BUSINESS |

Wednesday, March 6, 1991

raaeal hoa 7B

The Castlegar Sun

Page 5B

Falling interest rates affecting re real estate market |

By NANCY LINGLEY

Sun Editor

Depending on who is speaking,
the real estate market in Castlegar
right now has progressed from “a
moderate increase” to “very busy”
to “phenomenal.”

“There's been a moderate
increase in the market,” said Wal-
ter Ty h of Mt: Senti

only one or two in a certain price
range.”

“We've sort of tied into a scll-
er's market,” said NRS Mountain-
view Realty agent Glen Wilson.
“The seller gets a little more value
for his property. And it has a lot
to do with interest rates,”

Wilson went on to explain that
with rates dropping

Realty. “I expect it will increase
with the demand and it will not ,
take long before the demand will
exceed the supply. We have an
extensive amount of properties
entering the marketplace, but there
appears to be enough buyers to
consume the supply.”

“So far we're not in a real
bind,” said Brad Walsh at Castle-
gar Realty. “There are purchasers
waiting for the right house to
come along. In many cases there's

steadily many purchasers are
waiting,

“It’s a real quirk of the real
estate business,” said Wilson. “As
the rates drop a lot will not buy,
feeling the rates will get a lot
lower, As soon as the drop stops,
or maybe goes up a quarter of a
per cent, we'll have a real surge
of buyers.”

In one respect, waiting makes
good sense, said Wilson.

“One per cent on a good-sized

mortgage can make a difference
of maybe $100 per month in tho
payment,” he commented, “Most
of the buyers now are new people
coming in that are forced to buy
because of the pulp mill, But we'll
always have houses to sell.”

However, the rental market is
nonexistent said Walsh.

“But it has been for a long
time,” he said. “It's nothing new
and it’s not due to the pulp mill.
There's been very little to rent for
the past two years. CMHC has
said for a year now that the rental
availability is zero in Castlegar,
but they only monitor the big
apartment blocks. The college
enrollment was up this past year
and that puts more pressure on it,
Now it’s been drastically com-
pounded by construction workers

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at Celgar that don’t ‘want to live in
the camps. They might have to, I:

don’t know what they’re going to
do.”
Wilson stated that the real
estate market in Castlegar was
“way busier” in 1979/80.

“At that time the market value}

-was at least 15-20 per cent high-
er,” noted Wilson. “There's still

lots of room for movement in the !
marketplace. A lot that bought in’

‘79 or ‘80 still can’t get what they
bought it for. The interest ‘rate is
going to have to drop another per-
centage point or more to get the
big houses, the ones worth
$100,000 or. better, sold.”

“We spent six years in a
reverse market in this area,” said
Walsh. “It’s interesting to see it
going the other way.”

I was impressed. This couple
had been married 27 years and had
three teen-aged children. Now, at
age 47, mom and dad were run-
ning their own business and had a
net worth of $700,000.

Mike

-| Grenby
‘| Syndicated
Columnist

“In about three years, we plan
to sell the business and retire - or
at least semi-retire,” said Don
Fisher when he entered this col-
umn’s contest for free financial
advice from the Canadian Associa-
tion of Financial Planners.

Added Joan: “When we review
our investments, it looks like we
have too many things — GICs,
stocks (both blue chip and penny),
mutual funds, gold coins, junk sil-
ver coins, silver certificates, three

SUN STAFF PHOTO / Nancy Ungey

Homes like this one may not remain on the market tong
if interest rates continue to drop.

Contest winners receive free advice

lots and a half-interest in a fourth.
They all seemed like the right
things to buy at the time except
for the penny stocks: we paid
$41,668 for them and they are
worth only $7,612 today.”

Of the 454 entries, the Fishers
(not their real name) were among
the five winners chosen for
review by eight groups of eight to
10 planners at a CAFP Pacific
Chapter planning school.

“We always thought the three
lots could go toward the chil-
dren's further education if need-
ed,” said Don. “Otherwise, they
could perhaps build houses on
them in the future.”

Because the Fishers have
worked all their lives in their own
business, they have no pension
but have built up their own
RRSPs: $108,000 for Don and
$77,000 for Joan.

“Up until 1987 I was after
growth in our RRSPs,” said Joan.
“But after the crash I woke up to
what safety means. We are now
gradually converting all our

RRSPs to GICs, bonds, income
funds and cash.”

The Fishers hold a variety of
mutual funds and mostly blue
chip stocks.

“We are selling off our junk
stocks as they recover,” Joan said.
“The ones we still have remind
me not to buy an morel” Added
Don: “At the moment we have
about $77,000 in cash outside the
RRSP which we want to use to
take advantage of lower prices in
he stock market during the slow-
down.”

The Fishers have a $29,000
13.5 per-cent one-year open mort-
gage on their home, which will be
paid off in 15 years. Proceeds
from the sale of the business will
go into interest-bearing deposits.

“But we are not sure about the
market, interest rates, inflation,
land values, the economy —
things we have no control over,”
said Joan. “Sometimes I think we
are doing the wrong things, like
on Oct. 19, 1987, and Oct. 13,
1989. *

“It seems like everyone has

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The Castlegar Sun would like to publish your wedding

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RS
The Sati ger Sun
od DRS
Our eee le leeated at: 465 Columbia Avenue in Castlegar

isn't It time you got rid of It? We can help!
Phone the Sun classifieds at 365 - 5266 or 365 - 7oa8

We can't sell what we don't advertisal

If you have something that Is lying around collecting dust,

idea as to what a portfo-
lio should have in it, as well AS:
the amounts.” ° ~ &

The financial planners at the
CAFP seminar reviewed the Fish-
ers’ situation and congratulated
the couple on having done so well
financially.

“Although your investment.
portfolio is quite complex with a
large number of holdings, some
fine tuning should allow you to
enjoy your retirement with securi-
ty and dignity,” said the report
provided to the Fishers. key sug-
gestions:

* Consolidate, restructure and
simplify the investments. Develop
a plan, possibly with the help of
an investment counsellor, to pro-
vide a clearer focus.

Inflation can do considerable
damage to guaranteed invest-
ments over the years, so consider
keeping some growth-oriented
securities. But hold them outside
the RRSP to take advantage of the
capital gains exemption and divi-
dend tax credit.

Get expert advice on the penny
stocks to see if they are ever like-
ly to climb back to their original
values.

* use liquid assets to pay off
the mortgage now as the interest
costs are not deductible.

* Consider setting up a trust for
the children. Transfer the proper-
ties into the trust so future growth.
will be attributed to the children.

¢ Pay the children to work in
the family business. This will
Save tax because such payments
are deductible. The children will
probably pay tax. They can than’
use these before-tax funds to pay
their own expenses now or in
future if they go to college.

¢ Don should make maximum’
contributions to a spousal RRSP’
for Joan as long as he has earned
income, to equalize future
incomes. Do this at the beginning
of each tax year,

° After retirement, spend noen-°
RRSP funds first. Seek advice on‘
the best way(s) to provide regular,

..income. Leave RRSPs to grow:
/\tax-free as Iong as the money is:

not needed,

+ ¢/Rather than selling the busi-’
ness, consider hiring somebody. to!
mun it. This could Provide an alter-!
nate source of retirement income.’
And if-the. value of the business’
grows, this could provide ‘another’

: bedge against inflation...

Noting that the Fishers had not!
reviewed their wills since, 1978,,
the ‘financial’ planners: said:!
“updating your. Ss

top priority.”

Tiggivseu Vier Gus Nowe ig Rceinpee ann

rmdSnrom SURVEY
: iS

The Castlegar Sun bas been a part of the community for 3
months, We here at the Sun would like to know how well our
readers feel we are serving the community, .
Please fill out the survey below and mail it to:

The Castlegar Sun

465 Columbia Avenue ie

Castlegar, B.C.
VIN 1G8

or drop it off at our office across from City Hall.

All the completed surveys returned by March 20, 1991 ‘will be
eligible for a draw; dinner for two at the Fireside Restaurant.
‘The results of the survey will be compiled and published at a
later date, Thank you,

1, How do you rate The Castlegar Sun?
; Fair Needs

Bs Improving

Content overall

Community

news coverage

Sports coverage

Photo &

photo features

Entertainment page

Business page

1 Worldwatch

Have scissors, will travel

By FRANK ISERNIA

Always Sometimes Never
Ron Jeffels
! Nigel Hannaford

t
We
I
I
! 2, Columnists: How often do you read them?
t
t

3. Features: Do you enjoy?

1 Face in the Sun
‘Weather Box
Bridal Showcase
Kootenay Kitchen
1 Ann Landers
News of the Weird
Dr. Ruth

“Crime Flashback
Horoscope
Crossword
Comics

{ Editorial Cartoons
I Which ones?
Mayes
Cliff

Rubes
Webster
Bent Offerings

Cc

4. Advertising: Display ads:

Do you find them informative?
Do they affect where you shop
and what you buy?

Classified Advertising:
Do you read them?
Do you find them easy to follow?

Cc

I
H 5. Supplements: Did you read -
I

Christmas supplement
Castlegar in Review
Women in Business

Cc

6. Leisure/TV Listings: What features do you -
Read Enjoy

Do it Yourself

Managing Your Money

Home Improvement

Pet Tips

Your Home is Your Castle
Autoworld

Sun staff writer

Nellie's Mobile Hair Salon is
the brainchild of Nellie, a hair

It’s new, it's innovative and it
is certainly convenient. It is the
only haircare business in the
Kootenays designed to’ give. hair-

care service ‘in the privacy and .

comfort of your home or office.‘ .

salon with 25 years of
experience in the haircare f
and managing her own shops in
the past.

“My business is unique in the
sense that clients don't come to
me, rather I go to them, and at

their convenience." ))..

““This allows my clients to keep
any prior committments, and the
flexibility offered by: my service
allows me to accomodate their
schedule."

For shut- ‘ins and seniors, whom
for reasons of their own, cannot
get out to get their haircut, Nel-
lic’s Mobile Salon is just what the
doctor ordered. °

Nellie's Mobile Salon is as ver-
sitile as any other high quality
salon shop, Haircuts are only one
of the many services available.
From ans. to perms and from

Nellie’s

modate other clients waiting in’
line, You are the only client being *’
catered to, and no one but you sees!
your tal haircut until it is completed,”
explains Nellie,

“Talso have the luxury of being
able to charge less for,my ser-
vices. For the average wage camer.
with children, the cost of frequent
visits to regular hairstyling shops.
is expensive. My mobile salon
concept alleviates high prices;

by others. I don"t have a
large payroll , nor do I have rept
and utility expenses that other
salons are burdened with.,My

Mobile Salon gives quality hair-
care service at prices below salon
shop rates. And because Nellie’s
Mobile Hair Salon comes to you,
service is more friendly and per-
sonal.

“There is no need for waiting
nor is your haircut rushed to acco-

can give you the same .
top-notch service:and workman-
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very modest fee,”

Response from the public has
been excellent and she is Jooking
forward to meeting new clients as
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to grow...

HOURS:
Mon. - Sat., 7a.m. - § p.m.
Closed Sundays
& Holidays

°
Eggs Benedict

2 poached eggs served on an open

face, grilled English muffin with

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Served with homemade

hashbrowns and coffee or tea.

$Eqe5 7 am to 10:30 am

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“WE AGCEPT:WESTAR, CELGAR'AND COMINCO:MEAL VOUCHERS °:
Glen. & eae hecaycoue best wishes to Celgar.

available from

for any embar

Te ede the name maisprint in the last issue.

Bananas

Swop-Easy SOOnE
THis WEEK'S SPECIAL

Large eggs (Foremost) Grade Anis

AA Ib. - 99° Kg
w T.49 Doz,

BANANA CREAM PE

mixture in ple thell

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‘angel food cake.)

Hair care comes to the customer, whether it be home or
office, with Nellie's Mobile Hair. Nellie has 25 years of
experience in the haircare industry.

Prices effective Sunday! Mar, 3° Saturday Mar. 9, 1991.

GST

SULLET IN er
from FANIV’S

Jenny's has decided to help you beat high taxes
and inflation. (We've lowered our prices).

All Day Breakfast

Hotcakes
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French Toast
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Cc

7. Do you find the TV listings easy to read?
A * Yes f No

8. Do you enjoy the stories on TV programming? :
: PREY Yes" .- No

Name:

Add.

Postal Code: i _ Phone: 4

You may retum this survey without identifying yourself, however, tp
it excludes you from the draw, But we would still like to hear your.
opinions g0 send tho'survey in anyway!

We woud ke hank he commu forte mppot th lat 3 mond

‘Weekly Breakfast Special *3% © Lots of seating downstairs
We accept Celgar, Cominco & Westar meal! tickets

330 Columbia Avenue
“Castlegar

SO ss77

© OPEN ©

5:30 a.m.
_ Monday thru Saturday