Friday, January 3, 1992 - North Shore News ~ 31

REAL ESTATE

Low mortgage rates create
fine homebuyer opportunity

usually five years. Interest
rates may come down a bit
over the next few months

+ THE LOWEST interest
rates in three years and
fower house prices have
created a great opportunity
for first-time home buyers.

But buyers should be
cautious, realizing a house
will likely be the biggest in-
vestment of their lives. If

_ done right, a house could be
a joy, but mistakes could
make. it..a burden or cost
you your savings.

First-time buyers should
learn from the mistakes of
those who . over-extended
themselves in boom times
and lost their homes when
interest rates soared, jobs
began to vanish and they
were unable to carry the fi-
nancial burdens.

First, take a hard look at
your income and‘ expenses
to determine the maximum
mortgage payment you can
comfortably handle. This
means having a sizable
down payment so you have
the equity to cushion
coverage of the mortgage if

you have to sell in a poor

‘market.

Affordability involves
more than the mortgage.
You also should consider
property taxes which will be
an additional monthly cost.

Buyers should also look
for hidden costs they might
face after moving in. Make
your offer conditional on a
satisfactory house inspec-
tion. Your real estate agent
could direct you to an in-
dependent inspector who
would report to you within
days. This report will tell
you if you will face signifi-
cant costs fer a new fur-
nace, a new roof or other
expensive jobs. Getting the
facts allows you to change
your offer or cancel the
deal.

Mortgage financing has to
be faced realistically by
those without experience in
home ownership. Many try
to guess against the market,
but the best advice is to take
the longest term possible,

Pine retail

space available in the North

but not much. A_ longer
term lets you get your feet
firmly on the ground.

Aside from your equity
and the vaiue of the proper-
ty, the lender will look
closely at your cash fiow
and your ability to service
the mortgage. Be honest and
allow for a good cushion.
The only person hurt cutting
corners is you because
failure to make payments
could see you losing the
property and your savings.

You should also speak to .

your lender before you start
your search for that dream
house. Your lender can be a
useful advisor. Knowing
what you can afford will
help you keep emotions out
of the house-buying deci-
sion.

John Switzer is Senior
Vice-President of Manage-
ment Reporting and Control
for National Trust.

Shore’s busiest shopping centre.

GAYLE EDDIE
985-1321 (24 hrs.)

98% Success Rate

Enjoy city views — 2 bdrm.
“Somerset Green”

$215,000

West Van's best buy!!
5655 Westhaven

$414,900

CREST
REALTY.

Beautiful Upper Lonsdale.
Character home

$349,800

Accommodation, amenities
Location — Parkway Village
3360 Garibaidi

$288,800

CALL FOR YOUR PRIVATE VIEWINGS TODAY

RICHMOND *:
278-3252

VANCOUVER.
732-1336.

NORTH SHORE

* 108 th st 10 we e
= 985-1321

Seotst  sameeener -fecuas