HOME BUYERS. using RRSP funds to purchase a home under the federal government’s new Home Buyers’ Plan will be much better off financially in the Jong run than those who leave their funds in RRSPs and continue to rent, or those who buy a home without using their RRSP savings, according to a ‘Clayton Reserarch study. The plan allows home buyers to withdraw funds from Registered Retirement Savings Plans (RRSPs) for use in financing the purchase of a home. Under the plan, Ca- nadians can withdraw up to $20,000 from their RRSPs towards a down-payment on a home. The Clayton Research Study, commissioned by the Canadian Hcme_ Builders’ Association (CHBA), presents an analysis that Shows that a renter utilizing RRSP funds under the plan to purchase ° a home will be much better off financially in the long run than someone who leaves their funds in RRSPs and continues to rent. The main finding of the Clayton Research study is that home buyers can gain substantial- ly by utilizing RRSP savings. “Clearly, utilization of the Home Buyers’ Plan offers attractive potential savings to home buyers,’? Clayton Research said. The study er..hasizes that an owner wishing to move to a dif- ferent home is well advised to take advantage of the plan if they have eligible RRSP funds. Canadians thinking about pur- chasing a home would be wise to consider the benefits of making an investinent before the expiration of the Home Buyers’ Plan. Buyers have until March 1, 1993 to invest their RRSPs under the plan. Funds must then be repaid to the RRSP over i5 years beginning in 1904. Using RRSP funds to reduce the size of a. mortgage offers home buyers an opportunity to ei- ther accelerate mortgage repay- ments and pay off the mortgage much earlier, or utilize the lower E & GARDEN Home buyers gain using eSP funds, study finds monthly mortgage payments to increase contributions to their RRSPs. ‘‘Under either option, home buyers benefit substantially compared to the option of leaving funds in their RRSP and taking a larger moctgage."’ The study emphasizes that to maximize the benefits available under the Home Buyers’ Plan, homeowners must take advantage of their smaller mortgage to ac- celerate their mortgage or con- tribute more to their RRSP. “If home buyers are disciplined and invest the lower mortgage pay- ments possible under the pian in cither of these ways, they will be significantly better off in later years than if they do not utilize the funds in their purchase of a home,”’ the study says. The examination of the Home Buyers’ Plan follows an_ earlier study by Clayton Research releas- ed last month which demonstrated that most Canadians who bought homes i the 30-year span from 1961-1991 obtained significant fi- nancial advantages over renters. That study clearly showed that owners who purchased a homie 20 aud 30 years ago have a markedly greater net worth today than those who rented over the same period. The latest study builds on the analysis of the previous study and, using the example of a renter with $20,000 in RRSPs, examines the relative merits of withdrawing the Guess who's 5 selling North Vancouver? KARIM REMTULLA (Bus) 925-2911 (Res) 925-0204 NOTHING SUCCEEDS LIKE SUSSEX funds under the Home Buyers’ Plan to purchase a-home versus teaving the funds in an RRSP and continuing to rent. After 30 years, assuming a 2% annual rate of inflation, the owner's equity in the house, plus RRSP, would be $135,000 greater than the total RRSP holdings and other investments held by the renter due to the investment of the differences in shelters costs. At a 4.5% inflation rate, the advantage of the owner would be over three limes as great. Even if house prices do not match inflation over 30 years, the stucy concludes that the owner is still well ahead of the renter by af least £43,000 at a 2% general inflation rate, or by $165,000 at a 4.5% general infla- tion rate. Ken Farish, president of the jocal chapter, Greater Vancouver Home Builders’ Association, noted “‘the results of this study are clearly very positive for to- day’s Lower Mainland buyer. With land prices pushing up the cost of housing, this program will _ benefit the first-time buyer as well as the move-up market.”’ Firewood should be seasoned by splitting and stacking it at leest eight months before it is bumed. Your woodpile should be covered in a way that keeps rain and snow off but allows air to circulate through ii. Dry, seasoned wood burns best! A message from the BRITISH COLUMBIA LUNG ASSOCIATION HUGE SAVINGS ON ALL VEHICLE MAKES & MODELS 1992 NISSAN PATHFINDER XE 4x4, ve. 5 spa, Ac ouersets. £19,567 1983 MAZDA 626 ‘CRONOS’, «4 ar.. sedan rence price 16, £40 1992 HONDA ACCORD Lx SEDAN, 4 door SueREE15,383 1992 FORD RANGER 4x4, supercab, XLT, V6 ttear rn 16,981 Based on 48 month open ended teases with zero 0 down OAC, Freight & PDI included. Taxes extra. Vehicles may not be exactly as illustrated WE ACCEPT TRADES CUSTOM LEASE VEHICLE LEASING SPECIALISTS 4348 MARINE DR., N.V. 988-1142 997 West Ist st, Nort high Ne bioek west, 984-3255 ran 985-8081