St. Albert Case Study -- a publication of Vision Investment Properties

St. Albert Case Study
Suit 111 375 Water St. Vancouver, BC Canada V6B 5C6
Toll Free: 1 866 888 8265
www.viproperties.com
A publication of
Where to Invest?
An Economic Case Study of St. Albert

Toll Free: 1 866 888 8265
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?
Slide 3 of 31

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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:
Slide 4 of 31

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Location & Transportation
Improvement
Slide 5 of 31

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Location & Transportation Improvement
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).
Slide 6 of 31

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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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Slide 8 of 31

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Neighbouring Growth
Slide 9 of 31

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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

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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
Slide 12 of 31

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Favourable Policies
Slide 13 of 31

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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
Slide 15 of 31

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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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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
Residents 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
Slide 21 of 31

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Population Growth
Source: City of St. Albert
Slide 22 of 31

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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
Slide 23 of 31

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Overall Rental Outlook
Slide 24 of 31

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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
Slide 25 of 31

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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
Slide 27 of 31

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St. Albert Investment
Opportunity
Slide 28 of 31

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St. Albert Investment Opportunity
Featuring (two-bedroom):
• 26.5% projected ROI per year
• $1400 monthly rents
• 100% direct ownership
• 4 year rental assurance
• monthly positive cash flow
Slide 29 of 31
1. Average condo fee for St. Albert project based off of comparables
2. 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.

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If this opportunity interests you, fill
out this form and our property
consultant will contact you or feel
free to contact us at
info@viproperties.com!
Slide 30 of 31
St. Albert Investment Opportunity

Toll Free: 1 866 888 8265
Thank You
Slide 31 of 31

St. Albert Case Study -- a publication of Vision Investment Properties

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St. Albert Case Study -- a publication of Vision Investment Properties