Bae REAL ESTATE There are ways for smat fl investors to get into real estate action REAL ESTATE is booming, but for those people watching from the sidelines, one ques- tion remains — how can I get in on the ac- tion? By RICK PETERSON Contributing Writer If you don’t have the cash, the know-how, or the assets to invest in real estate, it can be frustrating wat- ching others do so well, It's like watching players con- tinually hit the jackpot on the slot machines while you stand by with no change in your pockets. Yet there are ways for the smail investor to invest in real estate on a_ reduced scale, Real estate syndications and limited partnerships are one alternative, but it can be difficult for the average in- vestor to pick the winners out of the crop of such deals that are on the market. On the other hand, the good ones offer high lever- age and, in some cases, significant tax write-offs. A lot of first-time in- vestors prefer indirect in- vestments in real estate, and this is likely the best route to — 2 bdrms. and den — Cross hali dining — H/W floors go for those with limited knowledge of the real estate market and wanting to invest smailer amounts. The stock market is a good place to start. Rea! estate stocks such as Trizec Corp. and Royal LePage have been favorites most recently, and real estate stocks in general outpaced the markets overall in the months following the market crash. Analysts say you should look for stocks with clean balance sheets, since these companies use a lot of debt to finance their projects. If the real estate market turns down sharply, over-leverag- ed companies are the first to bite the dust. But in the long run, a solid real estate stock can provide the investor with a Steady stream of dividend income and capital gains. The trick is to pick the right one. Finally, real estate mutual funds are becoming very popular — and with good reason. Investors can get in- to a fund for as little as $1,000, and in scme cases Pay no commission on the purchase of their units. Many of these funds are also eligible for contributions to — Some view! Registered Retirement Sav- ings Plans. Assets of commercial real estate funds leapt by nearly 90 per cent in Canada for the year ending September 30, 1988. And the top per- forming funds have excellent track records, with one of them recording a 12.8 per cent average annual com- pound rate of return over the past five years. Real estate mutual funds lack the liquidity that real estate stocks enjoy, and the top real estate fund will like- ly not outperform a good Teal estate stock. Yet, a lot of investors are drawn to the funds because they can start investing for as little as $1,000. As well, they get professional management of their money and of the properties they are indirectly investing in. In other words, if you’re a small investor, the bottom line is that real estate mutual funds allow you to step up . the table and play the real estate game. You may not reap windfall profits, but you still may walk away a winner. (Rick Peterson is with in- vestment dealer Walwyn Stodgell Cochran Murray Limited.) — Leaded glass windows — Gorgeous (67 x 145) lot ft a ! 45 - Friday, February 17, 1989 - “0 #563 900 f City Convenience at Surrey Prices f Spacious 60x126’ secluded cul-de-sac lots for sale in West Newton § B Heights, Surrey. § 35 minutes to downtown (via SkyTrain & Alex Fraser Bridge) R 4 blocks to major shopping, Metro transit, new Kwantien Col- # lege, schools & daycare Bordered by park strip & Beaver Creek. # Quality and Gesign controlled. These fairly level, fully serviced lots ¢ a are high and dry and have provisions for full underground basement. | 4 ideally suited for level entry ranchers or 2 storey splits. Choose your § § own design and builder. 3 City convenience at Surrey prices $63,900-$64,900 FOR FURTHER INFORMATION, CALL DANNY SAILOR at 591-6128 Sales Oftice tl rin , 4 7. Visit the Sales Office on Lot #1 at the corner of Toth Avenue and 424th Street. : q (Follow 72nd Ave. off Alex Fraser Bridge to 124th St., then turn right). You # a can't miss it. j Hurry Now! DUN DARAVE’S FINEST — Huge level lot — Close to schools, (85° x 132’) parks & buses — 3 bdrms., enste. — One owner, mint condition 2216 JEFFERSON _ New kitchen — Spectacular view — Large corner lot — 2% bath /3 BR 2305 MATHERS AVE., WEST VAN. “0” SUN. 1-3 | North Shore News