Leduc Homes Report - February 27th

Non-Stop Flights Between Edmonton and Frankfurt to Resume This Summer

Edmontonians can look forward to non-stop flights to Frankfurt, beginning this summer.  Edmonton Airport’s Marketing VP Peter McCart said that the flights should increase tourism not only between the two cities, but throughout Europe in general.  

McCart said that Frankfurt has been a sought-after destination by many area travelers, so the airport’s service-development group made it a priority to secure this flight.  McCart noted that Frankfurt is a major hub for air travel throughout Europe.

The new flights are scheduled to operate between June 15 and September 28.  They will depart Edmonton on Tuesdays and arrive on Wednesdays.

The last time Air Transat offered flights to Frankfurt was in 2008, when it operated chartered services.  Scheduled flights will offer more benefits to travelers.  Per Ken Fiske, who is a VP with Edmonton Economic Development Corporation, the Edmonton-Frankfurt route will cultivate the development of both tourism and economic interaction.

Northern Alberta’s German honorary consul, Michael Bernd Reuscher, echoed Fiske’s comments, saying that flights between Frankfurt and Edmonton complement the concept generated by Port Alberta.  The new route should contribute toward the continuing expansion of air, rail and surface transportation in Western Canada.

Frankfurt is said to be the major financial centre in continental Europe.  The Frankfurt airport is the busiest in Germany in terms of passengers, and has some of Europe’s highest levels of cargo traffic.  With some 100 airlines, the airport accommodates some 300 destinations in 109 countries around the world.

Leduc Property Report - February 16th

Thinking About Retirement?  Make Sure You Are Financially Ready For It

Saving for retirement is something we all should be doing. But sometimes it can be confusing as to which pathway to our retirement monetary goals is the best one. It is not only the average person that has such questions. Even major financial houses have differing opinions on the subject.

Some people elect to attend tax seminars to bone up on the subject, such as that held recently in Edmonton by a company called the Knowledge Bureau. Attendees there ended up in the midst of a debate as to whether tax free savings accounts (TFSA) or registered retirement savings plans (RRSP) were the safer bet.

Financial advisors often advise to split your savings between the two plans. But sometimes it is only affordable to contribute to one plan.  Which one do you choose?

RRSPs allow savings contributions to be made in one year and the tax deduction to be claimed at a later date. Money that is withdrawn is taxed according to the amount of tax paid on your income at year end. Since most times that money is taken out after retirement, the tax rate would most likely be lower than in the working years.

TFSAs require you to pay taxes on contributions made (no tax deferral), but down the road when the principal and any growth funds are taken out, the amounts are tax free.

Canadians as a whole are not saving as much as they used to, not surprising given the recent economic rollercoaster.  In 2009 there was a 2.2 percent decrease in RRSP contributions, the largest dip in the last six years. The start of 2010 appears to be somewhat better. The economic climate is constantly changing and how we save for our future will change with it.

Leduc Home Report - February 3rd

Economy is Warming Up in North America, But Celebrations on Hold for Now

Things are looking up in the economies of both Canada and the United States.  Considering that a healthy, mutual flow of goods across that border benefits both countries, that is a good thing.  But companies, particularly in the United States are not quite ready to celebrate.

That celebration won’t occur, nor be warranted until there is substantial hiring of the millions of workers that were laid off in the biggest recession since the end of World War II.  Roughly 7.2 million jobs were lost since the recession began in December of 2007. It is unsure as of this point, that companies are confident enough to start bringing their workers back.

Many companies are rethinking how they are spending their money, whether it is for personnel or for equipment that maximizes productivity with a smaller work force. During the third quarter of 2009 there was a 13.3 percent increase in the purchase of new equipment and software with these thoughts in mind.  The spending was also encouraged by the low interest rates available for such improvements.

The U.S. economy showed a 5.7 percent growth in the last quarter of 2009 but that number may be slightly influenced by the necessary restocking of inventories by businesses.  Economists contend that if that restocking were taken out of the equation, the quarterly growth would be more in the 2.2 percent range.  Most economists predict that first quarter gains for 2010 will be roughly 3 percent, not enough to truly celebrate, but a good beginning.

As far as Canadian exports to the United States, it may take a while to see improvement. So far the US is exporting goods, particularly to the Asian market, rather than importing items from abroad.

Leduc Real Estate Report - January 25th

Supporters Gather to Mourn Soldier's Death

Local residents of Sherwood Park are mourning the untimely death of four soldiers this past week in Afghanistan.  The deceased soldier's names are Cpl. Zachery McCormack, 21, and Sgt. George Miok, 28 who were both residents of Sherwood Park, and Sgt. Kirk Taylor, 28 , Pte. Garrett Chidley, 21, and journalist Michelle Lang, 34, from Calgary.  The cause of death was a roadside bomb in war zone.

Residents of Sherwood Park are displaying yellow ribbons along the funeral procession route from the Edmonton International Airport to the Glenwood Memorial Gardens cemetery.  Friends remember the fallen soldier as an amazing student and wise beyond his years.

Friends of the soldiers who had recently spoken to them, say that the soldiers were happy to be helping the people of Afghanistan, and they sincerely wanted to bring around change for the people.

When the bodies arrived back to Toronto, there were hundreds of veterans, police officers,EMS personnel, and civilians lining the entrance to greet the coffins.  The families of the soldiers say they support they are receiving is incredible.

Local residents say that these two soldiers will always be in their hearts.  They describe the soldiers as peacemakers and courageous individuals.

Leduc Property Report - January 13th

AMR Process Recognized for Company Growth and Achievement

AMR Process started as a one man operation in a closet sized office just five years ago. Today they are well known in the gas and oil industry and have clients in 17 countries. Millions of dollars of equipment gets shipped overseas each year. They have definitely outgrown that closet.

Recently the company was given the nod from the Alberta Chamber of Commerce as a nominee for their 2010 Business Award of Distinction for Exports. Ashley Robbins, the company president, is elated. So is the entire staff of this globe trotting enterprise.

The Business Awards of Distinction recognize businesses for diversity, economic achievement and business acumen. An independent judging panel selects the finalist from each category. The Premier’s Award of Distinction is awarded to one of these finalists.

AMR Process shares the Export category nomination with Clearflow Enviro Systems Incorporated of Sherwood Park, Edmonton’s Yardstick Software and MEGGITT Training Systems Canada located in Medicine Hat.

AMR Process had a bit of a slowdown in the beginning of 2009 but like many in the province, is seeing things turn around and the company is optimistic about 2010. The company has a firm financial foundation and a huge amount of community support, both of which help it to keep thriving through less than optimal economic conditions.

Leduc Home Report - December 16th

Budget Built

The City of Leduc has a tentative budget. It took three days and endless presentations but the city came away with a figure that would incur a 3.17 percent increase in municipal taxes. The budget is scheduled for final approval in May of 2010.

Adjustments are expected to occur, particularly when the school portion is considered or if the citizens decide there are certain must haves for the community. As it stands, the budget adds approximately a $71 increase in the taxes on a property valued at $300,000. This would include the schools portion which at this point is an estimate. $53 would go to the municipality portion.

According to Gene Peskens, the city’s CFO (Chief Financial Officer) the 3 percent increase not only takes care of current service levels but has a bit of a cushion built in for new and perhaps unexpected items. Since Leduc is growing in population, last year showed a gain of 1,000 new residents, it is logical to expect that operating costs will correspondingly increase.

One of the approved budget items was $120,000 slated for the hire of an additional Leduc RCMP officer. The money would cover the cost of a new vehicle, uniforms, benefits and salary. The Leduc Emergency Shelter Outreach program, operated largely by volunteer efforts, will receive $12,500.

Other items initiated included funds for the exploration into a public transit system for Leduc, improvements in Lede Park and replacement of essential fire equipment. The Leduc Recreation Centre, which has been completed, will be operated by the city but residents will not see an increase in their taxes for this purpose.

Leduc Real Estate Report - December 2nd

Edmonton Resale Market Continues to Surge in October

The resale market in Edmonton maintained a strong pace throughout the month of October, with all types of housing units increasing sales versus a year ago. According to the Multiple Listing Service, resale activity in October 2009 was the second highest on the record books, following October 2006. Some 1,535 residential sale transactions were recorded, an increase of 23 percent versus 2008. The sales decreased nearly ten percent versus September, but this drop is in keeping with normal seasonal sales peaks and valleys.

Single-family home prices increased a negligible 0.12 percent over 2008, but decreased an average of 2.2 percent versus September. The average price of a single-family home was $363,694. Condominium prices stayed at essentially the same price ($237,601) since last year, recording a tiny average price increase of $11. The average market time of 47 days during October showed a decrease versus the 58-day average seen in October 2008.

October saw 2,205 homes listed for sale on the MLS. With 1,535 sales occurring during this time, there was a 70 percent ratio of sales to listings. MLS statistics indicate October sales of $490 million in the residential category.

Real estate experts believe that homebuyers are increasingly confident about making purchases, and are also taking advantage of historically low interest rates. REALTORS Association of Edmonton President Charlie Ponde notes that sale-ready homes in the average price bracket are moving at a brisk pace. Upper-bracket home sales are maintaining an even pace.

Leduc Property Report - November 23rd

Canada Mortgage and Housing Corporation Sees Recovery

The CMHC released a press release earlier this week that announced housing starts in the Edmonton Census Metropolitan Area will decline for the third straight year. The Canada Mortgage and Housing Corporation does see recovery around the corner.

The CMHC thinks that the numbers for 2010 will absolutely be better than 2009, which should mark a turn around in the number of annual housing starts.  They also predict that residential Multiple Listing Service (MLS) sales in Edmonton to continue the rise as they did through 2009.
They also believe that residential MLS sales in Edmonton will rise by eight percent, to 18,750 units in 2010. 

They think sales in 2010 can reach 20,000 units, the number achieved in the record setting 2007 year.  Apartment vacancies were up 4% due to unemployment and new condos that came onto the market.  Overall, the numbers are bad, and the CMHC thinks the worst is in the past.
 

Leduc Home Report - November 3rd

Leduc Erects Fence for Safety of Citizens

The city of Leduc has constructed a fence at Leduc Common that is designed to prevent pedestrians from illegally going across the QEII. The city’s Infrastructure Director, Kevin Cole, has called the fence a needed stop-gap measure for public safety. Vandals damaged part of the fence for easier access last weekend.

According to Cole, Alberta Transportation owns the land to the east of the area– land that extends from the White Spot to the Bridge at Deer Creek, and is responsible for maintaining and operating the intersections located on both sides of the area. They also control the off-ramp that extends from 50 Avenue to south QEII.

Commenting on the issue, Cole said his conversations with the traffic consultant left him with the belief that while there could be an option for providing a crossing for pedestrians, it would probably be cost-prohibitive. The fence was the best option that the city could find for now. As it stands, pedestrians and bicyclists must get to the Common via Discovery Way, though the possibility remains for the installation of a shorter connection to the Common from the off-ramp, provided that it proves cost-effective and gains the approval of Alberta Transportation.

At present, the fence in question is approximately 600 metres in length. Though originally brought to the council as part of the 2009 Budget in November of 2008 – at a cost of more than $20,000 – the city has yet to receive the final amount. One citizen, Russ Luke, has raised a number of issues with the council during two forums last month. During the first forum on September 14, he raised the issue of cost, and then on October 26 his questions turned to the animals he has observed at the Common. He expressed concerns at the potential effect – and harm – that the fence might cause to the animals.

Another official, Mike Pieters, observes that they have brought the fence extremely close to the ravine in an attempt to prevent people from curcumventing it.  Luke pointed out that the animals are going through the Common rather than traveling the ravine, but Pieters has responded by declaring that the wildlife will have to adjust to the new realities.  Though there can be no assurances that the animals will not attempt to jump over the new fence, Cole believes the fence will assist in prevent animals from accessing the commercial area of Leduc Common.

Fence repairs will be the responsibility of city staff using materials provided during the original contract.

Leduc Real Estate Report - October 23rd

Land-use policy debated in Leduc

Elected officials in the Leduc region are anticipating debate about upcoming land-use agreements. Under the current schedule, the plan will be finalized in 2011.

Diana McQueen, a local legislator, has expressed her concern that both farmers and development companies be involved in the debate. She wants a policy that preserves the beauty of the land, while remaining fair to landowners who wish to profit from their property. Through zoning laws, local towns will have to be involved in choosing how land is used, but changes will also be influenced by the market.

Coun. John Whaley agrees that protecting the farms can be hard, since development companies can pay better money than farmers. This can result in good farmland being built up, instead of farmed.
 

Leduc Property Report - October 16th

New Apartment Building Heralds Third Year of Affordable Housing Plan

Construction of modest-income housing is set to begin soon in Devon. A 28-unit apartment complex will be built at the corner of Michelon Avenue and Michigan Street, courtesy of the Leduc-Beaumont-Devon Regional Affordable Housing Plan. The Leduc Foundation’s director, Nancy Laing, along with the mayors of Devon, Leduc, Beaumont and Leduc County, broke ground at the site October 9. The building should be ready for occupancy in the summer of 2010. Rental applications will be accepted beginning in January.

The rental units will contain one to three bedrooms, and will be priced at least ten percent under prevailing market rates. Given the current need for some 248 lower-income residences, the new building will help to reduce that number. Laing noted that there is a 150-family waiting list for housing in Leduc County.

The Town of Devon contributed the land for the apartment complex. According to Laing, additional residences may be built on the property in the future. Now in its third year, the Leduc Foundation’s housing plan has opened 20 apartments in Leduc and 35 in Beaumont. Leduc and Calmar may be the beneficiaries of additional units.
 

Leduc Home Report - October 7th

Greenpiece Strikes Again

The latest protest by Greenpeace activists has ended with arrests by the RCMP. Members of the well known protest group held a “sit on” atop a crane and three smokestacks in the Alberta oil sands. The publicity stunt ended after 24hrs of the group’s property trespass.

Greenpeace members from around the globe flew in to show their disapproval of Shell’s Scotford upgrader near Fort Saskatchewan just to the northeast of the provincial capital Edmonton. The facility is currently expanding.

Ed Stelmach, Alberta’s Premier was extremely upset at the lack of security that allowed the protest group access once again to the previously thought secure oil fields. Part of the police investigation is finding out how Greenpeace made it onto the property. It was just a week ago that Greenpeace gained entry and staged a peaceful protest at Suncor Energy Inc. north of Fort McMurray. They succeeded in stopping the bitumen conveyor system. No arrests were made in that instance.

A total of 19 Greenpeace members broke through the fence, climbed the structures and then displayed banners of protest. Activists from Canada, France, Brazil and Australia, 16 in total, were arrested. Charges of breaking and entering and mischief will be laid.
 

Leduc Property Report - September 22nd

Altalink Right of Way Solution

It seems that burying Altalink’s proposed high-voltage transmission line to an intended substation near Calmar is a bit too expensive. As it stands, the 14 kilometre line is expected to cost around $20 million dollars. Putting the line out of sight and out of the way of farming equipment would cost five times that.

An alternative solution is to run the line along the CP rail line route. The transmission towers would still have to be set at least 15 metres from the railway right of way so they are not in any danger in case of a derailment.

The addition of the transmission line is considered crucial because of the expected high growth in the area of Leduc. The town is expected to have the highest growth in power demand in the province of Alberta in the next 10 years. Their growth is even expected to exceed that of Calgary and Edmonton.

This is prime farmland and Altalink is taking that into consideration. The CP rail right of way option is one of four on the table and at this point is the one most likely to be agreeable with the agricultural community. The proposed route will be submitted to the Alberta Utilities Commission in October.
 

Leduc Home Report - September 18th

New housing construction in Edmonton is up for the second straight month according to a report by the Canada Mortgage and Housing Corp. August showed a gain of 32 percent over last year’s new builds. Single-family homes appear to be at the heart of this upward trend.

In the last year, housing construction has seen a serious dip. Despite gains in July and August, the industry is down by nearly half the contracts. Multi-unit projects have seen a shift of 64 percent. Only in single-family homes have sales begun to rise.

The reason why? Experts site a rise in sales of existing homes. As developers have moved existing inventories, the need for new construction came back to life. Edmonton leads the pack, but other areas in Canada have seen similar trends. In Alberta, metro areas have seen an 8 percent rise in new housing construction.

While this is nothing compared to the boom of a few years ago, new life has taken root in Canada’s housing industry. Signs the country’s economy has started to mend begins with a surge in home construction.