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term place non-owner occupied deals in the high-risk cate- Rory and it's not ed in the 1992 fed- eral budget.) This is one dis- advantage, but there are some other important factors you should also be aware of and weiith careful- and weigh caretul- ly if you're seri- ously thinking about investing in a second property - for instance. recreation proper- ties purchased after February 1992. (The lifetime capi- tal exemption pre- viously allowed on investment and recreational prop- erties was eliminat- you $100,000 in cash to buy it, the return on your investment is only eight per cent before taxes. Obviously, leverag- ing is a powerful way to make your money work for Capital Gains You should be aware that while you are allowed an exemption on capi- tal gains - the amount your home increases in value - for your principal residence, you won't be able to claim a capital gains exemption on investment or mg you obtainintt financ M Getting Financing in leaders OAK - REA! TY LTD JOE RUPCICH, RPA BROKER WE MAKE HOUSE CALLS" JOSEPH RUPleH Costs You should also be aware t.hat the cost of obtaining a mortgage (for legal and appraisal fees) on a non-owner occupied property can be higher than the cost of obtain- NOTHING TO DO mg a mortgage'on an owner-occupied property, when more than one unit - such as a duplex those who will only finance them if they are insured. O b v i o u sly, lenders will want to know whether the property will carry itself. (Is there sufficient rent to cover the mort- gage payment?) Don't make the mistake of assum- ing that a rental income of $500 per month will carry a mortgage payment of $500 per month. Only a portion of the rent is used to pay the mortgage; the remainder must cover taxes, main tenance, vacancy bad debt am expenses. (Many inexperi- enced purchasers think that owning rental properties will allow them to "get rich quickly" and when this does not happen, the owner becomes disillusioned and loses interest in the that unusual to find len'ders who will not finance rental units at all - or those who will only finance them if they are insured. O b v i o u s l v. property.) CHECK IT OUT JUST LISTED 1tsth'ii M'itti':'it 'a'if'i'i"Avjiiif?r'tl JOSEPH RUP'C'ICH gM-ii3t3/tr4g-?t3f and magaawzz? above, the main responsibility of having a second property is being able to carry it financially. And if you’re like most people, you'll probably have to rent it to someone as a result. This is also a great deal of responsibility because you will have to maintain the property in addition to your own principal resi- dence, and you'll be responsible for finding tenants you trust and feel com- fortable with, Some parents with grown children ready to go off to university or col- lege choose to pur- chase secondary properties for their offspring to live in while" they attend school. This gives them an excellent investment and they are assured that the occupants will take good care of the home. If you’d like If you’d like more information about purchasing a second property, consult a Realtor. or triplex IS involved. Interest rates charged on rental properties might also be higher because some lenders view these properties as being a higher risk. Iid4M63)84gOf32 As mentioned triplex