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2009 Calgary Transportation Effect Research Report

May 27, 2009

Provincial And Federal Government Stimulus Packages To Have
A Direct Effect On Specific Calgary Home Values

2009 Calgary Transportation Effect
Research Report Concludes That Some Property Owners Will Receive a 10 - 20% Increase in Their Property Values

Calgary, AB — May 27, 2009 — The Real Estate Investment Network (REIN™) a Division of Cutting Edge Research Inc. is pleased to release its latest update to The Calgary Transportation Effect, which details the impact of the upcoming transportation improvements on housing, part of the government stimulus packages, on housing in Calgary.  The report’s research estimates that prices in select Calgary’s neighbourhoods will receive a 10% to 20% premium, over and above what the rest of the city’s market does in the coming years.

“Our tax dollars are being spent; this is an opportunity for average Calgarians to profit from those dollars.  When people look for a property to purchase — be it their primary residence or an investment property — they take into consideration affordability, commute times and commute costs,” said Don Campbell, the report’s lead author and president of the Real Estate Investment Network. “If you can reduce commute and travel times to and from an area, you make that area much more desirable as a place to live, and thus an increase in demand occurs.”

There is a national focus on building infrastructure with a major focus on transportation improvements.  Transportation is one of the twelve key fundamentals that drive real estate values up or down. This report focuses on how the completion of the Ring Road and the expansion of the C-Train will improve accessibility to the downtown core, which in turn will raise the value of real estate that is in close proximity to these transportation improvements.

Transportation accessibility is one of the twelve key fundamentals that drive real estate values up or down. This report focuses on how the completion of the Ring Road and the expansion of the CTrain into the northwest and northeast will improve accessibility to the downtown core, which in turn will raise the value of real estate that is in close proximity to these transportation improvements.

Their research has found that there are three “Tiers of Impact” that will occur in the Calgary region:

First Tier: which will witness the most positive effects from the combined transportation improvements: NE — Saddle Ridge, Martindale, Falconridge, Taradale, Castleridge; NW — Rocky Ridge, Tuscany, Scenic Acres, Ranchlands, Silver Springs, Hawkwood.

Second Tier: which will also feel positive impacts: NE —, Coral Springs, Temple, Montery Park, Pineridge, Abbeydale, Applewood Park, Marlborough Park, Penbrook Meadows; NW — Bowness, Greenwood, Valley Ridge. SE — Chapparal, McKenzie Lake, and Sundance.

Third Tier:  regions will feel the ripple effect outward from the main impact areas; these include Cochrane, Balzac and Airdrie, as well as new developments near the Ring Road.

When the Ring Road and the new LRT stations are completed (2009 for the northwest leg of the Ring Road), communities within an 800-metre radius of these transportation improvements can anticipate a 10%–20% increase in their property values. The largest effect will be felt in older and more established neighbourhoods.

“Gone are the days when you could get downtown from anywhere in Calgary in under half an hour. Accessibility to highways and the LRT is now a top priority for home buyers and renters,” adds Campbell. “These transportation improvements will unleash the inherent value in these markets, such that in the future these areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10%–20% more. If the values everywhere drop, these will drop by 10%–20% less.”

The 2009 Edmonton Transportation Effect report reviews the peer-reviewed academic research that has been conducted on the impact of light rail, highway expansion and road improvements in other parts of the world.

“Gone are the days when you could get downtown from anywhere in Edmonton in under half an hour. Accessibility to highways and the LRT is now a top priority for home buyers and renters,” adds Campbell. “These transportation improvements will unleash the inherent value in these markets, such that in the future these areas will outperform the rest. If the market goes up everywhere, these areas will increase by about 10%–20% more. If the values everywhere drop, these will drop by 10%–20% less.”

The Calgary Transportation Effect report is available free to the public upon request by emailing the Real Estate Investment Network at info@reincanada.com

About the Real Estate Investment Network™
Founded in 1993, the Real Estate Investment Network™ (REIN) has grown over the years to become Canada’s leading real estate research, investment and education organization. It serves more than 3,200 member clients who own more than 25,500 properties (valued at $2.85 billion)across the country. Members use the unbiased research and proven systems to invest in properties in economically strong regions across the country.

REIN does not sell or market real estate to its members or the general public, but instead conducts objective and unbiased research, analysis and investor education.

The foundation of REIN’s work is the research and analysis of current real estate trends and patterns. This information is then disseminated to members through regular seminars in Toronto, Vancouver, Calgary and Edmonton, and via research reports that detail current and emerging trends. REIN’s primary purpose is to provide expert assistance to its members and other Canadians to assist them in making sound decisions about purchasing principal residences and investment/recreational real estate. This Report is one such research educational publication, as are Don R. Campbell’s bestselling books Real Estate Investing in Canada (2005) and 97 Tips for Canadian Real Estate Investors (2006).  All research can be accessed at: www.realesatateinvestingincanada.com


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