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Real Estate This Week, Wednesday, November 25, 1992 — Page 3 PROVEN PERFORMANCE SOLD t | 877-5165 874-3040 Tor. 833-9714 873-0655 i Res, Recently rer bath fant pany Lng oe peel room with penal rani Mmshod of wih dormer, fb ond sana nly OS FACED INLUD- hardwood floors, bright and spacious on 2 acres, ING § ACRE SEVERANCE. $699,000. Excellent oca- ° 92-2495 22-510 Need Your mortgage? Charming home ci) inlaw on ie level with separate cura, pine kitchen, claw foot tub, separate Lh plus large 2 car garage. Vendors are relocating. County warmth wih pine Va for etn, 25 aes on King St. West of Hwy. floors, solarium type kitchen, fabulous master with HO wit 718 tontape. Cramis, DOL county trsute complete wih marble and siyigts ok teen, tished ec oom with woodstove country value. wainscoting. waa Located south of Erin mage Gs ae toad. 3 bdrms., raised brig el fine ished reo, room, Sees bord good bere 70h road, treed driveway, barn & ff Bulder's Value - quality design and construction. 54x et pene toed ‘Spacious bright home. Stone ff Hardwood floors, large deck, and fireplace, '92-2-474 [fabulous ensuite lower level walkout. 92.2420 5 vacant acres. Fabulous building lot bey des access to 401. $150,000 ‘Adjacent Mistywood Si ‘on Hwy. #24 at ist te East, Caledon. 49 ent ed for subdivision. $1,800,000. -390 75 acres north of Norval with proposal for 15 lot estate subdivision. Property has pretty views, ravine and stream. $699,000. 92-2374 Run your own business. Indoor arena, 38 stalls, pad-| fide on. A bonus is} fabulous views. Gorgeous country hardwood f the century stone home with 4 bdrms, finished lft, was finished lower level with suited — county kitchen with brick fireplace. A must to see. 92-2-485 canoe sae amare 5 stall bam, 3 pad- hardwood bus aa pod Tastetuly theotted «ba Po room, pi wrancoing eatin kichen isa here. poet 922-997 BILL ELLIS, ASSOCIATE ape Office: 877-9500 Res. 877- CANADA TRUST Canada Trust Realty Inc./Realtor Call the Real Estate Broker with over 20 years experience in this real estate market. ¢ EXPERIENCE ¢ KNOWLEDGE * SKILL ¢ INTEGRITY BILL ELLIS Marvyn Morgan** qn REMAX E BE SEHING? nx, BUS. beso ate pee cee a Member Nationwide Computer Network So Thinking Real Estate? Call Marvyn a Backs eno open ets. Two wat family room with fireplace and 2 washrooms, high etfidency fumace and central air condoning. This home is a must to soe RMAC92-95 |AC92-76 Making it in Real Estate Today By George Perdue, B. Sc. P. Eng. Certainly real estate has declined in value during this recession. In the long term scheme of things, in the past, swings associated with specula- tion. These funds are on aver- age one third as volatile as Canadian common stock funds. Since real estate has tradition- ally matched or outperformed the TSE 300, we can expect the long term trend to continue. In the short term the excess capac- ity will have to be discounted and absorbed in prices. Even so, during the time autre for the digestion of the glut the real estate funds offer more than this inflation protection. Through interest earned on cash waiting to be invested an interest income stream is gen- erated for the investor. Some real estate funds will invest in real estate stock bearing divi- dends as a second cash stream to investors. This one has the dividend tax credit attached. The third income stream from real estate funds is derived from the rent on properties owned. This income stream is sheltered from taxes through the capital cost allowance mechanism. As long as the investor keeps the shares this tax deferred income can be However, this recession seems to be different. The recovery to date i lethargic. Unemployment remains high. Real structural change appears to be happening. So, what will happen to real estate? The once mighty Olympia and York Developments and a num- ber of lesser real estate investors are suffering a cash crunch. Many have had to liqui- date assets in a market awash in excess development just to raise cash to stay solvent. These "fire sales" have eroded prices, and save for a few isolat- ed markets like Vancouver, real estate markets have experi- enced a broad decline. Unlike individual pieces of property, real estate mutual funds have protected investors from excessive volatility by diversification. Some have added a policy of income based investing thereby avoiding the spent or reinvested at a very attractive tax rate. Once the shares are sold the appropriate amount of the capital cost allowance is recaptured for tax purposes. Most people are reluctant to buy-in when the markets are depressed. Some will feel safer with their money invested in treasury bills, mortgages, and bonds. However, the real estate boom of the late 1980's started in the recession of 1991 and 1992 when prices were depressed much like today. The position in the cycle is near right. If the future unfolds as the past, real estate will once again prove its worth. The deci- sion to invest here like all other investments depends on the investors personal investment One Tnbicchane has ¢teduans 3 vanes 2 3-bedroom semi with family with woodstove and wet bar, huge eat- RMACS2-55 iui garage. Need iknow more? room addition. RMAC92-88 Marvyn Morgan, Associate Broker Res. 873-2862 | We Deliver! Each issue of ig |HIS WEEN is delivered to all homes in: The Town of Halton Hills Erin Township Eramosa Township ding... goals ani must consider the position in the cycle - and whether the cycle will repeat as it has in the George Perdue is a Financial Planner, Business Consultant, and Partner in Money Concepts, Halton Hills. He can be contact- ed at (416) 873-1877. Acton Ballinafad Brookville Brucedale Eden Mills _—_ Erin Eramosa Everton Georgetown Glen Williams Hillsburgh § Hornby Limeh Norval Orton Ospringe Rockwood Speyside Stewarttown Call Kathy at 873-2254 for advertising rates