Page 1H The Chronicle, Saturday, September 29,
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Can You Af f<
There are many reasons for deciding
to buy a house:
To avoid paying rent which is nondeductible
on income taxes.
To gain a tax deduction by itemizing
mortgage interest and taxes.
To make an investment that will
increase in value.
To build equity, then step up to a
higher bracket home. *
. Fifty years ago one could buy a per- 0
fectlv adequate brand new handbuilt
house in a nice neighborhood for
SK.nOO.?Now that mnount is half a
downpayment.
This is called progress. i
But those who bought a house 50
years ago and took reasonably good
care of it can sell it today for nearly six
times the purchase price.
This is called inflation. Most author!-.
ties questioned would cite inflation as
the reason for the rising prices of
houses. Others point out that the
problem is zoning, originally invented
to protect the value of real estate from
bad influences. House costs could be
reduced by 15%, say some, if there were
fewer government edicts to follow.
The fact is that a decade ago one out
of two families could afford to buy n
home. Today the ratio is one out of five,
even if one has an existing house to use
as equity in trading up.
Here is the way experts in economics
decide if you can afford to buy a particular
house. Fill in the blanks for the *
house you have in mind.
.... A.
Maximum House Cent (- . ) =
( ) before tax income per
year x 2.
Maximum Mortgage Pay merit ( )
z< ) before tax income per
year divided by 5.
KS GRUBBS
ggf REAL ESTATE C(
INVEST IN YOURSELF
INSTEAD OF YOUR LANDLORD
SK
Ay You may be able t0 buy *
SOLD|^|^ for monthly payments lo\
^8^ -^Jr your rent plus eni?ya siza
benefit. Your ERA' Real Es
professional can:
VdQjl Show you what's for sale
fl nO Teach you the buying pro<
- ^>V* He,p you make a smart bi
- '* : * Ca",oday
L 725-4293
Each office Independent!:
owned and operated.
Smart
Shopper's Qi
Would You Like?
beautiful window treatments? Yea
saving money?
unhurried personal service?
Free written estimates?
unusual bedroom ensembles?
decorator service at no charge?
an in stock selection of curtains,
drapes, pillows, and drapery rods?
If you answered "yes" to any (
above, you should be shoppir
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wiwrroMALiii. hjc, moa
Phone 748-8363
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B. Monthly
Cost: Total
Mortgage payment
(principal. interest,
escrow for insur
ance taxes)
Transportation ex
pense (extra fuel,
second car, com
muting costs because
of house
location)
Garbage, sewage
fees
Gas, electricity, oil
Telephone
Water ,
Landscaping, yard
care ? ? : ?
Rcdqm ,
Replacement
(water heaters, etcJ __
Upkeep (painting ?
cleaning, etc.)
House Expenses Total
C.
Maximum House Expenses/ )
= ( ) after tax income per
month divided by 3.
If your A and C answers are higher
than the cost, payments and expenses
of your prospective dream home, it is one
you can afford.
If your answers are lower, there are
adjustments you can make:
A. A larger downpayment will make
the mortgage smaller. At the same time
it will increase your equity, make it
easier to get a loan, and save interest.
Or shop for lower interest rates. Find
ing interest 1/2% cheaper on the
average loan not only reduces monthly
payments a little, but saves thousands
of dollars in interest over the years. \
B. Transportation and commuting expense,
not counting unproductive
personal hours in transit, can cost
$15-20 a day. One might find a job
closer to the house, a house closer to the
job, or an inexpensive means of travel.
Utility expenses can be cut significantly
through various energy-saving
Real Estate-Realtor-Men
Winston-Salem
768-1030
. Winston Office Open Si
3546 SHAW ROAD-Four
baths. Patio off playroom. Full
pletely renovated t^b years ag
Y Price $36,900.
WINSTON-SALEI
i, IS 725-973
mumi phones answered
^ . Office Hoi
EwKHQO 9"6 IVIOI
2-5 Sui
' ; *
CLOfS IN-COUNT! Y CLtJB A1XA 0WN*1
Df the ?plH-lev?l With finished lower ANYTE
lava I on dead-end itreet. Huge deck w/carp<
for rammer fun. 139,900. Cell Aiei ?Pprov<
ig at.
BP | ^ v
^32H
M7T PATB1A STUCET Urn* Nk? ? "J
S-mow cottage with partial baaement. Mai
LR w/flreplace, den could be 3rd spllt-le
bedroom. 119,500 with pcxalMe ape fence
cial financing available
o
n-Salem Chfoni
Vfr?.n| the list V\io?to" Ciincr 1974
The m
me Gum
3am Home?.
methods, and even telephone costs can
be reduced to a minimum with the use
of foresight.
- . 1 .1 Ann 1 11 i a 1
statistics snow inai $zu Diuion worm ^
of household goods are discarded by'
U.S. consumers every year because the
buyer does not know how or can't find
someone to make repairs for less than
the cost of new ones. Look into the
frequency and cost of repairs of an item
before it is purchased. Sometimes the
more expensive model is a best buy
from a faithful service standpoint.
For a fee. much the same as termite _
protection is sold, some insurers
promise to repair or replace malfunctioning
furnace*, air conditioners
or other budget-Breaking items covered
by the policy. Such an arrangement
could be financial salvation to buyers
of pre-owned homes.
With the exception of painting, most
upkeep expenses might be considered
as an investment in self-esteem. Capital
expenditures, on the other hand,
such as roofing, adding a room or
garage, will be dealt with to financial
advantage when the property is resold.
When making an offer for the purchase
of a house, focus on the idea that you
are paying for the house itself and that
the landscaping, neighborhood, cute
porchlight and smell of homebaked
bread are the wrapping part of the "
purchase package.
If you feel your purchasing judgment
is being clouded by desire, consider
employing a professional House Inspection
organization to examine the
property for you and present you with
a written report on the assets and
liabilities of your proposed investment. "
Pre-purchase home inspections are
gaining respect by buyers and sellers
alike. 1
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nber MLS ?1A.
Kernersville ^ L *Ji
996-2291 =tfTVXJ^
unday 3-5 \
.rS^&JI J
bedrooms, IVj ===== _. Qff
basement, com- I~ T ~ wtv
;o. New kitchen.
H HOMES pHHH ^ y?u
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1 MLS - -iSLLi tQ dQ
anytime? - J ?
urs ? IIIIIIII(|8? now t
n.-Sat., F::nrti
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nnnnr about
W1LL T1ADE rOl MO*T ' si I
UNO Naw ranch, brkk I j \ * ^
wt. 3 Bt. IVi bath*. VA Kp ! \v X?
;d South of town. Only IJil) X
Call Laura Boyd.
If ffiirii
TOT1ELD DtrVF Nm> Hum
Lovely 4 bedroom. 2 bath
vel on wooded lot with chalnllnk I j "
Carport, central air plut attic
144 onrt Martha
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When you '
find the house
you want to buy,
talk with us about
financing it.
it's the smart
nobody knows more
about home loans.
Piedmont Federal
Savings and Loan I
MAIN OFFICE '6 West Th.rd Street. P 0 Box 215. Winston-Salem, N.C. 27102
BPANlHts Norrnsifle Shopping Center, Parkway Shopping Center, Tnruway
Shopping Center. Sherwood Plaza Shopping Center, Parkview Mail Shopping | ? |
Center. Kernersvtlle. Boone, North Wilkesboro I
(QUA! HOUSING
LENDER M
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If you are tired of wsm
paying rent, JIT
>p giving your money away. < = ^
really would like to know all you have J
to own your own home^call us right [1 "
before interest rates go up again. g |
an tell you all you need to know x
buying your own home.
INVEST IN A HOME gWfl
Call Today
22-6566 or 924-5054^||l?|
Day or Night
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