Good things lie ahead

The news is encouraging.    As we finish out the second quarter of 2009, Canada is emerging from nuclear winter – the likes of which most of us have never seen and hope never to experience again.  As Canadians, we willingly face the long harsh winters because we know that Spring always comes.  Maybe that’s why we are one of the first to switch our perspective from “The Global Recession” to what lies ahead.  Many of us are recognizing the opportunities that have emerged in the housing market and are taking advantage of the lowest mortgage rates ever to secure a home.  A home where our dollars go towards ownership rather than rent.  An investment in ourselves.  But don’t just take my word for it.  Check out the following studies from CMHC and RBC below.

The smart buyers are now picking off the best values.  28 families bought homes last weekend at Waterfront – the best location and the best value in Calgary at this moment.  There were parents helping out their kids with their first condo, snowbird down-sizers who want the best view condo in town – when they are in town, and working couples who want to spend more time enjoying their home than commuting from it to their downtown jobs.

Do your due diligence, then make your move.  If you’re in it for the long term, you will always be rewarded by your investment in a home.  At Waterfront, there is extra value.  You’ll have the most desirable downtown address.  You can walk to work and to your favourite restaurant.  Keep in mind, there is only so much Waterfront.  And once they’re gone, they’re gone.

Canadian Home Purchasers Savvy and Optimistic

OTTAWA, June 9, 2009 — Canada Mortgage and Housing Corporation’s (CMHC) 2009 Mortgage Consumer Survey results were released today, and indicate that nearly 90 per cent of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70 per cent think that now is a good time to purchase a home in their community. 

 “Given the current economy, this study indicates that Canadians continue to be optimistic about homeownership and are astute mortgage consumers,” said François Blouin, Director, Insurance Products and Strategic Direction, CMHC. “Our results reaffirm what we have seen in previous surveys — when it comes to their mortgages, Canadians are informed and manage their debt prudently.”

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-06-09-0830.cfm 

 

RBC maintains forecast for a return to positive growth in 2009

Prospects rising in both U.S. and Canada

TORONTO, June 15, 2009 — Following a first quarter dominated by negative economic news, positive indicators are beginning to emerge from the gloom, according to a new report by RBC Economics. The report predicts that, while Canada’s economy experienced its largest one-quarter contraction since 1991, this likely will prove to be the worst quarterly showing in this recession.

“Although Canada’s economy slumped in early 2009 and will likely remain in recession this second quarter, we believe it is ripe to enter its recovery phase later this year,” said Craig Wright, senior vice-president and chief economist, RBC. “Improving global growth prospects, alongside extraordinarily low interest rates and government stimulus, are expected to allow Canada to return to positive growth in 2009, with a moderate recovery in 2010.”

http://www.rbc.com/economics/market/pdf/fcst.pdf

Good things lie ahead

A Message From The CEO

On September 15^th, 2008 the world fell off an economic cliff.  We watched and listened in horror as minute by minute accounts of imminent failure of some of the world’s largest financial institutions and businesses were announced.  Proclamations of depression, forecasts of never ending economic doom and comparisons to the 1930’s, were heard again and again with screeching headlines, to the point of hysteria.  And so it continued through to the end of February 2009.  Oil had gone from 150 dollars a barrel to the mid 30’s.  Teck Cominco, one of the world’s greatest mining companies had fallen to 3.50 a share.  The TSX had fallen from 15,000 to 7,000. 

Since then reason has begun to reassert itself.  Governments, central banks, and business leaders have begun to make adjustments to deal with the new reality, and we seem to have finally landed with a thud at the bottom of that precarious fall.  Economic news is a little better.  There are more forecasts of some type of subdued recovery.  Oil is back up to the mid 60’s, Teck Comico is 17 dollars, and the TSX is over 10,000.

We may not be in a full blown recovery.  We may be bouncing along a bottom.  But the bottom  we are at…..I think…and from a bottom values go one way…up.

So what does this mean for Anthem’s Waterfront project?

In any economic meltdown, costs adjust to reflect the new levels of supply and demand.  For new developments, cost factors such has construction costs, consultant costs and interest costs, are down.   Work isn’t so easy to take for granted.  So we can build later phases cheaper.  At Waterfront we have forecast newer reduced costs and have re-priced the remaining units in The Flats and Two Waterfront (the second tower) to pass on those savings.  About 100 units have had prices significantly reduced.  

Specifically:

• Our prices start as low as $249,900 for a home
• 35 units are priced under $300,000
• Our larger price reductions total $187,000 per unit

 

Imagine that, a cool loft style apartment condominium, made out of concrete, with high quality design and finishes, steps from Eau Claire, the River Path, Chinatown, and your job downtown, for only 250,000 bucks. 

Waterfront living will never be this cheap again.  The crash is over.  The bargains are here.  The time is now.  Lucky You.

Don’t be like me crying over my lost opportunity to buy Teck Cominco at 3.50.  Step up to the plate.  Be one of the smart buyers.

Good luck

Eric Carlson

CEO

A Message From The CEO