February 2007 Volume 3, Number 2
In This Issue
· Everywhere a Sign
·
Kids and the Box
·
In Closing
Real Estate Links
Stef Lukas, our Realtor
Richard Anderson, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Listing Service
The Multiple Listing Service
Contact Us
Bill Biko
President/Investor Relations
403-870-4663
In This Issue
· Everywhere a Sign
· Kids and the Box
·
Real Estate Links
Stef Lukas, our Realtor
Richard Anderson, our Mortgage Broker
The Real Estate Investment Network
An Online Listing Service
Another Online Listing Service
The Multiple Listing Service
Contact Us
Bill Biko
President/Investor Relations
403-870-4663
Everywhere a Sign
Only one month in and things are already frenetic here in Calgary. Before
January had even ended, we had three properties purchased and another
one locked in for April. Along with this there seems to be more and more
opportunities coming out all around us as this trend gains more and more
momentum.
I've had some great conversations with several realtors and other investors
here in Calgary and we are all very excited about 2007. From various perspectives
I have heard projections on the low end (if you can call this low) of
about 15% increase in values this year all the way up to 25%. With the
current average residential price sitting at $378,176, you are looking
at an increase in value of $37,800 if we go very conservative and use
only 10%, all the way up to $94,544 if it reaches 25% increase.
New home builders tell us the average price for a new home will be breaking the $500,000 barrier, how long do you think it will take for previously enjoyed homes to move up in value? That $378,176 average home suddenly looks very attractive to many of the 100 people per day moving to Calgary (36,000 new Calgarians projected for 2007). This just creates more demand and with supplies sitting even lower than last month (3,565 properties in Calgary and area available Feb 4th), this year is setting itself as a mirror to 2006.
Remember these are all average numbers and it doesn't signify that properties
at these values will always work as the right investment. The important
point is that the values will be moving upward again. We are not sitting
with the same situation as the 1980's, it doesn't matter how many people
tell you otherwise. All the economic fundamentals in Alberta are still
pointing to continued growth not only this year, but for as long as the
next ten years, albeit at a slower pace as we continue to move forward.
We might have to settle for only 5% growth in 2009 and 2010, which makes
purchasing now even more relevant.
Supply and demand create an enviable situation for anyone who owns property,
or has invested in it. This scarcity is creating $500 signing bonuses
for McDonald employees, increased wages for many employees and the lowest
unemployment rates in North America. These are just some of the exciting
events going on around us that Calgarians and Albertans have started to
take for granted. Isn't Alberta a great place to be investing right now?
Kids and the Box
Being a parent can sometimes give you a unique perspective on how adults
and children look at things. Kids just don't seem to have the fear and
apprehension we as adults have learned. Sure they're shy when you try
to introduce them to someone you would really like them to meet, or scared
to play in the playground with kids they don't know. On the other hand
they have no qualms about saying the most embarrassing things at the worst
times or to paint their feet and hands green because they want to know
what it's like to look like Kermit the frog.
At the very base of this is the thought that they haven't learned "society's
rules" of what is right and wrong yet, or perhaps more accurately
how the masses think. We hear about people "thinking outside of the
box", yet you should see the looks you get going down the street
in a purple zoot suit and wearing a fedora. (Real life experience, thanks
for having us to your party Adam, it was incredibly memorable!!) When
you do things that other people are not doing you can have some incredible
experiences and kids are a great example of this.
Whether it is dressing up as a princess and running around the house,
or making a stove out of a cardboard box to play waitress, these are truly
out of the box experiences for children. Yet it is expanding their world
and helping to make each day more fun and more of an experience. Once
you become an adult though, the rules change. Go to school, get an education,
and get a good job with a good company. No more cardboard stoves, no more
face painting,
In case you are wondering where I am heading, I am of course referring
to not just Real Estate, but any opportunity where you are doing things
your peers simply do not want to try, or don't understand. Many people
we first told about our ambition to get become Real Estate Investors just
nodded and smirked under their breath or simply felt it wasn't possible.
Many of these experts also informed us how many people have lost money
in Real Estate and how it wasn't safe. That was back in 2003, here we
are four years later and there's not much we would have changed. Perhaps
we would have been more aggressive earlier and bought even more properties,
or established a few more systems earlier, but hind sight is always 20/20.
The reality is we are having an incredible amount of fun, we are able
to do some things we could have only dreamt about if we hadn't decided
to step out of the box and perhaps most importantly we are able to see
that our future is going to be very secure. So think like a kid every
now and then, don't follow the well worn path of everyone else, go blaze
your own trails and find your dreams, who knows where it can take you.
How You Can Get Involved
Something new I would like to offer to all of our readers is the opportunity to receive a separate email whenever we have opportunities that come up. I left it to the end of this Newsletter just to ensure I found the people who read the whole issue and understand the opportunity that Real Estate can be.
If you would like to become a member of this small group, click on the following link, Real Estate Opportunities, it will send me an email and as options come available, you will be one of the first to see them.
Currently we have two long term opportunities available which you can receive info on by clicking above. Also as a reminder, we pay a minimum of 12% per annum on opportunites that last three to nine months.
In Closing
February is going to be a very exciting month for us. Our girls get to go to Disneyland for the first time at the end of this month. We are looking forward to having a great family time experience and an opportunity to recharge for what we know will be a hectic spring.
One more note for you as RRSP season is upon us, we are gathering information on how you can get up to 15% interest on your RRSP savings through Real Estate, let us know if this would help you.
If you have some thoughts on what you want to read about next month let us know. I have managed to line up a guest writer for March's issue, so start getting excited!
Talk to you soon,
Bill &
Karen Biko
Kat
Legal
Disclaimer
KatSid Housez Inc. and Bill Biko provide investors with
a monthly newsletter involving Real Estate. KatSid Housez Inc. and their
directors are not registered investment advisors. Forecasts and insights
are based upon data gathered from various sources believed to be reliable,
complete and accurate. However, no guarantee is made by KatSid Housez
Inc. or its contributors as to the reliability, completeness and accuracy
of the data so analyzed. All statements and expressions are the opinion
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Past performance does not guarantee future results. KatSid Housez strongly
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decisions. All investments contain some level of risk; therefore Investors
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