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From: ark@alice.UucP (Andrew Koenig)
Newsgroups: net.invest
Subject: Re: Mortgage Down Payments and Good Investments
Message-ID: <4569@alice.UUCP>
Date: Sat, 16-Nov-85 15:14:05 EST
Article-I.D.: alice.4569
Posted: Sat Nov 16 15:14:05 1985
Date-Received: Mon, 18-Nov-85 07:16:54 EST
References: <1439@decwrl.UUCP>
Organization: Bell Labs, Murray Hill
Lines: 16

> 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?

If real estate prices are rising that quickly, why not keep your present
house and rent it out?  If necessary, refinance it to get enough cash
for the down payment on the second one.  You can probably make enough
money in rent to pay the mortgage and meanwhile you get appreciation
on two houses.