Edmonton Real Estate Investors Association Message Board › ERPIA Minutes - June 11, 2013
Jim Whitelaw, Vice President hosted the meeting. He reviewed the general housekeeping items. Approximately 34 people attended the meeting.
The guest speaker for the session was Johnson Frais. Johnson spoke about investing in self-storage systems. One in ten people in the US have storage units. There is more demand as baby boomers age. Due to downturn in the economy and people losing their housing due to foreclosures, storage units are a booming business. They are fully leased for longer periods. Many have front store, mail boxes, u-haul services, UPS services and other auxiliary services. Buying self-storage developments are much like buying apartment buildings. Buying developed storage properties - there are less headaches. There are class A, B, and C storage. Many buildings have been converted to storage. You need to know both the income and expense components for storage developments. You have to understand the demographics for the area when purchasing storage developments. Usually a higher female to male population using storage. More young and older people using storage vs. middle age. More singles vs. married. More smaller families vs. larger families.
Jim provided the group with a "Five Minute Update". Mortgage rates are based on long term bond yields. Fixed rates mortgages increasing to 3.09% as of June 11 @ midnight. Stats as of April 2013 - Unemployment at 4.4% in Alberta - 7.2% average in Canada. 2.4% growth rate in Alberta. Retail sales in Alberta 4.4.%. Autos were flat. Average Real Estate numbers as of May. Single Family Houses average price of $418,000 - 4% m/m and 5% y/y. Condos at $238,000 - 2.4% m/m and 4% y/y. Limited inventory. Average of 45 days on the market - down from 49 days.
Door prizes were drawn and the meeting concluded at 8:45 pm.