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OS'S Page 4 — Real Estate This Week, precedes March 31, 1993 RateShock Sets In! By George Perdue, B. Sec. P. Eng. The recession is over! Right? Well, it depends. If you are earning a living from the "new economy” or the government you would agree that it's over or that it never happened. If you are retired and supplementing your Pension wit interest from investments you are feeling a continuing pinch on income as the government lowers interest rates in an attempt to stimulate the old economy. As I write, the central bank rate is 5.46%. It has been dropping uninterrupted for weeks. The best fixed income rate for a one year GIC (minimum $10,000) with a monthly payout is 5.60% at Home Savings and Loan (less for banks) and these rates can be expected to fall. So what can you do to improve the rate and go back to having some fun and enjoying retirement? Generally, the return is a function of the amount of fluctuation in the capital invested at any time. For example, the Canadian stock market is Producing some spectacular returns in areas such as resources where the annual projected returns are in excess of 60% right now! For someone living off Proceeds however, this type of investment may require too much management to be appealing. Piggy-backing off this activity is another option. Investments can be made in securities that pay dividends (and get a tax concession) and simultaneously geta capital gain (smaller than that mentioned above) because they are tied to the stock market growth. Some of these investments pay monthly and some pay quarterly. The current income stream ranges from 6% to 11%. The investor in these securities has to be able to distinguish between. the income stream and the value of the security. These securities behave like second house rented out for income. The rent comes in regularly but the value of the house fluctuates with the market. This strategy requires little management and can bring fixed income People back to the good old days of high interest rates - days we are not likely to see for some years. George Perdue is a Financial Planner, Business Consultant, and Partner in Money Concepts, Halton Hills. He can be contacted at (416) 873-1877, "BILL'S PICK OF THE WEEK” MUST BE SOLD Employee relocation makes the sale of this country } home a must. Only two NE vate acres. Asking $249,900. Can we do business? Call BILL ELLIs** CT92-033 | oe | BILL ELLIS, Associate Broker Office: 877-9500 CANADA Residence: — 877-7528 TRUST Canada Trust Real Inc./Realtor OVER 20 YEARS EXPERIENCE “4 IN REAL ESTATE R PRIC ATES ARE LOW! ES ARE RIGHT! NO FUSS NO MUSs... garage, with EVERYTHING IS DONE! 3 bedroom bungalow with large eat- in kitchen, two walkouts, 1 1/2 car beautifully finished rec room ‘gorgeous fireplace. Well priced at $179,900; Call. Cheryl Jackson’ 873-0300 / 874-3048, 0027 , exercise Tcan tell how Ican tell you about Royal Trust the NRS Home will pay your mort- Warranty at 5.75% and gage upon Program... Pre-approved a lay off... mortgages... il! ARS INEVILOONTNE REAL ES TE SERVICE. BRAND NEW WON'T LAST 3 bedrooms in well-established F neighbourhood, eat-in kit single car garage, finished base: ‘ON a good sized lot. A must to see at $149,000, Call Cheryl Jackson’, 873- 0300 / 874-3048, "THE SANDS" | No yard work, but plenty to keep you busy here. One bedroom condo with a lovely ravine view. Facilities include indoor Pool, sauna, irlpool, ise room, tennis courts, huge Sun deck, gazebo, tanning beds and a billiard 900. foom. $98,900, Call Cheryl Jackson*, 873-0300 / 874-3048, Cheryl Jackson? Ican tell you about Get informed! 6 month convertible Call Cheryl Jackson % 873- RES. 873-2493 today! Don't wait fora rainy day! 0300 , i INTEREST RATES; L1YR. 7.25% 8.75% 9.24% 9.66% 10.25% your home together with ‘Mortgage requirements. List Price of Home $127,900 5% Downpayment Required $6,39 Combined Income Required $39,500 d Call Dave Krauso* Gwe oso List Price of Home List Price of Home $137,900 5% Downpayment Required $6,895 Combined Income Required $44,000 CW93-019 Call Dave Krause* Did you know that First Time Home Buyers can obtain a rebate of Land Transfer taxes? 873-3377