eeseeeaece|sed

investment pre
an lay go

‘WE have heard the
fable of the goose
that laid golden eggs.

The story ends with the
‘owner killing the goose to.

“get all the eggs at once. He:

s horrified instead to find.’
¢ goose empty and ends
up. with no more golden’ ~
cegs and no way to get
ore.
“You might ask how this
relates to real estate. Before
we get to the goose, first

pension plan, your RRSP
and other investments you
have made. Banks and
financial brokers have a
ready supply of investment
packages for us to choose
from. :

You may have noticed

they do not promote

investments in real estate.
Does that mean real estate

) ‘is not’a‘zood investment?

ada’s por .
“hold seminars to
you must do
the investments
a c buy,
In‘addressing thousands
ople ir: y seminars, I

every year for the
s, this wil :

‘Additionally:

No. It means they can-

"| not earn any profit from.
doing so, thus, why do it?

‘Real estate receives very
little positive press and
that’s a shame. After all, a

' wise investment in real

ulatic ected to rise,
on average, by 100,000

- peuple per year over the
_' next.20 years.

If 40% of those new

-artivals are adult.couples . .

| 36% rent, that. equates
to.a demand of roughly
7,000 new renters each
ear. This. growing demand,

“Add recasters say.
the Lower: Mainland’s pop- '«

den ege

with all other factors being
constant, makes residential
income property a very
sound long term invest-
ment.

Unfortunately, due to
the high cost of jand, labor
and materials it is no Jonger
profitable for developers to

uiid rental accommoda-
tion.

Thus, we can expect
increasing demand on our
existing and already limited
supply of rental accommo-
dation. :

Suppose you acquire this
two bedroom property for
$105,000 and. yes, you can
do this in today’s market)
and it currently rents for
$800 per month and your
costs (taxes, fees, up-keep,
etc.} are $340 per month.

- Should this property’s

- value increase at just 1% per
"year (well below its histori-

cal appreciation rate) and
the rent and expenses
increase at 3% per year over
20 years, where will that
leave you?

You will have a debt free
property with a value of
$128,000 (that wonderful
tenant has paid off your

‘mortgage for you).

Your gross rent will then
be $1,445 less expenses of
$615 leaving you with a net
monthly “golden egg” of
$830.00. :

‘Should you own just
three such properties your
monthly “golden cgg”
would be $2,490 or 55%
of your monthly income
needs of $4,500 which we
calculated carlier.

Additionally, you will

_have over $380,000 of

equity. You can use this

S

income through an annuity,
provide funding for your
grandchtidren’s education
or take the holiday of your
dreams.

There is an additional
bonus. As your equity
grows, so Goes your net
worth.

Unless vou sell (kill the
goosc) you are not taxed
on that gain in your net
worth,

This type of investment
is currently laying monthly
“golden eggs” for thou-
sands of people who
acquired investment prop-
erty in the late 1970s.

For them, their rea}
estate investments have cul-
tivated a golden retirement.

Is it really this simplistic?.

Of course not. There is
thought, some work and
costs involved along the
way. If you want “golden
eggs” you will have to care
for the goose.

Today’s market condi-
tions, combined with con-
tinucd low mortgage rates
makes now an excellent
time to acquire your “gold-
en goose.” _

{s residential income
property the only real
estate type that offers this
type of long term reward?

No, yet it is the property
type with the least amount
of associated risk. How do
you find your golden
goose? What other factors
are there to consider?

Those answers in anoth-
er column.

— Mr. Dowty is vice presé-
dent, Special Projects of
Century 21 Prudential — -
Estatcs Ltd in Richmond,
Mike can be reached at 604-
273-1744

Friday, July 3, 1998 - North Shore News - 43

THIS is how an artist envisions.

perties |

new Furry Creek town centre. on the edge: of Howe.
Sound. it’s scheduled to be built by the spring < f.1999):

Judy Smith

Contributing Writer:

THE new town centre

of the oceanside Purry
Creek community will
be finished by the .
spring of 1999.

Since 1993, the Howe — i

Sound master-planned com

munity has been built “in®

stages beginning “with re
dential homes. oe ;
“According
Housing... and. .Mo
Corporation (CMHC
Howc. Sound corridor is
of B.C.°s fastest “gro

iB
residential - real-estate “mar-

kets. :

‘AN this has made develop- |” L
ers and real estate ‘agents -.

very happy.

‘This season at Furry —

Creek is the busiest: ever,”
said Glen Talling, real estate
specialist for Prudential
Sussex..“Home starts are up

said Tony Zappone} ¢
dive: velo

of construction this. sar
along 25-acres (11: hectares)

. of water's. edge property.

equity to add further

‘Les

townhome

? cyte a
Prime south-east, quiet 3 level, one-owner end unit. _
Three bedrooms plus finished office with built

LOT SIZE: 100° x 140’

Perec eanesoncesccsverecsesouccseccaene

: INTERIOR SIZE: 1698 (Plus Deck}

HO OOD EevecscconsocoeenoeesereeseoeeeneeeS

NUMBER OF BEDROORNS: 3

MOaeecreaesecrveserecsesccnseseccsseeonsesos

NUMBER OF FLOORS: 3

Cee woancassescoccorcessssaeens

ASKING PRICE: $335,000

OPEN HOUSE: By Anpoinment CUnly

kitchen with lots of cupboards,
french doors to huge 21° x 10°:
patio/balceny for your summer ~ ©
barbecues. Separate 2-car

ga;age with work bench and
automatic door opener. This unit
is immaculate with many special
features.

LISTING AGENT: Ray Mitchell, 984-9711
_ SPECIAL FEATURES: Island kitchen, vaulted
ceilings, skylights & view