st. albert case study -- a publication of vision investment properties

St. Albert Case Study

Suit 111 375 Water St. Vancouver, BC Canada V6B 5C6Toll Free: 1 866 888 8265

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A publication of

Where to Invest?An Economic Case Study of St.

Albert

http://www.viproperties.com/




Table of Contents

Section No. Slide Name Slide No.

1. What are Economic Indicators? 3

2. Location & Transportation Development 5

3. Neighbouring Growth 9

4. Favourable Policies 13

5. Employment Growth 15

6. Population Growth 20

7. Overall Rental Outlook 24

8. St. Albert Investment Opportunity 28

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What are Economic Indicators?

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What are Economic Indicators?

Economic indicators: signs that an economy is growing. A booming economy ultimately leads to a housing market with increased housing prices and rents as well as low vacancy rates. The key is to catch onto these signs and invest early in the growth cycle.

Here are the economic indicators that we are going to go over in this case study:

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Location & Transportation Improvement

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Initially settled as a French Catholic community, St. Albert has developed into an affluent suburb located northwest of Edmonton within the Greater Edmonton Region (GER).

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• City of St. Albert is not only bisected by Highway 2, but also adjacent to Anthony Henday Highway, a ring road highway around Edmonton that offers streamlined travel times:

• 10-15 minutes to downtown Edmonton• 20 minutes to University of Alberta• 30 minutes to Industrial Heartland and Fort

Saskatchewan• 40 minutes to Edmonton International Airport

• Therefore, the city is an ideal home for the 59% St. Albert Residents working in Central Edmonton

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Neighbouring Growth

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Neighbouring Growth

Located within the Greater Edmonton Region, St. Albert benefits from the ripple effect of Edmonton’s economic growth, high employment and increasing prosperity.

Edmonton Quick Facts:• Edmonton is a world centre for the oil, gas and petrochemical

industries• The Edmonton region continues to surpass Alberta and

Canada in terms of job creation, labour force growth and expansion of the working-age population (Source: The City of Edmonton, 2013)

• 4th highest GDP growth of all Canadian cities in 2011

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Edmonton is an economic powerhouse with a gross

domestic product of $53.891 billion Fastest growing

metropolitan in Canada

Population of 1.16 million

Edmonton’s population growth is 2.5 times the

national average

EDMONTON CAPITAL REGION

11





Neighbouring Growth

Economic Factors Details & Market Trend

Oil & Gas industries •97% of Alberta’s oil found in GER service area•Expansion of value-added processing of natural resources help expand employment

High Employment •Construction, trade and personal services sectors estimated to create 6,000 jobs in 2013

Population Growth •Edmonton’s population continues to grow at close to 2.5 times the national average due to low unemployment rate and high average income (ranked 3rd in Canada)

Infrastructure Improvement

•Completion of Edmonton LRT Expansion and Anthony Henday Ring Road positively affect surrounding real estate values significantly

What Makes Edmonton a HOT market

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Favourable Policies

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Favourable Policies

• Located in Edmonton, Alberta, St. Albert benefits from the province and its capital’s business friendly and favourable policies:

• No sales tax (PST), provincial capital taxes, payroll taxes or machinery and equipment taxes

• Lowest business taxes in Canada• Lowest property taxes in the region• Lowest overall personal taxes in Canada• Affordable utility rates

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Employment Growth

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Employment Growth

• Due to its strategic location and strong transportation, St. Albert continues to attract businesses and skilled workers to the city• Large retailers will be opening in the northern part of St.

Albert:• Target has recently opened in May 2013• Costco is currently building a 13,750 square-metre

warehouse and is scheduled to open in December 2013 Major commercial developments like this will drive

residential development

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www.viproperties.com17




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Employment Growth

• With St. Albert’s aggressive development plan, jobs are being created

• Other than retailers, the city is also expecting a national brand hotel to be built by the casino, which will demand more workers

• According to Statistics Canada 2013, St. Albert’s healthy job market is reflected by its low unemployment rate of 3.8%, compared to 4.7% in the Edmonton Capital Region and the national rate at 7.2%

59%28%

13%

Where do St. Albert Resid-ents Work?

Edmonton

St. Albert

Other

• Interesting to note, 28% of St. Albert residents work locally while 59% work in Central Edmonton

• The city’s strategic location allows its residents to take advantage of the booming oil industry and benefit from the 26% higher average income offered in Edmonton

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Population Growth

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Population Growth

• According to the 2011 census, St. Albert had a population of 61,466, a 6.5% population increase from 2006. This growth was ahead of the national average, which was at 5.9%.

• The city’s overall population is expected to double in the next 10 years

• St. Albert is ranked:

#1 Top Canadian Place to Raise a Family - Today’s Parent Magazine

#5 Best Place to Live in Canada - Money-Sense Magazine

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Population Growth

Source: City of St. Albert

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Population Growth

Job opportunities and high average income continue to

attract people to the city

With population growth, demand for programs and

services is expected to increase

Opportunities for business development in

commercial industrial sectors

More jobs created

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Overall Rental Outlook

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Housing Demand

Strategic Location

Neighbouring Growth

Employment & Population

Growth

• Growing population in the Greater Edmonton Region is the biggest contributor to the rising demand for rental units• Housing demand will lower vacancies, which will

push up average rents in the area

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Year 2006 2007 2008 2009 2010 2011 2012

St. Albert 0.9% 1.6% 3.7% 3.7% 2.3% 0.5% 0.9%

Edmonton 0.8% 1.6% 2.4% 2.4% 4.5% 3.3% 2.5%

Canada 2.7% 2.7% 2.3% 3.0% 2.9% 2.2% 2.6%

Historical Vacancy Rates for Rental Housing (2006-2012)

In the chart below, you will find that St. Albert’s rental vacancies are generally lower than Edmonton and the national average:

Source: Canada Mortgage and Housing Corporation

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St. Albert is ranked:

#5 Top Investment Town in Alberta

- Real Estate Investment Network Canada

#7 Financial Post’s “Where to Buy” List

- Financial Post

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St. Albert Investment Opportunity

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Featuring (two-bedroom):

• 26.5% projected ROI per year• $1400 monthly rents• 100% direct ownership• 4 year rental assurance• monthly positive cash flow

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1. Average condo fee for St. Albert project based off of comparables2. Average property tax amount for St. Albert project based of off comparables

Calculations listed above are estimates only. Vision Investment Properties does not guarantee its accuracy. Errors and omissions are excepted. Each purchaser is responsible for performing their own evaluation and forecasts. Vacancy rates and mortgage rates are subject to change.





If this opportunity interests you, fill out this form and our property

consultant will contact you or feel free to contact us at

[email protected]!

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http://info.viproperties.com/book-appointment-gcff





Thank You

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st. albert case study -- a publication of vision investment properties

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