Guess what Edmontonians - Edmonton made the cut as one of 22 Canadian cities earning the spot on the Monopoly: Canada Edition. Valued at 3 million, Edmonton shares the green section of the boardwalk with Calgary and Sarnia. From the viewpoint of Stephen Mandel, the chosen location  was very appropriate – “given the city’s environmental leadership and our beautiful river valley.”

According the official Monopoly website “The votes are in!  Now you can play the new MONOPOLY Canada Edition featuring Canadian cities voted by you! Wheel and deal your way to a fortune even faster using debit cards instead of cash. All it takes is a card swipe for money to change hands. Now you can collect rent, buy properties and pay fines – all with the touch of a button! It’s a new way to play the family classic that’s been brought up-to-date with higher property values and locations based on your favourite Canadian cities!”

The Edmonton Sun reported that “after a whirlwind of online voting to determine which Canadian cities would earn a property spot on the special edition Monopoly: Canada, Edmonton came out on top as the fourth most expensive real estate in the game.” – with Calgary beating us at a value of 3.2 million.

Monopoly has had a long history in both American and Canadian culture, first coming into its own in 1934 during the Great Depression. Since that time, various versions of Monopoly have been played by over 500 million users. The unique aspect of Monopoly though, is that it really can teach everyone key components of the Real Estate process – particularly when looking for investments.

The Real Estate Game – Lessons From Monopoly (and tips to apply them in real life):

Tip #1 – It is all about the Location

In monopoly – it isn’t always about owning the most expensive property, but rather the ones that will most likely be landed on more frequently. This holds true, when investing in real life as well. Typically as an investor (especially if your planning to rent the property) – the most expensive property and chicest neighbourhood would not be the most desirable investment option. As an investor, you will want to consider all factors – Location of property to local amenities, vacancy rates, and average rental rates in comparison to the costs of ownership. Remember that you are responsible for the bills even if the home is sitting vacant…

Tip # 2 – When Investing Start Slow and Go From There

In monopoly, each player starts with a set income in terms of what they can spend on investment property. This holds true in life too. When investing, keep in mind your budget – if it is small, start small and build your rental portfolio up from there. I always recommend looking for real estate with double the rent potential – like duplexes. As you grow your rental share, you can begin to think about diversifying your properties.

Tip # 3 – Seek Out Deals

Real Estate Deals are out there – and you never know who is ready to sell. Obviously finding out this info in monopoly is easier as there is always one player in need of money – this holds true in real life too. The obstacle in real life – is simply finding a seller that is motivated to give a deal.

Tip # 4 – Renovate Moderately

Remember that when renovating that you are NOT renovating a home for your needs – but rather for potential renters. Renovations can only add so much value to home which is why you never want to go overboard. I see this time and time again, especially with new investors – buying into a “moderate income” property and renovating to the nines. Reserve the luxury items for a truly luxury home.

Tip # 5 – Strategize – Have a Plan

Every year I have plan as to how I am going to grow my rental portfolio (where and at what price), how I am going to promote renters to rent from me and an expected maintenance budget. Working with a Real Estate professional that understands investing (who does it themselves) and who understands the in’s and out’s of investing successfully is key.

So know that I have given you valuable insight into how Monopoly can teach young and old a like that Monopoly is both fun and provides a valuable learning opportunity, I would like to ask you this:

If the city of Edmonton really was on the world-wide real estate market – what would be it’s true value? Whatever it’s true value would be – who would be the lucky buyer ultimately?

Until next time – Have fun playing the new Canadian Edition of Monopoly!

–> Share your Monopoly stories today via normal comments or try our new “Video” commenting (all you need is a webcam)

My goal is to keep your best interests at heart and as such I know that sometimes you may be happier staying in your existing home instead of buying a new Edmonton home. I would recommend reviewing all avenues prior to deciding to buy. Owners may find that simple decor renovations or adding onto an existing home may be preferred over trying to find a new home. Alternatively, some owners need more space and feel that buying a new home is the way to go. Either way the Terry Paranych Team is here to provide the advise and knowledge you are looking for. Feel free to get in touch with us for all your Edmonton Real Estate needs.

According to the Edmonton Real Estate Board:

“The housing market was relaxed in May with slightly lower sales than last year and prices generally stable. Despite the sales drop, the current sales figures compare favourably with levels set in 2008…

Single family residences in the Edmonton area rose in price by less than one percent and sold on average* for $390,583 in May. Condominium prices dipped just two percent to an average of $248,526. Duplex and rowhouse prices of $320,204 were down 2.3% from last month. Overall, the average residential price was up a quarter of a percent to $340,192.

There were 3,670 residential listings in May with residential sales of 1,682 properties resulting in a sales-to-listing ratio of 46%. The average time to sell a home was 44 days (the same as April) and inventory at month end was 8,780 residential units (as compared to 8,056 in April). At current sales levels the inventory will last for over five months.”

After reviewing the statistics and facts myself I have to say that I still believe that the Edmonton Real Estate market is looking better than simply favourable – It is looking great! The Terry Paranych Team is still going strong helping Edmonton home buyers find their perfect home and Edmonton home sellers obtain a desired price point during the sale. Although the condo market has dropped slightly, this is actually good thing. People looking to invest can find excellent properties at a fair value right now. Overall the Edmonton Real Estate market is in good shape making it an excellent time to buy or sell.
Have further questions regarding what is happening in the market, feel free to touch base with us today?

Highlights of MLS® System activity

Not sure what Edmonton neighbourhood you want to live in? Sometimes, it is not always about the features of the home, but rather the type of community the area fosters. A great way one can get to know the area is through the Community League. Edmonton’s Federation of Community Leagues is well established and offers unlimited opportunities to socialize and get to know your existing neighbours and/or to get a feel for potential new neighbours.

“EFCL’s purpose is to foster healthy neighborhoods and sustainable community leagues in Edmonton by providing advice, support and coordination of the community league movement in Edmonton. No other organization in North America has such a well developed system of volunteers within communities that provides sports, recreation, culture, and educational opportunities while addressing transportation and land use issues.”

This month, all Edmonton Community Leagues are actually participating in a Community Challenge complete with a Neighborhood Cleanup on June 5, a 24 Hour Bike Tune Up on June 12, and a Canned Food Sculpture Competition on June 26.  Teams of all ages representing a number of Community Leagues throughout the City of Edmonton will participate with the potential of earning a community fund that will directly benefit their Community League.

On August long weekend, they will be involved in Heritage days and on Sept 18, 2010 there will by a Green Challenge to promote and encourage sustainable living initiatives.

To learn more about the community you are planing to buy your Edmonton Home or to get involved in your existing community, visit the Edmonton Federation of Community Leagues today. Participate, Volunteer and enjoy meeting your neighbours.