilization of the Euro Zone and boom in the U.S. economy as factors which will increase investment in these cities, whereas common sense would suggest that while some residual benefits may be felt if this does pan out more money would actually flee to those spots which are performing better. In Canada that would mean Alberta.
Furthermore these predictions rely on outdated business trends and companies moving into the country’s biggest downtown areas to grab office space. That isn’t what we are seeing emerge or what is expected to play out as global tech trends evolve and companies continue to move to more affordable locations like Edmonton, AB.

No longer do businesses need to be headquartered in Toronto or even Calgary to tap the best talent or maximize revenue. This will continue to drive migration of individuals and head offices to Edmonton, along with the best talent and most investment dollars.

This is lining up Edmonton retail properties to be amazing performers in 2013 and some of the best investment picks on the planet for commercial real estate investors getting in during the first half of the year.
Euro zone or U.S. rebound or not it’s unlikely we’ll see a sweet spot to invest in Vancouver or Toronto for a while, and either way Edmonton stands to gain.

2013 Shows Higher Than Expected Investment Returns

How has the Canadian real estate market changed in 2012, what’s performed well and how are evolving trends likely to affect investments in the New Year?

2012 has been an incredibly active year for Canadian real estate, building on the momentum of the previous 12 months but with a few very interesting new twists which are sure to play out even more dramatically in the coming year.

Canada rolled in 2012 as one of the world’s top real estate investment destinations with a choice of incredibly attractive markets. Nationally, housing and commercial real estate have continued to perform considerably well, especially in the first three quarters of the year, with Calgary holding it’s crown as the top global investment hot spot.
Of course, this has also been a year of ongoing global uncertainty from the U.S. presidential election to the fiscal cliff and a series of troubles in Europe, while the BRIC collective has failed to deliver the performance many expected.

This has all added to the surge in Canadian real estate investment throughout the year, which isn’t expected to slow down anytime soon.
Unfortunately, the nation’s popularity and success also lead to the government making a series of ‘precautions’ to prevent overheating. Many of course would argue that these moves, especially the new mortgage rules were far too much and merely a copycat of the horrible decisions made in the U.S. which caused and prolonged the crises there.

This has resulted in cooling off of some old favorites like Toronto and Vancouver with ongoing debates about whether these cities will experience isolated property crashes.

This and the strength of the Alberta economy has continued to push savvy Canadians and real estate investors into the province for jobs, better deals on homes, better investment returns and wealth protection.
However, perhaps most surprising to some and most significant has been the arrival at the pivot point where Edmonton has begun to overtake Calgary as the preferred destination of incoming residents, businesses and investors.
Edmonton has long offered more value and affordability but with an array of new development in the works and a need for Canadians to escape tougher times elsewhere and investors to find a safe harbor and high yields we are seeing an explosion of interest and action.

Edmonton is firing on all cylinders, offering low unemployment, rising wages, affordable properties, great cap rates and perhaps the most significant potential for capital growth and property appreciation as we roll in to 2013.

Investors should expect these all to be trends which continue to play out in the New Year and are only magnified as we progress through it.