As I read through last month's Newsletter one of the numbers that really stood out was the 17.55% increase in values from December 2005 to December 2006. Well it seems like January was even better year to year. January of this year is up 20.19% versus January of 2005 and it doesn't look like it will stop anytime soon.

Much of this has been caused by a huge shortage of inventory in Calgary and is creating quite the seller's market. Several Realtors we have been talking to have commented on how few properties there are right now and this is an example of supply and demand affecting prices. In January of 2006 Calgary had less than 1300 active listings at one point.

If you presently own some rental property in Calgary this doesn't mean you should hit the panic button and sell off. All the factors are lined up to keep the values moving upward for quite a while. From past trends we can be aware that as the values continue to increase the price gougers will come out to the woodwork and ask way to much for their properties to test the waters.

This will bring a lot of dead inventory onto the market that will help stabilize pricing for a while and allow the market to slow down, catch it's breath and then several months later start taking off again.

I am going to close this section off with some eye opening numbers. If you had bought $1,000,000 worth of property in the right areas of Calgary in January of 2005. Then simply rented it out at a break even for the year, your property would now be worth $200,000 more in February of 2006. Although this seems like a great return, remember it only costs $250,000 to buy that much property, so the return isn't just 20%, it actually works out to be 80%.

If you are ready to invest in this incredible market call or email us today and find out how we can work together so next year you don't have to say to yourself, "if only I had done this last year!".

Hot Properties

Longer Term Investments

1) Pensdale Green - $25,000 cash on a rental townhouse located in Penbrooke in South Calgary. This is an equity appreciation investment with some minimal cash flow payouts. The cash flow is paid twice a year and the equity portion would be paid out at the end of the term. The Return on Investment is projected to be 15% return per year which is quite conservative. Length is five to eight years. This is an excellent opportunity for an initial Real Estate investment.

2) Forest Lawn - $30,000 cash on a rental half duplex in Forest Lawn in Calgary. This is an equity appreciation investment which covers all expenses. The equity and mortgage will be paid out at the end of the term. The conservative Return on Investment is projected to be 20% per year. Investment length is five to eight years. Forest Lawn is poised for some huge increases in value in the next five years.

Short Term Investments

· Deer Run is now complete and marketing is just starting. For those of you who invested in this project thank you, for those who didn't we have several pending projects, let us know in advance if you want in on any of them.

· As our current project is complete, we are now actively pursuing our next project. If you know of a property that someone needs to sell that we could revitalize, send us some information about it.

Investments with us can either be registered on the title of the property, or a caveat can be placed on the property. Either method ensures you are protected and helps safeguard your investment.

If you would like more information about investing in Real Estate, visit our web site

http://www.housez.ca/Invest/CalgaryRealEstateInvesting.htm

Call either Karen or Bill today at 880-5256 or email us at info@housez.ca and we’ll get you the information you need to start your investments tomorrow.

Off to the Races

Last month I touched on our theme of "Just Do It" for 2006, well we have been doing just that. Already this year we have sold two properties that just did not fit our goals and we have already purchased two new properties, one in January and one in February.

In addition with our completion of Deer Run we had a great wind up party celebrating the finished project, thanks to those of you who made it out, and we look forward to seeing the people who couldn't make it at the next one!

We are "Off to the Races" already this year and as always we owe a ton of support to the people around us. Many of you have been watching what we are doing for the last three years and although we have had lots of fun and lots of struggles it is all worth it.

Thanks again to everyone who has been forwarding this Newsletter off and helping us get new subscribers. 2006 has started off fantastic and looks like it will continue to be a wonderful year.

In Closing

We are continually looking for feedback regarding the Newsletter. If you have thoughts questions or ideas about it please email or give us a call. Here is to an incredible February!!!

Bill & Karen Biko

KatSid Housez Inc.

www.housez.ca

Calgary, Alberta

403-880-5256

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