If “Home Ownership” is passé, what do you tell the 40% of Americans that own their primary residences free and clear?

By
Real Estate Broker/Owner with Richard Weisser Realty

Cook Cabin in the Great Smoky Mountains National Park!Pundits ignore it. Prognosticators omit it. Politicians are oblivious to it. But there is one argument in favor of home ownership that no one can legitimately dispute:

40% of American homeowners own their primary residences “free and clear.”

This large segment of our society is immune to the cyclical winds of real estate change. They can never be “upside-down” or “underwater.” And while they may have lost some equity in the market value of the property, their only consequence is a lower tax assessment if they opt to appeal.

As long as they choose not to sell, the true value of their property as a residence remains intact. It will continue to serve their housing needs for years to come.

And as long as the ultimate goal of any purchaser is to own their home outright, ownership will NEVER be passé!

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Bill Saunders, ABR®, SRS 09/04/2010 09:22 AM
Topic:
Home Buying
Location:
Georgia Coweta County
Groups:
Realtors®
The Lounge at Active Rain
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Tags:
home ownership

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Rainer
41,614
Amy Prumo
Coldwell Banker Schmitt Real Estate Co. - Marathon, FL

yes

Sep 02, 2010 07:59 AM #1
Rainmaker
779,959
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Richard,

The DEED is the reason to own.  And unencumbered DEED is even a better reason.

Someday, hack writing like the recent Time Magazine article will be passe.  Well, I can dream, can't I?

Sep 02, 2010 08:04 AM #2
Rainmaker
748,851
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

I own my home free and clear. Wouldn't want it any other way. A home is and always will be a long term investment!

Sep 02, 2010 08:13 AM #3
Ambassador
1,398,246
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

The media is pushing this homeownership is passe agenda, maybe with a little help from the administration, I don't know.

That isn't the reality of the American public. Homeownership is still critically important for the vast majority.

Rich

Sep 02, 2010 08:18 AM #4
Ambassador
1,717,472
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Amy...

THX

Mike...

What a terrible thing to publish as "news!" Thanks.

Jackie...

You are not alone! thanks so much.

Rich...

I was trying to keep this post from being political, but it needs to be said. Thanks so much.

Sep 02, 2010 08:26 AM #5
Rainmaker
149,682
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Richard,  My one prayer is that the mess we have seen through the past couple years will revive the belief that you buy a home to "own" it, not use it as a piggy bank.  Your post is a very nice reminder that many, many people do just that.

Sep 02, 2010 08:45 AM #6
Rainmaker
2,373,172
Dorie Dillard
Coldwell Banker United Realtors ~ Subsidiary of NRT, LLC - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Good morning Richard,

Isn't it amazing with all the press about doom and gloom and homeowners ship is on the slide that no one likes to talk about 40% of us who own our homes free and clear!!!!!

Sep 02, 2010 08:52 AM #7
Rainmaker
588,878
Susan Mangigian
RE/MAX Preferred, West Chester, PA, RS152252A - West Chester, PA
Chester & Delaware County Homes, Delaware and Ches

Great point Richard.  And let's not forget the majority of folks who didn't over borrow, who are in areas that haven't declined significantly and who do not need to move anytime soon as well.  Their property values aren't affecting them either.  They are enjoying their homes and family as well!

Sep 02, 2010 10:21 AM #8
Ambassador
2,455,141
Chris Ann Cleland
Long and Foster REALTORS®, Manassas, VA - Bristow, VA
Associate Broker, Northern VA

One day I will own my home free and clear.  In the meantime, I will make the payment despite being "upside down" because I love my home and couldn't rent for much less than my mortgage.  It's just my downpayment that has evaporated for the time being.

Sep 02, 2010 11:06 AM #9
Rainmaker
576,216
Maria Morton
BHG Real Estate - Kansas City Homes - Kansas City, MO
Kansas City Real Estate 816-560-3758

Richard, there is no better feeling of accomplishment and security than living in a home that is paid for.

Sep 02, 2010 11:51 AM #10
Rainmaker
564,731
Mike Saunders
Lanier Partners - Athens, GA

Richard - I didn't realize that the percentage is that high. The Times article is just another paen to collectivism disregarding and distorting reality to achieve an agenda.

Sep 02, 2010 12:28 PM #11
Rainer
322,455
Don MacLean
Simolari & MacLean REMAX EXECUTIVE REALTY - Franklin, MA
Realtor - Homes For Sale - Franklin MA

So true.

If your in it for the long hall,then market price will not touch what you have in pictures and memories as that is where most are built.

In your own HOME

Enjoy the day

Sep 02, 2010 12:40 PM #12
Rainmaker
2,495,926
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.
Richard I was telling a client this morning that he had not lost anything yet as long as he hadn't sold yet
Sep 02, 2010 12:47 PM #13
Ambassador
859,352
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Wow, Richard I had no idea so many owned thier homes w/out a mortgage. Looking forward to joining the ranks!

Sep 02, 2010 05:28 PM #14
Rainer
76,469
Bill Saunders, ABR®, SRS
Meyers Realty - Hot Springs, AR
www.BillSellsHotSprings.com

Proud to be in the 40%. Just wish we could shut up the gloom and doomers about 80%! My stocks aren't doing so great, so I don't sell...in it for the long haul...but I have yet to see a stock certificate (when you had them) that would keep off the rain, keep out the wind. Yep, it is an investment, and over the long haul, still a great one.

all the best...

Sep 04, 2010 09:16 AM #15
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