The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

1 «-Orono Weekly Times, Wednesday, SEptember 5th, 1979 ttoium lente The five-year plan for home ownership By Jack A. Boultbee, CA For engaged or recently- married couples, buying a home is usually high on thé list of goals to be achieved and so it should be. A home of your own is probably the best investment investment you will ever make. The value of the property goes up while your mortgage mortgage payments remain relatively stable and your increasing earnings make the payments progressively progressively easier to bear -- and any profit you make from the sale of your principal residence is exempt from capital gains tax. The problem most young couples face is that they have no money right now, General financial advice by members of the. Institute of Chartered Accountants of Ontario. and ar% faced with, saving for an unknown -- but definitely long -- period of time. Just how long and how hard you save is up to you,' but my advice is to stick to an agreed five-year plan. The route many couples take is to try to live on one salary while banking the other. A problem with this, however, is that it can place an additional strain on the marriage itself. One partner may feel he or she is working for nothing, and this often leads to bickering bickering over allowances, etc., when one partner ends up taking all the responsibility for the money. The five-year plan is -not easy to stick to, but it's simple. Each partner should plan to salve about <150 per month after, the rent and fixed expenses have been paid, perhaps out of pooled earnings. By putting $1,000 per year into a tax-free Registered Home Ownership Savings plan, the remaining $800 per year into a tax-free Registered Registered Retirement Savings Plan and the resulting extra tax rebates into a separate savings account, each of you can accumulate over-all savings after five years of at least $14,000. That's about nearly $30,000 between between you -- about a third in long-term savings and thè rest as a downpayment on,a house. If you are now paying $300 per month rent and each of you saves $150, you will be putting out $6,000 per year for shelter and savings. In five years your rent will be about $400, so you will then be putting out $7,200. For that same amount, with no additional sacrifice, you can assume a $50,000 mortgage and $1,000 per year of additional homeowning costs, on a house worth $70,000. It also • means you will have solid equity -- about 30 per cent -- in the house from the day you move in, which is very important. You might be tempted to buy earlier, with a lower downpayment, but be wary of second and third mortgages mortgages with their high interest rates. Don't buy with less than 25 percent down and never assume mortgage payments exceeding exceeding 25 percent of your take-home pay. The five-year plan is realistic and gives you a definite goal. Any additional additional saving you can manage will be a bonus, but sticking with the plan should be basic. Mr.' Boultbee is with Coopers and Ly brand, Toronto. Esso Econoblue: THE NEW LITTLE FURNACÈ THAT CAN SAVE A LOT OF FUEL The new Esso Econoblue takes up only 3Vz square feet of floor space. Yet it is designed for maximum tuel economy. This oil-fired, forced air system uses a, better mixture of air and oil vapour for more complete ■ combustion. And because the mixture is also recycled, you get more heat out of every drop of oil. 1/ your old furnace works at 66 'percent efficiency, for example, Econoblue could reduce pil consumption by 20 percent. This means' if you now use 750 gallons of fuel a year, Econoblue could save you 150 gallons. So, if your furnace has been showing signs of age lately, don't wait until it gives up altogether. Call Harvey Partner Limited. Limited. The sooner you do, you'll start saving fuel. 983-5206 or Zenith 14620 Bowmanville 623-2301 Professional Services Clarke Public LIBRARY F HONE 963-5507 Monday, Tuesday, Thursday and Friday 2:00 to 8:00 p.m. Saturday 10:0010! :00 p.m. Orono, t -ntario F.R. Tennant Fuels Ltd. Phone 983-5693 To the Unfit If you just sit You won't quit Being unfit. BYAMS PLUMBING-HEATING Sales and Service 24HCUR BURNER SERVICE GULF FINANCING Low Interest Rates CùryWaü Taping - Spray Ceilings Plaster Repair Painting Wally Lucyk 983-5518 ORONO Orono 'Building Contractor Brick - Block - Concrete StoneWork Carpentry - Cabinet Work Floors-Tile Phone 983-5441 ORONO Bra't Leave It te Ounce.- v Be sure your home is truly protected by a good policy Call us now Millson Insurance Agency Office: Corner of Church and Cobbledick Street 983-5032 PUMPING OUT SEPTIC TANKS CLAUDE HARNESS Formerly Bert Tomkins Phone 786-2552' William C. Hall, B.Comm. Chartered Accountant Phone Newcastle 987-4240 ALL DAY WEDNESDAY and SATURDAY Dave's Plumbing Heating Electric Industrial - Commercial 786-2471 R.R. 1 Orono Hamiltons Insurance Service Susan ffi. Sawyer Office 983-5115, Home 983-5270 Main St., Orono MevA Floral Creations "FLOWERS WITH FEELINGS" FOR ANY OCCASION FRESH & DRI ED FLOWER ARRANGEMENTS for WEDDINGS, FUNERALS, HOSPITAL AND HOME Telephone 623-3377 162 King St. East Bowmanville ORONO ELECTRIC LTD. ELEC TRICAL APPLIANCES COLOUR T.V. HI-FI HOT POINT R.C.A. ELECTROHOME WHITE WESTINGHOUSE FRIGIDAIRE SIMPLICITY "'OVER Majorât Minor Repairs BOTH FOREIGN AND DOMESTIC -ENGINES REBUILT -VALVE JOBS -FRONT ENDS -TOWING MANGER'S GARAGE ORONO 983-5130 ■ I I I I ■ 8 1 I 1 I I Our Fireplaces DO NOT Smoke CHIMNEY CLEANING OXFORD Bricklayers - Stonemasons Ltd. ORONO, ONTARIO PHONE 983-5606 1 I 1 ■ ■ 8 I 8 a § I 8 1 8 m i 8 .8 1 1 8 8 8 8 I 8 8 DX SERVICE STATION Highway 35 & 115, just north of Newcastle Featuring: Premium QUality Products At the Most Reasonable Prices Stove Oil & Diesel Oil Available in any quantity Phone 987-4215 We hâve a complete line df POP-CITY 1 Soft Drinks. ' Save by buying these a case at a time. 8 1 S l 1 8 1 fl '8 8 I a 8 8 8 8