Home > Blogs > Richie Alan Naggar > Richie's General Store & Post

WHEN YOU PURCHASE A HOUSE YOU DONT OWN IT

By Richie Alan Naggar

Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

July 31, 2012 12:12 AM

How many times have we run into people or have we incorrectly stated that when someone brings up the subject of do you own or rent and the person is in the process of paying for their home do we say..OH, I OWN MY HOME. Well, you do not not own your home. Your thinking is sound and you mean well and without stretching too far, you are saying something that is happening but not finished

YOU CONTROL...BUT DON'T OWN

If you have bought a home, then you are on your way to owning it via paying for it in full. Amazing how you have rights to do whatever you want, but it is contingent on paying that monthly amount or you lose those rights right away.

BUYING TO OWN

The idea of purchasing a home and paying off the amount owed changes the mindset of the buyer and bill payer. You now have a personal stake or an investment in the place where you lay your head to rest.

MAINTENANCE

Maintaining an investment is another interesting dynamic while invisible is still there and constantly at work. Preventative, seasonal and investment maintenance is now on your radar because your purchase can devalue over time while you are paying for it.

EVERYONE ON SAME PAGE...$$$

Living in a community or neighborhood where there are like minded people promotes a preservation of value and quality of life. When you enter a community and see quality curb appeal house after house, it certainly affects everyone for the better.

WHATS THAT LIGHT...?

Liking a neighborhood and a specific house within in it and then investing a down payment along with monthly obligations binds you to a healthy, long term personal and financial partnership that will continue to serve your interests faithfully. Then, one of many days will present itself where you see your mortgage light at the end of the tunnel

WHAT PRICE ON DEEP SATISFACTION?

Your payments have decreased and you can now visualize what it will be like to have little or no mortgage obligation and how that will positively affect your life in that moment and times to come...The satisfaction of such a long term investment coming to fruition is beyond the dollar value....NOW YOU OWN YOUR HOME

Re-Blog

Featured

Comments(111)

Comment

Show All Comments

Sort:

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Karen Anne...You appear to be a women of real mystery and other abilities?...Whatever happens on ACTIVERAIN...stays on ACTIVERAIN...is probably appropriate...with the only exception if it is a public...like you mention...thank you KAS

Sharon...do you hold your cards close to your last name (vest)? Your post causes me to remember and share the following. Many years ago, I wanted to remodel (nearly build new) my home. it was a major undertaking. In order to save fees and permits, I left a wall standing making it a remodel instead of new construction. Everything else was demolished. It wasn't until months later that I realized, I KNOCKED DOWN THE WHOLE SECURITY FOR THE LOAN. HUGE WHOA. I was scared the holder of the first would foreclose if they found out. I finished the project and all went well...I did not have the right to do what I did..or did I...Best and thank you for sharing...Sharon BTW...if you want to laugh, say sharing Sharon 3 times fast..lol

Jon...you remain high on my lists of worth and meaning..I enjoy your posts and points...Two peas in a Real Estate pod go us

Aug 01, 2012 07:15 AM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Bob...my dear friend and professional, please copy and paste your comment...(you have my permission lol) and make a post out of it as to why to buy...RIGHT NOW....Most excellent points...You have a $150 credit at Richie's general store & post..Bob

Aug 01, 2012 07:17 AM

Jim Hale

ACTIONAGENTS.NET - Eugene, OR

Eugene Oregon's Best Home Search Website

You may eventually pay off your mortgage. But you never finish paying for the sales tax - i.e. the percentage-based annual payments we call property tax. Those actually go up every year in the general case.

Aug 01, 2012 07:27 AM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Jim...perhaps that is the price we pay to live in the good ole U S of A....In any event, we do have to keep paying. That is one of the reasons they should never touch Social Security as for many who do reach the debt free stage, they still need to pay those taxes and insurance too...Good one Jim...thank you

Aug 01, 2012 07:35 AM

Victoria CB Trees

Victoria CB Trees Real Estate Services - Chiloquin, OR

Principal Broker

Don't have time to read everyone's responses, sorry... maybe someone already pointed this out; If you are indebted via a Note/Trust Deed, you do indeed own the home. It's in your name. You have signed a Promissory Note, using the Deed as collateral. Semantics, I'm sure, but I prefer not to say the seller of my home still owns it. :-)

I have to say that when I read the headline, it called to mind President Obama's statement that if we own a business, we didn't build it...

Aug 01, 2012 07:38 AM

Anna Tolstoy

Coldwell Banker Residential Brokerage - Natick, MA

Richie, I liked your post to begin with, and I LOVED the discussion that followed, thank you for creating this!

What seems to cause hair splitting here are papers. Legal details that vary from state to state.

Ones you buy a home, no matter tghe size of your mortgage, you are getting RESPONSIBLE for it. While renting you are not responsible for anything, other than scratches on the floor, that your security deposit will cover.

When buying a home, you also get a chance at US magic game, called building equity. Nobody denies that.

What Richie is talking about is "old world thinking". That's what my relatives in Russia are talking about. The opportunity to easily buy or sell a home in the US is unique. There is well developped and thought through mortgage industry - a luxury (or a devil), that many other countries do not have.

My relatives in Russia (especially the "war generation") still can't fathom how I can sleep at night knowing I have an UNPAID MORTGAGE. They don't truly believe it is (relatively) safe to have and very common. No amount of math proves to them we own our home, because we still have a mortgage... I know they would whole heartedly agree with Richie and tell me to listen to a wise man who knows what he is talking about. (And I do).

Aug 01, 2012 07:45 AM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Victoria...the title of a post is a shout out to the community and then the post itself. In this most interesting thread, many things were put forward all educational and beneficial in regards to this important Real Estate matter...Your comment is included

Hello comrade Anna...FIRST: You have a $1000 credit at Richie's general store & post. I personally had the thought and frame of mind of what your comment explains when I did the post....You remain in high esteem...thank you...BTW...My dad was from Europe and that was his and their mentality too. When you pay in full, its yours. You say different, and you got 1000 people you don't even know arguing saying it is....In America, its yours...BUT...holds a little bit

Aug 01, 2012 08:42 AM

Anonymous

Charles E. Jack IV, MAI

Even when you pay off your home and own it free and clear you don't truly own a clean fee simple bundle of rights.

The county or whatever jurisdiction you are in has a super-priority lien on your home above all others in their right to levy property taxes on your residence. Don't pay those for a while - we'll see you at the next tax auction.

Furthermore, you still likely have a multitude of encumbrances from easements for utilities such as water, sewer, cable, gas, electric. Perhaps some overhead transmission lines, maybe some odor easements and avigation easements. Probably a few mineral reservations and patent reservations going back to the days of the American Indians. Please look at the exceptions in your preliminary title report on your standard run of the mill home if you don't agree with me here.

So I would say we never really truly own our homes free and clear. But that mortgage is sure a heavy weight to get off your shoulders.

Aug 01, 2012 08:48 AM

#99

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Charles the 4th...Your the first to invoke the Title report and your data submitted is compellingly true...Well done. Ladies & Gentleman, further proof of the Real Estate genius found here on the rain.

After reading so much savvy commenting.....Who, in their right mind would FSBO? Who would want too? But that is another post...

Aug 01, 2012 09:06 AM

Brenda Mullen

RE/MAX Associates - San Antonio, TX

Your San Antonio TX Real Estate Agent!!

Wow...well, I was going to say what a whole bunch of others have already said lol :)! Terrific discussion and way to stir the pot Richie :)! Nothing more to say but that I am with the ownership group but I get where you were going with it :)!

Aug 01, 2012 10:14 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

Richie - you could say you own part of it - assuming you have some equity. But the "ownership" interest is what brings that quality to the area.

Anyway as they say "I owe I owe so of to work I go . . . ."

Aug 01, 2012 02:14 PM

Sharon Parisi

United Real Estate Dallas - Dallas, TX

Dallas Homes

Richie, what a thought provoking post. Karen Anne's comments and Gary Frimann's comments are right on and great additions to your post.

Aug 01, 2012 04:38 PM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Hi there Brenda...it is always good to have your input Brenda...thank you

Gene...yes..equity plays a most decent part in the scenario...many people used to compute their equity worth for fun and feel good about their equity positions.It was free money. The trick is to feel good whether it is there or not...best to you Gene..Make hay while the sun shines

Sharon..YES...to your comment. As to Karen and Gary, a couple of professional winners these two

Aug 02, 2012 12:21 AM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

11 BILLION 100 MILLION HITS PAGE #8 FROM TOP ON AUGUST 2ND 4;00 PM PST

ACTIVERAIN OUT AND ABOUT

Aug 02, 2012 08:59 AM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

When I was in the boat biz (in the 60's) I used to tell folks that the purchase of the boat was just the initial investment. Where you spend the real money is in the operation, maintenance, insuracne and storage of said vessel. Definition of a boat? A big hole in the water you just keep dumping $$$$ into. Any similarity there?

Aug 02, 2012 08:52 PM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Hello John...YES to your commenting. Very eye opening sharing and it appears that the whole country is run on the premise of some money always being paid in....If it ever stops......?

Aug 02, 2012 11:44 PM

John DL Arendsen

CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA

Crest Backyard Homes "ADU" dealer & RE Developer

Not totally getting that. Could you please enlighten me?

Aug 03, 2012 05:04 AM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Sure can John...Lets use your comment as an example. You buy a boat. That's good for the economy, boat builders, sellers of boats etc and you. Then, you now have to pay into the associated other necessities as maintenance, insurance, dock fees etc...further paying into the purchase. This is exactly what happens with a paid for home. We outlay the money for the home and pay it off. Then, the maintenance, yearly taxes and insurance never go away and require constant payment toward the original purchase price. Now, if this system of paying taxes and insurance ever stops, part of our economic industries connected to this and their services comes up short....I am reminded that after the civil war, plantations and their land holdings were picked up for delinquent taxes alone....Not direct purchase of the property. The state and local governments NEED that revenue....no matter what........I hope I answered your question John...I am thanking you for it as well

Aug 03, 2012 06:10 AM

Monique Ting

INET Realty Honolulu, HI - Honolulu, HI

Your agent under the sun

On the legal and financial level, we own our home if our name is on the deed.

On the philosophical level however, we are just granted a temporary lease on the property. The improvements (house and driveway, landscaping...) can be taken away by a natural disaster and the remaining piece of land we own is only "leased" from mother earth. The Hawaiians understand this concept very well and on Big Island have had to surender entire communities to Pele...

Aug 04, 2012 02:01 AM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Hello Monique...first comment point is a good one....Your second comment is most excellent and meaningful. You have a $500 credit at Richie's general store & post...well done and Aloha dear lady

Aug 04, 2012 03:20 AM