Canton Observer for September 9, 1982 - Canton Public Library

More documents

Recommendations

Info

6A(P,C) O&E Thursday, September 9, 1982 Realtors look at housing Interest rates to drop with federal deficit This is the third of a three-part senes of interinews unth area real estate brokers. Mel Durbin of the Durbin Co., Bob Gavey of the Chamberlain Companies, Steve Pew of Max Broock Inc. ami Dick Weir of Weir, Manuel, Snyder ami Ranke were intereiHewed by Observer & Eccentric editors Ron Garbinski. Kathy Moran and Dennis O'Connor D 0 YOU anticipate a turn around in home buying with a lower interest rate soon? Do you anticipate a lower federal deficit? DURBIN: You have to be careful on that because the lower interest rate without the money is no good. WEIR: The lower interest rate isn't going to happen unless the deficit comes down. The government has to get its "act together" and get themselves operating inside their income before anything else can happen You say, "When is that going to happen''" Who knows 9 PEW: When Wall Street and (Federal Reserve Chairman Paul) Volcker combined feel that Congress is finally starting to get their "store in order," then I think Volcker will finally say "OK, I'll start easing this thing." That puts him up on some throne as some omnipotent god. He is not the total answer, obviously It is a combination of Wall Street, bond interest rates, all these kind of things. GAVEY: When comsumer confidence comes back and people feel more confident about their jobs and confident about selling that smaller house to buy a larger house, you will see more of an increase in the market " 'The lower interest rate isn't going to happen unless the (federal) deficit comes down. The government has to get its act together' and themselves operating inside their own income before anything else can happen.' — Realtor Richard Weir Ifeep Smiling Big Savlngs,Too, on Lees Biofreshcarpets that stay lifetime fresh! A sale this big can only happen once a year! That's the way Lee: planned it And, thanks to Lees reduced prices to us, we can pass big savings on to you! Big savings on Lees best-selling carpet fashions in this year's smartest decorator patterns and colors! So why wait? Come on in and save during Lees Annual Factory Authorized Sale UVI THE LIFE OF LEES' SALE ENDS... THURSDAY SEPT. 30, 1982 *• PEW: I agree with most prognosticators who say that Michigan is going to be slower to come back than most pther states. I think the country is going to turn around, tyut I don't think it will happen in a hurry. Does that go back to your one-industry town concept? WEIR: We still are a one-horse town. We're dependent dn the auto industry. It's not only here. I was down in Arizona. The largest copper manufacturer in the nation, iner and smelter, was shutting down all of their mines nd all of their smelters. This was big negative economic ews for Arizona. That's their leading industry after tourm The reason they were shutting it down was because ne demands for housing and automobiles were so small tiat they couldn't sell copper for the cost of mining it. The lack of sales of automobiles from this state has finally gotten to Arizona hitting them in their copper iniustry This has happened in housing. It has hit the lumr industry in the northwest. Tires are down. Steel is own. Glass is down. The reason being is that one out of s|ix or seven gainfully employed people in the nation owe tfieir jobs to the automobije industry either directly or indirectly. When this industry goes down, just like C. E. Wilson slid, "What's good for the nation is good for General Motors." It's reported that what he said was, "What's good for General Motors is good for the nation." It was a deliberate twist and it gave him a very bad "black eye" that he did not deserve. But what is good for the nation is good for General Motors, or the automobile industry. PEW: We are sitting here, right today, looking at the c its for higher education. (Recently,) I was in the Univers ty of Michigan Graduate School of Business Administration to talk about U-M pulling out of the real estate educition program. That's just "small potatoes" compared to the whole graduate school of business administration. I think we forget what a terrific and tremendous resource that University of Michigan is. When you start talking about budget cuts in the state of Michigan, and $85 million has to be cut out of the budget, is that going to make Michigan just another university lr stead of one of the top four or five in the whole country itl always has been? These interest rates have a very big feet on all of us. WEIR: Everything we are saying about the nation, we cjin repeat about the state. The state is broke and that's 1 there is to it. It hasn't got the money. We're talking about automotive people being laid off a id companies closing down, what's going to happen to real estate firms? What's going to happen to smaller brok -rs? PEW: You are looking at four smaller brokers. We are sihall businessmen. Small businessmen due to the fact that you have offices! here and offices there, offices fall around. What's going to happen to that one office broker or that one office that g — SAVE 20 Featuring carpets of ANTRON'nylon by DuPont SAXONY PLUSH. A magnificent pl ush pile so deep it Haunts a custom look St ('led in a rainbow ot high lashion ^ COlOrS S Q 9 9 Reg $1195 SALE sq. yd TWIST. Crafted from hard twisted njlon yarns that are specifically designed lor years of outstanding ^ _ J Eft performance JC m JjU Reg $13 99 SALE I I sq yd CARVED TEXTURE A luxurious cjrved texture that reltects the finest of traditional carpet styling Designed. to perlorm anywhere in C mM husv busy homes homo«i V Reg $12.99 SALE sq. yd VELVET PLUSH. A carpet for all the decorating versatility modern living demands. Available in a medley . _ of popular decorator £ gf ^ K Q coiorations Reg $13 99 SALE % sq yd. LEVEL CUT & LOOP. This fascinating level cut and loop pile gives the carpet a distinctive hand-crafted look Comes in today's fashionable colors. Reg $13.99 SALE RITE CARPET 50 aq yd MULTI-TONE. Multi tone saxony plush can be easily coordinated to many decorating schemes Made with to ^ day's most durable longC wearing carpet fiber Reg. $16.99 SALE MON.-FRI. 9-9 SAT. 10-6 7 MILE & MIDDLEBELT • LIVONIA • 476-8360 may have three or four salesmen working for them? Are they going to go out of business? WEIR: Not necessarily. It depends on how good they are. If he's got four real good salesmen, he will sell enough real estate to pay the bills and stay in business If he has four poor salesmen who don't sell, he will go out of business. Big or small has not much to do with it. GAVEY: We are just going to learn to run our businesses more efficiently. We're already doing it like any other entrepreneur. Our country is going to get more productive. We always have. We are going to do it again. Our industry will. The automobile industry will; it is in the process. The Japanese imports have hurt us. The net result is that we are going to have better cars. We are going to have increased productivity which has been a problem in this country during inflationary times, when everyone wanted more, but expected to give less. That is going to change. The companies that don't change won't survive. e Is there a psychological barrrier to the public accepting creative financing terms? DURBIN: Another problem we are running into is that the public, either through lack of education or whatever, has not accepted any of the new alternatives such as variable rate mortgages, equity sharing mortgates where the lender shares the profits. So we're back to our basic instruments that we have been using for three years WEIR: Uncertainity. They are tied to treasury bills or abstract figures. They are decided by an interest rate or some index or another that can go up or down. If you have one and you buy a house that has a 70 percent mortgage and it goes down, your mortgage rates go down If you buy a house and have a 14 percent rate, and the rates^fon, that index goes up, your mortgage rates go up. It's* the uncertainity the public doesn't like. The public can't print its own money to cover it. GAVEY: You have 40 or 50 years of people who have had a fixed rate 25 to 30 year mortgages. They knew what the interest rate was going to be, what the monthly payment would be and that was it for as long as they had that mortgage. WEIR: I see a retreat in this area. Years ago, thejnaximum mortgage that you could receive around here was from an outfit called Birmingham Federal Savings & Loan and it was for 60 percent of the apraised value for 20 years. That was it. That was most money you could borrow on that house. The homeowners had a healthy investment in their house. There was a shorter term on the loan and a higher percentage of each monthly payment went to principle rather than just interest. It meant they acquired a large equity in the property on top of their downpayment. It was a healthy thing. Requirements of the marketplace over the years changed that 60 percent mortgage up to as high as 95 percent and the term from 20 to 30 years. A special free offer « • « to celebrate the dpening of our newest offic 1 1 1 ^ 1 ? *. V 'What I find interesting is that property owners will fight or gather in droves to fight their assessed valuation and then when it comes to the budget hearings, no one comes. 9 — Realtor Steve Pew One way in which they could make more mot ey avail- )le, which would be a benefit around here, wc uld be to gj>t them to loan at a fixed rate for 20 years vith a 60 percent mortgage. We could do business with that. I'm )t suggesting this would be a help nationwid e. but it ight help Birmingham, Michigan That's m aybe one ay they might be able to do something that's a little bit less inflationary DURBIN: The average home is only held enly eight years. If you have a 20 year mortgage, and it is paid off, yoju have had 2V2 buyers. In reality, what happefi s is eve- ry|eight years, either someone assumes it or it is paid off The length is not the key factor The amortization and the constant monthly payment is ire we going to see more shared equity and rtiore pensiofa investment in mortgages? Are we going to|see more of those concepts? EW: Yes, the federal government is starting to loosen ome of that pension money toward mortgag es That's jncapped source at this time in terms of r psidential moitgages. They have been lending in large commercial ven ures. VyEIR: There will be some trades. But it will not be a larj e part of it It is something a seller will do if-he has no alte rnative YVhat you are saying is all these different m ethods of creative financing are really short-term reacti >ns to the marketplace? DURBIN: They are reactions to the marketplace And they are not accepted by the public & To u'lebrate flu- opening ot our n hr.ituh oltue on l"i^hi Mil*.' Koad Hiij&criv wcVt making vou this s tire otter lust open .i new eluvku s.ivinr .uvounr tor S-W or add your present savings amount. and tn--i three (Mi i i' |'i.uv m hnu: "f '" 11 vna! Chip.i In W M Daltun is \ours In 111 .kiduu'll OtkV \Oll h.lN. I' St.! your collivwrv. v
Road board looks to feds for funds Several freeway projects in Wayne County will get some of the $2 millioni the federal government is sending to Michigan, according to Gov. Milliken U.S. Transportation Secretary Drew Lewis is sending $2 million to Michigan which was turned back from other states, Milliken said The Michigan Department of Transportation immediately announced it wouild advertise for bids for • Screening of the Livernois bridge over 1-75 freeway in Detroit • Under-bridge lighting at several 1-94 structures in Detroit • Pavement repair o n 1-74 in Oak- land County. • And shoulder recoil struction on I- 94 in St. Clair County. THE ANNOUNCEMENT came days after spokesmen for the Wayne County Road Commission sa d they were awaiting federal funds for resurfacing work. Freddie Burton, managing director of the semi-autonomoiis agency, told the county Board Commissioners Women host 2-day school on campaigns Women can learn about political campaign tech niques at a seminar Sept. 11-12 in Detroit. The Intergovernmental Relations Commissions of the Women's Conference of Concerns and the National Education Fund will co-sponsor the seminar to encourage women to participate in 1982 campaigns for candidates of their choice. The seminar, at 18100 Meyers, will run from 8:45 a.m. to 5 p.m. Price is $35 for one day, $70 for two days. Preregistration by Sept 9 is required by calling Bernadine Denning at 494-1730 "Anyone who goes to this seminar will walk away knowing how to get into a campaign, get "PAIUTE PALS" I I \ < >K I ( K \W I (>KI> s The f By Ptnni Anne Cross l() l /j inches ^OO LIMITED NUMBER OF "CROW BABY" STILL AVAILABLE COMING THIS FALL "BIG SISTER BUCKSKIN" 16^ r Miildkhclt • Li\onia | IW (v. IT f I S (< Mill ) M«r> Tun u cJ s" I" 6 M 261-5220 Thur* K f 1 ill V. ( LOSE I) M 'N IN |l IL\ A Al '
Page 1 and 2: Canton Berber Volume 8 Number 13 Th
Page 3 and 4: Josephine Schembri of Canton Townsh
Page 5: mtmOSm m 0DL5 UilUmc ©oobBtoue 744
Page 9 and 10: MEA surprised at school strikes By
Page 11 and 12: Thursday, September 9, 1982 O&E * 1
Page 13 and 14: pi v P w 11 V V w www* lk. North of
Page 15 and 16: WW WW •• * s. ' Ti** tWiSr •
Page 17 and 18: TV danton ©bsrrurr Thursday, Septe
Page 19 and 20: clubs in action • FAMILY CAMPING
Page 21 and 22: v St. Raphael Catholic Church, an i
Page 23 and 24: "The Dozens" (1981), 7 arid 10:30 p
Page 25 and 26: (Tile (©bserurr Thursday, Septembe
Page 27 and 28: sport shorts • FALL SOFTBALL Who
Page 29 and 30: Thurston's Mary Zacharias looks for
Page 31 and 32: t ©bseruer entertainment —[— ^
Page 33 and 34: Thursday, September 9. 1982 (R,W.G-
Page 35 and 36: 10C*(R,w.G-8C) Thursday, September
Page 37 and 38: 12C*(R,W,G-10C) Thursday, September
Page 39 and 40: 14C*(R,W.G-12C) 711 Mite. For Salt
Page 41 and 42: 1«C*(R.W.Q-14C) 864 Do
Page 43 and 44: 2D* Thursday, September 9, 1982 312
Page 45 and 46: WW WW 4D* Thursday, September 9, 19
Page 47 and 48: 402 Furnishtd Apts. For Rtnt WAYNE
Page 49: 8D* 419 Mobil* Homo Space ONE BEDRO

Canton Observer for September 9, 1982 - Canton Public Library

Create successful ePaper yourself

Delete template?

Save as template?