Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, Aug 14 1992 Date: Fri, 14 Aug 92 04:30:56 EDT Message-ID: 08-14 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 14-16, 1992 Source: USA TODAY:Gannett National Information Network O&Y ANNOUNCE RESCUE BID: Olympia & York Developments Ltd. officials announced Thursday that a rescue package for the company's Canary Wharf project in London is being considered. Canary Wharf's 11 bankers are reviewing the package by CBS Inc. Chairman Larry Tisch and investor Lewis Ranieri of the United States. An unnamed official added that O&Y is currently speaking with six parties interested in investing. US INVESTORS SUPPORT PROJECT: CBS Inc. chairman Larry Tisch and USA investor Lewis Ranieri have offered a rescue package for Olympia & York Developments Ltd.'s Canary Wharf project in London. O&Y officials announced Thursday that the project's 11 construction lenders will probably meet with Tisch and Ranieri before the next group discussion. The project owes more than $2 billion to investors. VETS SLOW TO REFINANCE: The Department of Veterans Affairs reported Thursday that low rates, with a ceiling of 7.5%, have not set off a refinancing boom. Only 33,000 vets have traded in their high-rate loans. Another 1.5 million still hold loans with rates of 9.5% or more. The average savings of refinancing under the VA program would be $1,452 a year, with a portion guaranteed payment by the DVA. REPORT SHOWS EMPTY SPACE: A study from Coopers & Lybrand, released Thursday, examines the results of the 1980's building craze and reveals a lot of unused space. There is enough empty office space to give every U.S. worker another 62 square feet of space. For every industrial worker, there is another 52 square feet of empty factory space. Numbers are similar for hotel rooms and retail stores. LOANS OVERCHARGING: Nearly three-quarters of all borrowers are being charged the wrong amount of interest on their home-equity loans, a consumer group said Thursday. Consumer Loan Advocates, a non-profit group, says it found interest-rate errors in 74.5% of the loans it examined. Of those mistakes, 67% were in the banks' favor. LOW RATES, HIGH COST HOUSING: The National Association of Realtors said Thursday that the cost of homes for first-time buyers is getting further out of reach. While the Housing Afforability Index rose to 121.2 in the quarter ended in June, first-time buyers can't afford the down payments. Low interest rates continue to make homes more affordable, but sluggish income growth has hurt the industry. FDIC TO HOLD AUCTION: The Federal Deposit Insurance Corp. will offer approximately $600 million to $750 million of commercial properties for sale to investors at an auction Dec. 1-2 in Dallas. To make the December event attractive and fill the void of available financing, the FDIC will also offer seller financing for the 200-plus properties. The auction will be similar to the FDIC's 1991 auction. PROPERTY FOR SALE: Office buildings, shopping centers, industrial properties, apartment complexes and hotels located in 20 states will be auctioned by the Federal Deposit Insurance Corp. in December. The FDIC announced the auction Thursday. The auction will be held in Dallas with satellite hook-ups to Boston, Miami and Los Angeles. Properties will range in price from $500,000 to over $20 million. INT'L BUILDING DOWN: Reports Thursday from around the world reveal a slowdown in property sales, both residential and commercial, and in the construction of new buildings. First-half sales at French construction companies were down from a year ago, and Germany reported that industrial building orders fell 13% in May. USA companies surveyed this week expect business to stay down. T-BOND SALE A SUCCESS: The Treasury's $10 billion sale of 30-year bonds was dubbed a success by traders Thursday as the government's three-day quarterly refunding ended. The 30-year bonds sold for 7.29%, the lowest rate since regular auctions of the bonds began in 1977. The rates were also lower than Wednesday's yield of 7.32% on existing 30-year T-bonds. At the previous auction May 7, 30-year bonds yielded 8%. TRUMP PROFITS UP: Trump's Castle Casino Resort officials announced Thursday it's six-month income from operations increased. Income increased about $8 million before charges from interest, restructuring costs and depreciation and amortization, a 128% increase from last year. Net revenues for the six months improved about $23 million from 1991 to 1992. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.06% Thursday, unchanged from Wednesday but up from 8.05% the week before. They were at 9.27% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.30%, unchanged from Wednesday but down from 5.37% the week before. A year ago they were at 7.14. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.57% Thursday, unchanged from Wednesday and unchanged from the week before. A year ago they were at 5.88%. For the 11th District ARM index, rates were at 5.258%, unchanged from Wednesday and unchanged from the week before. A year ago they were at 7.155%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Thursday, listing at 7.41%. That's up 0.09 from rates of 7.32% Wednesday but down .03 from 7.44% the week before. A year ago T-bonds were at 8.08%. Real Estate Editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM