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For the vast majority of people getting ready to buy for their retirement, the most important concerns are putting money in their pockets and ensuring long-term financial stability. By buying down from a larger home. empty nesters and retirees can often end up with a size- able amount of free cash that can either be invested for the long term or used to enhance the quality of life right now - for travel. entertainment and those extras that are often overshadowed by the demands of family and work in earlier stages of life. Visit a number of communities, com- pare what they have to offer, and ask lots of questions. Talk to the people who live in the communities: Are they happy there? What facilities are offered? Does the community organize activities that you would enjoy? Finally, can you see yourself living there? e Intangible benefits of retirement living Being on a fixed income. retirees need In a condominium, you are the sole owner of the space that you live in, and a partner in the corporation that o.wns the exterior space. Before buying a condo- minium. be sure that you fully understand how a condominium works, and your rights and obligations as part of the cor- poration. Find out how much the condo- minium fees are - will they be adequate to cover expensive repairs IO or l5 years down the road? One of the best ways to ensure your own nnancial stability in a condominium setting is to get involved in special committees and activities - you will know what is going on and have an opportunity to influence the affairs of the corporation. Landlease IS a tare in Canada, The house i In a freehold home, you own the house and the land that it sits on. What kind of maintenance arrangements does the community offer? At what cost? What are the obligations on homeowners to keep their property up to a certain standard? Can someone look after your home when you go away on vacation or while you are otherwise unable to care for your home? community, make sure that you understand what you get for your money and, just as importantly, what you don't get! to estimate the hed expenses of home- ownership carefully, both now and in the future. Before buying into a retirement community, make sure that you .1 _ w, , r)jlllrImiE RIVER OAKS WEST RIVER OAKS WEST GRACE CERESA 842-70oo GRACE CERESA 8424003 QCA form of ownership s bought while the "5 ye/ = ..49 - ,2. 9. v: 5v , ‘74 1."- ' A a A study by Clayton Research Associates Ltd. indicates that renters who use this plan tobecpmehpmeownerswillendupinirar more beneficial financial situation than those who continue to rent. Initially. renters have lower monthly costs than buyers and can build up their investments. But over time. rents rise more The RRSP Home Buyers' Plan (HBP) allows a couple to withdraw up to $40,000 tax-free from their RRSPs to be used toward the purchase of a home. The deadline for making RRSP withdrawals under this plan has been recently extended to March, 1994. Repayment of the funds to the RRSP can be made in equal instalments over 15 years commencing in 1995. land is rented, typically for a period of 20 clear picture of your financial obliga- to 40 years Retirees can enjoy the bene- tions, both in the short term and the long fits of homeownership while not having term. Then you can proceed with peace totie up significant resources in land. of mind and enjoy your new home, Before taking the plunge and buying a knowing that you are getting full value home in a retirement community, consult for your money and will continue to do your lawyer to ensure that you have a so over the years. Since February, 1992, when the federal government allowed consumers to use their RRSPs to buy a new home, there have been 173,000 RRSP withdrawals by 127,000 individuals, making up approximately $1.2 billion in housing investment, according to the Greater Toronto Home Builders' Association (GTHBA). land is rented, typically for a period of 20 to 40 years. Retirees can enjoy the bene- fits of homeownership while not having to tie up significant resources in land, E15 ---- ----iti tt J, 51' III-JR "u. "r. ill“? For more information on the Home Buyers' Plan, call the Greater Toronto Home Builders' Association, 39l-WORK and ask for a copy of our brochure “The RRSP Home Buyers' Plan: Does it work for you?' gage payments required on a smaller mort- gage, homeowners can repay the mortgage more quickly or make additional RRSP con- tributions and take another step toward securing their financial future. quickly than owners' monthly costs (even with low inflation) because mortgage pay- ments remain fairly constant. After 30 years, a homeowner using $20,000 in RRSP funds to purchase a home will be at least $40,000 ahead of the renter - even if the renter has invested the full difference between higher costs and the homeowner's costs in Guaranteed Investment Certificates and assuming no increase in house prices. Clayton Research also points out that homebuyers can gain if they use RRSPs and buy their home with a larger mortgage. With the savings realized from the lower mort- IAN/LINDA DARROCH 812-7000 lAN/UNDA DARROCH 542-7000 DARROCH 842- 7ooo DARROCH 842-7000 Call IAN/UNDA DARROCH 642-7000 Call IAN/LINDA DARROCH 542-7000 SPECTACU LAR BUNGALOW ot REDJCED TO $299,000 If OVER 3,400 Mk FT. QUIET CRES. - EAST 2lr fl ng floor plan with high Ious white kitchen. l California shutters. ant; fenced yard. Call approx. 3,00) sq. ft. on contemporary home we court in the East is :utifuliy maintained a gorgeous lot with 30! family room with tt ve home with ft. in ttie,' East mood. ain floor yparqAer Call all IAN/LINDA all IAN/LINDA tit '