Show Me The Money
By Eugen Klein,
B.Comm(UREC), CRES, ARM®, RI(BC), FRI
Real Estate Broker
If you are in the market for a real estate investment, we encourage you to call us with any of your questions. Whether you are considering a small multi-family two- or three- plex, or if you are looking to assemble a portfolio of industrial/commercial properties, our expertise is at your disposal. We can provide pro-forma statements and analyses why and where real estate is a good investment.
If you are an owner already, we aim to add value to your investment through our strong leasing practise. Feel free to call any time with your inquiries.
Over the past several months, investors have been paying close attention to a downward trend in the value of the American dollar. As the global currency, it is held in reserve by most nations around the world; it is therefore of significant interest to everyone that the US government appears to be doing its best to devalue the dollar, partly to rein in the ballooning debt, partly to stimulate a flagging manufacturing sector and improve the trade balance.
To give you some idea of the magnitude of these efforts: in the past year alone, over a trillion USD has poured into an already well saturated market. in the week following 9-11, Alan Greenspan & Co. created $198 billion USD, an amount equal to the total currency issued by the US government and Federal Reserve from 1783 to 1966! As a result, the Canadian dollar has leaped from a low of $0.62 in Q2 2001 to a recent high of $0.74 in Q2 this year.
With the currency volatility expected to persist for some time, where can one’s wealth remain protected? I know of two markets: precious metals (gold, silver, copper, etc.) and real estate.
Historically, gold has always provided solid protection. Over the past 100 years, the USD has lost over 95% of its purchasing power. Gold, by comparison, has lost only 7.6%. Gold should continue its recent upward trend, even eclipsing previous record highs..
Real estate will hold its value and produce steady income that maintains pace with any inflationary leaps. Look for local income bearing properties to become very attractive to American investors and REITs (we have already received several inquiries from major investors very eager to hedge their bets and weather the storm north of the border). Industrial, multi-family, and commercial retail buildings will be in demand.
One sector that will definitely suffer from the depressed American currency is manufacturing. Those who import raw materials from and export finished products to the US will be hit hardest by a 19% “currency tax” on either end. Such businesses may find a quick dip south of the border advantageous, to the benefit of manufacturing land in the border states.
(For an interesting read, have a look at http://www.usagold.com/gildedopinion/HamTsunami.html).
Editorial
In our last issue we advertised the multicultural benefit night that will be hosted October 4th at the Hyatt Regency by the Greater Vancouver Real Estate Board. Great entertainment is planned in support of a worthy cause: the money raised goes toward the ongoing efforts by the Vancouver Children’s hospital to treat cancer among youth. A few tickets are still available for the event! Contact Mercedes Wong at (604) 734-3816 to obtain them.
The other event advertised in our last newsletter was the Institute of Real Estate Management’s trade show at Science World which concluded on September 18th. In its fourth installment, this annual show which brings together the managers, contractors, developers, investors and realtors continues to draw more and more attention. I just wanted to include this brief message of thanks to those of you who attended and helped to make it such a success!
Eugen L. Klein
B.Comm (UREC), CRES, ARM®, R.I.(B.C.), FRI
[email protected]
Tel. 604.818.5888
Tel. 1.800.818.8599
Residential Tenancy Act Changes
The changes to the residential tenancy act will be taking effect at the beginning of the new year, therefore, for prospective investors or current owners, here is a brief summary of some changes:
• The rental increase formula permits slightly greater annual increases to keep step with inflation.
• Where rents have not been increased for several years, three years’ rent increase may be applied at once.
• Landlords are not permitted to charge application or screening fees.
• Pets may be prohibited in tenancy agreements. Those landlords who choose to allow pets may collect an additional half month’s rent as a pet damage deposit..
• In order to have a claim against the damage deposit, the landlord must perform a condition inspection report at the start and end of the tenancy and present that report to the tenants.
A Special Thank You
The Eugen Klein Real Estate Team wishes to thank those who kindly referred us this month:
Dr. & Mrs. Ignaszewski
Mrs. M. Wong
Mr. R. Cameron
Ms. L. Miletich
Mr. T. & S. Lutz
Mr. F. Mahovlich
Ms. C. Louw
Mr. W. Tullis
Mr. M. Pedula
Ms. L. Fry & Ms. J. York
Mr. S. Malik
Mr. G. MacDonald
Mr. S. Lee
Mr. R. Austin
Mr. M. Carrier
Mr. A. Christiansen
Ms. D. Williamson
Ms. R. Miterhozer
Mr. P. Robinson
Mr. J. Peach
Mr. J. Young
Mr. & Mrs. E. Klein
Mr. B. Skare
Mr. D. Starek
Mr. J. Litchenwald
Mr. L. Chow
Mr. B. Stevens
Mr. D. Averill
Mr. P. Guerra
Mrs. Jiany
Properties:
1. 46 ACRE DEVELOPMENT LAND:
Between I-5 & Pacific Hwy; truck stop, manufacturing, duty free potential; $4.50 to $6.50 / sq. ft. Border proximity 10 parcels, all serviced.
2. MOBILE HOME PARK LAND
Okanagan valley, 20+ acres, all services at lot line. Conforming & non-conforming uses available. 100+ pads.
3. NORTHERN BC RESORT
Near Revelstoke, BC. Newly built, year round activities: canoeing, heli-skiing, sno-mobiling.
4. FAESSLER VINYARDS
On beautiful Serpentine River near Cloverdale, BC. Permit application pending for Winery License.
5. RAFTER LY RANCH
7 km frontage on Bulkley River near Smithers BC. 4000 acres, prime cattle ranching. Secluded, easily accessible.
6. DOWNTOWN STRATA OFFICE
Howe Street, Vancouver. Directly across the street from B.C. Supreme Court. Perfect for independent professional.
7. MIXED COMMERCIAL
Aldergrove: two level; commercial lease space downstairs and residential space upstairs. Currently fully leased/owner occupied.
8. TRAFFIC CONTROL COMPANY
Extremely lucrative business. Major contracts in place with city, municipalities, and blue chip companies. 34 years in operation.
9. OFFICE BUILDING VANCOUVER ISLAND
7500 sq. ft. net leased investment
11. TOWING COMPANY
Serving all major southern BC highways from Merritt location.13 years growth; 13 trucks; Major contracts; Awesome cash flow!
12. NIGHT CLUB – FRASER VALLEY
Established club with loyal clientele. Minutes from downtown Surrey. Excellent lease 5,000 sq.ft. currently undergoing full renovations.
13. ELECTRONICS SERVICE & SALES
Located in the lower mainland with full compliment of services. Contracts in place with major hotel chains, retailers. Flexible terms of acquisition. Real estate can be purchased or leased..
14. TACO TIME
Three locations in Greater Vancouver, Managers in place in all stores, owners retiring, franchises offered below market
15. AUTO REPAIR, DETAIL & SALES
Located on the North Shore. Building purchase option. Exceptional reputation for quality of service in wealthy neighbourhood.
16. BED & BREAKFAST
Near Steveston in Richmond. Beautifully appointed and easy to run, especially busy in summer. Ideal for retirement couple.
17. ENGLISH TRAINING COLLEGE
Central Location in downtown Vancouver. $800,000 in annual revenue in only third year of operation; ~35% Cap.
18. STEEL MANUFACTURING
Specialized steel manufacturing facility. Excellent cash flows; real estate option.
19. GAS STATION LOCATIONS
Lower mainland and interior BC locations. Great stable cash flows with car washes and convenience stores.
48 UNIT TOWNHOUSE DEVELOPMENT
Architectural plans completed, zoned; vendor tax benefits available, joint venture considered. Lower Mainland.
SHOPPING CENTRE REDEVELOPMENT
Shopping mall for redevelopment into mixed commercial/residential tower, 12 storeys. Upper floors will have exceptional view of Vancouver & Puget Sound
WANTED
20,000 – 30,000 sq. ft. retail location in close proximity to downtown: lease or buy
WANTED
Industrial building; south side of Fraser River, 2 acre lot prefered.
WANTED
Buyer for distress sale of mobile home park with redevelopment potential.
Testimonials
“Eugen Klein is without a doubt the hardest working and most dependable real estate broker we have ever come across. Since our first meeting over a year ago he has continually impressed us by always anticipating our needs and exceeding our expectations.
Eugen’s advice is always to the point and accurate – and is motivated by a sincere intention to provide us with the best possible service. The amount of material he presents us with on a continual basis reassures us that, no matter how busy or complicated his schedule is, we are always on his mind, and he takes time each day to make sure our interests are taken care of. His word is golden – he is honest and trustworthy and uses his expertise to ensure that our decisions are completely informed. There are never any surprises; we are confident that the information he provides is thorough and complete.
Eugen is a rare and genuine individual; we have enthusiastically recommended him to all our friends and associates. We are extremely fortunate to have such a dedicated, experienced, and intelligent individual working on our behalf.”
Dr. A. Ignaszewski, M.D., FRCPC, FACC,
Cardiologist, Heart Transplant Program,
Vancouver General Hospital.
“Eugen has a broad base of knowledge in all areas of business, as his chosen profession requires; furthermore he is extremely sharp and always has the facts right at his fingertips… In all of my 64 years, I have never encountered nor expected to encounter a guy like him.”
‘Rocky’ Roy Cameron
BC Lions Alumni
Community:
My ‘Community’ section is dedicated to the extraordinary people who have contributed to my life with exceptional service. I would like to share my good fortune of knowing them with you. Please feel free to convey my recommendation.
CIBC RESIDENTIAL FINANCE
Mr. Adam Beaudin-Ball
West Vancouver (604) 981-2549
ENGLAND PAINTING
Mr. Andrew Rabek
Vancouver (604) 377-0763
EVENT COORDINATOR
Ms. Malinda Poe
Vancouver (604) 738-2286
KAL-TIRE
Mr. Paul Ouellet
North Vancouver (604) 985-4221
MAGIC TOUCH AUTO CENTRE
Mr. Reza Akhavan
West Vancouver (604) 922-6666
PURPLE ONION CABARET
Mr. Ken Svazas
Vancouver (604) 602-9442
VANCITY VENTURE CAPITAL
Mr. Axel Christiansen
Vancouver (604) 877-6582
VANCITY CREDIT UNION
Mr. Joe Chan
Vancouver (604) 877-8296
CHARTERED ACCOUNTANT
Mr. Grant Gilmour
Langley (604) 888-4200
MEGA ASSISTANCE
Mr. Alain Blancard
Vancouver (604) 669-7582
BARFLY
Mr. Jesse Bannister
New Westminster (604) 519-0333
SIGNS ILLUMINATED
Mr. Dale Hammond
Vancouver (604) 930-8414
EVERGREEN PRINTING
Mr. Shaf Malek
Vancouver (604) 734-3774
NATIONAL HOME REVIEWS
Mr. Dean Kazoleas
Vancouver (604) 681-2108
The Team
Eugen L. Klein
B.Comm (UREC), CRES, ARM®, R.I.(B.C.), FRI
Broker
email: [email protected]
Cell: 604.818.5888
Toll Free: 1.800.818.8599
Direct: 604.691.6622
Fax: 604.691.6688
Dina Jabsheh
B.Comm (GMT)
Business Development
Unlicensed Assistant
email: [email protected]
Direct: 604.691.6610
Fax: 604.691.6688
Michael Mustard
B.Sc(Hons)
Information Systems Manager
Unlicensed Assistant
email: [email protected]
Direct: 604.691.6660
Fax: 604.691.6688
Please do not hesitate to call me at 604.818.5888; it is my pleasure to serve your real estate needs. Please visit us on the world wide web at www.eugen-klein.com
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