Portland observer., February 23, 1994, Page 8, Image 8

F ebruary 23,1994 • T he P ortland O bserver
P age B?
V «
lü
si,
required to make a $5,000 down pay­
ment and obtain a regular first m ort­
gage loan from conventional sources.
Houses were priced in the S45.000
range, which represents only halt the
cost of housing in neighboring dis­
tricts.
W ith the purchase price thus re­
duced, even families with very mod­
est incom es could dem onstrate to
banks and other lenders that they had
the ability to reliably service first
m ortgage loans, and thereby obtain
the financing they needed to buy a
hom e. In the Brooklyn experim ent,
buyers also benefitted from a state
hom e loan guarantee program that
enabled them to get first mortgages at
below -m arket interest rates from
banks.
by m id-1987, the New York group
had built and sold almost 400 homes
and had begun work on an additional
2,000. C onsum er dem and for the
hom es is overwhelming. Congress
was so impressed with this success
that the legislators decided to autho­
rize a program of federal grants to
encourage private non-profit groups
to replicate the effort elsewhere
Congress authorized $25 m illion
in FY 1988 and $100 m illion in FY
1989 for Nehemiah Housing O ppor­
tu n ity G ra n ts. T h e se a re le sse r
amounts than originally contem plated
by the b ill’s sponsors. A dm inistra­
tion opposition to the new program
fo rc e d C o n g re ss to re d u c e th e
Nehemiah authorization levels and“sun-
sef ’ the program at the end of FY 1989.
O ne o f the principal goals o f the
program is to rescue and upgrade
declining urban areas and Nehemiah
projects must be located in census
tracts where the m edian income is
80? or less than the area m edian. The
extent to which the project will rescue
a severely blighted area is one o f the
criteria used in selecting projects for
today.
N A R ’s c o m p o s ite H o u sin g
Affordability Index, which measure
affordability factors for all hom e buy­
ers, was 140.5 in the fourth quarter o f
1993, com pared to 130.1 in 1992’s
fourth quarter. W hen the index m ea­
sures 100, a family earning the m e­
dian income has exactly the am ount
needed to purchase a m edian-priced
resale hom e, using conventional fi­
nancing and a 20 percent dow n pay­
ment.
In com parison, N A R ’s first-time
home buyer index, which shows the
ability o f renters who are prime po­
tential first-time buyers to qualify for
a m ortgage on a starter hom e, was
91.9. W hen this index equals 100, the
typical first-lime buyer can afford the
typical starter home under existing
financial conditions with a lO percent
down payment. The first-time buyer
median income represents the typical
income o f a renter family with wage
.........................................
port that the rate o f home apprecia­
Opportunities to make big, quick tion since 1990 has been around five
profits in residential real estate tend percent nationally, with inflation hov­
a ro u n d
fo u r p e rc e n t.
to come and to in cycles. When a local e rin g
Homeowners,
obviously,are
still stay­
market is hot, families may find it
possible to buy a house at an attractive ing ahead by investing in real estate.
And, with mortgage interest rates
price, and watch it’s value rise in just
the lowest they’ve been in two de­
a few years.
E ven in uncertain econom ic cades, real estate today is a more
times, history show that real estate is attractive investm ent that it’s been in
a sound investment. During the Great years. First-tim e buyers are the big
Depression of die 1930s when the w inners in this environm ent and can
stock market plummeted as much as realize appreciation in two or three
89 percent, housing prices dropped years when they invest properly. This
only 39 percent. According to most o f is also a good time to purchase a
the research on housing trends, prices second or vacation home. A bargain
continually stay at the same level as, cabin in the w oods today might bring
and m ost often appreciate faster than, an excellent return when housing
the rate o f inflation. Housing prices prices move upward.
B ut ap p re c ia tio n is n ’t the only
actually rose an average of 10 percent
a
d
v
a
n ta g e to b u y in g a hom e. T he
during the recession o f the m id-1970s
fe
d
e
ra
l g o v e rn m e n t th in k s hom e
and early 1980s.
o
w
n
e
rsh
ip is so im p o rta n t to the
CENTURY 21 statisticians re­
by
S teve C arter
fu ture o f our c o u n try th a t it a l­
low s m o rtg ag e in te re st to re m a in
the la st su b sta n tia l tax sh e lte r.
A nd, the p ro fit on the sa le o f your
hom e re m a in s tax free a s long as
you buy a h o u se fo r a g re a te r or
equal p ric e . A lso , th o se 55 and
over q u a lify for a o n e -tim e tax
break up to $ 1 2 5 ,0 0 0 o f p ro fit
e a rn e d fro m th e sa le o f th e ir
hom es.
Re-examining the financial ben­
efits o f owning your own hom e or
second home is a good idea in today’s
m arket. R eal estate has proven,
through tim e, to be a strong invest­
ment that can offer substantial re­
wards.
For more information contact Steve
Carter, Director of Special Services,
Century 21 Northwest Region at (206)
248-2100, 18000 International Blvd.,
Suite 1021, SeaTac, WA 98188.
Community Service Grant Deadlines Approaching
assistance.
Block Grant program's competitive categories-Community Facilities, Housing Rehabilita­
tion, Handicapped Accessibility, and Technical Assistance-are due April 1. Copies of the
applicant's handbook, which includes application forms, can be obtained by calling
Community Development at the Oregon Economic Development Department. Grant appli­
cations are accepted year round for community development block grant public works and
economic development projects.
Contact: Jane Jensen-Davis, 503-378-3732
Housing Affordability Index At Highest Level In Two Decades
Purchasing power of home buy­
ers reached its highest level since the
second quarter o f 1973, according to
the National A ssociation o f R ealtors’
Housing Affordability Index released
_
Real Estate Remains
A Strong Investment
History Of
The Nehemiah Program
C ongressional funding for the
federal N ehem iah H ousing O pportu­
nity G rants program was inspired by
the success o f a model program oper­
a te d by an in te r-d e n o m in a tio n a l
church group in Brooklyn, New York.
T he 55 New Y ork churches that ini­
tiated the idea dubbed their program
“ N ehem iah,” after the O ldT estam ent
prophet who rebuilt the city of Jerusa­
lem.
The group raised som e $8 m il­
lion and used the funds to construct
hundreds o f new brick row houses for
low and m oderate incom e people on
30 blocks o f land donated by the City.
T he com bination o f free land and
efficiencies o f m ass production sub­
stantially reduced the cost o f the
hom es. The City also agree to provide
each hom ebuyer with a S 10,000 in­
terest-free, non-am ortizing second
m ortgage loan are repayable only
w hen the ow ner-occupant sells or
transfers the dw elling. Buyers were
L
earners betw een the ages o f 25 and 44
years.
Although the first-tim e buyer in­
dex continued to lag behind the com ­
posite index, it im proved from 85.2
during the same period the previous
year.
N ew s F o r
F ir s t T im e
H ome
B uyers
New & used books
on Business, Music,
& African-A merican
Studies
, ;nubo-
SCHEDULED FOR CONSTRUCTION AS OF FEBRUARY 1, 1994
(Availability subject to prior sale.)
All houses offered include full appliance package (choice from four manufacturers), security system, lighting fixtures, and basic landscapmg.
Purchasers may choose interior and exterior colors. Purchaser changes and requests for upgrades will be considered on an individual basis.
Prices listed are representative only. Actual prices for individual houses will be determined on a case by case basis. Prices will vary depending
on timing, construction market conditions, and individual site conditions. Actual P&I will be determined by the bank at the time of closing.
POWELL’S
CITY OF BOOKS
Since designs are constantly being refined and adjusted, the presentations included in this listing may not represent the exact configuration
details, features, specifications, and square footage of the houses as they will be constructed. Purchasers arc advised to consult the specific
documents related to their individual transactions.
ADDRESS
NBRHOOD
9 am - 11 p m M o n d a y th o u g h S a tu rd a y
937 NE Webster
(King)
9A
9 am - 9 p m S undays
U se d b ooks b o u g h t every day till 8:30 pm
O n th e # 2 0 B us line • O n e h o u r free parking
939 NE Webster
(King)
9B
1005 W est B u rn sid e S treet
228-4651
ft
» '
503/335-0189
■CUSTOMER SATISFACTION IS WHAT MAKES US SUCCESSFUL*
4
Carpet & Upholstry Cleaning
Windows
Floors
Empty Apartment Restoration
8:00 AM - 5:00 PM
CONFIGURATION
Giulietti
2BR, 1 Bath; 960 SF,
Built-in expansion.
$66,000
$50,000
$297
Giulietti option
4BR, 2 Bath; 1,560 SF.
$81,000
$65,000
$385
Giulietti
2BR, 1 Bath; 960 SF,
Built-in expansion.
$66,000
$50,000
$297
Giulietti option
4BR, 2 Bath; 1,560 SF.
$81,000
$65,000
$385
4848 NE 7th (King)
HDK
3BR, 13/4 Bat;,1350 SF.
$78300
$62,500
$371
25A
3730 N Albina
(Boise)
Giulietti
2BR, 1 Bath; 960 SF,
Built-in expansion.
$66,000
$50,000
$297
Giulietti option
4BR, 2 Bath; 1,560 SF.
$81,000
$65,000
$385
Giulietti
2BR, 1 Bath; 960 SF,
Built-in expansion.
$66,000
$50,000
$297
Giulietti option
4BR, 2 Bath; 1,560 SF.
$81,000
$65,000
$385
3724 N Albina
(Boise)
31
126 NE Mason
(Bolse)
Renovation
2BR, 1 Bath; 795 SF,
Partial Basement.
$57,000
$41,000
$243
55D
5715 NE 9th (King)
Church
3BR, 1 3/4 Bath; 1300 SF.
$77,000
$61,000
$362
55E
5721 NE 9th (King)
Church
3BR, 13/4 Bath; 1300 SF.
$77,000
$61,000
$362
59
4825 NE 16th (Vernon)
HDK
3BR, 1 3/4 Bath; 1350 SF.
$78,500
$62,500
$371
60
4022 NE Grand (King)
Andrews
3BR, 1 3/4 Bath; 1,286 SF.
$78,500
$62,500
$371
70A
4807 NE Grand (King)
Church
3BR, 1 3/4 Bath; 1300 SF.
$77,000
$61,000
$362
70B
4811 NE Grand (King)
Church
3BR, 1 3/4 Bath; 1300 SF.
$77,000
$61,000
$362
74
5040 NE 14th (King)
Renovation
2BR, 1 Bath; 795 SF,
Partial Basement.
$57,000
$41,000
$243
113
4324 NE Grand (King)
Renovation
2BR, 1 Bath; 827 SF,
Full Basement, & Garage
$65,000
$49,000
$291
N of 4005 N. Michigan
(Boise)
HDK
3BR, 13/4 Bath; 1350 SF.
$78,500
$62,500
$371
125 N. Blandena
(Humboldt)
Renovation
2BR.1 Bath; 1026 SF,
Full Basement
$70,000
$54,000
$320
d
116
121
25 N.E. Wygant
Portland, Oregon 97211
LICENSED
BONDED - INSURED
P&I @5.9%
PROTOTYPE
13
25B
',
ESTIMATED
FIRST
ESTIMATED
PRICE
MORTG.
.4-
NECDC
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