Edmonton Real Estate Blog

Study The REIT Market Before Taking The Plunge

So you’re looking into investing in a REIT. Just as in any financial enterprise, doing a bit of investigation before taking the plunge could help you get the maximum return. One decision you’ll be faced with is whether to make that REIT a private or public one.

Having an RIET, or real estate investment trust, is one way to diversify your financial holdings. Investors are becoming more interested because of the current state of the housing market and its ups and downs. They are also taking a second look because firms such as Allied Properties REIT are making plans to expand into Western Canada, to the tune of $21.3 million.

The primary difference between public and private REITs is their individual structure. A REIT in a public offering takes its valuation on a property’s current market value. That means if an announcement comes along that causes that particular market to decrease and you invest in that particular REIT, you aren’t necessarily...

Infill Housing Re-Zoning Plan In Edmonton Causing Community Concerns

Edmonton is considering a zoning bill intending to make use of unused spaces in some of the city’s more mature neighbourhoods. A number of community leagues are not pleased at the idea of putting up infill housing and it is possible that bill will have to be totally redone.

This coming Monday the bill will be brought to the executive committee. The idea is to let homeowners subdivide lots that are 50-feet or 15 metres wide, increasing the number of duplexes and semi-detached dwellings that could be added to areas that are currently zoned for single family homes. Also on the bill are new rules about adding front garages that are so often found in suburban settings.

This past Thursday 28 community organizations got a jump on those proceedings. They sent a joint letter, requesting council to do the entire bill over after consulting the communities involved. In short, they gave the entire idea a resounding “no thanks.”

Rob McDonald, who was...

Six of Canada’s Bank’s Get Credit Downgrade By Moody’s

Six Canadian banks got a bit of a wake-up call this past Monday. Moody’s downgraded their credit ratings, making investors suitably nervous. Those getting the lower credit scores include Scotia Bank, CIBC, TD and some smaller outfits, Desjardins and National Bank. RBC escaped the downgrade.

Reasons given by Moody include higher home prices and consumer debt being at high levels. The banks were downgraded one level and they were also put under review for fall. But, Moody’s noted, these banks are stable and expected to remain so.

David Beattie with Moody’s noted that Canadian banks are vulnerable because of those inflated home prices and the high amount of debt carried by consumers. Of particular concern is the prediction, by some analysts, that home prices may decrease in value by as much as 25 percent over the next 24 months. Moody’s is taking this prediction seriously, causing concern from investors about property values in the long term.
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