Third in a series Take backs option for financing TO COUNTERACT high interest rates, all types of creative financing have been tried. But still the most popular is the ‘‘Vendor Take Back.’’ In its simplest form, a ‘‘ Vendor Take Back’’ is a mortgage — most often a second, taken or held by the home owner as part of the sale. For example: a home- owner has a house for $100,000, with a first mortgage of $50,000. The buyer has $25,000 as a down payment and would like to assume the first mortgage. But where does the buyer get the extra money? He could go toa financial institution, but instead suggests that the homeowner take back a second mortgage, at a rate By JAMIE JOHNSTON below market. If ac- cepted, this is a a good deal for the buyer as he has lowered his monthly mortgage payments. But what about the homeowner? If he accepts the offer he will not get all of his equity out of his house. Furthermore, he is receiving a return on his money at less than market rates. But, if he does not accept the offer there may be no deal at all! And as interest rates climb, fewer people can afford to pur- chase his house. But the homeowner may also come out ahead. With a principal residence there is no capital gains tax on the sale. But there will be a tax on the interest earned on the Vendor Take Back. If the homeowner can increase the sale price of his house (all tax free) to offset the lost interest from holding a Vendor Take Back mor- tgage then he can gain a second benefit. In several Canadian cit- ies a market already exists for homeowners to sell their Vendor Take Backs. In smaller centres a seller will usually have to hold on to a Vendor Take Back. But when markets are slower, it may be the only way to make a sale. 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Split levels, bungalows, and customs n these 3 brand new family living homes — ready for your finishing touches. Prices? Very ‘contemporary split levels — prices are the sharp! best. Come to the open and see for yoruself. SOREN FREDERIKSEN — 984-0421 (24hrs,) -. BOB FLETCHER 986-0660 ~ JOAN ALEXANDER 986-4453 - SR ~ ‘ Ee AER SS SPLIT LEVEL IN THE FOREST 7 3434 DUVAL RD., N.V. Just finished, this 4 BR home offers the warmth ot cedar and oak, and the privacy of a wooded setting, No reasonable offer will be refused on this one! . SOREN FREDERIKSEN 984-0421 (24 hrs.) ELIMINATE MAINTENANCE 340 WEST 22ND ST. 4 bedrooms like new — all finished up and down, the way you like it. Best price around at $122,900! Suite? Please call BOB FLETCHER 986-0660 JOAN ALEXANDER 986-4453 x NEW! “START BUILDER SHOOTS REALTOR! Well, not quite yet, but our builder is pretty hot to sell this brand new 3 bdrm. Grouse Woods house. This may end up being the lowest price house in the Woods! Like bargains? Call now, please. SOREN FREDERIKSEN 984-0421 (24 hrs.) With two homes left to choose from, you can have a 3 BR starter finished to suit, in $120's! Full osmts., farnily rooms, and a very private setting too. nue tr RIKSEN 984-0421 (24 hrs.) SOREN FRED TRADITIONAL CHARM... is everywhere in this new Canyon Heights home asting 4 big BR, sunny decks, a bright bsmt area, and all set on a cul-de-sac lot —. it's VIEW THE OUTRAGEOUS our best buy! P'S we trade View the overpriced, view the mediocre, then come and enjoy 5620 Honeysuckle Pi with us Weil priced, this Grouse Woods home boasts custom quality on several levels. with very special extras throughout SOREN FREDERIKSEN 984-0421 (24 hrs.) C. - FOUR BEDROOMS — TRANSFER! The vendors leaving so hurry up to see this lamuty Onented two level home! features on clude large open familyfatchen area eagpan te sive decks a big tull basement and ts all set wees LEAVING TOWN! Vendor must sell This immaculate 4 BH con dominuum close to Capilano College those offers! SOREN FREDERIKSEN 984-0421 (24 hrs.) on an oversized wooded lot Offers please! SOREN FREDERIKSEN 984-0421 (24 hrs.) é sO bang 672 EAST CARISBROOKE PRIVACY PLUS Toe ate opangs of the North om tucked alr! eB Qnet cul de sac uns North Vane ouver lrcar Poe Jer erie td try Me vaca tsacdes iL ce CL 4 | ee vos INVESTMENT SPECIAL po. fone weedy rod owelfaes caly era ye per ageetere tC Coffer sy We |g wD Gan BOB FLETCHER 986 0660 eateries vite aod yg ‘ ' cap ape edt serena ab AAE PHILLIPS 522 0387 | 984 042)