Localism: Alberta

Top 5 Investment Properties in Lethbridge and the Surrounding Area

Fri, 21 Nov 2008 20:19:07 -0600

In the course of my business, I come across many properties that make me think, "Should I add that one to my real estate portfolio?" Here are a few of my favorite investment picks for this week:

1. MLS#20084970 - Flower's On 9th: This thriving flower shop has been in the same location for 50 years, has an established clientelle, a solid income stream, staff willing to stay and an owner willing to train. In a great location near the Lethbridge Regional Hospital, this is one to put on your list.

2. MLS#20085100 - 308 - 4 Ave. Warner - This solid bungalow is located 45 minutes south of Lethbridge in Warner, AB... home of the Warner Hockey School. Freshly painted with refinished hardwood, new roof, siding and H20 tank in 2008, updated electrical, and an undeveloped basement with separate entrance... this is a "suite" deal for under $100K.

3. MLS#20084975 - 330 - 12 St. N. - This 2 bedroom bungalow had a complete makeover in 2005 and has been well cared for since. With 25% down, at 6 % over 25 years, payments work out to $815.27 / month. Property taxes were $1022 in 2008. Vacancy rates in Lethbridge are at all time lows (visit CHMC for rates and average rents) Do the math and call your mortgage specialist.

4. MLS#20085101 - 2027 - 1 Ave. N. - Suited for under $200K... need I say more?

5. MLS#20085895 - 151 Blackfoot Blvd. W. - Four bedrooms, parking for 4 vehicles, close proximity to the University of Lethbridge and the possibility of renting for $400 a room. Or a great place for your future graduate to call home through the University years. Only 5 years old.

6. MLS#20085858 - 1509 - 8 Ave. S. Lethbridge Fix and Flip. Priced under $170,000 with a full undeveloped basement and a single detached garage. If you've got the sweat, I think you can dig up some equity here!

Visit us for more information on Lethbridge Real Estate.

Why so glum?

Fri, 21 Nov 2008 19:52:27 -0600

I read an article the other day that Albertans are gloomier than most Canadians about the home prices. My question is why? The market is stable and compared to what is going on in the rest of the world very healthy.

It seems to be a case of think it and it will be real. According to economist Canada is actually in pretty good shape. I think as Canadians we have been financially tied to the U.S for so long that we automatically assume that their financial crisis is ours.

However in world terms Canada is doing very very well.

"Canada is a financially conservative country where consumers are able to meet the terms of their mortgages, and buying decisions are based on affordability,"

"This contributes to a solid real estate market that will not experience the same drop-off we see south of the border." Will Dunning, Canadian Association of Accredited Mortgage Professionals' chief economist

If you think Alberta is in a bad way listen to this BBC special on Iceland. Iceland went from the fifth richest country in the world to a devastated economy where national debt is 12 times the national GDP.

The only reason every American doesn't own an elephant is.....

Fri, 21 Nov 2008 08:18:28 -0600

"The only reason every American doesn't own an elephant is because they haven't been offered one for no money down and easy monthly payments"

The horrible truth behind that statement is reflected in the purchasing decisions many people have been making for much of the past few years. Everything from vacations, furniture, and elctronics has been sold using the sales gimmick of "no payments until....". I have a friend who sells vacuums for prices in excess of $2,000 and while I am pretty sure they are nice vacuums, unless you can drive them to church on Sunday the price seems a little steep to me. What the change in marketing strategies of recent years has meant for the consumer has been a total shift in the way they think.

I remember in the early 1980's my parents saved up money to go to the furniture store and buy a new sofa set. We loaded up the station wagon and drove to town and they picked one out. It was a beauty, rusty orange with wishing wells or waterwheels or some other browny orange pattern with wood accents on the arms. I believe 'the good couch', as it would forever be known in our household, cost about $1200 for the entire set and was paid for with cash money that my parents had saved up and earmarked for this purchase. Compare this to the modern furniture shopper experience. According to my neighbor who manages a large box furniture retailer, the majority of their purchasers have $0 when they walk in the front door. The furniture is sold primarily on a 'do not pay for xx months' basis, and on a less common basis charged onto a purchasers credit card. It is an absolute rarity for a customer to actually pay for their furniture. The retailer actually earns more of their corporate profits from the financing then from the margins on the product.

The customer mindset has changed from shopping for 'how much can i afford' to 'how much can i afford to finance'.

A recent automobile sale that I visited made this extremely evident. It wasnt held at a car lot, but rather in a rented hall and was staffed by travelling hired-gun car salesmen who help lots clear used inventory all across the country. As none of the vehicles had prices displayed in the window, I was forced to communicate with an aggressive little guy who when I asked what the price was of a certain van was told it was $199/month. I told the salesman that I did not need to finance and just wanted to know what the price was, again he told me the price could be as low as $49/week. After much prodding and reiterating that I would simply be writing a check for the vehicle, he divulged that the salesmen at the event did not know the actual prices of any of the vehicles only financing numbers, and to find out any more specific information the financing manager would need to be asked. At first I thought the guy was joking, but he was not. Their entire sales technique was based upon selling a vehicle based upon the payment amount and not the actual price, interest rate, etc. Amazing to me.

I have always held the theory that any item which you are being sold that requires that you make a decision within 5 minutes, that you have to attend a presentation with your spouse, that they offer you a free gift over the phone, that they wont tell you the purchase price until the end of the demonstration, or that sounds too good to be true..... IS. So when you get offered that elephant, and inevitably the day is coming, just make sure you get your spouses consent and sleep on the decision, otherwise you may need a big shovel to clean up the mess you will be getting yourself into.

Robert May

The only reason every American doesn't own an elephant

Fri, 21 Nov 2008 03:09:17 -0600

"The only reason every American doesn't own an elephant is because they haven't been offered one for no money down and easy monthly payments"

I remember in the early 1980's my parents saved up money to go to the furniture store and buy a new sofa set. We loaded up the station wagon and drove to town and they picked one out. It was a beauty, rusty orange with wishing wells or waterwheels or some other browny orange pattern with wood accents on the arms. I believe 'the good couch', as it would forever be known in our household, cost about $1200 for the entire set and was paid for with cash money that my parents had saved up and earmarked for this purchase. Compare this to the modern furniture shopper experience. According to my friend who manages a large box furniture retailer, the majority of their purchasers have $0 when they walk in the front door. The furniture is sold primarily on a 'do not pay for xx months' basis, and on a less common basis charged onto a purchasers credit card. It is an absolute rarity for a customer to actually pay for their furniture.

The customer mindset has changed from shopping for 'how much can i afford' to 'how much can i afford to finance'.

Robert May

Chestermere's Real Estate Market for November So Far.

Thu, 20 Nov 2008 18:59:45 -0600

The Chestermere real estate market has fewer listings than we had at the peak. 185 listings were active so far in November.

There are 3 pending sales.

There were 7 sold listings.

First time home buyers are getting into the market with the lower end of the market being most active this month with an average sale price this month has been $413,000.

The high sale price this month was $499,000 and the low price of $374,900.

There are some great bargains for homebuyers available right now. There have been many price reductions and there is a great selection of homes available.