Insurance and Rental Properties.

• The latest on Insurance and rental properties

• Housing Affordability - Have we reached the peak?

• Direct economic shifts that are affecting our market in BC, Alberta and Ontario

• How you can protect yourself from the hype-monsters in the marketplace.

These next few months will be a very interesting time in the Canadian real estate market. We'll see some of the hottest markets take a breather while others keep on moving upwards. By focusing on the underlying economics, and not the hype, you'll be able to clearly see the path through these up and down landmines.

Before we get right into the meat of the report, the first step to cutting through all of the hype is by having an up-to-date inside look at the current Canadian Market fundamentals. And you can do that at a very special weekend coming up in Toronto and Calgary. Here are the quick details:

ACRE System Live in Toronto and Calgary - Receive a 'Subscriber's $200 EarlyBird Discount' in the next 9 days. At the ACRE System you'll discover When, Where & How to Safely and Securely Invest in Canadian Real Estate. This is the 12th Anniversary of this special event - and it promises to be the best yet for those in attendance. Here are just a few of the dozens of secrets you'll discover:

• 7 Ways To Buy Real Estate With Little Or No Money Down

• How To Get the Bank to Say YES to Your Deals

• How To Analyze any Town and Any Property To See If It Is A Winner or Loser

• How To Find Only Motivated Vendors and Create Long Term Wealth

• When & How To Buy & Sell For Maximum Profits

• The 9 Questions You MUST Ask Before Buying Any Property

• How To Be A Sophisticated Investor (whether you're a rookie or veteran investor).

• How To Become A Money Magnet Update for 2005

• The 11 Mistakes Landlords Make and How To Avoid Them!

This is real life investing without all the hype and baloney. You'll discover how to build long term wealth. Past grads have used their new found knowledge to invest in over 10,300 properties across the country (Almost $1 Billion of value) And now it's your time to discover this proven, money-back guaranteed Program (and receive a special early bird $200 discount.), whether you're a veteran or rookie investor. The ACRE System is sold out every year, so you'll want to take action now to reserve your discounted seat. Choose where you want to attend and click the link for more details or to register:

Toronto May 14th & 15th: http://www.ontariorein.com/calendar/calendar.php?event=196

Calgary: June 10th, 11th & 12th: http://www.albertarein.com/calendar.asp?event=215

Your Real Estate Insider Newsletter

#1 INSURANCE ISSUES

Insurance on rental properties can sometimes throw investors a curve ball. Each insurance company has their own rules and guidelines regarding what they will cover and what they won't. The following message comes from veteran REIN™ Member Ken Wilson on his recent discoveries:

I wanted to pass this information on to investors as it has been a repeated problem whenever I acquire a new property. The issue is around insurance and a house's electrical service.

I have found that if you have 60amp service in your home Co-operators and a number of other companies will NOT insure the home. They will stick with this guideline even if it costs them all of the rest of your business.

I also recently discovered that Dominion insurance will NOT insure homes with suites that share 100amp service. They require a 100amp panel per suite.

This information is important for investors to take into account when buying a property. A change of electrical service can come at a significant cost AND also becomes an issue of time. It becomes a chicken & egg scenario where they won't insure you if the service doesn't fit their guidelines, yet you can't close on the property

Follow REIN™'s investment rules and have a talk with your own insurance agent BEFORE you remove final conditions on the property, that way you won't get caught in a bind at the last minute. You may even want to have that as a condition in your offer. For instance: Subject to Vendor arranging appropriate insurance on property within 10 days of acceptance.

All and all, this insurance cost needs to be factored into the analysis of the purchase.

#2 HOUSING AFFORDABILITY - WHERE'S THE BUBBLE?

Two of the most common questions we get asked are: " Has the market hit its peak?", and "When will the bubble burst?".

They are great questions, with one very simple answer. It all depends. Now, I'm sure that's not the vague answer you want to hear, so let's get into the details. As discussed in my book 'Real Estate Investing In Canada' there are over a dozen factors that play into the value of a piece of real estate, everything from overall economics right down to curb appeal, and if you study these factors and follow their lead you will always buy in the right place at the right time.

For over 12 years now, we at REIN™ have focused our expertise on studying the real estate marketplaces across the country and informing investors where the market is headed - then backing these predictions up with real life research. The bottom line is - some markets may be feeling the fundamental peak already, while others have only begun to witness the boom.

For instance, one of the factors we review is called the 'Housing Affordability Index'. This index outlines the true cost of an average piece of real estate vs. an average income. This indicator, as part of our research can provide the investor with a very accurate picture on where the market fundamentals are heading. and whether the market is over-priced or under-priced.

The latest figures were recently released for major markets across the country and some very interesting trends continue. For instance:

BC:

Although the market is heating up once again, after a few months of quiet, we are witnessing a bubble beginning to be created. It is true that people will be making a lot of money off of the BC market in the next couple of years as the hype and excitement of the pent-up demand drives the whole province. However there are a few wild-cards to look out for:

#1 Housing Affordability.

The Vancouver area is by far the most expensive (least affordable) place for real estate in the country based on the recent affordability numbers. Right now, 47.7% of an average person's PRE-TAX income goes towards servicing the mortgage on an AVERAGE piece of property. A well performing balanced market is in the 33% range - so according to just this one figure alone the Vancouver area marketplace is hugely overpriced. Due to the pent up demand we'll continue to see prices take jumps upward in the area, however these jumps don't have much of an economic base holding them up. Investors who get in and then get out on shorter term holds have a potential to do well.

#2 Number of sales:

A trend that needs watching in the Greater Vancouver market is the decrease in the number of sales on a year to year basis. The number of sales dropped 14% on a year-over-year basis in December.

ALBERTA:

As B.T.O. clearly put so many years ago, "You aren't Seen Nothing Yet". With over $25 Billion Dollars of NEW projects announced in the last 40 days, coupled with the previous close to $90 Billion already in the works, the economy is on fire (despite all of the doom and gloom thrown around about Kyoto). New jobs being created at an enormous rate, in-migration to the province taking off again, as well as head offices pouring in to take advantage of the amazing tax advantages the province offers, are turning Alberta into a 'Money Storm.' Yet despite all of that it continues to have one of the lowest inflation rates in the whole country - and the most affordable housing.

#1 HOUSING AFFORDABILITY:

Imagine how perfect this is for investors, all of the above money pouring into the province and the housing affordability index dropping (getting cheaper!) While Vancouver's sits at 47.7%, Alberta's sits at 25.4%. This leaves an awful lot of room for Alberta's real estate prices to move upwards. So instead of paying half of their pre-tax income to housing, Albertans are paying only a quarter.

#2 OPPORTUNITY:

Edmonton's average house prices are sitting at close to $40,000 less than Calgary, with both cities having very vibrant economies. A shock to most people who don't study the economics of the country, Edmonton was recently named the most DIVERSE economy of any city in Canada. Watch for long term real estate wealth being created across the province.

And to top it all off, a recent world oil survey revealed that, of the top 6 strategic producers of oil, Canada is the only one slated to INCREASE production between now and 2015. Saudi Arabia, Russia, US, Iran, and Mexico are all projecting drops in their daily oil production, while Canada's (mostly Alberta's) production is to increase by almost 30%. More jobs, more stability, more demand for real estate.

ONTARIO:

With GM announcing their $2.5 Billion investment, Toyota looking at a major new plant for the province, the high-tech triangle taking off in the Kitchener/Waterloo area, there are a lot of bright lights in the province. Ontario's population is large and the economy diverse, so it is impossible to comment on the overall provincial economic health. However, the areas we detailed in the www.reincanada.com Top 10 Ontario Towns to Invest In Report will continue to out-perform the overall Ontario Market. Make sure you read it for particular warnings about key areas in the province BEFORE you invest.

#1 HOUSING AFFORDABILITY:

The province as a whole has an affordability index of a balanced market sitting at 34.2%, however sophisticated investors know that a general overview of this market means nothing. For instance, in Toronto a standard 2-storey is almost as expensive as Vancouver closing in on 50% of pre-tax income for an average 2-storey. While in Ottawa (an area poised for tremendous real estate opportunities as detailed at the last REIN™ Workshop) that same 2-storey only runs about 36%.

In outlying Top Investment Towns, where extra demand is just beginning (due to the higher prices closer into the city) investors are seeing opportunity everywhere, with average rents increasing, demand for real estate increasing, transportation and infrastructure improvements happening, and an average 2-storey affordability index at 27.3%, similar to Alberta's. Lots of undervalued opportunity in the outlying Top Investment Towns across the province.

CONCLUSION:

As with all sophisticated investors, it is important that you look at all of the factors, not just the one or two that we have space to discuss here. We cover them all in detail and show you exactly how to use them during the weekend ACRE System Event mentioned above. By studying the facts, not the market hype, you can do amazingly well by avoiding the big mistakes and taking advantage of the more hidden opportunities. And that's why this event has sold out every year for the last 12 years. If you are truly serious about investing based on fact, not emotions, then the ACRE System is where you'll want to be. Click here for all the additional details:

Toronto May 14th & 15th:http://www.ontariorein.com/calendar/calendar.php?event=196

Calgary: June 10th & 11th: http://www.albertarein.com/calendar.asp?event=215

Today's economic realities shift year to year. Interest rates, dollar value, trade disputes, broken government promises are continually affecting your real estate. Congratulations on keeping in the know by being a Canadian Real Estate Insider.

We'd love to hear from you. Please send us a note anytime. But most importantly take focused and measured action in the next 30 days that will get you closer to your goal. Large or small, it doesn't matter, just take the step.

Looking forward to seeing you at the upcoming ACRE System Program.

Don R. Campbell and the REIN™ Team

"Turning Real Estate Dreams Into Realities. One Investor at a Time since 1992!"

P.S. Receive an instant 30% pre-release discount at Amazon.ca for Don R. Campbell's latest book 'Real Estate Investing in Canada'. Published by the highly respected publishing company Wiley & Sons. In it you will discover the how to identify whether your local market is over-priced or ripe for opportunity. You'll learn the exact steps an average Canadian took to become a major success in Canadian Real Estate Investing starting out with almost nothing. The best part is, you'll discover how to duplicate these results in your life.

Receive an Instant pre-release 30% discount off of Don Campbell's latest book - Real Estate Investing In Canada. Click on this instant discount link for all the details: www.amazon.ca/realestate

P.P.S. Please feel free to forward this message on to anyone you'd like to help become successful. Look at your e-mail address book and spot the people who you'd like to see become successful. So not only will you be making a difference in your own life, you'll be the catalyst to others' success. Through sharing our knowledge we gain more knowledge.

Don R. Campbell and The REIN™ Team

To Tap Into The Latest Canadian Real Estate Strategies Visit http://www.reincanada.com Today.

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