Alberta Cities Come in 1st and 2nd for Best Places to Invest in Canadian Real Estate PLUS Edmonton Real Estate Forecast 2009 and 2010 Outlook

According to an article in the Canadian Real Estate Magazine, Edmonton takes first place in the best areas to invest in real estate in Canada. Whether oil is $50 or $100, Edmonton’s underlying economy is poised to be a national leader over the next decade. Calgary followed closely behind. Second in corporate head office locations in the country, lowest in unemployment and highest in average income, Calgary will challenge Edmonton as leader of Canada’s economy. Five Year Cycle: In Canadian real estate investing, you’ve got to be able to hold onto a property. It’s not like buying a stock that you sell a few days later because it went up a few dollars. I use a five year cycle, because that seems to be the time frame when you can trade up or move on. According to the Canadian Real Estate Magazine, the outlook for Alberta real estate is promising: The economy will grow by just 1.2% in 2008, as output has declined in goods-producing industries such as manufacturing, construction and mineral fuels. With these industries expected to rebound, Alberta is forecast to generate real GDP growth of 2.6% in 2009.

Edmonton Real Estate Forecast 2009

According to the Canadian Real Estate Magazine, Edmonton Real Estate forecasts for 2009 are very promising. A growth rate of 4%, according to the Conference Board of Canada, in part due to oilsands development in the northeast parts of Edmonton, construction and infrastructure activity, is making forecasts for Edmonton real estate 2009 a key player for property rental returns. According to Don R. Campbell, president of REIN, Calgary, “With over $200 billion of investment pouring into Northern Alberta in the next vie years we will witness a dramatic growth in jobs, which will attract people from across the country and around the world, each and every one of them requiring housing either rental or purchase in Edmonton real estate 2009.” In addition, the completion of the LRT route from Health Sciences Station to Century Park central Edmonton real estate at the end of 2009 is expected to bump up the 2009 forecasts for Edmonton real estate values by ten to even twenty per cent says REIN. In 2008, the average price of an Edmonton condo was $228,750 according to Royal LePage, which is one the most affordable and undervalued real estate markets in all of Canada. CMHC figures show the average monthly rental income for a two bedroom Edmonton property was sitting at about $1,000 per month. 2009 Edmonton real estate investors forecast such as Bill Briggs, a local realtor for Re/Max Real Estate Central Branch says that property investors in Edmonton tend to purchase mid to lower priced single family homes as well as apartments and condos to achieve good cashflow. The forecast for 2009 in Edmonton real estate values is that cashflow will continue to be a great positive for the markets while property values should stabilize by mid year. “Proximity to the University of Alberta, the Northern Alberta Institute of Technology and Grant MacEwan College provide a huge number of prospective home renters,” he says. Edmonton condo forecast for 2009 might be the best opportunity for cash flow because these units tend to rent faster and are expected to see a 12.2% increase in rent by the end of 2009, according to CMHC.

The 2010 Outlook for Edmonton Real Estate

According to many experts, now is a great time to purchase Edmonton property. There are several factors that result in this conclusion. Firstly, mortgage rates and lending are at all time lows in the history of this country. With BoC lending rate at 1% as of February 2009 and an expected drop by 0.25% to 0.5% in the upcoming Bank of Canada announcements, the variable rate mortgages that are tied to the BoC lending rate to some point, will possibly hit the lowest point ever in the coming month. The 2010 outlook for Edmonton real estate is that the rebound in commodity prices such as oil and gas will have a very positive effect on the Alberta economy in general, with Edmonton property prices in 2010 outlook and forecasting expecting a high single digit gain through the year. Variable rate mortgages are very low right now, and waiting even 6 months may mean a difference in one or two per cent over a course of a five year term. Any drop in Edmonton real estate prices in 2009 or 2010 will be offset by the increase in mortgage interest rates, so there would be no real advantage to wait if you, as a homebuyer, are ready to make a new Edmonton home purchase. Secondly, the Edmonton real estate outlook 2010 and beyond is that with many home buyers waiting it out to see where the market goes this year, and with forecasts for 2009 and 2010 in Edmonton real estate calling for a big dip in sales volume and a small decrease in sales price, there will be many more people looking to buy a home in Edmonton property market in 2010. with an increase in homebuyers, comes competition again, meaning that the new Edmonton home of your dreams may have multiple offers and possibly bidding wars for lower priced houses and condos. Why go through the tense wait of bidding wars when you can submit a single offer in 2009 Edmonton real estate outlook and forecast and end up with a great home that you love. Thirdly, oil and gas make up a big part of the Edmonton economy and is a driving force for the province of Alberta in terms of revenue, infrastructure, business and population growth. As commodity prices are at their all-time lows in the past 20 years and with the rise and growth of both China and India coupled with the insecurity of other gas and oil producing nations, Edmonton real estate forecast for 2010 and 2009 is much better than what most headline news portrays. With a growing demand in these developing nations, it is important for Edmonton to make sure that it gains the respectable relationships with these nations and to promote other clean energy sources for the future of Alberta. With a rebound of oil and gas prices expected in late 2009 and through 2010, the Edmonton real estate outlook and forecast is very good as property prices here have always had a direct relationship to commodities. With more people moving into the Edmonton area in 2010 and with an increase in the number of jobs coupled with a stagnant home building industry for the last two years, there will be a shortage of rental and owner occupied housing in Edmonton real estate in 2010 again. For all of these reasons, Edmonton real estate outlook 2010 and beyond is for a strong and stable market for both buyers and sellers.

Alberta Infrastructure Gets a Boost from the Federal Government – Multi Million Dollar Investments in Capital Projects for 2009

According to the Journal of Commerce, January 7th, the federal government of Canada plans on injecting multi-millions of dollars into the Alberta infrastructure projects over the next four years not only to curb the recent unemployment fears, but to setup Alberta has a leading province for investment and lifestyle in the next decade. As announced last week, the Canadian federal government will be injecting funds into a wide range of Alberta infrastructure projects that include everything from water and waste systems to public transportation and roads as well as other important capital projects that require funding from the federal level. According to Bill Steward, the VP of Merit Contractors Association in Alberta, “Both the federal Canadian and provincial Alberta governments have said they will step up infrastructure spending. We have a 20 year Alberta infrastructure plan and it looks like its full speed ahead on that.”

The Province of Alberta Dives into the Federal Gas Tax Fund for Funding Municipal Projects

Recently, the Alberta government announced that it would dip into the federal Gas Tax fund itself and invest more almost $800 million dollars into the provincial Alberta infrastructure that includes many projects in its largest two metropolitan areas: Edmonton and Calgary. With an extension in place by the federal government of Canada, the Alberta infrastructure projects will be funded covering four years until 2014 which will provide not only stable federal funding of these capital Alberta projects but also long term stability in investment in infrastructure of Edmonton and Calgary in Alberta. The range of eligible Alberta infrastructure projects includes local roads, community energy, public transport industries, water, waste water management and solid waste infrastructure improvements. Lastly, the Canada federal government boost will also include funding for the Alberta long term planning. Funding from the federal Gas Tax fund will be immediate and can be used to fund many municipality projects going forward in 2009. Phase 1 of the Canada Gas Tax fund will support modern Alberta infrastructure projects that will help the province stay competitive in the long-term. Over the next five years, Alberta will benefit from an injection of nearly $476 million from the federal Gas Tax fund from the government and more than $258 million has already been transferred into municipalities to support over 567 Alberta infrastructure and capital projects. $176 million from the federal Gas Tax fund will be going to smaller towns of 100,000 or less people throughout Canada. The federal Gas Tax fund is actually a part of the Building Canada initiative, a long term Canada infrastructure program that will see through the development of environmentally sustainable infrastructure projects throughout Canada in order to clean the air and water and to reduce greenhouse gas emissions.

The 20 Year Strategic Capital Plan for Alberta

Last year in 2008, the province of Alberta announced the 20 Year Strategic Capital Plan that included a $120 billion cash injection from the provincial government into infrastructure in order to better deal with the growing problems with population/economic growth and infrastructure/building. The 20 Year Strategic Capital Plan for Alberta is a plan that covers the next two decades and will heavily lean towards the northern part of the province including new roads and transportation routes between Edmonton to Fort McMurray, hub of the Alberta oilsands projects. Other parts of the funding will help with the 20 Year Strategic Plan of Alberta for an increase and assistance with hospitals, clinics, affordable housing, technical schools, colleges, universities and other major projects.

Canadian Federal Budget 2009 - What Can Canada Afford to Advance Infrastructure Projects for the Provinces like Alberta?

The top infrastructure projects throughout Canada are now being discussed by Parliament for the January session. So what exactly do the provinces want from the federal government, especially Alberta, which has several capital projects on the go and many more planned. Do these Alberta infrastructure projects take a back seat or is there a green light to go ahead as planned. With the current global economic crisis, Canada's federal government has a dilemna. Spend more to stimulate the Alberta economy (and that of Canada as a whole) through infrastructure spending, or wait out the global recession and plan for the intiation of capital infrastructure projects in the future? Right now, it seems as though the Canadian federal government is not providing the funding required to complete or even initiate many of the Edmonton and Calgary Alberta infrastructure projects. However, as the global economic crisis deepends, the federal government in Canada has leaned towards providing more funding for the completion of hospitals, roads, and water treatment plants in Alberta, and namely the major centres in Edmonton and Calgary. So in order to stimulate the Canadian economy, here are some of the top infrastructure projects that have been talke about in Parliament. According to ReNew Canada, here are the top five Canadian infrastructure projects asking for federal funding in 2009:

5. Clipper pipeline (Alberta) - $2B
4. Spadina subway Extension (Ontario) - $2.63B
3. Eastmain project at James Bay (Quebec) - $5B
2. Bruce A nuclear plant (Ontario) - $5.25B
1. Romaine Hydroelectric project (Quebec) - $6.5B

Here is a breakdown by province on major provincial capital infrastructure projects asking for Federal assistance this year in Western Canada:

British Columbia - Vancouver Infrastructure Spending

B.C. Premier Gordon Campbell might be looking for tax reductions in the federal budget, but he also has $3 billion potentially tied up in his own gateway project infrastructure vision — essentially large highway improvements such as the $1.6 billion Port Mann-Highway One upgrade. In addition, Port Moody, in the riding of Tory Heritage Minister James Moore, is worried that the downturn in the economy might delay or even kill its $1.4 billion private-public partnership to link this Vancouver bedroom community with the downtown core.

Alberta Infrastructure Projects

Premier Ed Stelmach has a "Port Alberta" project, a strange name for an infrastructure proposal when you realize that Alberta is one province away from the Pacific Ocean. In fact, located at Edmonton’s International Airport, this is another "gateway" which would make the province more attractive to business. It is part of the Alberta infrastructure government’s plan to spend about $6 billion annually for the next 20 years on capital projects.

Saskatchewan Infrastructure Plans

The province has a five-year capital plan in place to lay new asphalt on highways all over Saskatchewan, like the twinning of the infrastructure highway from north of Saskatoon to Prince Albert. The 2009 bill for Saskatchewan’s first tranche of highway building is about $170 million.

Manitoba Infrastructure Projects

Winnipeg has about $4.5 billion of projects on its infrastructure wish list, including road and terminal improvements to make that infrastructure city’s international airport an "inland port." Then, once you get outside Manitoba’s biggest city, the province is spending another $400 million annually on a 10-year road improvement scheme, which upgrades infrastructure highways in places such as Brandon and Gimli.

'Money will flow very slowly'
The 2009 Canadian federal budget revealed that about $12 billion in new money would be set aside for capital infrastructure projects like roads, bridges, railways, universities, recreation centres and other infrastructure over the next two years. The federal government is promising $4 billion over the next two years for infrastructure projects beginning construction in the 2009 and 2010 building seasons. The Canadian government said it would approve provincial, territorial and municipal infrastructure projects, and cover up to 50 per cent of eligible costs. But Toronto Mayor David Miller criticized the budget for creating a time-consuming application process for municipalities, in which "money will flow very slowly, if at all." "Municipalities are already investing in infrastructure," Miller told CBC News from Toronto. "We were hoping our federal partner would support us by investing in the projects we're already doing, so we can expedite them." That concern was shared by Edmonton Mayor Stephen Mandell. While Mandel was pleased to see more money for Edmonton infrastructure projects, arts and recreation centres, he raised questions about how the money for these major Alberta infrastructure projects will be handed out. "It's exciting. There's going to be $12 billion for infrastructure," he said. "But I don't know what the terms and conditions of it are. There's concerns about the flow of money: What are the terms and conditions of it? How much do we have to put into it? "Is it going to be directed a lot more towards eastern Canada, because maybe they have a few more problems than we do?"

Welcome to the Alberta Investment Blog - A Resource for Edmonton & Calgary Real Estate Markets, Oil & Gas, Economy and Other News

Thank you for visiting the Invest in Edmonton Real Estate Blog.

Here you will find information about the real estate market in Edmonton and its surrounding communities in addition to details about the state of the market in Alberta. Fueled by the growth in Fort McMurray and the oil sands of Alberta, Edmonton is growing at a fast pace and real estate has boomed. From homes to master-planned communities and from real estate properties to condominium towers, Edmonton Alberta is the place to be when it comes to jobs, entertainment and real estate investments.

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