Living in Summerside Edmonton

Ellerslie Road and Summerside

Ellerslie Road is the south border of the city and what divides Summerside from the rest of Edmonton. The development of Summerside is really a story of the development of farm land on either side of Ellerslie Rd. Many people still can remember the not so distant past when they played hockey on the rink in the farm by Ellerslie Road. This was not known as Summerside back then and will be a distant memory for most people in another 10 years as development in Edmonton real estate continues to push on. Why is Summerside such an important part of the Edmonton real estate story? Well, you can see the rapid growth in the area with the South Common drawing crowds from as far away as Red Deer. The South Common is a shopping mega complex with box stores such as IKEA, Home Depot, Golftown, and Best Buy to name a few. There is also a large multi-cinema theatre and all your favourite restaurants. There has been significant commercial and residential growth since the development of the Anthony Henday South ringroad in 2008. This connects to Ellerslie rd. in so many points that Ellerslie Rd. is synonymous with the Ringroad in Edmonton South. Summerside will benefit from the better access that Ellerslie now receives as this new community is just south of it.

Summerside Lake and Community

At the heart of Summerside is the Lake. More properly known as Lake Summerside, this rapidly growing community is starting to take shape as more and more people relocate to the area. With a resident community fee for all people who live in the area, Lake Summerside is developing the resources to provide a valuable resource to everyone who lives in the vicinity. A gated community Lake that is the biggest in Edmonton and has a clubhouse, tennis courts, basketball courts, and real sand beaches. The experience of this community is one of pride and exclusiveness. All members of this Lake Summerside community are required to pay an annual fee and receive a membership card that allows access to the Lake and all it has to offer. With a stocked pond full of trout, residents at Lake Summerside can enjoy a famous Alberta pastime of fishing. The clubhouse also provides kayaks, canoes, and other water activities that can be enjoyed by the whole family on any of the beautiful sunny days that Edmonton always has. In the winter you can enjoy ice skating on the lake once it has been tested to be safe. There are ice skating lessons that are organized by the staff at the Lake Summerside clubhouse that are ready to show you how to skate. Other people make participate in a friendly game of ice hockey or even ice fishing!

Summerside home real estate developments

In Summerside you will find a variety of Edmonton home developments. From the typical single detached homes to the multifamily townhouses, apartments, and coach homes, Summerside has it all. The difference is that Summerside is a master planned community and that means when you come to Summerside you will notice that everything is very well organized and looks like it belongs. Homes in the area conform to a community landscaping plan and all new homes have this development requirement. The result is that the area is a great place to walk around in as you enjoy the beauty of all the new Edmonton homes and their unique architectures and styles. You feel like you are in a resort lake community and not really in Edmonton at all. Of course the people are all friendly and family oriented so you will enjoy getting to know your Summerside neighbours perhaps at one of the many Lake Summerside community events.

Edmonton Real Estate: Buy or Wait?

Buy or Wait for Edmonton Real Estate

With the gloom and doom headlines of late it is not hard to see why the prices of real estate in Edmonton and Calgary are falling fast. How fast you may ask? Based on recent data by Statistics Canada, Edmonton real estate prices dropped 2.8 percent and Calgary real estate prices dropped by 2.1 percent in January 2009. This is a drop in a month’s time which is significant when you look at the average home increase in the last 50 years is only 3 percent per year. The current drop in Alberta real estate prices is definitely a result of the global financial crisis caused by the subprime lending in the US. Buy or wait is the question, however, that many investors are now asking about Edmonton real estate. With prices dropping back to levels not seen for 2 years and rents more than double what they were back then is this a good time to buy? As with all buy or wait decisions, what investors should always pay attention to is their cashflow. Cashflow is king in any buy or wait decision. Can you afford to buy Edmonton real estate and have the rental income support all the cash flows that real estate investing has? Perhaps the answer is yes and maybe even better the answer is that buying Edmonton real estate right now will give you positive cash flow. Waiting on the other hand has it’s pluses and minuses as well. If you are waiting for a better deal on Edmonton real estate this just may never happen. The fact is real estate is always a cyclical market and with the current large fluctuations it is most certainly a fast moving one for good property. Waiting to buy good property may end up costing you.

Alberta Mortgage rates and Edmonton homes

Mortgages in Canada and especially in Alberta have given most investors a chance to afford the new home purchase. Even if prices were at the high of 2007 we can still see the average investor being able to afford the average Edmonton home. For example with current prime rate at 2.5 percent and most banks willing to lend to their best clients at Prime + 1%, the mortgage rate that investors will get right now are close to 4%. This low mortgage rate will make your Edmonton home more affordable by $300 or more depending on the size of your house. Most homeowners in Edmonton have been able to go to their banks and talk to them about their Alberta mortgage and have their amortizations extended and thus lowering their monthly payments. In a global financial crisis such as the one we are experiencing, the ability to keep more cash in your account is the key to surviving. Most Alberta mortgage rates that are on variable rate have benefited greatly from the drop in the Canadian Prime rate to 2.5%. With mortgage rates expected to be stable for the next 12 months most Edmonton homes will continue to be very affordable.

Summerside, Northeast, and other buying opportunities in Edmonton

Now the real question real estate investors in Edmonton have is where to buy their home? There are so many areas in Edmonton to choose from with some of the more popular areas being: Summerside and the Northeast. When deciding on buying your Edmonton home you need to know what the purpose of buying is. Are you an investor or are you going to buy the Summerside or Northeast home to live in? For a lot of people in Edmonton they are actually homeowners. There is still a lot of in-migration from the other provinces to Alberta. Edmonton is one of the most popular choices for people to locate as the jobs in Edmonton are still abundant as compared to other areas in Canada. Summerside is located in South Edmonton near the South Common Shopping Centre and minutes away from the new Anthony Henday ringroad. For people who work in the South or need to be near the Edmonton International Airport, Summerside is the ideal location. The completion of the Anthony Henday ringroad in the south has opened up the transportation routes and enabled the efficient flow of traffic to the area. Summerside is experiencing an explosion in commercial activity including Edmonton real estate development. The Northeast Edmonton area on the other hand is perfect for people who work in the army or North of the Fort Saskatchewan River. It is an area that will be going through an expansion in the next few years as the Anthony Henday ringroad is complete in 2011. The northeast is already slowly experiencing commercial and residential growth and has seen one of the best real estate returns in Canada over the last five years. So buying in Summerside or Northeast Edmonton will really depend on where you work and what you plan to do with your new Edmonton home.

Subprime lending in Alberta: Truths and Myths

What is the Subprime Market in Alberta

The Subprime Market made the national news in the US and has continued to be a weekly headline. A subprime market is one in where high lending rates are offered to borrowers with lower credit quality. These lenders borrow from the subprime markets because the main banking institutions will generally not lend to these types of investors. The Alberta Subprime Market does exist but not in the same scope as we have seen in the US. The hot Alberta real estate market, especially in areas such as Edmonton, Calgary, Fort McMurray, and Grand Prairie have led investors to borrow like there is no tomorrow. Everyone just wants to be in the real estate market of Alberta and the prices seem to keep climbing. With the price of oil rising to meteoric heights, the subprime market was also lending at meteoric rates with investors leading the way in borrowing from these non-traditional lenders. While the interest rates given by the main banks such as Royal Bank, CIBC, and TD Canada Trust remains at historic lows of 5% on a 5 year fixed rate mortgage, some subprime lenders were writing new mortgages that ranged from 7% to 20%. There have even been cases where investors who needed bridge financing to close on a deal would borrow from these second tier lenders at rates above 30%.

Foreclosures in Alberta as a result of Subprime Lending

Foreclosures in Alberta have seen a dramatic rise in the last 12 months. The year of 2008 has seen the foreclosure rate jump more than 50% with the lawyers working overtime to handle the workload of Foreclosures in Alberta. How can the rate jump so high? It is a direct result of subprime lending in Alberta and specifically in real estate heated markets such as Edmonton and Calgary. The subprime lending has allowed investors to over leverage their financial position and put themselves in an impossible position to maintain their properties. Once the ability to pay the mortgage is not met, these investors desperately try to liquidate their properties in a falling Edmonton and Calgary real estate market. The result is that many homes do not get sold, mortgages do not get paid and the foreclosures start increasing in the double digits. However, put into perspective, the foreclosure rate in Alberta, especially Edmonton and Calgary have been very low. Even with a tripling of the foreclosures in Alberta due to sub prime lending, the actual amount of Edmonton foreclosures is still small. We do not see a subprime crisis the equivalent of the US in Alberta or Canada. Even our subprime lenders are more careful than their US counterpart in giving out their hard earned cash. However we should expect to see foreclosures in Alberta to remain at historic highs for at least another two years while overly optimistic investors untie themselves from the poor investment decisions they have made.

Predictions for Subprime lending in Alberta

We predict that the subprime lending in Alberta will be reduced to normal levels for 2009 and 2010. Lenders such as HomeTrust, Resmor, and some private money lenders are just going to be careful by reducing their risk in a declining Alberta real estate market. Faced with falling real estate prices, the subprime lending activity in Alberta will become even below average over the next 12 months. You also got to know that the subprime lenders themselves are suddenly short of capital and must be conservative in their own portfolios or else face similar fates as the clients whom they lend to. When the economy is not doing well and jobs are not abundant the ability for investors to pay their mortgages will also decline. In a falling economic climate, sub prime lending is going to be placed at a low priority and it will be back to the basics of borrow what you can afford.

RRSP can be use as a tool to invest in Edmonton, Alberta real estate

It’s true that you can also use RSP to as an investment tool to invest in Edmonton properties. I’ll look at the benefits of how to do this in a series of upcoming articles and the best ways to tap into this form of investing versus investing in the traditional stuff such as mutual funds, GIC, stocks, etc.

What is a RRSP?

Investing in Alberta real estate with RSP is easy once you understand the basic. Let first look at what is a RRSP. RRSP is Registered Retirement Savings Plan and is one of the few tax benefits that are still available to individual Canadian taxpayers. I called this a tax benefit because you invest in RRSP with before taxes dollars. This is done by using a special investment account that is registered with CRA (Canada Revenue Agency). The amount invested into RRSP is based on before taxes dollars and allows you at the same time to also reduce your taxes for that year based on the amount that you contributed. This amount is calculated by CRA and can be found in your last year taxes return. If you have not contributed before or have not contributed to your maximum you therefore, have an unused contribution room. In any given year you are entitle to contribute to the maximum that you can afford and reduces your taxes at the same time. You might also borrow money to invest in RSP as well up to your annual contribution limit.

Annual Contribution Limits for RRSPs for your 2008 Alberta’s taxes Return

The maximum one can contribute in a year is called the “RSP deduction limit.” It is also known as the “annual contribution room” or “deduction room.” Your RRSP deduction limit is found on your Notice of Assessment or Notice of Reassessment from CRA. For example your 2008 limit would be on your 2007 Notice of Assessment. The annual limits in a nutshell are as follows:

Annual Contribution Limits
Year RRSPs
2007 $19,000
2008 $20,000
2009 $21,000
2010 $22,000

The Canadian government allow us taxpayer to deduct for example, in this case in your 2008 return $20,000 from your “earned income”. If this number is higher in your 2007 Notice it just mean that you have not contributed to your maximum RSP deduction room from your other previous years and this extra cap room can be use in your 2008 to help you save some money when you do your filings for your Alberta’s tax return by the April 30th deadline.

Why is the Canadian government so generous?

You might asked why is our Canadian government being so generous and giving us a tax break if we invest with them by buying RRSP? This is because the government know that the more people put away the less they will have to pay us down the road when we retired. Also the government might not have enough funding to pay everyone if we all decided to calculate CPP or Canadian pension plan when we retired. Depending on when you retired this money might not be so available by the time you retired as it might be used up by others such as the baby boomers when they retire over the next 10 to 15 years. This is especially the case if you’re just currently entering the workforce. And this is more likely so as Edmontonians have such a young workforce! To give us more incentive the Canadians government have long came up with a plan to allow us to save taxes and at the same time save for our future. This to them is a win-win philosophy and that is why there is always such a big push to put money into RSP around the February 28th taxes deadline times.

An example of Tax Savings using RSPs

For most Canadians investing in RRSPs is an excellent ways to save money for their future rather they retired at age 65 or earlier. Lets use a simple example here of how substantial this taxes savings can be for you in your next 2008 Alberta tax returns. Suppose you are one of those hard working Albertans and make over $100,000 a year and decide to contribute $20,000 to your RSP this year.

Earned Income - $100,000
Less RSSP contribution - (20,000)
New Earned Income or Taxable Income - $80,000

Providing this is your only deduction for your 2008 Alberta’s filing this year, this can equate to a tax savings of $7,800 just base on your contributing your maximum RRSP for 2008. Here is a simple

Is Lake Summerside the Best Place to Buy Real Estate as well as to Rent in Edmonton?

The Best Places To Invest in Edmonton – Lake Summerside is the Perfect Place for Renters and Investors

Touted as Edmonton real estate’s first residential lakefront community that has a recreational activity spin to it, the Lake Summerside Edmonton real estate district is certainly one that property investors, homeowners and renters are looking at with open eyes. Rated as one of the best places to invest in Edmonton in addition to one of the top places in Edmonton to rent a condo, townhome or single family home, it is no wonder that Lake Summerside has been growing at an astronomical rate in the past few years. Considered a very new community in the South West corner of Edmonton, next to the Anthony Henday Edmonton Ring Road as well as very close to the International Airport, Lake Summerside Edmonton investment has come from huge provincial and municipal government funding into large infrastructure projects to connect the community with the rest of the city. In addition, Lake Summerside has been the best place to buy real estate in Edmonton because of its growing population, close proximity to well paying jobs and its growing infrastructure that is ahead of its original timeline to support the people moving into the community. This article will explain why the Edmonton Lake Summerside community is the best places to invest in Edmonton, best place to buy real estate Edmonton sa well as the ideal spot for renters looking for affordable rental suites and apartments in addition to why it is the best investment overall for homeowners and Edmonton real estate investors.

Resort Living at Its Best at Lake Summerside Edmonton

Being a master planned new community in the heart of the city of Edmonton has its perks. With new roads, new infrastructure, new retail, new homes, townhomes, apartments, carriage homes and industrial moving into the neighbourhood, the self-sustaining neighbourhood of Lake Summerside Edmonton has become the perfect place to call home for thousands of families. While combining school, work and the beach is not something that a regular Edmonton resident would associate with the city, the growing middle and upper class residents have demanded for more lifestyle choices within the city. Lake Summerside Edmonton has provided that and more. This is why Lake Summerside is one of the best places to buy real estate in Edmonton. Resort living is now available on the shores of the growing Lake Summerside real estate community, with simple resort and recreational type pleasures just outside your door. Stroll on the sandy beachfront of the Lake Summerside lakefront areas in addition to owning a classic Cape Cod style home or you can enjoy all the recreational pursuits during the winter time with sledding and cross-country skiing just outside your door. The new Edmonton Lake Summerside community is truly Edmonton’s first exclusive recreational lake community with four seasons of fun and activity waiting for you. Lake Summerside? Best place to buy real estate Edmonton!

Lake Summerside Rentals – Edmonton Apartments, Carriage Homes and Townhomes for Rent

If you are renting and looking for a new place to call home, the Lake Summerside Southeast Edmonton location could be an ideal fit for you. With numerous types of housing available for rent, the Lake Summerside rental market remains very tight as there is so much interest in the area. Providing clean, modern and new homes for rent, Lake Summerside Edmonton rental apartments are the entry level properties for tenants seeking affordable and convenient homes to rent. These can range from studio homes to two bedroom condos and will range in rental price from $795 to over $1295/month plus utilities. The rental market for Lake Summerside carriage homes remains the tightest of all housing types in southeast Edmonton because of their size, garages, upgraded second bathrooms and finishes and will range in price from $1250 to $1450/month. Next up for families and retirees are the Lake Summerside townhomes for rent and the rental townhouses in southeast Edmonton that provide three story living with spacious exterior spaces, storage, attached garages and gourmet kitchens. The rental Summerside townhomes can range anywhere from $1395 - $1695/month. The more expensive units for rent include the Summerside rental homes in southeast Edmonton real estate that are usually two stories with unfinished basements and have three bedrooms and 1.5 to 2 bathrooms. The Lake Summerside rental homes will usually cost about $1895 - $2500/month depending on how close they are to the lakefront and Club House. Lake Summerside? Best place to rent in Edmonton rental market.

Call Paul at 780.885.6728 or email rent (at) investedmonton.com for Lake Summerside Edmonton vacancies.

The Best Places to Buy Real Estate in Edmonton

With so much to experience and its close proximity to everything you need including urban conveniences, amenities, recreational facilities, retail, shopping and restaurants, the best place to invest in Edmonton is still Lake Summerside in southeast Edmonton real estate market. If you are looking for single family homes along the lakefront, investors are flocking to best place to buy real estate in Edmonton such as these premium houses. The luxury Lake Summerside Homes in Edmonton provide great investment opportunities for investors and these mansions can cost anywhere from $750,000 to over $2M at this time. Also available are more affordable townhomes that are perfect for couples and growing families. Usually three story townhomes, the lake Summerside Edmonton townhouses for sale are relatively affordable and should come with double attached garages, laundry rooms, small back yards and premium appliance packages. The best place to buy real estate in Edmonton certainly includes the Lake Summerside townhomes for sale as they range from $275,000 to about $400,000 for larger half duplexes in the community. Also top rated investments are found in the style of carriage homes. These Edmonton specials are eight plex buildings providing eight separate two bedroom suites in a single building. Most come with detached garages, patios and lots of interior space with either one or two bathrooms and large crawl spaces and these certainly reflect great investment value if you are looking for the best place to buy in Edmonton real estate. Also available in Lake Summerside real estate market are the apartment complexes where you will find a range of studio homes to two bedroom condo residences. These condominiums at Lake Summerside Edmonton represent great value for your money if you are looking for the best place to invest in the city of Edmonton. So, whether you are a property investor or a home buyer, the best places to invest and buy property in south west Edmonton real estate is definitely Lake Summerside community.

Investing in Edmonton’s Lake Summerside – Is It the Best Place?

The fundamentals behind this growing residential community are bright, even with the recent global economic downturn and the drop in Edmonton real estate prices. Started in 2000, the Lake Summerside community is now home to over 1500 families and by 2018, which is the expected timeline for the entire build out of this master planned Edmonton community, it is expected to be home for over 3000 families and 5000 residents. From apartment condominiums to luxury lake front homes, Lake Summerside real estate provides carefree and maintenance free living within the city limits of Edmonton. The fundamentals are obvious. Just two minutes from the Anthony Henday Ring Road that connects Lake Summerside residents to the rest of the city to the numerous highways and roads in and out of the Edmonton International Airport, Lake Summerside investment has exponentially increased with time. Retail, shopping, gas stations, schools, hospitals, clinics, shopping and much more are moving into this community at a faster rate than in any other Edmonton real estate community and there is much reason to believe this will not slow down. From secluded natural parks to the exclusive Lake Summerside Beach Club, residents here in the southeast of Edmonton will enjoy endless summer and winter activities throughout the year.

Why Invest and Buy Property in Lake Summerside Real Estate

People always ask where the best place to invest in Edmonton real estate is. Really, there are always deals to be found in any property market and any location. Overall, Lake Summerside represents great value for your money in terms of investing in Edmonton real estate for several reasons. Firstly, the homes at Lake Summerside Edmonton property market are completely new, saving you lots of maintenance costs when compared to older homes that require renovations and re-builds. Secondly, the location is ideal for many families and couples. Being close to the ring Road and the airport in addition to Sherwood Park and downtown has its perks. In addition, you can be walking distance from groceries, recreational facilities and other activities which makes it a great place to invest in Edmonton real estate. Thirdly, what makes the Lake Summerside area the best place to buy real estate in Edmonton property imarket s because Lake Summerside real estate master planned development is a phased construction project which means that the area will not be overbuilt in a short time period and thereby allowing residents to gradually move into the community and increase the population. Fifthly, the best Edmonton places to invest in real estate market right now are ones that have a mixed residential/retail/office use, and Lake Summerside in southeast Edmonton property certainly has a diversified land use. Sixthly, you can be part of a growing community that will become self sufficient with parks, green spaces, trails, lakefront beaches, clubhouse, schools, retail and restaurants. The best places to invest and the best Edmonton investments in real estate are those that can survive the test of time, and so far Lake Summerside has bucked the trend and is more stable and has a better outlook than most other communities in south east Edmonton.

The truth behind the current drop in Edmonton real estate prices and the drop in Alberta home equity

Will the recent decline really hurt home owners in Edmonton, Alberta?

Before you go and pull out your calculator and drive yourself crazy to figure out how much Edmonton home equity you lost, lets examine the real reason why you bought your house in the first place. Did you purchase your home in the burgeoning Edmonton real estate market hoping to ride the real estate curve and make a few quick dollars or to have a beautiful place to call home for a long time or even generations to come? Or you bought your new Edmonton home because you fell in love with the place and absolutely wanted to live there? And you love all the extra spaces that it provide for you and your family, the lovely fenced yard for the kids and the dog, the deck that you always wanted to have for all those long summer nights, the gourmet kitchen that you love to cook and entertain in. Congratulations if you bought your Edmonton house because you fell in love with it then it! Then it really doesn’t matter to you which way the Edmonton real estate market goes because you love your home so much that you wouldn’t sell even if the market skyrocketed tomorrow or in the near future.

Investing in Edmonton properties is different than other investments

Most Edmonton house buyers purchased their homes to live in and they are not concern about the most recent drop in Edmonton real estate prices. This is because regardless of what happens, we still need a roof over our heads and a place to call home. That’s why in one lifetime the best investment is your own homes and this makes even more sense if you’re investing in Edmonton properties. Investing in Edmonton property is quite different than buying other investments such as stocks, mutual funds, GIC, bonds, gold, etc as these are more sensitive to the direction of the property market. This is not the case with the drop in the value of your Edmonton property values. As long as you can make your monthly mortgage payment you’ll still have a lovely home to stay in and no one will come knocking on your door to ask you to pay back your line of credit. That is why investing in Edmonton real estate makes sense and also makes sleeping easier compared to other more riskier investments.

Nothing happen to your Edmonton home unless you sell

Unless you can’t sleep at night or you are a realtor in Edmonton making a living selling real estate, the current up and down markets should have no bearing on your current finances. You qualified to buy your new Edmonton home based on your income earning ability at that time to service the mortgage and unless this has changed, you are still making the same payments the downturn in the Edmonton real estate market. The good news is that eventually this Edmonton home mortgage will be paid off and you can live in your home mortgage free! Then you wouldn’t care which direction property the market goes.

Edmonton real estate has increases over the past five years

Another way of owning your own home in Edmonton’s property market now is the right time to invest in more properties in Edmonton. According to the Edmonton real estate board an average houses in Edmonton 5 years ago costs $177,178 and when the Edmonton market peak in May/June 2007, an average Edmonton homes cost $426,028 and it is now sitting at $303,304. That’s a 71% increases since 2004. It is no wonder why we have seen slight adjustments in the values of Edmonton property and housing prices over the last 1.5 years. Edmonton real estate at one point used to be the tenth highest priced city in Canada to purchase a home, it now sits at fifth or sixth. This is why investing in Edmonton property for the long run still make the most economical sense and will continue to attract migrants from other provinces because of the no sale taxes and the lower cost of living in Edmonton combined with well-paying jobs and housing availability.