Category: Economic

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Economic Ft Mac

Fort McMurray Rentals Staying Vacant Longer, Landlords Becoming More Competitive

Residents who use Fort McMurray rentals have found one benefit to a sluggish economy, landlords are becoming more competitive and this means more perks and lower rental prices in the region. By the end of last year the vacancy rate in Fort McMurray for rental units was almost 30%, making it the highest rate in Canada according to the statistics put out by the Canadian Mortgage and Housing Corporation. In contrast the vacancy rate for all of Alberta at the same time was just 5.6%. This means that landlords are having to compete for tenants, offering perks that even a few years ago would never have been considered. Expensive renovations, free cable, free internet, free rent, security deposit waivers, and even allowing pets are some of the strategies that local landlords are employing to fill rental units right now.

According to Wood Buffalo Housing and Development Corp. spokesperson Mike Evans the numbers for Fort McMurray rentals show that many people have left the area. The organization shows a vacancy rate of a whopping 32.5%, meaning that 1 in 3 rental units are sitting empty and these landlords are having a hard time finding suitable tenants. According to Evans “We still have to find ways to fill the gap should the predicted economic recovery in 2017 materialize, and the population increase with it. The magnitude of the boom through 2004 through 2008 was driven by $120 barrel oil and no shale production in the U.S. No one is predicting those days of returning.”

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Economic Ft Mac

Extended Hours Announced by Wood Buffalo Food Bank

The Wood Buffalo Food Bank has announced extended hours in the hopes of meeting a demand that is continually increasing, and with the goal of eliminating the previous two week wait times in place. The new hours for the food bank starting on April 25 will be from 8:30 am until 8 pm from Monday through Friday. Volunteers can still visit the food bank on the second Saturday of each month. There are also two new positions being added to help reduce wait times as well. According to a press release statement from Arianna Johnson, the executive director of the food bank, “Now that we have identified and hired these two new people we are just about ready to extend our hours; however, these two new employees still need some time to be trained.”

Dan Edwards, client intake manager for the Wood Buffalo Food Bank, also talked about the extended hours. Edwards said that the current wait time of two weeks is something that is heartbreaking. “I feel bad telling someone ‘I’m sorry, I understand that your family is starving and that there’s no food in the house, I just can’t do anything until this point.’ Will there still be wait times at times, yes. But if we can shorten it down back to a couple of days at most, that’s the ideal timeframe that we want.” Clients must make an appointment to use the food bank, and schedule a time that they can create a food hamper with the assistance of the staff at the food bank.

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Economic Ft Mac

Mortgage Smart Tip for First Time Home Buyers

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Buying your first home can be a daunting process including figuring out the right mortgage and options for you. One part of this is knowing about what Mortgage Term to select. Here let’s talk about its definition and what it really means, the options available and how do you choose the right one for you?

Definition: The number of years or months over which you agree to pay a specified interest rate and the lender commits to not changing it or asking for their money back (except in default of course) ! Also refers to whether it is an open or closed term

Options: Terms can be any of the follow:

Lengths:

  • 6 months, 1 to 10 years
  • Up to 25 years for secured lines of credit although fully open
  • A term that renews on a specific date the lender sets in the future e.g. could result in a 2 year 6 month term

Open or closed:

  • Completely open so even though a length of term is stipulated, you can pay it back in full with no penalty or;
  • Completely closed so a penalty is payable by you if you repay early

So how do you select the right one for you?

  • Determine which terms you actually qualify for and can select from. You may be limited to a 5 year fixed term based on recent legislation changes – if you want a 1 to 4 year term or a variable; you typically have to qualify at a much higher interest rate known as the benchmark rate…. This might reduce the amount you qualify for. I can let you know your options
  • Consider selecting your term based on the current trend for interest rates going up or down e.g.:
    • You might select a 5 year fixed term because rates are starting to go up and you want to “lock in” that lower rate
    • You might select a shorter term if rates are expected to remain low and aren’t expected to rise
  • Consider selecting your term based on any expected changes in your income. Maybe having a 5 year fixed term at the same rate and payment for the next five years makes more sense and better suits your needs now
  • Consider how long you intend to stay in this home, a question we asked earlier. You might want to align the term with your future moving plans or even possible job relocation opportunities
  • You may be expecting to receive a large sum of money soon and want to pay your mortgage off in full or a large part… paying it in full before the term expires may result in a penalty if the term is closed, e.g. selecting say a 2 year term which is when you plan to pay it off in full will save you money and penalty costs!

Barb Pinsent Mortgage Broker

Ph: 780.370.1490

http://www.barbpinsent.com

 

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Economic Ft Mac Health

Wood Buffalo RCMP Warns Stealing Gas Can Cause Explosions After Anzac Gas Thefts

On March 19, 2016, the Wood Buffalo RCMP received reports of one or more persons stealing gas from vehicles, and the police are cautioning that this activity can cause explosions. The thefts occurred near Anzac, and several vehicles that were parked in the Stony Mountain Road area in a residential parking lot had their fuel tanks punctured and gas drained from the tank. A total of 5 pick up trucks were found with punctured fuel tanks, and one of the vehicles also had the tonneau cover on the truck slashed as well. According to Wood Buffalo RCMP Cpl. George Cameron says that the evidence which was found at the scene makes theft rather than a prank the most likely. Cameron also issued a warning, saying “This really was not the brightest thing to do. They’re lucky a spark didn’t flare up when they were puncturing the tanks. It’s pretty dangerous. They’re lucky they didn’t explode.”

The Wood Buffalo RCMP investigation into the individual or individuals stealing gas in the Anzac area started when several vehicle owners came out in the morning and noticed pools of gasoline underneath their vehicles. A majority of the vehicles that were damaged still had some gas in them, but the size of the pools and the amount of gas that each owner reported having in their tank did not match up. This caused officers to suspect that someone stole gas using a container, and then tried to reseal the punctures created in the tanks. Police also discovered a broken jerry can close to the scene. Anyone who knows anything about the person or persons stealing gas in the Anzac area can contact Crime Stoppers at 1-800-222-8477 or the Wood Buffalo RCMP at 780-788-4040.

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Economic Ft Mac

Therese Greenwood No Longer Vice President at Keyano College

Therese Greenwood, the vice-president of external relations and advancement at Keyano College, no longer holds this position and she has been let go at the college. This makes Greenwood the top official to part way with the school since Kevin Nagel resigned as the President and CEO of the college in February of this year. According to Mathew Harrison, the spokesperson for Keyano College, a public announcement will not be made about the departure and the school does not have any plans to replace Greenwood. Harrison stated “Given that it’s a personnel matter it’s not something that we discuss the details of. Part of the responsibilities will go to the president’s office and some will be split up among the other vice-presidents.” A press release with a date of April 2nd of 2014 discussed Greenwood’s hiring and described her marketing and communication background.

Before Therese Greenwood took the position at Keyano College she held a position at Queen’s University and she also worked with the City of Kingston. After Greenwood came to the Fort McMurray area she worked at the Regional Municipality of Wood Buffalo in an executive communications position. In the past Therese has also worked as an editor and a journalist as well. When the media tried to contact her they could not reach Greenwood for a comment. Many of the staff changes in recent months at Keyano College have been caused by a decline in revenues which were caused by the global crash in the price of oil. As a result of the drop in oil prices demand for services from the college have also decreased significantly.

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Alberta Canada Economic Ft Mac

Cenovus Energy Announces Job Cuts, 440 Positions Affected

Cenovus Energy has announced job cuts, with 440 positions at the energy company affected. This means that the company has cut jobs by 31% in just the last two years. Since the end of 2014 Cenovus Energy has eliminated 1,600 positions in an effort to stay competitive in an environment where oil profits have declined and prices are very low. According to company spokesperson Brett Harris it was not possible for the company to specify an exact breakdown of which locations will be affected by the job cuts, but Harris did confirm that the positions being eliminated will affect contractors and full time employees both. Harris explained “These are really difficult decisions to make, but absolutely necessary to keep a workforce in line with the economic environment.”

Cenovus Energy is not the only oil and gas company to engage in job cuts in order to stay competitive, and lower oil prices mean leaner business models if a company wants to stay in business and avoid going under. Harris explained that around 190 workers have already been let go, and most of those affected were contractors. Cenovus plans to eliminate another 250 positions in various field offices and in Calgary later on in the month. Last year in 2015 Cenovus Energy responded to market conditions by cutting their staff by a whopping 24%. The company also plans on trying to cut costs by $200 million, and these cuts will impact almost every area of the company. Operating costs, administrative costs, general costs, and other expenses have been targeted for reduction.