Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 10, 1973, Winnipeg, Manitoba 16 Winnipeg free press tuesday july 10, 1973 fair Cash rent depends if you Are landlord or tenant with the growing use of Cash rent a common question is what s a fair in other words they want an economic answer Lom thing not easy to figure out. The actual rent sullied on of course will be some where Between what each feels is economically fair since Supply and demand for land in a particular area is the most important Rale seller for Cash rent. If the going Rale in an area is an acre a renter will have a Tough time gelling the land for unless Iacre Are unusual circumstances. Similarly landlords will live to stick fairly closely to the Rales asked by other landlords. Bui looking at both sides of Hie que lion from the landlord s and be nails s viewpoints is useful in setting a Rale. It s also a Check to see if you Are paying too much or charging Loo Little from an economic standpoint. Landlords and renters approach the Cash rent question in different ways. The landlord is Likely to consider the Ren Tal fee As a return on his investment. The tenant will pay real Only because the land can produce crops and livestock for the available Markels and in this Way generals in come. Economists say the Lennal will have two considerations in particular Hal lend to put a ceiling on the amount o rent Hal he would normally willing to offer. First Here must be sufficient income 50 that after paying All operating expenses there will still be Satis Fae Lory returns for labor and Mina Gemeyl As Well As land capital and risks. Lei s Lake an example. Say a Farmer is considering renting land for growing wheal. On a per acc basis he would consider the following expected income 30 bus Al a Bushel costs of production seed fertilizer Weed control fuel hired labor use of All machinery difference Between income and production costs re turn for use of land labor management capital and risk individual s acceptance level of return to labor management and risk i o keep abreast of today s scene subscribe now to Canadian tax news edited by Donald r. Huggett . Partner Coopers it Lybrand Canadian Tux news provides executives with much o the information and interpretation of the Canadian tax scene that is needed to develop management Strat epics and to Prosper in the face of economic uncertainty. Each of the 11 issues will include an essay on an important area of taxation a tax in Bricf Section mar Ginal notes and cumulative Index. Available in English and French. Per year including Binder Send your subscription older to publications 2330 Midland Avenue Agincourt Ontario confidential executive Loans. Our executive loan plan can provide you with Quick Cash when you need it. Your application is All that is required to borrow up to in Complete Confidence. All arrangements will be made by private unmarked mail. For information Call or write our executive loan division. Itri state acceptance co. Limited 510-3b2 Donald Street. Winnipeg. Manitoba a suit Mitry of a Gilt l Hellei get a perfect answer with a Philips g code a phone 560 the automatic Tel Phons answering sysum Anim on for a fled. Stu anti May retrieved by Caparbi lilith Youcan ase this machine s per month Foj As Low As write or phone National answering systems a division of National typewriter i office equipmentc0.1id. 639 Portage Avenue Winnipeg Man. R3b 2g5 Telephone 786-6611 farm report by John Clark United Grain growers interest on investment at s a per cent taxes Upkeep of fences Etc. Maximum amount Hal could be paid for rent second the amount of rent must be no More than the Cost of owning the land. Lei s assume the land fur growing lie wheal in the pre Vious example could be bought for an acre. The Cash payments required to buy the land and maintain it could be annual mortgage payment 29-year amortized loan with interest at s a per cent taxes Upkeep of fences Elc. The coiling would therefore be based on a Cash flow approach. As a Long term investment the Cost of owning land is somewhat different. In this ease interest on investment would be included As an oppor Lucily Cost. Changes in land value would also have to be included. An annual Cost of ownership of per acre would then be determined As follows ids chief pressing for equal Opportunity by John Mich anus Paul n. Duval says the Industrial development Board of greater Winnipeg Hopes the Western economic conference will provide equal we re not looking for the chairman of the 1db said in an interview the Agency had offered some real views involving Hopes and fears for the future of Manitoba and the w e s i in with Olla a. The conference is to be held in Calgary this month Wilh the prime minister and Western premiers in attendance. Or. Duval could find Little agreement with a Feder Al forecast indicating there would be Little Progress in Industrial and other development in Manitoba and Saskatchewan. The forecast is probably based on extending into the future the kind of things that have been happening. Alberta and Ontario have grown Fasler and in is not a new negative if they continue to do so. Our Job is to change that of the id the chair Man said the new relationship Wilh the cily of Winnipeg has worked fairly Well although it still has to be developed in terms of information and planning. In 1972, the City assumed responsibility for the major portion of the Board s financial support for Hie year. The cily Council also requested an assessment of various Board activities and appointed a task Force. The task Force looked at Ide s promotional activities pertaining to the cily s economic development with the Complete co operation of the Agency s Board of Dirc Clors. The cily also asked for Parli ipalion on the Board. Or. Duval said in uie past six months the Board has been More Active in terms of inquiries for pos sible Industrial Sites lie said he though downtown development w a s going Well even outside the designated 14-Block area. We hear of Oiler projects within the immediate area thai arc being Alt acl cd by in. There is a Good possibility of a Hyatt hotel being located in the imme Diate Vicinity of the convention Centre. We re confident this a Lively is Lead ing to further development both residential and Indus trial in the suburbs. There is More than reasonable encouragement in the announcements of Tri Zec and Centennial Gar Dens on the old St. Paul s site. There Are also evident indications the service industries such As restau rants Are looking to locale in inc downtown he also no cd the re placement Hal will be erected on the site of the burned Oul Kensington building As an expression of growth Confidence in downtown Winnipeg. Or. Duval said the cur rent need for hotel and Motel accommodation Here has Benefit cd places like Portage la Prairie and Gimli. The chairman said it was essential a decision be made soon on rail relocation so that transportation to serve Industrial and re Sid Colial areas can be decided. He indicated inc delay is particularly import land to Industrial develop ment. We re excited about the concept that will follow rail relocation. Land will be made available. The sub slant Al land that will he free by relocation of the car and up rail will pro vide great Opportunity to do some worthwhile things. We re assuming redevelopment and rail relocation Are separate. Some groups have shown concern that the freed land will be filled with expressways and service roads. As far As the Industrial develop ment Board is concerned the kind of develop Cal to be carried Oul is still very much open. "1 think there Are some exciting possibilities for future development Over the next 10 years. Lot s Hope there will be some firm decisions made soon thai will open the Way for a Start on the needed Rede or. Duval said the id would probably announce in detail this week the con tent of communications it has had in regard to the Western ministers meeting Wilh the prime minister this month. California Auto sales lagging by Dan i Sindr los Angeles special tons California s Auto Market so far in 1973 is a h Tlle like inc Guy who finally gels a Hig enough raise to afford a Brand new Chevrolet. Etc Ryling is Fine until he drives Home Only to see his neighbor pull up in a Cadillac. While Auto sales nationally Are 15 per cent ahead of the record year ago Pate in California sales gains arc apparently Only half that. In the Southern half of the stale inc Pace is even slower. A major problem according to manufacturer representatives and dealers Here is that the Assembly lines can t Roll out the types of ears californians want fast enough. Of her observers however think the slower Cali fornia Pace will spread to the rest of he country. The Auto Industry has been sur prised at the of the a Lional sales surge anyway and they expect a slow Down. I would t doubt hint you re picking up the to g i n n i n g of something murmurs one sales analyst for a Detroit Auto maker in a Telephone incr View. Complicating a n y at Cimpl to compare califor Nia Auto sales Wilh those in the nation As a whole is the fact thai different sets of figures Nusl he used. . Auto manufacturers report National sales every to Days based on reports from i hair dealers. Importers release comparable figures once a month. Neil her however Breaks Down Hie numbers on a state by Stalc basis. California sales is Lima Les arc based on Fig u r e s assembled by the s i a i c s department of motor vehicles As new ear buyers Register i hair vehicles. These registration Fig ures typically come Oul two or three months later than sales totals released by the Auto companies. Auto company re present Alivs Here agree Hal National sales continue to out Pace California gains Al though they disagree on How much. John Hall los Angeles District sales manager for the Ford motor co. Ford division for example says his records indicate thai division sales in the District Are up Ali per cent from 1972 Levels so far this year. If admits however Hal the local Industry in t running As Strong Asna indications last week Are that the Federal govern ment was Al last prepared to listen closely to the Opin ions of Western Canada governments and private development agencies or. Duval said. One of the lesser activities of the id is the Annu Al publication of pocket Wallet facts edited by g. E. Paris who looks after inc Board monthly win n i p e g Industrial topics publication. T h c pocket edition is jammed full of information about Winnipeg and its population i i s Industrial and manufacturing Indus tries and recreation facilities As Well As an outline of Manitoba s resources. Or. Paris said business men who travel out of the City should have copies on hand to promote Winnipeg. The editor feels with Winnipeg s Centennial Only m o n i h s away everyone should be helping to pro mole the event far and wide Wilh printed facts Oul lining what the City has to offer. 512.75 expected appreciation on land value per cent a year annual costs of ownership the rate of appreciation or Dupre Calion on land value can Only be an estimate and must be used Wilh caution. Thus the tenant can look at the amount of real he would be willing to pay in different ways lie examining equal rental fees in these ways he is in a position to know inc ceiling above which he would nol normally go. Depending on How Good a Bargainer he is in May be possible for him to pay something less than the amounts calculated this Way. The landlord has a certain approach to the question of fair rent As Well. He May look on his ownership of land As an investment which must earn him a reasonable Rale of Clurn. For example a landlord owning land Wilh a Market value of an acre May decide Miat a fair real would be tical on investment per cent of taxes Upkeep of fences Csc. 51.00 administration 59 expected appreciation on value of land 3 per cent per j ear real needed to provide desired return on investment the amount of taxes that would usually be used in determining rent would be uie net taxes. The parly that would Benefit from tax rebates and other tax concessions introduced after the rental agreement has been prepared would Likely be negotiated by uie parties involved. The reason for the change in the taxing procedure would give some direction in helping to decide who should receive inc Benefit. Paul n. Duval our Job is to change what has been memo to advertisers pay your Wigney Anta Keyhour chances that s pretty much the Way it is with some advertising Media not even the proprietor really knows for sure what he is Selling. Most times unknown unmeasured unaudited and unnamed circulation audiences Are wisely Odds just Don t favor the advertiser s Dollar. We believe you should have the facts before you buy. That s Why we have the audit Bureau of circulations verify our circulation regularly find and report the actual figures according to their standards and based upon their auditors inspections. Above Board Abc sure with the Winnipeg free press 300 Carlton Street the audit Bureau of circulations is a soil regulatory association of Over 4.000 advertisers advertising agencies and publishers unit is i As a Bureau of standards or the print Media Industry. Abc statements Are available irom free press sales or phone Ron Burke retail supervisor fit 943-9331 ;