Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Mar 24 1992 Date: Tue, 24 Mar 92 05:43:45 EST Message-ID: 03-24 0000 DECISIONLINE: Real Estate USA TODAY Update March 24, 1992 Source: USA TODAY:Gannett National Information Network VACATION-HOME MARKET GOOD, BAD: The recession that has caused the real estate market to slump has touched the vacation and second-home market as well. That means both good and bad news for those who have waited for the right moment to buy a cabin or cottage. The good news is there are relative bargains available. The bad news is that bargains are not everywhere, and some purchases can have complications. (For more, see special Vacation package below.) THERE'S A SMALL HOTEL: Some real estate professionals say they are seeing more people forced into early retirement looking to buy a small hotel where they can live and work. They typically are looking for a hotel or motel with fewer than 100 rooms and an owner's quarters, sometimes in an area where they've vacationed. There are "a lot of first-time people out there," says Duane Jones of Harbour Real Estate. `A CHAIN ON THEIR ANKLE': Some would-be hoteliers have a misconception about what they are getting into, says a hotel-motel sales specialist. "They will have a chain on their ankle to the hotel lobby," says Chuck Nester of Brown Motel Investment. In Michigan, hotels and motels continue to do well in many tourist-oriented areas, says Duane Jones of Harbour Real Estate. But a weak market makes some owners reluctant to sell. CHH LEASE ASSUMPTION EXPANDED: Carter Hawley Hale Stores Inc. Monday announced that U.S. Bankruptcy Judge Barry Russell has approved a motion extending the time period during which CHH may assume or reject unexpired nonresidential real property leases to June 30. Also, the judge has extended the exclusivity period during which only CHH may file a plan of reorganization to June 30. COURT TO RULE ON HOME OFFICES: The Supreme Court Monday said it will decide whether taxpayers can claim deductions for in-home offices even if they spend the majority of their time working elsewhere. The tax code says home-office expenses may not be claimed as deductions if a taxpayer works elsewhere. Exception is made for a home office "exclusively used on a regular basis (as) the principal place of business." COFFEE PLANT TO CLOSE: The city of Hoboken, N.J., will lose $500,000 in property taxes on the 24-acre Hudson waterfront site of the 50-year-old Maxwell House Coffee plant. The plant's final shift is Tuesday. The city plans to raise water rates to offset the loss of its 1 million-gallons-per-day customer, according to officials. VANGUARD DIVIDENDS DECLARED: The trustees of Vanguard Real Estate Fund I and Vanguard Real Estate Fund II Monday declared first quarter distributions of $0.15 per share for each Fund, payable on April 30 to shareholders of record as of March 31. For Fund II, the trustees are evaluating likely effects of mortgage defaults with respect to the Raleigh and Sequoia properties. They likely will mean less operating cash flow. FIXED-RATE MORTGAGES RISE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 9.03% Monday, up from Thursday and up from 8.88% the week before. They were at 9,51% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.22%, up from Thursday and up from 6.04% the week before. A year ago they were at 7.25%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 4.73% Monday, up from Thursday and up from 4.64% the week before. A year ago they were at 6.41%. For the 11th District ARM index, rates were at 6.002%, unchanged from Thursday and unchanged also from the week before. A year ago they were at 7.858%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Monday, listing at 8.03%. That's up 0.07 from rates of 7.96% Thursday, but down 0.04 from 8.07% the week before. A year ago T-bonds were at 8.32%. SPECIAL PACKAGE ON VACATION: COMPLICATIONS CAN CROP UP: Tough times can bring good home deals - and some problems. A professor hasn't yet closed on a vacation home in Cape Cod. A local bank bought the unit at a foreclosure auction in February, after she signed her contract. Subsequent dealings revealed another lien on the house. Despite such complications, more of what buyers would call good vacation-home deals are available in hard-hit areas. TOP VIEWS MEAN TOP PRICES: In areas with a healthier economy, properties mostly have retained value. Vacation properties with prime views and locations are less likely to carry bargain prices. A Maui broker says selling prices have risen steadily in one very desirable beachfront condo, 30% over the past four years. Other Hawaii condos without the most prime locations have prices 20% below asking prices, he says. UNITS GET PRICED DOWN: Economic realities are changing the vacation real estate industry in other ways. One New Jersey shoreline condo project was redesigned so the owner could offer lower-priced units. Time sharing and other types of split-vacation ownerships also are becoming increasingly popular. Sales of time shares in 1980 were about $490 million, while in 1991 sales were more than $3 billion. (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM