| Show - - - - - - - - - -- - - T - t 0 i 2C The Salt Lake Tribune Sunday October ' ' 14 1990 - a - - S 9 : Reasonable people quite frequently' 'look at the same set oflads and come conclusions that are 180 degrees laivrt It doesn't necessarily make ei:ther of them "wrong" :DEAR MR CAMPBELL: 4 have followed your arguments :about accelerating the payoff of your :mortgage interest and have come to the :conclusion that you're all wet Haven't you ever heard of "leverage" and the iwisdom of using the other fellow :money to make money for yourself? :Your emphasis on speeding up the pay-toof a mortgage flies right in the face :of this conventional wisdom Mr orMcB Glendale Calif ANSWER: 1 It certainly does doesn't it? On the :face of it nothing has quite the appeal In theory — except for finding the :Fountain of Youth that leverage has For example: You buy a $100000 !house with a 5 percent down payment Two years later you sell the house for 1$150000 (we're ignoring selling and whatnot for simplicity's sake) How much of a gain do you have? 59 percent right? No not really After paying off the mortgage you have a gain sure enough of $50000 but since you only put up $5000 in the first place you've got a solid gain of $45000 nine times your actual investment ' - I 1 - oc' iA -- - 1- 1745' fp '9 ' - Don ''t I ' 4 ampbeAbout - - -- ll C - ''11 '' ' ' 0 ''''' retk ' ff - 71k 44P ' 1 im ' Eoate Not a cockeyed thing of course The only problem is that it requires a neatly meshing set of circumstances that has become rare to the point tence What if the house preciating 50 percent 25 percent? So you sell it and you? Again ignoring selling expenses you're going to come out of with $75000 but unfortunately you still owe the lender $95000 over and above the original $5000 down payment which is already down the old rat hole So you take a walk Why do we have record foreclosures today? In large measure for this very reason — reliance on leverage which blew up in the face of thousands of home buyers And this is also the reason why lenders have tightened up and the old 5 percent down payment and a casual attitude about the buyer's debt load are out the window I don't like to belabor a point but I think that something very fundamental has changed since "leverage" hit the peak of its popularity: Leverage as personified by debt is very much out of fashion and equity is very much "in" If leverage is such hot potatoes how do you explain the shambles the junk bond market today — the very soul of the fad prevalent the "leveraged buy-out- " past few years? Certainly if you can find a house that sure enough is going to appreciate 50 percent in value in a couple of years then go for it! don't try to sell the idea to a man is a product of the Great Depres- and who for some odd reason — the horrendous debt that goes with leverage just a tad less desirable than a case of prickly heat DEAR MR CAMPBELL: Recently my wife and a friend each ownership in a purchased a one-hatime share in Mexico The total contract balance is $5000 and they plan to occupy the unit for 30 days every year My question: Can the interest on the contract be fully deducted the same as mortgage interest or is it treated as ordinary personal interest and subject to being phased out? Mr DRB Thou' sand Oaks Calif finds ' - '' 71':774-‘''-1 1 ''' ''''' ' p ft ?-- - i - - J kt °' ttif- ' r 24---- - - 0c ' - 01i:arc--- - ' '71 Ze:::Ze emvief ! '' j 4'1 -“ t 52:k - i fli:' - ' '''''N ' - ' u-- - - 'L '': " 4 ':'" VIct--' '--- 44' ' 'v- ' 't'''''t0 k' - 1 ' z 0 ---- -- - 4' ' ' ' ' ANSWER: Depends on a couple of tricky things the Internal Revenue Service tells me For one thing to be deductible in the same way mortgage interest is it has to be a "deeded" time share — one in which you are actually buying your share of the property and can rent it sell it or pass it on to your heirs If it's a time-shar- e d however all you're buying is a "right to use" the unit for X number of years after which it reverts to the developer — and the ' interest isn't deductible the in ointment is if you The other fly already have one "vacation home" somewhere on which you are deducting the mortgage interest then that's it — the time share won't qualify I might add too that most if not all Mexican time shares with which I am Mexifamiliar are strictly can law prohibits conventional land ownership by foreigners along its coast line which not surprisingly is where most time shares are located ' - - 'Leverage ' Is Long G one Ili Reality H6mé' Bil6 Ting 1 - ' - r"" - - - - onc Me-r5L- ' non-deede- - ' - Single level living at its finest - 0 Total Brick Exterior Aluminum Soffit & Facia Double Garage RV Parking - - lf - - - ' - ' - - So Jordan 1500 West Temple Lane (Enter from 10200 So Redwood Rd) - - Send a long stomped envelope and $2 to cover costs to Don Campbell PO Box 80260 Phoenix AZ - 85060 1990 Cowles Syndicate 254-290- 5 ' - : Inc - 1 MASELI ' ' ling - 566-394- - - a- a?deClie(03irlisG:31- Energy Efficient Double oPoaill e Windows' Tub Whirl P 0 Formal Dining 0 ' 2 & 3 Bedroom Prices Start at $119000 84065 — - ' What's "smart about borroviing $60000 for a horns and overthe next 30 years pang the lender $37591 in IntereLlalone (a1105 persLenty? Bypassly occelpayoff of you mortgage you can save thou°ruling sands in interest and cut many years off that awesome Ili Itour"Free ?kyr leofo : - non-deed- - COYNUHE7If & c©HBOADMOttOk? ' ' ' ' ' ' - ' I : - - ' 1 NiPIETIb t ' WI P'' P ' 'k ' l' 4 NE 1:1 4 ! ' ' 1 I c 1 1 I ' I --e'''1' ' ' - 1 ' a' I hese homes are now for sale in your area and may be eligible for special incentivesHUD homes are avail- able to all parties whether owner occupants or investors Buyers must obtain own financing and may utilize cask conventional or VA Homes eligible for FHA insurance are so designated as "YES in the appropriate column Contact a real estate broker today ' for more information and a home t t - : 2 I it - i : : I a t' - SPECIAL INCENTIVES i s $ t - - :r g - - NEW LISTINGS-T- HIS : o" ' it a - p a so ' as ‘4' :: tia to! - - 1st lot ptt o ":'' :t 17-4a - : IF t : 'a et: "''''1: e - la I i : ' 4 0- : : ' :- "4 4 ::' : : '- -- ' : ' : HUD compliant the 203(k) Program loans money for both the cost of the property and necessary repWrs and renovation al in one mortgage avoiding the high interest and anon aMOrMatiOn of second mortgages e Thomas) American Concord Han or Toni Varlay) Jones) Freedom Mortgage Cache Mortgage 1—Gene Goodrich) and Murphy) Firs SecuMy Bank (350-16- g Sorenson) RichardeNoodbuty ' - Paint Allowance Floor Allowance and FloorPaint Allowance offered on soled homes will be coded as follows: a - HUD I 0 Paint Allowance F Atty Floor Allowance F & P Mut si FloorPaint Allowance -3361 226325- -1099 117717- East 5690 2 Garage Magna: South 6000 East ---- ----Twin -2508 178893- Soft 180 135695- - IBP Carport - 1 - (8100 11)— 1002 Soft 22 Bdrm 2 Bath 2 Garage 11177z- -5932 S Twilight Cir (4215 W)----- ----004 Solt 22 Bdrm 1 Bath 1 Carport 108911- -5512 S Wastside Dr (5020 W) -- 924 Soft 2 Bdrm 1 Bath 1 Carport ' LBP—This property was constructed prior to 1978 and may contain lead based paint HUD will treat the defective paint surfaces In the manner pre- HUD scribed IBP 15 Bath -3642 2r1 Bdmi 1 Bath South 1150 We:st 1 ' 24-426 ----- 113000 ----- 217685--- 301 1111346--296- Disabled persons needing accommodations (eg interpreter Braille or taped materials reader or note taker etc) please contact HUD at 524-524- 2 at least 48 hours before required set-vices are needed 400 17121- 1-164 --YE- 136000 --- 141 SOO LBP Split-entr- y ome124000 --Y-ES 214030- --Y- ES 122500 -139- 900 426450 closing Rambler - tp- r- 1 ----- N 1 Bath 1 Garage 157500 ---Y- ES — $66000 ---NE- S Soft 32 &km 1116 SztR 21 Bdrm 2 Bath 02250 ---- YES 2 Bath 1 Garage LBP W Lewisport Dr (6380 S) ----- --155500 1 Garage - LBP — 1120 --Y- ES IBP Split-toy- W Leland Dr (7525 S) ' --YE- S Spirt-lev- LEtP Split-foy- -Y- ES - --Y- ES ----- South 7120 West Seft 1000 -------------147- al 2 Carport ----YES 500 Split-lev- --Y- ES Seft Scift 2 acirrn1 Bath S Tau Ave (2910 &in 21 Bdrtn ISBath1 Garage ----- YES 1040 175921- -3353 935 -- Twin Home Split-ent- -YES 203(k) HUD thoProperties is 203(10 finandng HUD I ADDRESS Salt Lake 14042- 4-234 ES aty: Wt West Jordan: ----- Word $600 207211--2- 811 Soft 1002 --Y- ES - - PRICE FHA - South 1200 2 Won 1 Bat LEP 554 Park St (650 E) 2062 &ISL 4 Bdrm 3 Seth 2 Game See Purchaser's Note gamosoos -Y- ES financing available on properties listed as 203(10 only-FH- ' --- - — 000---NO — 2 Bdrm I Bath:Rambler:UR Horse Property Acreage t ‘' f US 1 ric-- D s '"7- ' - - ' - -- S '- - A' i'-'- it of i tiollPg cnd Urbzn ! e 1 - ' - S"" Eit'?:t -- I ard tfrlg't 0 t - ' t r r L--------- - E DiVe1441ttrel i ' - Cr Pis 1111111 - i A- r - 1 - - t to 1 :'-- ' - j -t - s r--- - i r -- h -- 4524-521- 6 21 a !' - - 3'74 Sculll C''y Utah 84111 L''''1-54-'- - 4''4 10 'LI I D'ave!opm:nt --r - Oft!11 f: 1c'-- 524-52-42 - l' or ':"'"12'23 ' i 04400 — ' - 3 I 4 ----- - ' 4 t I ---- -- t ' c - ' '"ik 4' 7 -3440 NO 336700 ' —YES W) W Chula Dr (3575 S) ------------ -146500 -7036 1 Bath Spilt-entr- y 211 Bdrrn 1032 104327- -4457 S Early Duke (5090 Vel— YES $55500 -1- 46500 ----- YES --S485-00 1 Soft 231691- --Y- ES - HUD - ' West Valley City: ----- YES —YES - -3802 ' - IBP S McKenzie La (4840 W) 500 -8412 1200 Soft 3 Bdrm 1 Bath 2 Garage Split-lev090520- -6478 $ Owensboro Dr (3795 W) ' LBP 938 Solt 2 Bdrm 1 Bath Spilt-toy- --Y- ES - 219519- ES' 4 --- NES 234736- —YES f ondo--$86500 -1588 ---- -- 1376 5ti5t-- 3 207036- -Y- - : ' Happiness Dr (6310 S) -- -----211 Bdrm 2 Bath 1 Carped S Heather Wy (1905 W) 1260 Soft 3 Bdrni 2 Bath 2 Garage Rambler YES - -YES 02000 —YES W 956 ——YES --Y- ES -$4- 7000 Soft 32 Bdrm West Jordan: South 3200 828 Soft 2 Bdrm -6546 YES --Y- ES Salt-- Lake Shy: - 163553- 169819--- 6872 Twin- -131500 Brim 15 Bath 1 Garage IBP 171382--3- 335 South 2070 East 18 1320 Stift 3 Bann 2 Bath 1 Carport IBP 173423- -3335 South 3010 East ---710 Stift 22 Bdnri 1 Bath LBP 230849---8South 400 East 51 888 Stift 2 Bdrm 1 Bath Rambler 1BP West 500 North 16409- 1-863 747 Safi 21 Bdrm 1 Bath1 Garage LBP 16027S- -1941 South 700 Eaat 973 Son 22 Bdrat 2 Bath I Garage IBP 217131- -1327 Wiest 100 South 744 Soft 21 Bdrat 2 Bath LBP 224312--- 251 E Creston Ave (3170 S) 872 Saft 2 Brim 1 Bath LBR Stove to ba inclieded of S ' Midvale: East 7670 South y 3120 Seft 1 Urn 3 Balk 2 Carport LBP S Adams St (1360 1 Bath 1 Garage LBP Rambler 796 Soft 21 Wm 19 Faro Clr (8100 2400 Stift 6 Bdrm 3 Bath 3 Capon Spruced-u- p 1BP Street - -1- 41000 -- 900 91" - 129250 --Y- ES Two-etor- and addendum for OWNER OCCU- PANT PURCHASES ONLY S58000 Me Bath 2 Garage Rwnbler LBP 209440--- 4723 S Rockface Dr (2820 W) -924 SOL 2 Bdrm 1 Bath 2 &rage Split-toy206465--3- 452 W Royalwood Dr (5350 S) ' 1092 Soft 31 Bdrrn 15 Bath 2 Garage LBP 2082356-- 5438 S Spinnaker Rw1C-1- 9 (1415 718 Soft 2 Bdrm 1 Bath Rambler 1078 108246- -2096 - 207003-4- -- - ' Taylorsville: 165121—L5287 8 Huntington Cir (3315 500 --Y- ES - H Gyve 129000 $48000 Soft 22 Bann 15 Bath 1 Garage Split-entcre7uts3341 S Marigold (7540 W) ------$315- 00 960 Soft 3 Brirrn 1 Bath 1 Garage 113P 1665777130 W Woolley Wy (2895 S) --- ----- - - - s - S Sandy Dunes Dr (835 1178 SoFt 3 Bdrm 2 Bath 2 GwageRarnblw E Turquoise Wy (9930 S) 193562- -1184 877 Scift 22 Bdrrn 1S Bath 1 Carport:Split-entr- y ' ' Spienty Split-entr- y YES $55400 - FHA - N Sandy: ----Y- ES - South---- ---- 3 Bdrm Sqf I 1100 - --- - 105071- 1978 the lead based paint hazard notice "WATCH OUT FOR LEAD PAINT POISONING will be provided by HUD to the purchaser upon accetance of the standard retail sales contract HUD 9548 4 - - - - 187105—r-112- 04 - 174771- 102293- not less tha: $500 is required HUD properties are available to all persons regardless d race color religion sex marital status or national origin Homes are subject to prior sale Each home is sold as is with no repairs They may contain code reserves the right to refuse any offers to accept or reject any and all offers or to waive any informality or irregularity in any offers Information in this listing is deemed reliable but not guaranteed M has been the policy in the past closing costs cannot be financed or included in the maximum mortgage amount for HUD property Sales New Investor down payments for single family units will be: 25 dow 1 for 1 unit 15 down for 2- -4 units - ' Oct 22 1990 PRICE Dorothea Wy (1865 925 Soft Si Bdmt 1 Bath 1 Carport LBP 8 Pueblo St (1440 22267- 6-925 1044 Sefl 22 Barni 1 Bath I Garage IBP ' 16227433559 Riviera Dr (625 Et 1192 Soft 3 Bdrrn 1 Bath 2 Garage LBP S2100 P&P N Silver Star Dr (1880 W) 191214--2- 61 888 SOL 3 Bdnn 1 Bath LBP Rambler FHA 01 -t ADDRESS 227056443 ' lFoyer Garage - 092380--49- IMPORTANT NOTICES earnest money deposit RICE 449400 1 West 4835 South -4755 1178 Soft 3 Bdrm 15 Bath Rambler LEP South 4900 Wort 21 1178 Soft 3 Bdrm 2 Bath1 Carport Rambler IBP West 5335 South— -4495 1002 SOL 3 Bdrm 1 Bath Rambler" LBP S Capahart St (4940 W- )-------- --5141 988 Soft 3 Bdrm 1 Bath 1 Carport LBP Rambler 1750 P Ahs W Crockett Dr (5050 S)--- -- ------5345 --$40000 936 Sall 21 Bdrm 1 Bath Rarnbier W Manacle (4840 S) -5450 237342- Bonus allowance for early dosing Wstst 5620 South---------- --2 Bdrm 1 Bath &In Kearns: ' HUD-owne- 952 Cottonwood Heights: ' to owner occuproperties (Line 7 of the sales contract must be 91 or more of the listing price) HUD will also entertain bids utilizing the normal downd payment for properties with a net of less than 91 of the ' listing price A minimum ' ' ADDRESS -- - II ' Salt Lake city: Bennion: 153728- P Aka va - I WEEK INGS-T- HIS 1990 at 9:00 am Blds accepted until 4:30 pm Mon For ' 1-- --- Oct 23 Bitt opening lbett non-FH- 0-0- -- NEW WEEK - Money for home Improvement without a second mortgage The 203(k) Program New this week we listings under the 203(kr heading intended mainly for hornet that are - D'' i ' — be completed and submitted with the 9548 standard retail sales contract I WEEK Bid opening Tues Oct 231990 M 9:00 am Rids accepted until 4:30 pm Mon Oct 221990 FHA-insur- e4- - ' toe $500 downpayment on to pants ri4 1 - - (261-4902-Bmc- - - WWAPP01PW011oll0PW 4 - - - ' ---- - 21 ' - - ' - - - r "1- - - S 4 - i--- A i |
