Newfoundland’s Population Increases

October 1, 2009 · Filed Under Local St. John's, Newfoundland Economy, St. John's General · Comments Off 

Newfoundland’s population has increased according to Statistic’s Canada.  The population has grown by 2,484 over the past year to 508,925. This increase might not seem like a big number, but Newfoundlander’s are accustomed to a decline in population year over year.

From April to June 2009, Newfoundland and Labrador’s population climbed 0.28%, the highest second-quarter growth rate since 1983. In contrast to the other Atlantic provinces, the increase was mostly attributable to a net gain in interprovincial migration. It was also the fourth consecutive quarter in which Newfoundland and Labrador has posted gains in its exchanges with the other provinces and territories.

On July 1, 2009, Canada’s population was estimated at 33,739,900. In the second quarter of 2009, Canada’s population grew by 121,200 (+0.36%)

Alberta was the Western province with the fastest demographic growth rate from April to June 2009, at 0.59%.

From April to June, Prince Edward Island had the fastest demographic growth rate in the Atlantic provinces at 0.53%

Newfoundland Vacation Properties In Demand

June 27, 2008 · Filed Under St. John's Real Estate · Comments Off 

Demand for recreational properties in the Newfoundland continues to increase. According to a new Royal LePage report, a standard waterfront-land access cottage will cost you an average of 81 to 112 thousand dollars.   Spokesperson Glenn Larkin says prices have gone up about 10 per cent since last year. Larkin says they are seeing a lot of buyers from Alberta. Larkin says there aren’t many properties available, so he expects a lot of interest in a new development in Deer Park.

Alberta prosperity boosts residential real estate markets

Alberta’s red-hot economy is fueling demand for residential real estate in Nova Scotia, PEI, New Brunswick, and Newfoundland this year, according to a report released today by RE/MAX Ontario-Atlantic Canada.

“Strong economic performance in Western Canada continues to spillover into other parts of the country,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “A serious influx of Western Canadian purchasers has bolstered housing sales in every Atlantic province. Tremendous job opportunities available in Alberta that allow commuting to and from the East Coast have served to further strengthen home-buying activity in the region. Last, but certainly not least, after living in Western Canada for many years, more and more Maritimers are returning home.”

Newfoundland-Labrador (St. John’s, Corner Brook, Grand Falls) currently leads the region overall in terms of percentage increases in both unit sales and average price, with the number of homes sold up close to 18 per cent year-to-date and average price up almost 15 per cent, compared to the same period one year ago. Two thousand and seven was the first and only year since Newfoundland joined Confederation in 1949 that the province led the country in economic performance. GDP growth soared to 13.4 per cent due to mining and oil development, according to Statistics Canada.

“Housing performance in Newfoundland has been nothing short of remarkable,” says Polzler. “There are $10 billion in capital works projects on the table and the pressure in the real estate market is only starting to build. By year-end 2008, housing sales and values are expected to climb by double-digits, leading not only the region, but the country, in terms of percentage increase.”

Newfoundland in the Spotlight once again

April 25, 2008 · Filed Under St. John's Real Estate · Comments Off 

Reporter Greg Quinn wrote and article for Bloomberg entitled “Newfoundland Gets Off Canada’s Dole as Williams Takes on Exxondiscussing Newfoundland’s transformation (“Getting off the dole” Quinn eloquently put it) due to recent oil revenue and our Premier Danny Williams fight with the big oil companies.

Favorable high oil prices, personal income tax cuts, a budget surplus and booming economy – 9 percent growth last year which was three times the national average – seems to be the talk of the town.

Everywhere you turn people are talking about the prosperous times in Newfoundland’s future….most importantly the St. John’s real estate market.

Stated in his article was of course my interest….real estate.

The average price of a detached home in St. John’s jumped 13 percent in the first quarter to C$164,000, according to Royal LePage Real Estate Services. That’s almost double the national price increase.

The province’s economy has grown 50 percent since Hibernia began producing nine years ago. That’s second only to the 53 percent expansion in Alberta, whose tar sands hold the biggest oil deposits outside the Middle East.

March Real Estate Newsletter

March 28, 2008 · Filed Under Real Estate Newsletter · Comments Off 

There’s hot demand for people wanting to buy homes in the St. John’s, Mount Pearl region, and a lot of the interest is coming from outside the province. There is very little listing inventory (inventory in the region is down 50 per cent) A lot of the buyers are from outside the province, especially the province of Alberta. They see this region as a great place to invest as it has a healthy, prosperous economy. Statistics are showing that it will remain a seller’s market for a long time yet. Royal Bank of Canada reports show that housing prices in St. John’s are up 15 per cent.

Fraser and Stephen Winters March Real Estate Newsletter

Real Estate Investment Trusts

March 10, 2008 · Filed Under St. John's Investments, St. John's Real Estate · 1 Comment 

We have been getting quite a number of calls and emails from investors in Ontario, BC and quite a number from Alberta (Edmonton, Calgary, Fort Mac area) looking for investment properties in St. John’s, Mount Pearl areas. With a price range of $180,000 – $210,000 for a 2-apartment in St. John’s ($240,000 for newly a constructed 2-apt) this is a huge price difference from what the similar home would sell for in their area as well it’s a significant increase in prices from what we locally are accustomed to.

Not everyone wants to purchase or has the ability to purchase a second home as an investment so what are other options. REIT’s are the first thing that come to my mind.

A Real Estate Investment Trust or REIT is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income.

Ok so that was the “formal” definition. What does this mean to you?

Basically a REIT allows you to purchase equity or shares of stock in a company that holds and purchases real estate. For example, you can purchase shares of Northern Property Real Estate Investment Trust (NPR.UN) who own properties located in the Northwest Territories, Nunavut, Alberta and recently moved into the Newfoundland market by purchasing Hillview Terrace Suites. Most of Northern Property’s portfolio is held residential income producing properties.

Most REIT’s pay monthly distributions to share holders (similar to you collecting a rent check from a tenant). The distributions have the potential to increase ( similar to increasing your rent) and the cost per share of the stock has the potential to increase ( similar to your property increasing value).

A few other REIT’s that own property/companies in Newfoundland are:

  • Crombie REIT (CRR.UN) – Avalon Mall & Village Mall and more
  • Fortis Properties (FTS) – while not a REIT it owns a significant amount of commercial real estate, hotels and hydroelectric generation in Newfoundland
  • Calloway REIT (CWT.UN) – Kelsey Drive box stores – Boston Pizza, Home Depot etc

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