Edmonton Real Estate Blog

It’s one good way to make money, heck, some people even make it a living! Like most businesses, flipping houses takes time and dedication. Apparently, now is one of the best time to flip real estate properties in Edmonton. The industry is on an upward trajectory and it’s projected to last for a couple of more years.

Here at Team Leading Edge, we gathered some of the ways to do this effectively, so you would not waste money. Take note and good luck!

1. NO FAMILY

First and foremost, avoid at all cost involving your family. It doesn’t matter if your family is a contractor, it’s never a good idea to mix family with business. Utilize third-party contractors.

2. CONTRACTORS

Speaking of contractors, shop around for contractors who would make the repairs for the property and always remember to inspect it as often as possible when the project is being done. Interpretation errors are one of the major risks that you would encounter in this business so from the very start it is best to make sure you provide crystal clear terms of what you are expecting them to accomplish.

3. MAIN RECORDS

Diligence is key, make sure to store each and every receipt or bill you receive from your contractors.

4. LIGHTING

Great lighting can greatly increase the chances of having the house sold from the very first showing so utilize bright lights!

5. FIRST IMPRESSIONS LAST

The truth is, buyers would start making their decisions once they stepped in front of the door, so always ensure to “Wow” your buyers from the moment they lay their eyes on that door.

6. THE ESSENTIALS

Double check if the gas lines, plumbing and electricity are working. The keyword there is “double check”. You wouldn’t want to embarrass yourself if you tried to switch on the light and it fails.

7. LASTLY

Last but not least, hire professionals to help you sell the property quickly! Team Leading Edge, sells houses for breakfast. As a matter of fact, the team have been awarded once AGAIN as one of the top 50 RE/MAX real estate teams in Western Canada for the month of October based on paid out commissions-that speaks volumes to the quality of service the team would bring to your business.

Check out the available homes for sale in Edmonton that you could very well flip, our Edmonton MLS listings are updated in real time so you could be sure to get instant access to the real estate market.

Risk management is all about controlling and minimizing your exposure to the negative impacts of forces beyond your control. We here at Team Leading Edge have gathered the top 5 things we consider a must-do to avoid all those unnecessary loses in your Edmonton real estate investments.

1. TRUST YOUR GUT INSTINCT, NEVER LISTEN TO OTHERS WHO HAVE TO REAL ESTATE INVESTMENT. Top of the list, we would like to put strong emphasize on this. Just as you would not trust a medical prescription being given by a non-medical person, so should you not also listen to those real estate opinions and advises being given by non-real estate investors.
2. NOT TAKING THE REPAIRS SERIOUSLY. Underestimating the repairs that should be done in your real estate investment could and would be a very costly one. Avoid this trap by hiring professional contractors to assess and fix all needed repairs.
3. NOT HAVING THE STOMACH FOR VOLATILITY. Like any other investment, the real estate market is also a volatile place, although not as crazy as the stock market, but still, volatile. Even as the Edmonton housing market right now is on a strong projected growth, as an investor, you should not put your guards down. Swings in the market a real! In order to avoid any huge loses, stand firm on your ground and keep at it even if the market is down.
4. CASH FLOW>APPRECIATION.Cash flow would always be king in the long run. Americans fell hard when their economy collapsed because of the real estate bubbles. People there thought they could make money through appreciation-they were dead wrong. Their country almost got bankrupt out of it. Avoid this mistake by investing with cash flow in mind, rentals with a net of 10% and up would be the most ideal.
5. NEVER THINK YOU KNOW EVERYTHING. It’s typically a beginner’s mistake. Books, web articles, seminars, all of those are great materials for gaining knowledge but nothing would ever beat experience. If you’re seriously sticking in this real estate game, it would be wise to find a seasoned coach. A veteran mentor that have the “been there, done that” kind of stuff. Reduce the learning curve by investing with such a mentor-the things you’ll learn would be priceless!

If you’re looking for new real estate investments, you’re in luck! We have one of the best real estate projects in town. A Team Leading Edge exclusive, newly built available for you. Check all of the out here.

This morning I received an interesting article from Doug Bodtcher of Investors Group Financial Services Inc. Entitled “Achieve investment goals with less volatility”, articles like these is best shared to everyone.

While the city of Edmonton is enjoying a strong economic growth, it doesn’t mean you have to take higher risks to gain more profit. An excerpt from the article “The trade-off between risk and return is one of the most important decisions that an investor has to make.”

He further adds “A low volatility strategy is designed to produce less risk than the broad market. It allows investors to participate in positive market conditions and potentially shelters their investment from excessive market volatility.”

Subscribe to our blog and download complete article here.

The more investment knowledge you have, the better chances you’ll get in earning more money.

For real estate investments, do check out our Edmonton MLS listings. Updated daily for your convenience.

It’s been almost a mythical belief that the best time to sell an Edmonton home is during spring and summer season. That is most certainly not true. Although, selling in spring and summer poses “some” advantages, listing your home today would be one of best strategies you could do.

It is possible to sell your home quickly and for a better price this off-season due to a shortage in inventory. Remember, most Edmontonians are busy preparing for the holidays so there are few competitions out in the market!

During the spring and summer time, there’s an influx of newly built homes so that gives buyers more options, which in turn could force you (or the other sellers) to reduce the selling price.

Again, to emphasize, the off-season will provide you with less competition. Yes, we needed to underscore that part. Most people hibernate by this time of the year, some would just choose to watch the Edmonton Oilers game (like Serge and Dan) rather than sell their homes so all the odds are within your favor!

Lastly, off-season buyers would love it when they know and see for themselves that your most cherished house have been performing terribly well against damaging weather conditions; heavy rains, freezing temperatures.

Pick-up your phone and call Team Leading Edge now at 780-634-8151 so we could start selling your home.

In case you missed it, theglobeandmail.com published an interesting report last 11 November written by Michael Babad entitled “Why we shouldn’t fear a crash in Canada’s three hottest housing markets”.

Here’s the breakdown of it.

In the housing and demographics side, senior economist Robert Kavcic found in his research that while the residential construction starts are at record levels, still grew 4% year over year.

Toronto is experiencing a 4 1/2 –year low in constructions starts due to the cooling down of population growth.

Mr. Kavcic further said that there is no meltdown in the horizon since the constructions happening in Toronto were mostly started in 2012 and 2013, which means there is no real overbuilding.

As what we have discussed in our previous posts, housing starts have declined in October reaching a low of 183,600, surpassing projections by economists.

“The focus in Canada is on Vancouver, Calgary and Toronto, where prices are running hot. Most recently, the Bank of Canada has said other markets are showing signs of a soft landing.” the report said.

Gluskin Sheff + Associates chief economist David Rosenberg suggests that the downside surprise in data is a welcoming point for policy makers, where homebuilding is staying consistent with the Canadian household formation trend.

This trend is well above the requirement to match the growth in population as noted by Brian DePratto, Toronto-Dominion Bank economist.

He further adds that “A gradual rise in interest rates, along with the moderate level of overbuilding will help moderate housing activity.”

All this point to a rosy real estate industry in Edmonton. The music still continue to play and so is the need to dance to it. Buy now. Check out the latest available homes for sale in Edmonton and nearby areas on our high-speed Edmonton MLS.

Read complete report here.

Great that you want to capitalize on the real estate growth of Edmonton. Having an investment in rental properties is one of the best things you could have in today’s economic environment.
Here at Team Leading Edge, we gathered the 5 simple things you can do to get those great tenants and start earning passive income, fast!

1.    FIRST IMPRESSIONS LAST-TAKE CARE OF THE YARD!

Yes, first impressions do last and it speaks true to your home. If you want great tenants, you must present a great home. Start with your front yard as it is the very first thing that potential tenants would see. Do all the necessary stuff to make it look awesome; mow, trim, prune. Just remember, the things you did at the front, you must also do at the back.

No need to drop a big amount of cash just to make the front and back yard look beautiful. Minor adjustments would do the trick such as installing new light fixtures and painting the mailbox.
2.    SPEAKING OF PAINT

Since the home will be used for rental, no need to paint in your favorites colors. Simply go with neutral colors of different shades in different rooms. Rule of thumb is to make the interior color “warm” to its potential tenants.
3.    TIDY UP MY FRIEND

Time for you to remove clutter and all personal things inside the house. We know it sounds obvious but it won’t hurt to remind you again to clean, scrub and dust every nook and cranny of the house. The more storage and floor space you create, the closer you get to bagging that rental deal.
4.    THE KITCHEN

The kitchen is the heart of the home, it’s where the lady of the house makes her magic happen so try to pay special attention to this one. Assuming you have “clean, scrub and dust” every nook and cranny, then you’re already safe. Time to move on to the last one.
5.    THE BATHROOM

It’s basically the second place where dirt accumulates all the time, mold in particular is one of the nastiest things that may inhabit this part of the house. Make sure to remove all molds from the grout. The easiest and cheapest way to remove this is through the help of lemon juice. (apply, scrub, scrub, apply, scrub, rinse, you’re done!)

Double check toilet seats if it needs replacements and also check for grime and scum in the shower area (prepare yourself to do some scrubbing again).
Lastly, make the new tenants feel beautiful with a newly washed and sparking clean bathroom mirror.

There you have it, a few minor tweaks and you’re all set to close the deal and receive that income stream.
Do check out our Edmonton MLS for all the available investment properties for sale in the Edmonton and nearby area.

This past few weeks, we at Team Leading Edge have harping the good news about Edmonton’s real estate industry, today, we’ll try to touch base on the issue of declining oil prices and what it means to the real estate sector.

This topic strikes close to heart since one of Alberta’s main source of income is oil money.

In the past 4 months, oil prices have plunged to a low of 25%, although this is nothing compared to the 80% drop during the Great Recession, some business leaders still foresee a negative effect to the real estate side.

This is not to say that there is another major crisis. Canada’s southern neighbor is currently enjoying a faster than average economic growth.

The declining in oil prices might cost Alberta’s provincial treasury CDN $215 million, if oil prices drop down a notch below the $92 per barrel mark.

David Sanche, co-CEO of Westrich Pacific, said that if oil prices stay low until spring time, condominiums that are entering the pre-marketing phase might face delays, including their project at the Windemere area and corner of 102^nd street and 102^nd avenue.

On the other hand, the decline may prove to be a good thing for the construction industry as it might shift the demand for construction workers from the oilsands to Edmonton’s real estate.

You read it right, everything is looking good for the housing market in the city of Edmonton. Just last October 30, The Wallstreet Journal Canada released an article entitled “Canada’s Housing Market Defies Doomsayers” written by Nirmal Menon, emphasizing that “Canada’s housing market keeps on going, defying long-standing predictions of a slowdown.”

Like what we have written on our Halloween article “Edmonton Housing Market, Surviving Zombiepocalypse”, The Wallstreet Journal Canada reports that forecasts for starts and prices have been raised again by the Canada Mortgage and Housing Corp.

A point to ponder in the report is the reason why Canada’s housing marketing did not experience a bust similar to its southern neighbor, the U.S. Unlike its neighbor, Canada put in place practices that are more conservative.

“The government has tightened mortgage insurance rules four times between 2008 and 2012 to cool the market and rein in household debt that Canadians have built up by using cheap borrowing costs to buy homes.” the report said.

BMO Capital Markets chief economist Douglas Porter have played down the gloom and doom scenarios as some observers have been worried that a housing bubble might burst, this is on the back of the International Monetary Fund’s recent inclusion of Canada as one of the countries with over-valued home prices.

Mr. Porter is positive that under most scenarios, like if the global economy stumbles or Bank of Canada makes big rate hikes, the Canadian housing market would keep plowing ahead.

This solidifies our earlier announcements at Team Leading Edge that it is the right time to buy a real estate property in Edmonton. Check all the latest homes for sale in our Edmonton MLS.

Read complete report here.

Taxes aren’t the most pleasant of expenses to pay, but then again, in its essence, it’s necessary to keep things going especially in a prestigious place like Edmonton.

Last 31 October, CBC News published an article entitled “City admin says tax increase needed for growing population”. This apparently was not received well, with one reader commenting, “City council should get rid of the suits and go to their job in jeans and a T shirt for a while… Maybe it would help them come back to reality…”

According to the report, the 5.3% tax increase is for one, due to the rapidly growing population of the city. As of last Friday, the city administrators have released details of the 2015 proposed operating and capital budgets. This would mean an added $9.17/ month or $182 / year for a total of $2,184 to the ordinary Edmonton home.

Lorna Rosen, Edmonton’s Chief Financial Officer wrote in a release that “The proposed 2013 Operating Budget allows us to expand services to a population that has grown by 60,000 people in the last two years,”

Of the $2.3B operating budget, 15% would go to police services, 14% to the transit sector while the third largest expense would be towards parks and community services.

A small fraction of the billion dollar budget would be spent towards infrastructure projects.

“Council will hold a public hearing on the budget Nov 24. Councillors will then begin deliberations, where they will finalize the budget, on Nov. 26” the report said.

View complete report here.

Let us know what you think about this in our comment section below.

If Brad Pitt was a Realtor in Edmonton, he will be extremely happy. Here’s another report that provides proof that Edmonton’s real estate market is strong and stable and will survive all the gloom and doom predictions.

The Canada Mortgage and Housing Corporation (CMHC) have released their “The Fall 2014 edition of CMHC’s Housing Market Outlook – Edmonton” last 30 October 2014 and Team Leading Edge is one of the first few real estate team to receive the information.

We have broken down their extensive report into bite sized pieces and we’re happy to serve it you in a golden platter (since silver is already overrated).

NEW HOME MARKET:

2014 have seen a moderation in the total housing starts in the Edmonton Census Metropolitan Area (CMA), this after a double digit increase in the past two years. 2015 and 2016 will experience lower housing starts.

CMHC further reports that “Although demand for new homes is being supported by rising employment, elevated migration, and low mortgage rates, the elevated number of units under construction, particularly on the multi-family side, has dampened housing starts in 2014.”

If you’re thinking of buying a home in the next few years, this forecast might come in handy, overall total housing starts are forecasted to reach 13,300 units this year 13,000 in 2015, and 12,300 in

Like our article yesterday, Edmonton Real Estate Report, What’s Happening In Our City, Single-detached family homes are on the rise. It has seen a 9% increase over the same period last year to 4,308. Good news to home sellers since the growth in employment, rising wages, low inventory and low mortgage rate would support this growth, although there’s a possibility of a slowdown come 2015.

EXISTING HOME MARKET:

According to CMHC, “sales growth will continue through 2016, demand for resale homes in Edmonton will remain robust in 2015 and 2016. Employment growth, low over into 2016 with price growth easing to 2.4 per cent. The average price will be $371,000 in 2015 and $380,000 in 2016.”

If you’re thinking of selling your property, the first 8 months of 2014 experienced a 60% average listings to sales ration. This trend is seen to spill over in 2015 and 2016.

RENTAL MARKET:

Demand for rental properties in Edmonton remain high due to rising employment and wages and elevated migration. Now is the perfect time to own a rental property. For a list of available investment properties in Edmonton, do check out our Edmonton MLS.

ECONOMIC OVERVIEW:

CMHC firmly believes that Edmonton’s economy will continue its growth path albeit at a slower pace in the next 2 years.

Consumer spending have gained traction due to wage gains and strong population growth. New money is being pumped out of the oil and gas industry as it remains an important component of Edmonton’s economic growth.

It is forecasted that unemployment rate will reach an average of 5% in 2015 and 4.9% in 2016. The report further states that “labour market conditions will remain relatively strong, putting continued upward pressure on wages, and supporting demand for housing. Wage growth has continued in the Edmonton CMA.”

During a 12-month period ending 30 June 2013, Edmonton experienced a record high of net migrants reaching a peak of 38,511. Although migration is seen to take a plunge at 31,000 in 2014, 24,000 in 2015 and 22,000 in 2016, it will still continue to contribute in demand for housing and growth in population.

MORTGAGE RATES:

It is seen to remain unchanged until the latter months of 2015. CMHC further expects “interest rates to remain unchanged until the latter parts of 2015 and then begin to increase gradually. Gradual increases in mortgage rates from historic lows are not expected to significantly impact housing demand.”

View complete report here.

PS. HAPPY HALLOWEEN FROM TEAM LEADING EDGE!