​BLOWN AWAY by the experience of Stranded Water Valley (Survivor Challenge) this weekend!  The challenge was set up and ran by Jamie Vandehaar, the former challenge coordinator for the CBS reality TV show ‘Survivor.’  Early last week we (the 16 contestants) received emails warning and hinting that we needed to be prepared for a very authentic version of the real show.  They even started restricting our supply list that we originally thought we could bring (basically the clothes on our backs, a jacket and sweater). 
We arrived by bus west of Water Valley, Alberta on Friday August 12th.  Immediately we were taken up a hill as a group and then led into the trees on a long path.  Eventually ended up at a fire pit with benches (Tribal Council) and were given our tribe colours (8 people per tribe).  I was put into the ‘Fallen Timber Tribe’ and the 8 of us were taken on a hike to our camp location.  At this location we found a fire pit, a tarp, rope, bag of rice, a pot, lighter, water canteens (no water though!), and very light summer sleeping bags.  We were then left alone.  We set up shelter with the tarp and collected fire wood (all the wood was soaked from rain).  We were then told a water jug was up a steep hill tied to a tree.  So when we needed to fill our 500ml water canteen we needed to climb up to fill it (imagine how many trips that took on a hot day!). 
A whistle then blasted and we were told to hike back down to the flat open area to begin our first team challenge for ‘immunity’.   All of the challenges were similar to the ones Jamie did on the real Survivor TV show.  Our team unfortunately lost this challenge.  We were told to hike back to camp where we made rice and darkness came and went to bed on the ground under our shelter.   Tribal Council was not until the next morning.  We woke to cameras in our faces, literally!  It was really awkward to wake up outside on the ground with a camera crew suddenly there with a camera looking at you!
Our tribe voted the first person out around 7am the next morning (just guessing because the sun had barely come up by then).  We then returned to camp to make rice to prepare for the next challenge.
Our next challenge came and we finally won, the other tribe had to vote one of their players out.  Each time we had to hike back and forth between the challenge location and camp (and from camp to our water).  It was hot on Saturday and everything we did was physically demanding.  Our tribes continued to do challenges until we had voted out a few players each.  Then they suddenly took both tribes up to the Tribal Council area and put a twist on the game.  They re-did the tribes.  I was then put into a different tribe with some of the same players and some new players.  That is when the game became mentally tough! The lack of food, sleep, and physical exhaustion was getting very difficult for many.  It was also when you really started to notice the alliances and game playing.  As this was a sponsored event, the main sponsor (TD Bank) was allowed to have 4 of their own employees in the game. On top of that there were a few pre-game alliances with a few of their friends in the game as well. The final 4 were all in the same pre-game alliance, so that part was perhaps the only complaint from the other contestants.   For those of us who were strangers to the other contestants, we really didn’t have an opportunity to create a true ‘social’ game.  But my complaint stops there because without TD Bank and their generous donation, Kids Up Front wouldn't have raised so much money (so thank you TD Bank). 
My game ended when my tribe eventually had to vote another person out, I was the odd man out of those pre-game alliances.  It was just before the merger of the two tribes.  While the cards were stacked against many of the other contestants from the start, it didn’t take away from the incredible experience.  I would do it all over again if given the opportunity! 
After you are voted out, you are then led back to the main camp containing lodges for accommodation, including showers, a bed, food, beer, etc.  Once it was all over and the last surviving member remained, we had a big BBQ at the main lodging area and then back on the bus to Calgary. 
I am sure the video will take months to create and edit, but there are thousand of pictures I hope they share soon!  I will share as soon as they are released!  Below are a few sample pictures from Kids Up Front.
I am very thankful to Kids Up Front Calgary for allowing me the opportunity to be a part of this incredible and inaugural event!  THANK YOU to each of MY donors for contributing to this charity event!  We raised over $60,000 for the local charity and at the end of the day that is what we did it for!    

Calgary detached homes have over 3,077 active listings at the moment, the highest in nearly 4 years.  The gap between active listings and sales is growing larger and as you may remember from previous posts, the bigger the gap the more likely prices will fall in the coming months.  
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​In 2008 our real estate market experienced over-building and a large supply of homes combined with negative migration to our province (low demand for home buyers).  This caused steep price declines.  During the current oil industry crisis we have been lucky to have started with a low supply of homes.  Todd Hirsch of ATB reports today this might be changing, especially in Edmonton.  Migration could turn negative very soon yet builders are still building on spec.  I could go on with in-depth analysis using graphs and charts but really it simply means prices will drop more rapidly than they currently are.  Expect this in 2016.  Todd’s report click here.  

​​Calgary real estate market, calm but definite in its trend downward.  Single (detached) home prices have slowly decreased to a near 5% drop compared to this time last year.  Good news, there isn’t an Armageddon or mass rush to the exits we witnessed in October 2008.  Prices can be expected to continue this downward trend as inventory increases and sales continue to decrease.  Sales in October 2015 were down whopping 34% from October 2014.
Do you own an apartment condo and looking to sell?  It won’t be pretty.  There is nearly 6 months worth of active listings you are competing with.  Prices have had a rough year (seen in the chart below). With new buildings being completed this winter, inventory and prices will continue to enjoy an inverse relationship.
What’s next?  Migration is nearing negative numbers.  As major oil companies continue with layoffs and major investment into our province evaporates, people will stop moving to Alberta.  Once our migration numbers show negative numbers, real estate is negatively effected in the months following.  Since builders haven’t over-built and the market has already been easing over the past 10 months, the landing should be soft, but, negative non-the-less.  

Here is a link to my latest article in the REIN Report (August 2015):  
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http://blog.reincanada.com/why-real-estate-investors-fail-my-4-observations

Secondary Suites in Calgary have been under the microscope at City Hall lately.  As a result, I have had a number of people asking how/if they can add one to their house.  I have constructed a list of general guidelines regarding secondary suites in Calgary:

1) Check the zoning of YOUR house.  Until city council fully approves a change to the bylaws, you can’t add a secondary suite to your house if you have an R-1, R-C1, R-C1L zoning without a lengthy and uncertain re-zoning (Land Use Amendment) process.  This can take a year in some cases, sometimes after the fight you still can’t add the suite.  R-2 zoning (and some others) is the proper zoning allowing secondary suites in Calgary.

2) Apply for a permit with the City of Calgary.  Then, cross your fingers and have a LOT of patience!

3) Your lot must be large enough.  Minimum size in most cases: 13 meters wide by 30 meter deep.  

4) You must change/add basement egress windows to allow proper emergency escape.  An egress window should be a minimum of 3.77 sq/feet with no dimension less than 15 inches – unobstructed with a proper window well to allow escape (you must verify the latest building codes, this is just a guideline).

5) Minimum ceiling height for suite is 1.95 meters.

6) The secondary suite must have their own balcony, deck or patio of at least 7.4 sq/meters.   

7) An independent heating and ventilation system, along with an independent electrical service panel or a convenient access to a shared panel must be installed.  This is a surprise to so many that they can’t use the same furnace that heats the rest of the house. 

8) Furnaces and hot water tanks must be in a separate, enclosed, fire dry walled (at least ½ inch thick) room. 

9) Smoke (fire) separation between the main dwelling and secondary suite must be installed (meaning, add a ½ inch fire rated drywall on ceiling/walls/common area/exit).

10) You must install interconnected smoke alarms to both dwellings of the home. 

As you can see, it's not as simple as putting a new door to your basement and collecting rent.  Done right, to code, and with permits, adding a suite will INCREASE not decrease your property value in most cases (contrary to popular opinion).  Done without proper building codes and permits, you are putting your tenant at risk not to mention the potential to destroy your life savings!

If you have any questions regarding the effect on value or my own personal philosophy regarding city density and secondary suites please contact me!  

I have financed the purchase and construction of secondary suites many times, if you have a mortgage question please don’t hesitate to call and ask!

This list is to provide information only.  The list is not comprehensive and not to be relied on (check the current building codes and bylaws before proceeding with any renovation).

William Charlton - Mortgages

403.701.7766

william@wrref.ca