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REAL estate prices have
dropped and interest rates
risen ... Whoopee!

No, T have nor lost my mind. For
months we have heard stories about
the dire straits of the
real estate market. We 7"
have watched our dol-
lar nose-dive. It was
only a matter of time
before the feds moved
to bolster our dollar
with an interest rate
hike.

Many experts are
now saying this hike is
too little, too late and
expect frrther furnges
or another one or two percent. Is this
bad news? You ber it is.

I am no financial expert and will
Not go into the details Gf how our
monthly income has effectively been
hammered down by as much as 15%
with the loonies’ fail. It is definitely
time to have a hard look at vour
investment portfolio, especially if you
have been heavily into stocks and cer-
tain Mutual Funds. However, there is
a golden opportunity within this eco-
nomic hurricane.

For the first time in many years we
have seen a drop in property prices of
just over nine percent. Yet, we must
not forget that the Lower Mainland
has gone through years of annualized
growth above the eight percent level.
All investment markecs are cyclical. It
is important to keep events in perspec-
tive and not get caught up ina “chick-
-en little” mentality.

For those of us in the real estate
investment industry, who have been
around for 20 plus years, we have scen
all this before. In °76, °81, and
curly "90s we witnessed plunging
prices and sky rocketing interest rates.
For real estate investors who were
hoping to buy low, and sell high,
investors who for one reason or anoth-
er had to sell, or for those who had to
renew their mortgages at much higher
rates, these indeed were wough times.
However, for others, it was a spectac-
ular opportunity.

You may recall when New York
City was going shrough a financial
catharsis. Time magazine ran a cover

that pictured a rotten apple.
{vervone was selling, and arc
away trom the Big Apple with ¢
doom — all except one v
investment family. The
Brothers, at the height of New

woes ac
j ch 2 ei numerous city blocks

of dawntown New
York = —“knuckle-
head = Canadians”
stated one lesdi

investment expert.

Well, we know what
happened in the
years that followed.
New Yerk rebound:
cd, investors and
growth returned and
those city blocks acquired by the
Richmans sky-rocketed in value. When
interviewed a year later by Time about
what prompted them to buy into New
York at such a tenuous time, they
responded: “New York City was not
going to disappear, we knew it would
right itsclf. We simply followed a wise
investment strategy — find out where
everyone else is going, then go the
other way!” This mind-set paid off in
billions for the Richmans. This same

losophy can work for you.

Yes, the Lower Mainland’s real
estate market is currently in decline.
Docs this decline mean that Greater
Vancouver will become a wasteland? Is
this small piece of global real estate,
with a limited supply of land, excellent
harbor, fertile farm land and natural
beauty going to be less attractive in the
future as the world's economies stabi-
lize and rebound? [ chink not! Greater
Vancouver will adjust and will grow.
The questions are: Do you belicve in
Greater Vancouver's growth over the
next 20 years? Do you believe that
financial well-being will return? Do
you believe that people from around
the world will sull tind Vancouver a
desirable pls <¢ to live? If so, now is the
time to be investing “in the dirt,” so
to speak. While prices may be down in
the short term, rents are not.
Historically, while property prices rise
and fall in a cyclical manner, rents are
not so affected. Rents have averaged a
six percent or more annual increase
aver the past 25 years.

Yes, there have been a few times

property

lines

Friday, September 4, 1998 - North Shore News - 43

SHSSSHHOHHSHSHSSHHEHSHSHSHSHSHSHHSSHSHHESHEHOSESCHSSSEHSEHSOCOHESOSEHOSESOEEESE

when renis have actually fallen, but
only tora very time. Investing in
real estate, especially residential
income property, in conditions such as
Wwe see now offer opportunities that
investors have not seen in decades.
with an established
Lower M db r regarding a
townhouse project where sales have
falles below expectations. He wanted
input on how to increase sales. f sug-
gested that a third of the existing units
be offered for rent, (immediarciy
snapped up by tenants | might add)
and packaged for and presented to,
investors.
As now packaged, an investor can
acquire a new townhouse property,

popee time for property

currently rented by a qualiny tenant, at
A price that

ago and with terms that — when
including the various tay credits that
Revenue Canada allows —- requires a
net cash down payment of just under
$10,000 and through creative packag-
ing shows a break-even cash flow for
the first 18 monthy.

A second option allows the acqui
tion te use the same low down pay-
ment amount and then to pay $125 of
monthly income support. (after-tax
credits) for the next five years.-Thiak
abour that — a brand new townhouse
in one of Greater Vancouver's best
locations, acquired at a net down pay-
ment of less than $10,000 (after tax

ions), and requiring mon
' r $130.

The opportunity for investment
acquisition magic such as this simply
did not exist six months ago.

So investor, do not head for the
hills, It’s whoopee time. Talk te a
knowledgeable investment realtor.
Look at today’s market through the
eyes of opportunity not despair. Now
is a fabulous time to acquire a “golden
goose” property that will provide you
with a truly golders retirement.

Perhaps we cannot create the wind,
bur we can adjust our sails.

Michael Dowvy is vice-president,
Special projects of Century 21
Prudential Estates Led.

Blooming beefsteaks
IT’S tomato season, and Jimmy Mentacos, otherwise known as Jimmy the Greek, has lots to smile

about — like these huge beefsteak tomatoes, just one variety he grows, as well as eggplant,
cucumber and celery.

ATA GLANCE .

ADDRESS: 4808 Headland Ciose

eee ere rire errr r rier ere rire)

LOT SIZE: 101W x trreg.

Codec ercctrencc esc oceeseeeeereereceessenee

INTERIOR SIZE: 2100 SQ. FT.

Owe oorerereeuscosavee

aeceeeenacnsereucs

Feature
4808

Ae.

NN

Listing|

Headland Close

ry

Elegant adult home

Enter through an Alice in Wonderland gate to an enchantiny

patio, Marbled floored foyer, grand living room with mantied
fireplace, generous dining room with frenc
private south facing sun drenched garden
dream, not large, but beautifully appointed with adjoining

oors to deck & =
kitchen is a

family room. Up a short flight, an
enormous master with ensuite &
lovely small views of the Lions
Gate Bridge, and passage. Two
other charmingly decorated
bedrooms. Splendid draperies &
California shutters throughout.
There is no basement. 2 2 baths,
main floor laundry, double car
garage, an easy drive to shopping
or the beach.

NUMBER OF BEDROOMS: 3

POR ecco re en ren wes as oereseneemeeeoneesseese

NUMBER OF FLOORS: 2

Comme verervoereredenssscenersoeerasacencese

ASKING PRICE: $599,900

we mara ctcrersereseeeressees

unday, Sept. 6, 2-4 pm

LISTING AGENT: Sutton-Sentinel Realty
318-6184

SPECIAL FEATURES: Too numerous to

mention — come see for yourseift

Louis Guzy
Sutton-Sentine!
Realty