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...traditional housing market. A maturing baby boom generation was once expected to fuel a housing boom throughout the 1980s, generating demand for 2 million new units annually. But consumers now are simply unable to buy homes. Fully 85% of U.S. families cannot afford the $904 monthly interest payment required for a typical mortgage of $60,000, at 18% interest, according to a study by the National Association of Home Builders...

Author: /time Magazine | Title: Squeeze Play at Home | 11/30/1981 | See Source »

...days. While one of the bedrooms in some models is too small for a double bed, the living rooms and kitchens have vaulted ceilings, giving an impression of spaciousness. Because of the low price and an attractive 14.5% mortgage that Fox & Jacobs helps owners obtain, the typical monthly payment on the new cottage homes is only...

Author: /time Magazine | Title: Dollhouses in Texas | 11/30/1981 | See Source »

...beset by an acute lack of affordable housing. Industry is virtually stagnant, and productive foreign investment is anemic. The country now imports half of its food. Says Abdel Razak Abdel-Meguid, the American-educated Deputy Prime Minister for Economic and Financial Affairs: "Because of our favorable balance of payment statistics, the economy looks good on the outside. But inside it needs a lot of work...

Author: /time Magazine | Title: Hard Times Ahead for Egypt | 11/23/1981 | See Source »

...auto assembly plant by buying $10 million worth of industrial robots. For help, M.M. turns to lucrative Moneytronics Corp. Once Meager Motors buys its robots, the high-tech firm agrees to step in and take them off the automaker's hands for a $2 million down payment, with the remaining $8 million to be paid out over five years...

Author: /time Magazine | Title: Leasing Profits | 11/2/1981 | See Source »

Immediately upon buying the robots, Moneytronics turns around and leases them back to Meager Motors under a five-year deal in which the rental payments from the automaker exactly match, and cancel out, the loan payments by the high-tech firm. At the end of the lease, Meager Motors buys back the machines for $1. Result: Moneytronics not only receives a $1 million investment tax credit that offsets 50% of its down payment on the equipment, but the firm also gets to claim depreciation tax benefits. Thus it can effectively postpone paying taxes as well as enjoy interest-free...

Author: /time Magazine | Title: Leasing Profits | 11/2/1981 | See Source »

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