Welcome To My Calgary MLS® Blog!

In this part of my website I like to keep my clients up-to-date on my impressions of the market.  More often than I would like, consumers feel alienated by their realtors®.  That is not the service I provide, and one of the ways I prove that to people is to keep them informed about market conditions in my Calgary MLS® Blog.

Tuesday, March 9th - Tips On Retirement Planning Good For All Ages

January through March are months when people begin thinking about their income tax situations, and thus arise a plethora of questions and concerns regarding investing, returns, and the ever-present question of how to fund one’s retirement.

This annual approach to reviewing investments is a necessary, though daunting task and appropriate changes are an important resolution to the process. Annual returns over the past ten years have been disappointing for most, and have brought about questions of what to do. There are options. If you have undergone a review of your investments, and are discontent with your findings, you may choose to make changes within your existing portfolio, pay the necessary fees and change institutions, or change to a self-directed RRSP.

There is an integral relationship between risk and reward, and the payoff or loss for taking on more risk is almost always greater than a low risk option. This means that most people in their earning years will contribute into high-risk investments with long-term potential for growth. This also normally means that these investors buy and hold, while riding out the storm. A high-risk strategy is not advised for those approaching retirement, when it is important to preserve capital. If you have experienced a life-change, it may be prudent to also change your holdings. For retirees, capital preservation is even more important, and a shift to medium or low risk investments is almost always advised.

If you are unhappy with your current investments, and are also frustrated with your advisor, it may be time to shift to a new financial institution or brokerage. If you are a knowledgeable investor with time to research independently, a self-directed RRSP could be for you. Self-directed investment accounts offer almost limitless opportunities, including the option of holding mortgages. As mortgage rates increase, you could earn your mortgage interest within your RRSP.

Saturday, February 27th - EMS Beset With Problems Following Takeover by Province

A host of problems have inundated the Foothills Regional Emergency Medical Service (FREMS) since dispatching operations were taken over by the Alberta Health Services last fall.  

Willy Gannon, a resident of MD, waited 45 minutes for an ambulance to pull up to her driveway.  She called for help when she suspected her husband might have been having a heart attack.  Gannon said that despite providing clear directions, as well as her exact street address, she could not get the ambulance dispatcher to comprehend the way to her home.  Although Gannon’s husband recovered quickly, she remains deeply concerned about the way the situation was handled.  

FREMS Executive Director Fred Stegmeier recently presented Foothills’ MD with an outline of problems that have beset the rural emergency vehicle service since last October, when a dispatch centre in Calgary opened for business.  Stegmeier reported that ambulance computers handed over in October for reprogramming have not been returned.  Paramedics have resorted to using paper maps to get to their destinations.  Since October, a switch was made to a different radio system that does not provide coverage to all required areas.  Firefighters have been arriving at service destinations well ahead of ambulances in some cases.

Stegmeier said that his organization was promised a problem-free transition, but that has not occurred.  He also noted that many of the Calgary dispatchers are not clear in their understanding of addresses and land descriptions in outlying areas.  He remarked that of 108 operators, only 10 have received training on rural addresses.  FREMS had been advised that computer systems would be upgraded to include rural addresses, but the programming will not be available until the fourth quarter.

Saturday, February 20th - Market Mall Had a Great December, Ranks as Fifth Profitable Shopping Centre in Canada

Calgary’s Market Mall has done so well in December sales that it is right up there with the big boys, for the first time.  December sales worked out to be $869 per square foot, which made it the 5th most profitable shopping mall in Canada.  Other malls in the top five are the Eaton Centre and Yorkdale in Toronto along with Vancouver’s Pacific Centre and Oakridge Shopping Centre.

Market Mall, which has nearly a million square feet of retail space, increased their sales from December of 2008 by 4 percent. A renovation in 2004 which made the mall more family friendly may have something to do with the successful upswing in sales. The common areas of the mall were intentionally kept uncluttered, giving an open, airy and welcoming feel to the place.

Renovations of the Chinook Centre and the CORE Shopping Centre downtown may also have helped their sales figures.  Customers didn’t necessarily want to negotiate the construction and parking issues being experienced in those areas.

Once all that construction is completed it will be interesting to see which of Calgary’s shopping malls comes out on top. Market Mall may have a slight edge, at least in the fashion department.  The mall offers 14 shoe stores (the largest selection in Calgary), 21 ladies fashion shops, 13 jewelry outlets and 24 stores selling clothing and accessories to all sexes. 

Market Mall has 220 stores, the most in the city, and all are leased. The 2004 renovation added heated underground parking and a larger, newer food court. With all of these customer magnets available, Market Mall may be hard to beat.

Thursday, February 10th - TV Design Gurus Visit Calgary

Colin McAllister and Justin Ryan, from the UK, are a popular duo of home designers, who have made a name of themselves on HGTV, with their popular TV show, Home Heist.  The two men have become widely popular as of late, and they will be gracing Calgary with their presence for the Calgary Home and Garden Show.

The event will take place at the BMO Centre in Stampede Park, from February 25 to 28.  Calgary reporter, Kathy McCormick, caught up with the two men to ask them a few questions.

Q: Is it necessary to use the same colors and designs throughout an open space?  How can you create separate living areas in one main room?

A:  Giving the room design cohesion is an imprint aspect of home design, and it makes a lot of sense to reuse details throughout one big room, even if the occupants want the room divided.

The men say that using the same color palette in different areas of your home is a great way to find cohesion and style.

The men also say that it is easy to make modern, loft-like rooms quite decorative with frosted glass panels that run from floor-to-ceiling.  They says that keeping each function clearly defined is an important factor of home design.

They suggest using furniture positioning to delineate an open room, such as setting a dining table and chairs to announce where food will be eaten and using a sectional sofa and entertainment unit to define the TV area.

When asked about new trends, the men mention that grey has become the new "in" colour. They say grey is the new beige because the color is still neutral, but grey is cooler and crisper than beige.  Also, grey gives off a more sophisticated vibe.  They also mention that another new trend is to mix old and new.  There is no reason why an antique piece of furniture cannot sit next to an amazing piece of modern furniture and still look great.

With all of the new design concepts and trends, the men say that the new "going out" is "staying in, " so make the home as comfortable and unique as possible.

When asked about how the weak economy has affected the process of redecorating or renovating, the men responded quickly by saying that they see the Canadian housing market as much stronger than many other countries, including the U.S.

They say that Canadians seem to be much more interested in staying put and making the most of their existing homes, through comfort and quality improvements.

Thursday, February 4th - Debt, Friendly Leverage or Sleep Depriving Foe?   

There has been an expression floating around for years “It takes money to make Money.” So true.  But also true is the fact that debt can be friend or foe.  Managed wisely, debt can enable us to increase our investment portfolios or achieve dreamed of goals.  It allows us to own our own homes, get a good education and enjoy some of life’s little luxuries.  But poorly tended, debt can bite back as quickly as a submerged crocodile stepped on by a miss-placed foot.  Bye, bye foot…bye, bye investment.

How much risk you want to take in your borrowing, or, to put it another way, how close you want to get to that crocodile, depends on the amount of financial knowledge you have, and to some extent, your personality type.  Those lacking in the knowledge department can seek help from your local bank or a financial advisor.  Those who have personalities that get stressed at the slightest provocation perhaps should think twice about the amount of debt they carry.

Most of our debt is carried in the form of mortgages on our homes.  Most times this is considered a fairly safe investment. But there are those times, such as in 2007 when the bottom fell out of the real estate market, that the amount of our loans is more than the current value of our homes.  If you are in the home for the long haul, and not intending a sale in the near future, this is usually not that devastating.  It may take months, even years, but prices eventually even out.

Some people take advantage of the equity in their homes to take out additional loans, or debt, to put down payments on second homes or invest in a project or in stocks. This is where seeking the help of a professional is a wise move, even if you feel you have an excellent grasp of all things financial.  It never hurts to have a second pair of eyes. 

Friday, January 29th - Calgary Police Invest in New Facility

Thanks to a $125 million investment, the Calgary Police Services will be able to centralize operations in a brand-new 650,000 sq. ft. facility that is located in the city's northeast end.

Police staff from twelve different locations will all join the new, central location at the facility over the next few years.  The investment was done by the police department through a purchase of the old Nortel Westwinds Campus.  The property is comprised of over 60 acres, and it offers over 650,000 in office space.

A police spokesperson says that the purchase of the property cost about $100 million, and the renovations to the property will cost another $25 million.  Most of the money came from the Municipal Sustainability Initiative of Alberta, while the City of Calgary provided about $18 million.

Stantec Inc. was the company that was chosen to carry out the consulting and design contract for the facility, and TYZ engineering was the firm chosen to help do the mechanical work.  Beaubien Glover Maskell Engineering was hired to do the electrical work on the building.

Crews have already began construction renovations on the smaller of the two buildings on the old campus, and the second, bigger building will be completely renovated by 2011.

Thursday, January 21st - Rates Won't Rise for Time Being

The Bank of Canada recently announced that it does not plan to raise rates in order to reduce the amount of activity.  The bank plans to leave any decisions regarding interest rates tot he country's Finance Minister.

Some analysts who see a housing bubble believe that the record-low interest rates have stimulated artificial demand within the market place.  Those who see a housing bubble believe that it is the Bank of Canada's responsibility to raise rates to equalize the buying activity.

Sales of existing-homes have risen by over seventy percent in year-over-year figures (of course Dec '09 was terrible, so a 70% increase over that is nothing special) and prices have climbed over twenty percent (mostly attributable to the rapid rise in Vancouver and Toronto markets, skewing the national average) nationally since housing prices bottomed in the first quarter of 2009.

These analysts who see a bubble believe that many people are using the cheap money to buy homes and they want you to believe that it does not appear that these people will be able to afford payments when interest rates rise, and that this scenario could cause a major crash in home prices.  This is simply not the case. 

A recent study has found that almost all borrowers in the last year ( of ultra low rates ) have not exceeded thier TDS (debt servicing ratios and lenders must qualify people at a higher rate than they are actually getting-good old Canadian conservative lending practices), did not buy the maximum amount they were qualified for and did lock in thier rates for 5 years or more on average showing borrowers are being very prudent.  In five years, when the mortgage renews at an almost certainly much higher rate, they will have increased thier income by an average of 2.5% PER YEAR, paid down the balance on the mortgage and increased thier equity in the property.  This will leave most home owners in a fine place to handle the higher interest rates at renewal time.  If any one wants this study, I can provide it via email or fax.

Although some analysts believe that raising interest rates is the way to boost economic recovery, the Bank of Canada has stated that such action would be like dousing cold water on the Canadian economy just as it begins to heat up.

In a recent interview with Finanace Minister Jim Flaherty, he explained that although he does not plan to raise rates any time soon, he says the government is considering raising the minimum down payment price from five percent to a much higher figure.  Also, he said they are considering reducing the amortization period to less than the 35 years it is set at now.

Tuesday, January 12th - Infant Saved From Apartment Fire by Quick Thinking Adults

An apartment building fire possibly sparked by a space heater in a second storey suite could have been much worse. Luck and quick thinking saved a 21 month old infant from being killed in the 8:30 am blaze which caused the entire structure to be evacuated.

Vanessa Machiskinic was trying to escape the fire with her son Jet but the smoke in the hallway was too thick to pass through to get to the stairs. She then, along with the child’s father Adrian Key, tried to escape through her third floor apartment.

Machiskinic used a chair to smash out a window and seeing no alternative Key held the infant over the balcony. Dan Marianchuk, another apartment resident, saw the father holding the boy, stepped beneath them and safely caught Jet. The parents then made their way out of the apartment building through the smoke filled hallways. Parents and child were united outside.

Buses were provided for the nearly 30 residents who were forced to wait outside until the fire was controlled. Estimated damage to the building is placed at around $500,000.

Investigation into the exact cause of the blaze is ongoing.

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