Tuesday, 2 October 2012

The next crisis: Sponging boomers | The Economist

Further to my theory on what the Baby Boomers might do to the general economy, this article explains some of the economic fallout that potentially can ruin your returns.

The next crisis: Sponging boomers | The Economist:

Tuesday, 10 April 2012

The Canadian Oil Boom: Infographic

Alberta wasn't even 1% of the worlds oil reserves until 2003. That changed with the introduction of the new SAGD extraction process...

The Canadian Oil Boom: Introduction to the Alberta oil sands

Baby Boomer Market Bust - L.A. Times

Every 24 hours for the next 19 years, an average 10,000 boomers will turn 65. With Baby Boomer's preparing to sell, a big question remains - who will be the buyer? Job losses and a slow economy may affect the supply-demand circle of life causing negative pressure on trading prices.

Read more at L.A. Times | Business | Money | Baby Boomer Market Bust

Tuesday, 3 April 2012

The book wall street doesn't want you to read...

Joshua Brown (@ReformedBroker) tells the tale of his past life as a retail broker and share's his observations on why the system doesn't serve the investors best interest.

My favourite quote from the video: "I'm going to do right by my clients first, and get paid second." Always ask your advisor if they are held to a Fiduciary standard.

Click here to watch the video directly on The Wall Street Journal.com

Monday, 26 March 2012

Update - Sincerus Park Hill

The Park hill project in Steinbach, Manitoba has begun development. The following progress has been made to date:
  • Excavation of drainage basin – 100% complete
  • Water main installation on Parkhill Crescent – 100% complete
  • Water main installation on Kootenay Way – 100% complete
  • Water main installation on Rosebrook Trail – 50% complete
  • Wastewater installation from Lund Road to Parkhill Crescent – 100% complete
  • Services along Parkhill crescent – 100% complete
  • Mortgage balance to date: There has been $4,143,635 paid toward the $5 million purchase price of the Sincerus Park Hill property, representing 83% paid.

New Opportunity: Medivest Professional Center

Medivest Professional Center is a Medical Condominium (non-residential) located just north of the downtown core in Calgary, Alberta. With 72,000 square feet of space on 4 floors, it is designed and built to medical building standards (including onsite backup power, high test concrete, medical grade HVAC, etc.)

Not only is this located near the downtown core, it sits between 3 of the 4 hospitals in Calgary. This makes for a 10-15 minute commute to those 3 hospitals and a 20-25 miunte commute to the 4th.

This is currently the only listed option that have been built, designed and zoned for medical condo's Calgary.

Unique Market Conditions   
Calgary has a by-law that requires 6 parking spaces to be provided for every 1000 square feet of medical office space. With monthly parking rates between $400-500 per month in the down town core, they must compete with other businesses for those spots. This building is located 5 minutes (2.2 km) north of downtown and has a 3 level, 278 stall underground parkade.

Risk Milestones Achieved   
Zoning and approvals are one of the largest risks in a development project. Land Use Amendment and Medical Zoning was obtained in 2010. Currently awaiting approval of the development permit.

Performance Based Management   
Managers hold the same class of shares as the investors. They have also committed to pay out all investors before they take their portion. The only ongoing management fee is to one of the managers at $5,000 per month to cover ongoing management expenses such as their current marketing campaign.

The appraised value of the investment is $16 per share. Investors are offered value at $15 per share. Management and investors share the same class of share and are treated equally upon exit. Contingency of 15% built in for construction cost over-runs.

When you own something, financing options are far more attractive compared to leasing. For instance, when a doctor leases space, their tenant improvements (TI) are generally financed over the lease term (3-7 years). This causes loan payments for equipment and TI to be quite high resulting from the short amortization period. If the doctor owns the same space, they have more attractive options for financing the equipment and TI along with their 20-30 mortgage.

Medivest Professional Center - Summary Brochure