JUROCK’S Facts by Fax
Jurock Publishing Ltd. #200-1311 Howe Street, Vancouver, B.C. V6Z 2P3 Tel: (604) 464-0808/Fax (604) 683-1707/E-Mail: ozzie@jurock.comWorld Wide Web: http://www.jurock.com/
=========================================================
Reproduction without permission strictly prohibited
“If where you are is not where you want to be, why are you still
there?”
HEED ARMSTRONG’S WARNING AND BEWARE…or…INTEREST RATE LOW IN PLACE?
A few weeks ago in our summary on Forecaster/Guru extra-ordinaire Martin
Armstrong, we quoted him as saying: “The incoming capital into the U.S. and
Canada have offset domestic pressures and thus watching what that capital
is going to do becomes vital. More importantly, watching the US dollar
should be every investors first priority and could be the first indication
of things to come (i.e. the U.S. dollar goes down, capital leaves quickly,
the downside would be sharp, steep and fast).” Well, the biggest rumor in
the last two days in world markets has been that the Japanese are not
renewing bonds as they come due and even are selling US and Canadian
bonds. The result: A sharp reversal last Thursday, where 4 % of Canadian
bonds were blown out by overseas investors and a very steep bond sell-off
onWednesday Dec.11/96. While Armstrong was bullish long-term, he did not
rule out a decline first. In any case, these are not normal times, this
kind of volatility is downright scary. We are not stock market advisors,
nor do we profess to any special wisdom in that area, but it looks to us
that this could be a reversal in the interest rate trend worldwide (see
next item). I know, we sound like a broken record but better be safe than
sorry, get pre-approved.
BUILDER ALERT
Interest rates are rising in Britain. This week mortgage rates rose a full
1% there. Real Estate values are heading higher as well. We are expecting
higher interest rates sometime in 1997. At the first sign of interest
rates heading higher, make your major sales effort. A visible – talked
about – increase in rates initially brings in a surge of more buyers (the
pre-approval crowd). In 1994 the three hottest months were
February/March/April, when rates reversed upwards. There could be a repeat
of this and soon. Stay Alert.
YOU CAN TAKE THE ECU…AND KEEP IT…
Many Germans are really worried about their cherished D-Mark. The older
generation remembers a devalued Reichs Mark where RM 1.5 million bought you
one egg in 1923. They also remember the ‘thousand year Reich currency’.
Many German families having seen their assets wiped out by hyper inflation
and war really honor and trust their D-Mark, so strong, so hard earned. It
is indeed cherished. Enter the ECU. What’s an ECU? The new European
monetary unit (supposedly to be introduced by 1999) will be based ( to some
extent) via a complicated formula on a basket of member currencies such as
France, Italy and other nations. While promises are made, guarantees are
‘in place’ and assurances presumed, the average German hates the idea. I
mean HATES it. Think about it. Tomorrow YOUR treasured government tells you
that your Canadian dollar will be called an ECU and not to worry, it’ll be
based on a basket of currencies from Mexico and other Latin American
countries. It’s ‘head for the hills’ time for many Germans with assets.
England having missed the first entry point (cannot enter with the others
in 1999, but will perhaps later) is seen as a better place to be. 1,500
German companies relocated here, Germans are driving up real estate prices
there and elsewhere (where there is no ECU) and so, if you are selling
real estate ( particularly out-of-town) it may be time to dust off your
friendly German speaking Realtor, and place some ads in the Federal
republic. You will have a better response than ever before. Germans are
reportedly buying in Toronto, Edmonton, Calgary, the Cariboo, Whistler. We
believe the flight of DM’s before the ECU becomes reality will intensify
next year. Canada is a favorite place. As we wrote in the October JREI
newsletter “The Cariboo where the deer and the Germans roam.” Well, they
are here already.
WHERE WE CLARIFY OURSELVES…
I try to express my unbiased opinion. I never try to hurt anybody. I am
independent. I do not accept secret commissions from properties we feature
in our plot of the week. I try to give a reasoned, researched opinion,
guided by my many years of experience in the industry. In fact, I am driven
to try and help identify opportunities, preserve capital and provide a
well rounded, unbiased, independent information source for subscribers to
make better buying and selling decisions. When you do that, you will run
afoul of this or that special interest group from time to time. However, in
my view, subscribers expect my honest opinion and I will continue to
express it.
BUT, just because I may reflect on some hotel investments of the past
having gone sour, doesn’t mean that my remarks reflect in any way on the
quality of the current operation of the hotels, or their current
profitability. In fact, most of the hotels we mentioned in previous facts
are extremely fine hotels, well run and operated, just the original
investors didn’t fare well. The same goes for apartment buildings We often
quote the losses that owners of certain apartment re-sales in certain
buildings have incurred. That again should not reflect in any way on the
quality of the building or its operation but rather only on the result of
the investment at that time. Finally, when we talk about buying property on
Native Land, we intend to warn that the Real Estate Act part II does not
apply, that leases without an appropriate Dept. of Indian Affairs headlease
are not valid, but we do not mean to imply that we researched every single
development on Native land and that there aren’t any properties that are
managed professionally with good co-operation. I try to call a spade a spade. It is my spade, at times is may even be the
wrong spade. You, my subscriber knows, that you have my reasoned opinion.
My punishment or reward comes from you, my subscribers. If subscription
renewals fall off sharply, I know I am on the wrong track. Sophisticated
subscribers always make their own decisions anyways, but at least they get
an opinion from me to measure their own decision against.
FOR THOSE THAT KEEP TRACK
Yes, this is our 50th issue this year. Normally, that would be it for 1996,
but this year we will publish another edition next week, but will not
publish Christmas and New Years day week. The first issue in the new year
will start January 8/1997.
Subscribers’ Plots of the Week: 1. Saltspring Island, Lakefront, sunny
Island cottage, private deck, private wharf. Price: $196,000; 2. Hope,
Reduced again, from $111,900 to $103,500. Four level split chalet, 3
bedrooms, 2.5 baths, valley view lot in Sunshine Valley; 3. Sechelt,
private waterfront, 67′ feet of level sandy beach, great views (house has
tenants), Price $258,930; 4. Sandy Hook, 75′ feet of sandy beachfront,
views, private, fully furnished house, sundecks, Price: $219,900. Call
Liesl or Lin at 464-0808 (All SPOW’s are for you to evaluate, just look
interesting to us. No guarantees).
HAVE YOUR CAKE…revisited…
In the Nov. 28/96 FbF we talked about how the first time buyer was able
today to buy a home with a tax refund, through the Home Ownership Plan and
some original thinking. In item 4 we said: “Now, a simple re-filing of the
income tax return generates a net refund.” Now, that was unfortunate
wording. We should have said:” …a simple filing of your income tax return
generates…” The answer remains yes to all questions. Yes, you can buy a
house even, if you have no cash. Yes, you can bring forward previous years
unused RRSP contributions. Yes, your financial institutions will lend you
all you are entitled to (say,$ 20,000). Yes, you can open an RRSP and place
the funds in it. Yes, you can take it out again and repay the loan to the
bank (but only after 90 days… put it in Dec. 12/96, take it out March
13/97). Yes, your new $20,000 deduction will generate a hefty $5- $8,000
refund, which you receive, when you file your revised tax return, say next
March. Yes, you can borrow the tax refund also. Yes, you do not have to
start paying back the $20,000 you took out of your RRSP under the Home
Ownership plan rules until the second year and yes, you have 15 years to
pay it back ( to yourself this time). No, you cannot re-file last year’s
tax return. And yes, please, see your local accountant, your local Realtor,
local mortgage officer, local banker.
See Ozzie live on the BCTV NOON news with the celebrated Debra Hope and
Saturday Morning’s on the Michael Campbell’s “BCTV Moneytalks” show.
Saturday, Dec.14/96, Ozzie will also be on CKNW Moneytalks.
RESIDENTIAL MORTGAGE RATES: Interest rates went up a bit last Friday (from
6.1% to 6.45% on the BEST 5 year term)
but have settled back…competition still too strong.
Best rates 6 mos. 1 yr 2 yr 3 yr 4 yr 5 yr 7 yr 10 yr High Ratio 4.85 4.80 5.35 5.60 6.00 6.20 7.14 7.69 Conventional 4.85 4.80 5.10 5.60 6.00 6.20 7.14 7.89
Mortgage rates based on a weekly survey of 65 major financial institutions.
The lowest rate posted may be conditional to the borrower meeting certain
requirements and conditions. For Lower Mainland rates try: Nova Financial
Services (John Ribalkin or Jaeson Robinson direct tel: 251-6682); The
Mortgage Source (Rick Robertson cell: 377-6985/toll-free 1-800-465-6275);
Canada Trust (Brad Currie (604-816-5198).
To subscribe to Jurock’s Facts by Fax ($125 per annum) call
683-1111/464-0808 OR fax 683-1707. While the above information is compiled
from sources believed to be reliable, its accuracy cannot be guaranteed.
Any type of investing carries inherent risks; as such we cannot assume
responsibility for any subscriber’s actions or choice of investment. ***************************************************** Iris Ho
Marketing Director
JUROCK INTERNATIONAL NET
Suite 200-1311 Howe Street, Vancouver, B.C., Canada V6Z 2P3
Tel.(604)683-1111 Fax: (604) 683-1707 Website: http://www.jurock.com/
***************************************************
Have you registered your company name on the Net?! Use our On-line Registration Form http://www.jurock.com/domain.html
SUCCESS THROUGH RELIABILITY AND CLIENT FOCUS
World Wide Web services and expertise creative solutions – reliable performance
Leave A Comment