Tampa Palms, Westchase, Carrollwood and Tampa Bay Real Estate News From Jeanne Prigitano

I logged on to AOL and the headline “The Dream of Home Ownership is a Scam” was glaring at me. I decided I had to see what this guy, James Altucher, was talking about. He has 7 reasons why:

• Not enough diversification because you’re putting all your money in one place, your house.
• There is no liquidity because if you need cash, you may not be able to sell
• With transaction costs, home improvements, on-going maintenance and repairs, and real estate taxes, it may cost you more than renting.
• Let the landlord take care of repairs or maintenance while you can be having fun. He points to not having to shovel snow. Of course, that’s not a problem in Florida.
• If you need to relocate for a job, moving is harder when you own.
• Not a good investment because you’re putting most of your net worth in one investment.

I’m sure that many of us who are now underwater and not able to pay our mortgages, through no fault of our own, believe that the American Dream of home ownership has become the American Nightmare. But is that really the whole story? Since when is a house just a financial investment and not a home?

In a recent report by the National Association of Realtors®, studies showed that homeowners are more active in communities, have better educational opportunities, and report higher levels of self-esteem and happiness compared to renters. Why is that?

• For one thing, homeowners do move less frequently than renters and therefore take a stronger interest in the community. This translates to more stable communities with increased services and benefits. Businesses and services grow in stable communities – dry cleaners, gas stations, restaurants, etc. Home ownership contributes to the growth of the economy.
• Several studies cited a significant impact on education. The drop-out rate is lower for students raised by homeowners than those raised by renters.
• Civic participation is greater among homeowners. Homeowners are more politically active and are more likely to vote and have a higher membership in voluntary organizations.
• Homeowners are more likely to deter crime by forming voluntary neighborhood watches. Even in a less organized mode, homeowners will be better able to recognize if something is amiss.
• Homeowners spend more time and money maintaining their homes resulting in a better overall quality for the community.

Is this a tough time for homeowners? Absolutely! It’s a tough time for everyone. In the long run, home ownership is still a great “investment”. It’s an investment in our future. It’s an investment in our communities and in making sure that those communities are stable and will once again thrive. As Vicki Cox Golder, NAR President, says “home is where we make memories, build our lives and feel comfortable and secure”. Someday soon, the American Nightmare will once again be the American Dream one homeowner at a time.