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From: scott@hou2g.UUCP (Mr. Atoz)
Newsgroups: net.invest
Subject: Re: A Question
Message-ID: <835@hou2g.UUCP>
Date: Fri, 28-Mar-86 13:34:26 EST
Article-I.D.: hou2g.835
Posted: Fri Mar 28 13:34:26 1986
Date-Received: Sat, 29-Mar-86 15:56:55 EST
References: <12724@ucbvax.BERKELEY.EDU>
Organization: The Library
Lines: 32

>>>> The advice I've been hearing lately is that you should try to go ahead
>>>> and buy the house as soon as you can, as real estate prices tend to
>>>> rise faster than your ability to purchase. Prices will not get lower,
>>>> and the mortgage interest rate should be at bottom in the next month
>>> 
>>> This is *not* generally true. In Oregon, prices have been dropping
>>> over the last several years, and I know several people who have lost
>>> money (in the form of equity) as a result. 
>>
>>A safe claim is "well located single-family detached houses hardly
>>ever decline in value".  I don't know about the situation in 
>>Oregon though.  Prices have been firm or rising most places I'm
>>familiar with.
>
>This is simply not true outside of the Bay area. Nationwide, in most markets,
>housing has went down the last 18-24 months. 

There are many places "outside of the Bay area" that have done quite well,
some much BETTER.  It is true that many areas have seen either no increase
or a real decrease in value. (Witness the recent popularity of 15 year 
mortgages--equity increase is not as complete an investment tool as it used
to be, and reducing interest payments has become more important--as the rate
has gone down.)  However, the bottom line is that the original poster lives
in Central NJ, where appreciation is QUITE high.  Many areas in the state
have experienced 18-20% appreciation each of the last two years--sort of like
Silicon Valley years ago.  The "buy now" advice is sound.

		=========================================
"When did you figure all THAT out?"
"During the commercial..."
		Scott J. Berry		ihnp4!hou2g!scott