Question: I can rent a $200,000 home for less money than the interest that I would receive monthly on a $200,000 certificate of deposit. For me, it doesn't make sense to buy a home.
Answer: What you say may be true, but the basic reasons why people like to own their own home are the tax advantages available through the deduction of interest payments and on property taxes from income taxes. It makes a large difference when you are computing the differential and therefore, makes the ownership of housing economically sound.
In addition, many people buy homes because they are tired of renting, and for the investment potential of appreciation over a period of years. I think that if you take all these into consideration, you will find that there is usually an advantage in home ownership.
Statistics since the 1940s show that there has been a constant increase in the value of a home and that home ownership acts as a buffer against inflation.
Q: I am interested in a wall-bed unit and would like more information on what is available.
A: The SICO Co. manufactures various types of wall units that include beds. The units are available in all types of space-saving cabinets, shelves and drawers that can be bought in various models and sizes.
The wall beds include twin, double and queen sizes, and they have various types of cabinets and shelving modules available that can make a small room quite decorative. They even have modules that include floating wall tables and room-making ironing centers. You can get more information by writing to SICO Inc., Room Makers Division, 7525 Cahill Road, P.O. Box 1169, Minneapolis, Minn. 55440.
Fontaine is president of the Western Regional Master Builders Assn. and a director of the American Building Contractors Assn. He will answer questions concerning home improvements. Phone 213/653-4084 or write him at 6404 Wilshire Blvd., Suite 850, Los Angeles 90048-5510.