Real
Estate
Viewpoints
How Much Should
Eugene Pettis, REALTOR
You Spend On You* Home?
Certain rules of thumb are sometimes used as
guides in helping the family decide what price home
to buy. One such rule is that a family should spend no
more than two to two and one-half times the total
income for a home. For example, if your combined
annual income is $20,000, you should probably not pay
more than $50,000 for the purchase of your home,
using the formula above.
Of course, these are general guidelines at best, and
should be heeded with considerable caution. WHY?
Such generalities do not take into account the
pertinent facts about your particular family.
The size of your family is an important factor. If
you have a large family, you may decide to spend a
. smaller share of your income on housing and spend a
larger share on food or clothing.
The age of your children will also make a
difference. If your child will be going to college within
a few years, you will certainly want to keep this in
mind while arranging financing for your home. To
commit yourself to a mortgage payment beyond your
ability to pay during these years you have heavy
school expenses would be unwise.
"You may have parents or relatives that you support
or some other indebtedness that must be given major
consideration. While your mortgage payments re
main constant, prices of other household expenditures
may increase disproportionately in relation to in
creases in your income.
Your ability to purchase a home is determinec
mainly by the following three estimates:
1. The portion of your income you can budget foi
housing;
2. Your cash reserves; and
3. Your future financial prospects.
The portion of your income that may be used toward
housing can easily be determined by subtracting your
present expenses from your income; considering
what changes you could make without undue stress
and strain; and gauging the stability of your income.
If your income fluctuates, could you manage during
the low as well as the high periods? Families
sometimes find out too late that they are "House
Poor." They have fine homes, make payment on time,
and take care of household operating expenses, but all
this is done at the expense of the other pleasures of
family living. They never seem to have money for a
family vacation, music lessons for the children, or
even an occasional round of golf for dad.
Attention snoukl be given to your cash reserves in
determining your ability to buy a home. You will
probably need additional money for a downpayment;
closing cost; moving expenses; new items : curtains,
carpet, furniture, or other related expenses); for your
new home. Having a cash reserve makes for an easy
. transition.
^hird item to consider is your future financial
prjpects. It takes years to pay for a home, and you
need to be reasonably secure in your employment and
the possibility of pay increments prior to committing
yourself to the purchase of a home.
inursday, July 17, 1980 - THE CHARLOTTE POST - Page 5B
ADC Best - Dance Band Of 80's
New York-Patrons of Justine's,
one of New York City's top disco
clubs, have selected the ADC Band
as the best dance band of the 80's.
The results of a month long poll at
the club were recently announced,
one in which more than 10,000
persons voted.
Receiving over 3,700 votes, the
Detroit-based musicians won out
over seven other groups. Their
latest Cotillion record album,
"Renaissance," with the hit single
"Hanging Out" was a major factor
in their being chosen, according to
Mai Woolfolk, one of the club's
owner's who supervised the ballot
ing.
"uver the course of an evening
over 77 records are played," Mai
said, "but we find that our disc
jockeys receive countless requests
to play ADC records throughout
the night. Their unique sound is
vastly superior to most of today's
outfits."
A successful funky band, they
have been together for over a
decade and developed their style in
the Motor City playing in small
clubs and at dance hops.
Signed by Cotillion president
Henry Allen two years ago, they've
had two previous albums, each
spreading their reputation and
receiving cricitcal acclaim. How
ever, their current LP is looked
upon as the one that will really
bring them the fame they've been
striving for during the past ten
years
I
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