Home Sweet Home

 

I were buying today, I'd be careful," Roy recommended, somewhat ominously.

"Roy, why the hell didn't you tell me this before I closed my deal?" Tom demanded intensely.

"For a number of reasons, Tom. One: As Cathy pointed out, not all experts share my somewhat pessimistic view. Two: I don't think real estate is going to collapse. I do believe, however, that it may, in several areas, have some down years. It's still a fine, fine long-term investment. Three: You bought an undervalued property in an area that has not been subject to the tremendous run-up in prices. Four: You bought near water. I know that sounds funny, but it's a fact of real-estate investing that property near water seldom loses its value. Five: Your brother is capable of increasing the value of the place handsomely with little expense. Last: You fixed your mortgage costs, and your rental income is certain for three years. All in all, I think you're in fine shape even if we do see tough times.

"The people who I think should be worried, or at least careful, are the ones who have a lot of heavily leveraged property without a lot of other assets backing them up."

"What about me, Roy? Would you suggest I wait to buy?" I asked eagerly.

"No, Dave. As I said earlier, with the baby about to arrive and Sue working at home, it would be nice for you to own a home. You're in a prosperous city. You don't have to worry about losing your job. And, most important, you're a long-term investor. Besides—"

"Roy could be dead wrong," James Murray interrupted. "After all, he has been giving this sermon for years and, in most areas, real estate has continued to climb each year."

"True," Roy said with a grin, "but lately, in a growing