58 - Friday, November 11, 1988 - North Shore News MOST RESALE housing markets across Canada are expected to continue their healthy levels of sales activi- ty in 1989, says Gino Romanese, executive vice president, Royal LePage Residential Real Estate Ser- vices. “Although this increased activity will put upward pressure on housing values, price increases are expected to be more moderate than Fieal estate HEIGHTENED DEMAND for Canadian real estate and the implementation of in- creasingly sophisticated value enhancement programs and procedures are helping to raise asset values, says Colum P. Bastable, execu- tive vice president, Royal LePage Investment and Pro- fessional Services. ‘*Asset values of Canadian real estate are trending up- ward. [n addition to benefiting from continuing domestic economic growth, asset values are improving due to the emergence of Ca- nadian real estate as a favored investment vehicle of domestic and foreign in- vestors,’’ notes Bastable. While there are many reasons for the burgeoning investor interest, Bastable explains that.it is, in part, a Teflection of positive in- vestor response to Canadian Tax Reform, the impending Canada-United States Free Trade Agreement and finan- cial deregulation. To augment the benefits of these macroeconomic and political events, astute in- vestors also are actively im- proving the value of their real estate holdings by im- plementing value enhance- ment procedures which will increase cash flows, stresses Bastable. ‘Property ‘values are most likely to be enhanced if the real estate investor selects properties which have noten- tial for adding value, con- ducts a feasibility study to those experienced in 1988,”’ says Romanese. Romanese noted that in- vestment in residential pro- perties has played a signifi- cant role in increasing de- mand for housing, par- initg ticularly in markets like Toronto and Vancouver. ‘Royal LePage research in 1988 indicates that national- ly 17 per cent of properties were purchased for invest- ment purposes. In Toronto values rise pinpoint the parameters of the opportunity, and then implements appropriate ac- tions,’’ says Bastable. In general, says Bastable, these goals can be achieved through: REVIEW ASSESSMENT *Cost Management. Substantial cost sav.ngs can be realized by reviewing and monitoring assessment and tax valuations, which may be impacted by: increases to municipal tax rates; tax ine- quities caused by outdated assessment systems; and, fluctuating assessment vaiuations within neighborhoods. *Development Mar ge- ment. Advance plenning of developrnent costs, prior to the expenditure of capital funds, is one of the key methods of controlling unexpected, costly and time-consuming errors which can negatively impact the bottom line. eAsset Management. Returns on investments can be enhanced by: creating a more inarketable physical appearance; upgrading ex- isting use; altering financing; remerchandising and releas- ing. ®* Property Management. Optimum cash flow can be achieved by implementing the three cornerstones of ef- fective property management — financial management, ‘tenant relations, and physi- cal maintenance. and Vancouver, where off- Shore investors and speculators are more active, over 25 per cent of all activi- ty has been investment. People are expected to con- tinue to purchase real estate as an investment in 1989, especially in the more active markets,’’ Romanese says. “Economic forecasts sug- gest a growth rate close to three per cent for the Cana- dian economy next year,’ . Romanese points out. ‘‘This factor, combined with mor- tgage interest rates that are expected to remain relatively stable in 1989, should con- tinue to encourage buyers to enter the resale housing market next year.’’ SALES RISE Nationally, housing sales are forecast to rise six per cent over 1988 levels. The Canadian average house price is expected to climb six per cent as well to $135,000, topping the estimated 1988 price by more than $7,000. The number of homes sold in markets like Toronto, Ot- tawa, and Halifax/ Dartmouth is expected to in- crease by at least seven per cent next year, while more moderate increases are forecast for Vancouver, Calgary, Edmonton, Hamilton,- Burlington and Montreal. Housing sales in Winnipeg, Saskatoon and Regina are forecast to match 1988 levels. House prices in major Canadian cities are forecast to climb anywhere from one to ten per cent in 1989. Van- couver is expected to experi- ence the largest percentage increase in average prices, while prices are expected to be more stable in the Halifax/Dartmouth area. PRICES CLIMB “By the end of 1988, the market in Canada as a whole will see a seven per cent in- crease in housing unit sales, while average prices are ex- pected to climb 15 per cent to $128,300, an increase of close to $17,000 over the 1987 level,”’ he says. “For the first time in five years, the average price in all 11 major cities has ‘increas- ed,’’ says Romanese. “In fact, the value of homes is rising in spite of declining housing unit sales in some major centres.”’ JOHN BOB BODEN KESSEL Pager: Pager: 980-8585 (24 hrs.) 645-3346 (24 hrs.) “Serving the North Shore and the Sunshine Coast” Specializing in income tax reduction through real estate investment both residential and commercial. 2 BEDROOM RANCHER HUGE LOT AND PRICED AT $124,900 This 2 bedroom rancher has a rock fireptace in the living room and a larye kitchen. This home has a 4-foot crawl space and good foun- dation so it could be raised. Drive & by 1544 Lyna Valley Road and § call for an appoin.ment. BOB KESSEL 980-8585 645-3346 pgr. JOHN BODEN 980-8585 I Situated on approx.,5.4 acres on the shore of beautiful Ruby Lake, adjacent to Highway101, a few f minutes from the B.C. Ferry terminal at Earls Cove. This 65 seat restaurant with tiquor lic. plus 10 unit motel, plus 3 bedroom owner's home with its own heliport is now available. For further EDGEMONT VILLAGE SPLIT LEVEL details contact JOHN BODEN 980-8585 or BOB KESSEL Por. 645-3346 This 4 bedroom home with family toom has a private backyard and is close to everything. Call us for an appointment. Exclusive. 62’ x 120° LOT — LYNN VALLEY BOB KESSEL 980-8585, pgr. 645-3346 JOHN BODEN 980-8585 This 2 bedroom rancher with fireplace has been totally renovated inside; yard and outside need work. Priced at $129,900. Exclusive. BOB KESSEL 980-8585, 645-2346 pgr. JOHN BODEN 980-8585 \- REALTY WORLD. . ~ -Hemisphere: