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From: csc@pyuxjj.UUCP (C Clinger)
Newsgroups: net.invest
Subject: Re: Appreciation of Home Value
Message-ID: <646@pyuxjj.UUCP>
Date: Tue, 19-Nov-85 17:35:54 EST
Article-I.D.: pyuxjj.646
Posted: Tue Nov 19 17:35:54 1985
Date-Received: Wed, 20-Nov-85 08:31:26 EST
References: <1439@decwrl.UUCP>, <20@pixdoc.UUCP>
Organization: Bell Communications Research, Piscataway, NJ
Lines: 22

In reference to the discussion on how much to put down on a new
house when selling a house.  The appreciation rate of the new
home should have no affect on the decision.  

Simply put, all the increase in value of a house you purchase
(whether it is 80% financed or wholly owned) is yours.  When
you sell a house you get the purchase price less the amount
remaining on the mortage.  Thus is doesn't matter wheather
you put the money down up front or pay off the mortage at
the time you sell the property.

For the purist's in the crowd --- whether you put more down
on the house will affect your return on investment percentage
when you sell the house since the less you put down on the
property the higher the percentage of growth on your investment.
(ex. you purchase a home for 100K and sell it for 200K; if you
put down 10% (10K) you net 110K or 110%; if you put down 50K,
your net 150K or 33% )

Corey Clinger
bellcore!pyuxjj!csc