Why Invest in Edmonton?

 
Why Edmonton and Not Somewhere Else?
Edmonton has finally hit the international stage for investors, and many are capitalizing on what local investors have been reaping the rewards from for years...and for a multitude of reasons. Our market has seen dramatic increases in average prices over the past few years, starting with a jump in 2001 with an average 16% increase, and continuous growth through to 2006 which saw an amazing 48% overall increase. Our market is predicted to continue at an average rate of 8-12% average price growth through to 2012 (farthest current forecasts).
This sustainable growth has been caused by a booming, diversified economy, population growth from both inter-provincial and international net migration, and increased incomes. With historically low vacancy rates, our rental rates have increased along with prices and investors have seen good cash flow from rental properties along with great appreciation growth in equity. See the few links below for more information. The most important is the current economic outlook to 2010 prepared by the City of Edmonton’s government which is overwhelmingly positive to further sustained growth.

See the current Edmonton economic outlook to 2010 here: Edmonton.com/statistics

City of Edmonton’s (Mayor Mandel) outlook from 2007 to 2012: Socio Economic Outlook

Overview of Edmonton’s economy from the EEDC: Edmonton Economic Overview

EEDC’s 2009 Economic Outlook, very exciting!!: Edmonton Economic Outlook for 2009

CMHC’s Spring 2009 Alberta Economic & Housing Market Outlook: CMHC Alberta Spring 2009 Report

CMHC’s Fall 2009 Housing Market Outlook Report: CMHC Edmonton Housing Market Outlook - Fall 2009

CMHC’s Fall 2008 yearly Edmonton Rental Market Report: CMHC Edmonton Rental Market

CMHC’s Spring 2009 Alberta Rental Market Report: CMHC Alberta Rental Market

See the average prices of residential properties from 1962 to present: Average Prices

Where is Edmonton? see a map position here: Edmonton Map

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Why Real Estate and Not Stocks or Mutual Funds?
How have your stocks and mutual funds been performing over the last few years? Well, we have seen an average over 10% annual appreciation on the equity of real estate, equaling a minimum effective 40% annual effective rate of return on investment (ROI) with leverage since 2000 (see below for explanation).


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General Information on Real Estate Investing:
Whether you are just getting started or you already own a portfolio of properties, I understand your goals and can work with you to achieve them. Real Estate investing has many advantages over other types of investments, but it is not for everyone. Our Edmonton and Alberta market has been growing very strongly over the past few years and is predicted to continue over the next few as well. That being said, the main advantages of real estate investing are in the longer term, that being over five years. The main advantages of this type of investment over other investment vehicles are:

1.  Leveraged appreciation - your assets growth is multiplied
2.  Equity repayment - tenants pay down your mortgage for you.
3.  Tax advantages - save now and later, refinance tax free.
4.  Cash on cash rental return - generate a monthly cash income. 

In addition to that, the key to optimizing your investment is good management of the property. Depending on your skill set, time available, size of property, and resources available, management can take on many different forms. One of the first things we do with all clients is what we call a risk tolerance and situational analysis to determine what type of property would be best suited for you to invest in or how to best optimize your current portfolio. Once you have made the decision to sell and we think the timing is right the next step is to maximize the current market value for the sale. There are many ways of accomplishing this, and our experience and results have proven very successful to maximize your property values. We would be happy to meet with you to discuss your situation further. Please feel free to contact me to discuss your particular situation.