by Jeff Colbourne
Northern News Services

NNSL (Feb 17/97) - The territorial government is getting out of the staff housing business.

This is no surprise to government employees across the North. But what is surprising is how tight the housing market has become with very few buying options for potential home-owners.

Brian McQuarrie, for example, is a government employee who works as the finance officer with the hamlet of Repulse Bay. He's looking to buy a home.

His current 10-year-old, two-storey, three-bedroom government-owned house was appraised late last year at $150,000.

It's a price tag he says is way out of his league.

"I don't know what's going to happen next. I can't afford that on the income I have," said McQuarrie over the phone from his office.

McQuarrie, a single man, made an offer of $62,000 to purchase the house. A couple of week's ago he was contacted by Re/Max Diamond City Real Estate in Yellowknife, the company selling off government units.

He was informed that his offer was rejected.

McQuarrie was then asked to make another offer, preferably 90 per cent of the appraised value, or $135,000.

McQuarrie said he's not willing to make the offer. Minimal maintenance has been performed on the unit while it was owned by the territorial government and, after all, it is 10 years old, he said.

"It's not worth it."

With pen and paper in hand, McQuarrie began to calculate what he would have to pay if he decided to go with a $135,000 mortgage on the unit.

With a five-per-cent downpayment of approximately $7,000, an interest rate of 7.9 per cent over 15 years on $128,000, plus fuel costs and land lease costs, McQuarrie said his housing would run him well over 50 per cent of his take home pay.