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From: marks@yogi.DEC
Newsgroups: net.invest
Subject: Mortgage Down Payments and Good Investments
Message-ID: <1439@decwrl.UUCP>
Date: Thu, 14-Nov-85 16:18:03 EST
Article-I.D.: decwrl.1439
Posted: Thu Nov 14 16:18:03 1985
Date-Received: Sat, 16-Nov-85 21:05:16 EST
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I am selling my house and buying another.  Because I have been in my
house for 6 1/2 years and the market has gone up in the Boston area
considerably, I have a large amount of equity in my present home, and was
planning on putting most of it down on my new home.

Many people have been telling me, however, that it is unwise to put
most of my money into a new house (I was going to put 2/3 down, but
my mortgage will be about 2 1/2 times as large as my present mortgage,
because prices have gone up so much).

My question is this:  how should I invest my money?  I want to keep my
monthly mortgage payments down (my present ones are $260/month, which
is not realistic today, but I would like to keep them under $600/month).
If I put all my equity into a new house, I will be able to do this.
If I put 20% down and invest the rest of my money someplace else, where
and how should I invest it?  The real estate market has been appreciating
in this area at least 25% per year for the past couple of years (I heard
the figure 42% for this year).  What kind of investment should I make to
realize a decent return on my money?  Why shouldn't I put it all into
a down payment on my new house?

Thanks for the advice.

R.M.