Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-04-09
EXPERTS GIVE IMPORTANT TIPS
TO PROSPECTIVE HOME OWNERS
Purchase of Dwelling May Bring Family
Happiness or Ruin. Commerce
Bureau Advisers Say.

In many instances the purchase
Of home constitutes the larg
est financial investment ever made
by family, and therefore constitutes
a very important step, DR.. John NJ.
Cries and James s. Taylor building
and housing experts Of the Depart
ment of Commerce, point out in a
pamphlet, "How to Own Your Own
Home" published by Better Homes in
America.
"A purchase wisely made" they re-
mind the prospective home buyer.
may he the stepping stone to ad.
vancement and happiness, while mis-
take may cause discoura cement and
loss of all ones savings.
Common Sense Urged.
Most men and women who buy
homes have never done it before and
usually are unskHled But lack Of
experience should deter no one. THIS
prospective home owner who uses
common sense in considering the real
needs of his family and his ability to
pay and who checks his judgment
by consulting with experienced per-
sons may go ahead with fun conf
dence. While some risks are involved,
as is usually the case in obtaining
failure is relatively small when
weighted against the advantages of
an owned home"
Before entering into contract for
the purchase of a home the head of
the family should ask himself the six
following pertinent questions the hous-
ing experts advise:
j. What is the family's annual in
come, and what will it probably be
next year and the year after?
?. II business slackens. is he likely
TO lose his position or have his earn.
ings reduced?
3. WIN any one else in the family be
able to earn an income?
4 What does the family now nav
for rent each year?
s. How much of the income ia be-
ing saved?
g. How much could the family ar.
ford 10 pay out each year in paving
for house, and for the expenses that
go with it?
The amount that can be paid for
a house depends partly on what in
terest rates are charged for the money
borrowed to make the purchase and
the rate at which the principal is TO
be paid off, the experts point out.
These fixed payments must he met
regularly, and they must be met from
the family's income. 1t is, therefore.
always best to leave some margin of
safety to provide for illness or other
emergency. While one may be too Oh.
timistic when an attractive house is
in view, and count on increased in
come that he may never receive.
nearly every family can and should
cut down other expenses when the
savings are to be invested in a home.
Allowances for Buying.
IF a certain family pays sixth
Of its income for rent, it may be able
to devote one.fourth or more TO buy
ing and maintaining house, for the
amount thus used may include both
rent and savings. Rent. or payments
on n home, may require anywhere
from one.eighth to one-third of the
family income, depending ON the spe-
cial circumstances in each case.
I'm addition to interest payments
and instaliments on the principal of
loan, allowance must be made for re-
neWals and repairs. taxes, special as.
sessments, insurance, water tax and
various accessories and Improvements.
Families accustomed to living in
apartments sometimes fail to allow for
the cost of fuel for heating purposes"
With regard to financing. the au-
thors said: 1.-THE man who has enough