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To: Jim McMannis who wrote (168084)	7/13/2002 9:06:54 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Jim, re: Owners in stocks have been sent to the back of the bus. True, tax laws favor home ownership over stock ownership. But in almost all areas of the country, flipping a house every year is not a good way to make money. Remember you have costs; insurance, maintenance, 6%-7% sales commissions when you sell, moving costs. And the hassle. You don't have those costs with stocks. If you have a very, very hot market, it may be profitable, but most places it's not. The best part of real estate ownership is leverage. Where else can Joe Sixpack see appreciation on a $200K+ asset with 10% or 20% investment. And get a 30 year loan below 7%? Can't do that with stocks. Funny if totally unrelated story. I used to play golf with an area builder, and he would tell me how financially stupid people were when they built or bought a home. His rap was something like: "Do you have a formal dining room? How many times a year do you use it? Well, you are paying mortgage interest on that room, you are heating it, air conditioning it, paying insurance on it, maintenance, furnishing it, cleaning it... (he could go on with more costs). Everytime you sit down to dinner in that room it costs you about $500. Do you have a formal living room? How many times a year do you use it? ...... It cost you about $1000 every time you entertain in that room. How about guest bedrooms? ...... You could put up your guests in the finest hotel in the area for the same cost, and pay for all their meals." Of course his point was that when you build a house you should use the square feet and cost where you really live, not in rooms that are traditional. John