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Show Page 16 Alpine Real Estate Guide Spend Sou By DON G.CAMPBELL "Saving money" is one of those things that seems to be so simple in its concept, but which gets so terribly complex on closer examination. When you take 10 percent of your paycheck and hide it in the mattress, you're "saving money," right7 Not at all you've doomed it to steady erosion and the money might have been better "saved" by spending it on something you need that, next year, will cost 20 percent more than it does today. . We may not Tike this fact of life-and we SHOULDNT-but that, all too often, is how it works out. Q: As a low-income working person, I've always had trouble with your advice ad-vice that we should carry a large mortgage mort-gage because it permits us to pay off today's debt with tomorrow's dollars." It seems to me the high interest we pay quickly converts today's dollars INTO tomorrow's dollars. In the early years of a mortgage, a $150 payment will add less than $50 to your principal, and over $100 goes to interest. Paying $100 for the privilege of borrowing $50 certainly puts it in "tomorrow's" ballpark. Sure, as the years drag on it gets better, but only in the last few years does the principal and interest ratio hit a respectables balance in my mortgage book. You somehow imagine that by going deep into debt we'll have lots of money left to invest and that will put us way uteres From Page 1 'The situation in Park City is very sound," Coleman added. . So the consensus among local real estate brokers and agents is that things might be better but they are far from being bad, in fact, they feel Park City is being impacted relatively little by current economic conditions while much of the country is being hit hard. Despite high interest rates, interest in Park City real estate is still high. ahead in the long run. It's just not so for large families with small incomes. A home that's paid up allows us a few extra dollars each month to better our general quality of life when we need it the most to make home improvements, improve-ments, pay for schooling, take a family vacation. I'm afraid your advice is for people with money to slosh around. Mr. B.B. (Bethlehem, Pennsylvania) Penn-sylvania) A: Jl don't blame you for being incensed in-censed at the notion that it's better to be in debt than it is to own a home outright it goes violently against the grain.;. against everything that most of us grew up believing in. So, please don't feel that when I advocate ad-vocate a mortgage over outright ownership, I am happy that the situation exists. But, when you've got the dollar eroding at the rate (currently of more than 13 percent a year) it. is like it, or not it's the only way that that you have either been able to ac- I don't want to be critical, but there ' is a sharp contradiction in your letter. On the one hand you make the point that, as a small income family man, you have no money left over to invest. But, at the same time, you have a home "that's paid up, " which simply means that you have either been able to accelerate ac-celerate your payments to achieve this or, possibly, received a windfall inheritance of some kind that made it possible. It is (was) money, frankly, that could have been better employed t Mates people in town who feel forced to sell might have to give up something but it won't be much because the buyers will be here." Coleman also thinks the current situation could attract more Salt Lake City investors. "Salt Lake City will watch us and discover that Park City is still healthy despite the high interest rates," he said. "And this will make them more in- dined to buy here." als Savings in another form of investment. But, the minute I say "investment," you immediately conclude that I am talking about large sums ("people with money to slosh around") and nothing could be farther from the truth. I'm primarily talking about people with $10 or $20 a week left over. Q: I have recently moved here from out of state and am having a house built. The closing of escrow will be in two months and, as there will be a small mortgage (FHA) I would like to know if it's advisable to retain a lawyer? If so, how do I go about finding find-ing a good one? I've heard that a lawyer isn't needed if there's an escrow. Mr. J.T. McQ. (Phoenix, Arizona.) A: I've heard that, too, but I still don't buy it. Whenever there are legal papers of ANY kind laying around awaiting my signature, I feel infinitely better having someone in my corner who knows, specifically, what all of those "whereases" mean. It's really not that burdensome an expense. If none of your friends or coworkers have a lawyer that they care to recommend, then your best bet is to call your local bar association which if it follows normal procedures will give you the names of about three who are well regarded by their parent organization. PROFESSIONAL PROPERTY MANAGEMENT RESIDENTIAL COMMERCIAL RECREATIONAL FULL MAINTENANCE REPAIR AND EVICTION SERVICE COMPLETE COMPUTERIZED ACCOUNTING AND INVESTMENT PROJECTION INVESTMENT CONSULTANTS SALT LAKE CITY 622 Judge Bldg., 531-0798 PARK CITY P.O. Box 1106 649-6741 INTERVEST INVESTMENT INC. Homeowners we need more quality housing for Winter Kental If your house is now occupied and for sale we can help you pay the mortgage while you wait for a more stable economy. For more information call or write: P.O. Box 2025 v Park City, Utah 84060 (801) 649-620 1 |