Show c. c 6 P. 5 I t I BUSINESS and end the STOCK MARKET by BABSON'S REPORTS INC Copyright 1073 1913 TOO LATE TO BUY A HOME People in the United States are in the process of deciding whether to build or buya buy a home Some are newlyweds or not yet married Some are singles not yet yet- into their or and have been living in apartments or with their par par- Many already own their homes but need a different type of house or a summer summer sum sum- mer residence Or they have to buy but a a new place because employment or other considerations considerations considerations con con- have dictated a move from their present home Si Should fifes build or buy That ThaUs is tI their ir 64 q question Many of them postpone a decision because they are frightened by high cost including mort gate rate and taxes as aswell well as the price of the home They think that biding their time will get them a better deal but this does not often turn out to be the case LAND PRICES It is true that lots of land in some lo lo- especially in deteriorating urban areas do not appreciate as rapidly as tracts in the suburbs but for the most part individual plots or tracts suitable for subdivision are firmly locked into a long long- term The growing needs of a population of million see to that Time was when land values did drop when economic recession hit But during the past decade this has tended to be the exception rather than the rule So there is no great point in delaying your plans to build or buy a home because you a slide off in land prices Either the slide off will not or all or it will not be large enough to warrant the delay and inconvenience COST OF BUILDING And while you are waiting for land prices to come down substantially you may well be losing out on the other end because of rising building costs Quotes for labor and materials have been trending trending trend trend- ing up for the past several years Even price and wage controls have done no nomore nomore nomore more than slow slaw the rate of rise As for existing houses there has been beena a steady climb cUmb in proceeds proceeds- for quite a few years In many areas the annual increase in inthe the selling price of used homes is topping 1000 The research research research re re- re- re search staff of Babson's Reports is convinced convinced convinced con con- vinced that still bigger boosts lie ahead MORTGAGE FUNDS While mortgage rates are not as high as they were in 71 1970 their decline from those lofty peaks has been slow and slight The next broad move will win be on the upside in fact it has started Of course mortgage rates and the availability of mortgage money do vary from region to region even from bank to bank in the same of adjacent localities In September the average interest rate on new-home new mortgages n was percent down dO a speck from August but higher than rates for the June April period In Inmany Inmany Inmany many parts df f the country mortgages can be negotiated at rates closer to to or even below 7 percent But as a rule you will pay considerably more in the West Nest where rates well above the national norm have prevailed for several years YOUR NEEDS PARAMOUNT Even in these days of 01 relatively high interest rates you can get a better mortgage mort mot gage deal by careful shopping The same goes for home selection whether you build or buy Do not jump at a builders builder's or sellers seller's pitch without checking to see that you get what you want Aside from this elementary caution over ove money rates and the cost of the home itself however do not delay unduly the building or buying of a house which you need or could use to best advantage right now Health and happy living arrangements arrangements arrangements ar ar- ar- ar should outweigh penny- penny pinching in this area of steadily rising home you are satisfied that you are are receiving a fair value for your outlay you can make the purchase without going too heavily into debt |