Public | _ confidence * “that |
houses . are ‘still the best’.
practical hedge . against .

inflation. will not be shaken’

Many positive reasons f for ‘buying

“evenly” by the general:
. tightening in the economy, |
federal finance minister John |
Crosbie’s | mortgage interest

by current outbursts from: | credit. plan, which applies

doomsayers who predict the.
recent spate of mortgage
interest. rate hikes will
neutralize the effect of new
federal tax credit measures,
says George Cormack,
Executive Vice President -
Residential of A.E. LePage
Limited, -
“These recent | mortgage
interest rate increases have
not occurred in a vacuum,”
says Cormack, “but are part
of a general tightening up in
the economy. When the dust
kicked up by them settles,
the essential wisdom of

investing in a home will re-_

emerge.”

And, says Cormack,
“Since the cost of nearly
everything is affected about

‘only to purchase of homes,
should. continue to be seen
as 8 genuine incentive to
hoine buying.”

Cormack warns ‘against |
the danger of over-
emphasizing the | negative
potential of the interest rate
‘hikes. “Remember,” he says,
“there is a very long list of

positive reasons for buying a
house today, none of hich
is diminished one iota by
increases in the interest
rate.”

Even the least pleasant
monetary -adjustments do
not send ple intd their
gardens in search of a place
fo bury their capital, says
Cormack. Monetary con-
straints simply mean ‘that
investors scrutinize their

says Cormack,
reason to-suppose that the .
sharp rate ‘of increase in-

“placement possibilities ever
more carefully. ae :

_ “The fact remains that, for |
a variety of complex
economic reasons, few of"
which are much changed,
home prices in large. urban .
areas have all but tripled in
the past 10 years.”

| While inflation continues,
“there is no

home prices over the last 10
years is - ‘going to suddenly
taper off." On that basis, he
says, the argument can
properly, be made that,
“While this may not be the
best time to buy a house, it
certainly could be about the
worst time not to buy one.”

“Based on current trends,”
he says, “a house ' worth
$72,000 right now, will sell
for more than $100,000 in
1984,

“that mortgage debt,

»

“That: kind. of investment :
‘| appreciation is available to |

Canadians in few’. other.
areas,” says Cormack: “And,:
in virtually, no other area’
would sucha capital gain bee

‘taxfree.”

Beyond: the ‘substantial
benefit ° of .a - non-taxable
gain, says Cormack, home
buyers should keep in mind
un-
dertaken today, will be paid
off with steadily devaluing
dollars.

Swectening that double -

benefit he says, is the reality
that, while the home buyer's
investment appreciates
substantially and his
obligation diminishes in
direct proportion to the rate
of devaluation, he and his

family get to live’ in the.

comfort and privacy of their
own home — an enormous
benefit which cannot be
readily calculated in dollars.

| Newsstand
locations

Eve ’ Saterday mo: the Sunday News
Real Estate | Showcase. will be on over: 100:-.
. Mewsstands—including all North Shore real estate -
offices, major hotels, shopping. mall, retail”.
outlets in the following areas: |

North and West Vancouver
Vancouver | |
Richmond

Burnaby

Surrey ,
Delta —

New Westminster

Langley

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