AONEY Invest wisely when buying a home WE. SPEND so much money on housing over the years that a little planning can go a long way toward ensuring we get the most value for that money. Said a certified general accoun- tant (CGA): ‘‘Lifestyle is impor- tant, and you should balance fi- nancial considerations with the way you and any family members live.”” The question many people face, particuiariy in the early and latter parts of their lives, is whether to buy or rent. “Buying and owning your own home can prove to be one of the best: investments most ordinary peuple can make,”’ said the CGA. ““Over the long term — at least from what we’ve seen so far — the value of property tends at Jeast to keep up with inflation. While rent is money out the door, at least some of the money you spend on your Gown home stays there.” . And when you sell, said the ’.. CGA, under present rules you pay no fax on any profit you make. - “That means, for example; if you. ‘. spend 100 hours to modernize a kitchen and add. $10,000 to the” value of your home, you have, in effect, eamed free,’’ the CGA said. But cwning your own. home. does tie you down. And owning - _ tends to. be more expensive in the ‘early years, especialy when you have . high mortgage payments, most of which are going to inter- est. “There are no hard and fast Tules,”? said the CGA, “but in general, you need to stay at least $100 an hour tax-. five years in a less expensive home and 10 vears in a more expensive place before owning becomes cheaper than renting.’? In any case, he added, you should plan to stay ai least 10 years — to give prices a chance to recover in case you buy at or near the top cf the market. “What about renting and in- vesting?’’ you ask. The problem is you pay rent in after-tax dollars and must pay tax on your invest- ment income. ‘‘Rent and invest’’ . makes sense only if you are a suc- cessful investor — able to keep well ahead of inflation and in- come tax — and/or can count on paying below-market rent most of the time, said the CGA. Remember to check your priorities. Where does housing sit on your (and your family’s) prior- ity list? If your home is the focal point of. your life, you ca justify putting most of your disposable ‘Income into your place. *“But,”? warned the CGA, ‘tyou don’t want to spend so much on the mortgage, maintenance, renovations and the rest that you can never afford to go out for dinner, or take a holiday.”’ Buying a home — whether your first or a new, larger place — is a major commitment. Invest some time and effort before you come to your decision. “A wrong move can be expen- sive when you add up the real estate commission to sell again, en you retire, you should have more tolook forward to | than a pension cheque. If you're like the average Canadian, you'll spend a quurter of your life in retirement. You've probably got a pension * plan, some RRSPs and savings. But will they be enough to give you the financial security to really enjoy ae \ your retirement years? Investors Group can give you the peace of mind you're looking for with a personalized firancial plan to meet your " short and long-term goals. Weill help you choose the right options to ensure a comfortable monthly income, keep pace with inflation and protect your retirement nest egg for the years to come. At Investors Group, we believe that looking ahead to a secure financial .. future gives you a lot more to look forward to. OFFICE BOB RESCH JIM DOYLE Contact us today. 682-5431 986-8457 687-7745 CHEYTNA BUTLER 736-4047 f°] Investors Group Building futures since [940 ae 6 F F | C E—E Se A CR Oo $ Se C AN butt Offers Pee Cavite Contee, 47 Portage Avenue, Winnipeg, Manitebo RAC URE the provincial home purchase tax you paid, other buying and selling costs, moving expenses and so on,’’ the CGA said. Make your calcuiations before you sign any interim agreements. Write down your down payment. Then, allowing for additional maintenance costs, look at the maximum monthly payment you can afford. How large a mortgage (amortized — paid off — over 20 years at current interest rates) will that monthly payment finance? Add the amount of the mor- tgage to your down payment. 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