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Page 18-— Halton Hills This Week; Saturday, November re 1992 4 GEORGETOWN HOCKEY! HERITAGE AWARD¥ 'NAME NOMINATIONS WANT This award is presented annually to a person or per- sons who have made an outstanding contribution to Georgetown's Hockey Heritage. Please forward nominations for the 1993 award to: GEORGETOWN HOCKEY HERITAGE COUNCIL c/o DON OLSON 102 RAYLAWN CRES. GEORGETOWN L7G 4N1 rc-ccccc- " [ADDRESS 1 | ain pose! Please include a brief description of the nominees contribution. Submissions received prior to Nov. 18,1992 will be considered. Money Matters: castle and fortress bought in the early 80’s or earlier, syndicate Limited we stilt nave a reasonable amount COMPANY OF THE INVESTORS GROUP By John Green “The House of everyone is to him as his castle and fortress’ It was Sir Edward Coke, Chief Justice of England in the early 1600’s who made the comment in one of his many judgments from the bench. Probably nothing has remained more constant in our esti- mation of financial value than our home. Most of us cannot afford a castle even if we wanted to live in one and we would have to move to Europe to find that type of real estate in any choice and variety. However, in Canada we have placed enormous emphasis on our primary residences and vacational properties as the main sources of our net worth financially. We have done so to a much greater extent than our American cousins to the south where investments in stocks and bonds forms a greater part of their net worth. The last few years have wit- nessed a drop in real estate values not only in Canada but globally. We all feel the poorer for the result although it’s only a paper loss from market highs until we sell our home or cottage. Even then, if we have A Network of Independent Member Brokers of equity though not as much as we probably would like. Real estate - like other investment areas - goes through its cycles and we are in a down one at the moment. However, another aspect of our over changing economy needs to be considered if we persist in seeing our home as our ultimate source of financial security. We seem to be entering into period of low inflation and a such, not only do house prices not appreciate as much but generally speaking, neither do wages and salaries. Ironically, inflation has benefited property owners and those in the work force over the last two decades. In its August housing report on the Toronto market which includes Halton Region, the Canada Mortgage and Housing Corporation has an interesting review of what will happen to house prices in a world of zero inflation. One conse- quence seems to be beneficial, a second is more debatable. First time house buyers who have traditionally rented are now enter- ing the market as buyers. They are able to do so because of the reduced cost of housing and the low interest rates. These potential buy- Sales Rep.* 877-5211 24 Hr. Pager 3 4 bedroom home, 2 4 piece baths, central air, finished Ikout to lovely treed back yard, comy with inground pool. Ideally located in mature area of For an appointment to view, call Jackie ci Georgetown. ‘Asking $229,000. The lot is spe ery as t all- and more se to schools, shoppi for easy commuting. Call ay us i sod pk space to store vehicles? ae 128 acres, Wie deams of nicely need nd Hwy. #7/Trafalgar a Greenwood", 8 It you are presently renting and want to have a detached, bedroom, older home at a ve home is for you! Located in the quiet vilage of Norval, with easy access to Hwy. #7 and Winston Churchill Blvd. Call for more details and appointment to view. Asking $139,900. Call Jackie Greenwood", 877-5211. RM237-92 modest price, then this Sales Rep.* 877-5211 Res. 877-1919 LUtimate in county lving. Appealing design, open concept ving area with cathedral celings & pine floors and trim throughout Wak out to deck and balcony from living ily room & den or 4th bedroom. Large garage or shop & | stove and ool. Must be seen for the ultimate in country living. Listed at {| ing possit RM124-92. BRUCE Rt 4 this 3 bedroom, nearly new, townhouse condo, 2 - 4 pe, baths, central air, garage with inside entrance 1 reftigerator. Owner transferred, fast clos- le. Priced to sell at only $134, 000. Cal JOGERS* 877-5211 or 874-3051 RM143-92. $229,000 | Bams, hen house and good 5 acres. 5 acres of hardwood bush. Call BRUCE RODGERS* 877-5211. $229,000 bedroom home on 98 RMO87-91 Sales Rep.* 877-5211 24 Hr. Pager $229,000. Call BRUCE RODGERS", 877-5211. Lovely starter with large eat-in kitchen, wood stove, ren- ovated master with semi-ensuite, new bath in '91, com- pletely done. Main fl. laundry, new in '91 sliding doors wo to fully fenced yard and patio. Huge lot. Must see at this price. Call DONNA MASON’, 877-5211. RM158-92 This lovely almost an acre lot minutes from Creek. Well is in, levies are paid. Only $125,000. | looking Black Ci Ths gorgeous custom bul executive hame ss on a hil ovr d, Lang Call for all the details now, DONNA MASON’, 877-5211 RM241-92 Toom is a lots of oak vant Fan room iy fon to ceiling fireplace. must see! Sauna, whirlpool, beautiful cust wet bar! Lovingly cared for and decorated home. Call for all the details. DONNA MASON’, 877-5211 tom built ers are finding that they can afford to purchase a modest apartment and handle the mortgage, tax and utility payments for the same or marginal- ly more than the rent they were paying in the headier days of real estate prices. They will at least have the security of home owner- ship for their later years. p market, the story may be very diferent In the past inflation and higher interest rates meant fewer people could afford to buy homes but for those who could, their higher payments were usually compensated for by real growth in their housing equity. In a low infla- tion and low interest rate world, the opposite happens. Slow growth of income and housing equity means few can afford to trade uy Let’s look at some hard figures. In an inflationary world, let’s 10 years, mortgage payments which initially represented 30% of income will consume only 18% of the new higher income. In a zero inflation Aa aes interest rates mean a mi expensive home can be oe initially on the 30% of income cal- (real income increasing because of productivity growth), after 10 years, the percentage of income © spent on the mortgage falls only marginally to 27%. It follows that trade up buyers will find it increas- ingly difficult to divert resources to other needs such as paying for chil- dren’s education or saving for retirement. The CMHC comments, “Those who can foresee this in advance may conclude that they should not move up. ‘urrent expectations and financial plans have been developed based on two decades of inflation. Home buyers will have to adjust their long-term personal financial planning to meet their future needs in a low inflation world.” Clearly, this is not meant to sound the death knell on the real estate industry nor to suggest home ownership is less desirable for Canadians for a whole variety of practical and psychological reasons. Rather it is a prudent reminder to see things in perspective and to plan rather than gamble that your home and its equity will meet all your long term goals. John Green is a Milton resident and an Account Executive with the Investors Group in Oakville. The opinions expressed in this column are of a personal nature and any general investment advice should not be acted upon without consultation with a quali- fied adviser. If you have any questions about financial plan- ning matter, you may contact she ay at 875-0511 or pest GINNY'S DIAPER SERVICE