The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

An almost unknown investment for high after tax inco Paul J. Rockell It’s no contest! A real estate mutual fund is the best kept secret in the country when it comes to tax- advantaged investments for the average investor. Canadians have. had a love affair with GICs and Canada Savings Bonds (CSBs). They are considered to be very stable with returns guar- anteeg and with your principal guaranteed to be returned to you at face value. However, if you have been stand- ing by helplessly as increasing taxes and lower interest rates eat away at your interest income, here is an alternative to consider. Media scare bears are bad- mouthing all real estate as an investment. Olympia & York, Bramalea, and Cadillac Fairview are builders and developers, theirs is a different business from that of real estate mutual fund investors who acquire fully leased income producing assets in growth areas of the country. Development involves a host of uncontrollable risks such as the inability to locate tenants at accept- able terms, cost overruns, financing of the project or the lack thereof etc. The credit crunch on develop- ers have created a major buying opportunity for cautious, conserva- tive real estate mutual fund investors. They always buy under- . IT'S YOUR ~ MONEY valued ii PI ig assets, A real estate mutual fund is similar to any other mutual fund except that it invests only in long term commercial measure of stability which is relat- ed to the contracts in force with the tenants, the tenants credit worthi- ness and economic conditions. This sector is recognized as a conserva- tive investment by pension funds and insurance companies. There are often two parts to the funds, the first part is RRSP and RRIF eligi- ble, the second part which is dis- cussed below is designed for open or non-RRSP portfolios. There are three types of return that the non-tax-sheltered funds roduce. First is capital gains. As the prop- erties increase in value over time, the price of the fund units increas- es. There are no tax consequences until a property is sold or you redeem your units in the fund. If you still have your $100,000 exemption, the gains will be tax free. In spite of Revenue Canada’s change to capital gain taxation of real estate in the last budget, real estate mutual fund capital gains are still covered by the $100,000 capi- tal gains exemption. Second, interest income. Funds keep a percentage of their assets and incoming rental income in fixed income investments, which generate a small amount of interest income. This is taxable in the year it is earned. Third, rental income. The rents Le} me received from tenants is sheltered from tax to a large extend by the use of Capital Cost Allowance (depreciation). This results in a large portion of the rents being tax deferred until you redeem units of the fund. Then this deferred amount is taxed as a capital gain. The fund holds back 20% of the deferred rental income and pays the recap- ture tax for you. If you simply remain invested in the fund, you can continue to receive tax-shel- tered income for life with no 20% holdback. One of the best real estate mutual funds had an average before tax return for the years Dec. 1987 to Dec. 1991 of 11.3%, but because of the favorable taxation structure of the fund, the after tax return was 9.8%. This calculation assumed a 50% tax rate. To get the same return from a GIC, the rate would have to be almost 20%. Who thinks we will have 20% interest rates soon? Maybe you should look into the advantages of a real estate mutual fund. For a free pamphlet which details the after tax advantage of a real estate mutual fund com- pared to a common interest bear- ing investment such as a GI, con- tact Peter C. Masson, Regal Capital Group, 10 Fagan Drive, Georgetown, L7G-4P3 or phone 416-877-7216. Paul J. Rockel is the author of the best seller “Why I Invest in Mutual Funds” and Chairman of Regal Capital Planners Ltd., a 24 year old financial planning com- pany with offices from coast to coast in Canada. Halton Hills This Week, Wednesday, October 21, 1992.— Page 9 OUR MOST POWERFUL FFER! EnviroSmart - for a limited time only! EnviroSmart - a limited edition central vacuum with Beam's highest standards Of quality, durability and Beam's best built-in honest value for money! ‘vacuum package with everything needed to > Our most powerful motor install and clean. for more cleaning power! Plus > 10 year guarantee on power unit! D Our best seling deluxe electric powerhead } Our lightweight crush- proof electric hose. } Acleaner home environ- ment - dust is not Circulated back into your wu clean! sos ENVIROSMART One year money-back > Installs easily in any SORPLETEPRONAOS: gurarantee of satisfaction! home, old or new. $ ENVIRO Complete vacuum package 00 SMART = “asane's besr-se.uing Buit-n vacuum For a healthy, clean home environment. Wrenn, WHY LUG A VACUUM? PLUG IN A BEAM! HALTALARM * Security « Intercom & Vacuum Systems nai Our Customers Are Our Best Advertising! og 6505 SALE $22.95 164 Guelph St., Halton Hills, Ont. fash & See wean Paes may arya paicoaing oeaers Beam of Canada nc 1082 Complaints Continued from page 1 type onus has been established which permits access to a prc perty unless a property owner has taken positive action to indicate the owner’s intention not to allow access to his/her property, i.e. by posting signs, by erecting fences, etc.,” the report stated. Mohammed told the committee that the Act is “kind of bizarre” and “very difficult” to interpret. He said it’s clear that someone is trespassing if they enter property where there is a garden or field “under cultivation.” Also, if the land is posted or fenced, entry is unlawful unless permission is gained from the landowner. : On the other hand, there are large tracts of land in rural Halton which are unfenced, uncultivated or don’t appear to be under cultivation, the regional official noted. In these cases, a “reverse onus” GINNY'S DIAPER SERVICE + Pick-up and delivery twice per week + Have your own diapers? We'll do those too! to be "totally assessed" applies. Entry is lawful unless the landowner tells the hunters to leave the property or decides to post or fence the land. At the end of this year’s hunt, a report will be released by represen- tatives of the various enforcement groups about trespass complaints or other problems related to the hunt, such as illegal hunting on town or private property, Sgt. McWhirter told the planning and public works committee. Complaints will be “totally assessed,” he said. Mon Compare with the banks and shop at Delrex Smoke Shop We offer Businesses 5% Discount on Stamps DELRE GEORGETOWN MARKET PLACE ey Orders Available FAX Service Available SMOKE } LO) od 877-9284 Cheer the Blue Jays on LET’S PLAY BALL! Support the Blue Jays. Hang our special blue bow 5 on our ront door. We have OWS banners, posters, shakers, om poms Find-ballocnal FROM 2 LOCATIONS 355 Main St. Miner 2 GEORGETOWN i Hi Milton Mon. Tues, Mountainview io. tues, Parking & entrance 6 . St. Wed. 10-7 at rear off Court St. Wad 97 Georgetown = Thurs., Fri hurs-Fri 99 878-2339 os's¢s 873-7403 sa s6