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Show The Enterprise Review , June 2t 1976 Page lib Higher Mortgage Rates Set Back Construction Hopes for early recovery in apartment construction have been set back by a stiffening in mortgage rates in the past 30 days, Advance Mortgage Corporation reported today. The long trend of rates on declining apartments six-mon- th and commercial properties has come to a halt, Advance Mortgage found in its monthly survey of benchmark mortgage rates. Rates are now level with a month ago or fractionally higher. Lenders are showing a Investment Summary Continued from page 10b It would also be reduced dollar by dollar as preference income exceeds $20,000, and vanish entirely when it reaches The rate of the $40,000. minimum tax would also be increased from 10 to 14 percent. I supported this amendment and felt that there w'as no justification for permitting preferential income to be offset by regular taxes paid. This revision of the minimum tax standards brings an important measure of equity to the federal tax code and helps equalize the burden between CM NK3HT IWT0 1HS varying income groups. The problem with tax reform in a high deficit budget is that when the Federal Government is borrowing to sustain its budget while at the same time placing severe limitations on what private entrepreneurs can do with their working capital, the result is bound to be less development, less jobs and small growth. n That is a situation and it is the belief of this Benchmark Rates writer that Congress would be better advised to use the tax y Advances laws to encourage rather than benchmark rate for apartment discourage real estate f. no-wi- end-of-Ma- STOIC I TOM I mortgages was 2 2 up from a firm a month ago. At the end of March, it was 2 Its rate for mortgages on medium-size- d shopping cen9-1- Fi-A- T - 9-1- ters was IPfiLASS, M 4, 9-1- 2 9-5- 8. percent, their hopes farther into the future. The new mortgage trend is largely a reaction in sympathy with the recent rises in corporate bond yields. There is some irony in this because the thrift institutions which have the largest share of the available funds have limited options for corporate bond investment. The benchmark rates represent Advance Mortgages best judgment of typical current rates for typical mortgages on new construction from the institutional investors now in the market. Rates and conditions for individual loans may vary up or down from the benchmarks depending on such factors as region, location, size, delivery date, tenant credits and lease terms, ratio, etc. Advance Mortgage Corporation, the nations second largest mortgage banker, is a subsidiary of Citicorp, New unchanged from last month. Its benchmark rate for projects secured by strong tenant credit was 9 unchanged from a month and two months ago but tending more toward the higher side of (Credit-secure- d the range. projects may be shopping centers, office or industrial buildings.) Most mortgages on apartments and office buildings are being written with early call provisions, which permit the lender to call the loan within 10 or 15 years and refinance it at the then prevailing rate. Many apartment developers had been hoping for a rate decline to the range of 4 percent to make their projects feasible, Kozloff observed. This firming trend pushes York. 9-1- 4, 9-1- P a dth. TUB, HRS, TIM CAMS, 9-3- 9-1- A8SCCKP0P (Olffl 110 TBS. OP POMR Q5l strong preference for existing projects (where loans can be disbursed immediately) over new construction (which will not be ready to fund for at least a year). They are offering premiums of 14 for loans ready for immediate funding. A month ago, this premium was rare. This situation does not reflect demand and supply in the mortgage market, says Advance Mortgage vice president-incom- e loans Philip H. Koz-lofAvailable funds are very ample, perhaps at a record high, and the supply of acceptable projects is limited. Rather it reflects the declining prices (and rising yields) on corporate bonds and the steady recent climb in the federal funds rate which is giving rise to new fears of disintermediation. SL06MC, r Qoxm? AWP MAPS d&K to loan-to-val- ue ucmcw wPSFSIPENT! MVSetF A . cAp mv' &ppIM& mw mW. Letters Dear Editor: Needless to say, your article in last issue, May 26, The needs more research and understanding from your part before you can make any comments in regard to Corporate Identity (Logos). You make statements about the worst possible examples you could present. Drawings obviously done by high school students who like to impress someone. Or by people who feel they do not need a professional designer with proven experience. You judged without knowing the facts or understanding. Neither logos you reproduced can be considered as logos or corporation identity. Better examples are IBM, Mountain Bell who did pay for the System, Mountain research by lawyers and marketing experts. It happens that at times a logo is duplicated (NBC) which cannot be avoided. The aim of every professional graphic designer is to identify the character of the company, the kind of service it offers and how it needs to be applied to the products and other advertising materials. Most designers do not see the Un-Colum- n, Fuel-compa- Editor nies g elevation of their craft, as you design of a logo as a so in it convincingly put your article. Logo design for a professional designer is serious business. The identity has to represent that company effectively and with a purpose. I think your statements and evaluation are unfair, hearsay and certainly unfounded and supported by a gross neglect in experience and knowledge on your side. Symbolism, which logo design is a very part, came before the written language was invented. In most cases symbolism is more effective and its international with no limitatins to language barriers. I suggest you retract your statement, learn the facts, and possibly if you really are motivated - go to school or get information from reliable graphic designers. self-servin- Sincerely, Lucas R. Visser Total Design |