It Feels Like an Assault on Home Ownership.

By
Real Estate Agent with Success! Real Estate

     It's always been my favorite argument that, unlike paying rent, your thirty year, fixed rate mortgage could never go up. Of course, your real estate taxes go up a little every year, and so will your insurance. Ever since my dad purchased our first home, a five room starter ranch in Brockton MA in 1959 for $12,500.00, which he thought was a little high, he would justify it by stating that they can never raise the mortgage by a penny. He'd tell anyone who would listen, " I made them put that in there, that's why I didn't mind paying a little more."

    Once a year, when our tax bill came in the mail he would study it, then deem that all the politicians were crooks for personally raising our taxes.  He was none too happy about it when the Insurance man came to the house to explain that annual rate increase.  He would get over it soon enough, but he was a child of the Great Depression, and every penny mattered.

     Were he alive today, however, he would be overwhelmed by the increases in property taxes, and stunned to here of the premiums his friends in coastal areas are getting on their insurance rates.  It seems as though there is an all out assault on home ownership, or is it just me being a chip off the old block?

Comments (19)

Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

Dan, it does seem like every day there are more and more things to consider when thinking about becoming a home owner. Seems to become more complicated every year and with technology a more difficult task.

Jan 10, 2014 07:55 AM
Dan Derito
Success! Real Estate - Brockton, MA

You are so right about the technology Anna. I just take it 'one bite at a time' and know that I'll never fully catch up.

Jan 10, 2014 08:03 AM
David Burrows
Classic Realty - Fairfax, VA
No Pressure, Just Seriously Devoted to Real Estate

Dan, I remember when my parents paid 5,500 for their first home in Port Huron, Michigan. I do remember my father indicating there were many costs to home ownership, some of which he failed to realize until actually making the purchase. Nice post today...

Jan 20, 2014 07:11 AM
Dan Derito
Success! Real Estate - Brockton, MA

David, they made it work somehow, and provided a roof over our heads. 

Jan 20, 2014 09:13 AM
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Dan, obviously the cost of living goes up and we have to deal with that, however, I feel there are too many people in Washington that feel we "the citizens" are just so many pockets to be picked.  After all it's not their money and we seem to be a bottomless pocket.  My yearly real estate taxes on my Illinois home could have paid for that first home your father bought, but things change.

Jan 28, 2014 07:57 AM
Dan Derito
Success! Real Estate - Brockton, MA

 Nick, it just doesn't seem like they spend it wisely.

 

 

Jan 28, 2014 09:34 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Dan,

Interesting post.  However when we make a wise investment and sell that home for 2 or 10 times what we "paid" for it, we look like geniuses.

Feb 08, 2014 08:17 AM
Dan Derito
Success! Real Estate - Brockton, MA

They owned that home for nearly 50 years, raised four children and had a lifetime of memories.  Wayne and Jean, home ownership was the ticket to a happy life for them, and my mom is comfortably retired from the profit on the sale. 

 

Feb 08, 2014 08:35 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Dan~ I like your logic, "home ownership is beneficial and provides security and wealth

Apr 28, 2014 03:21 AM
Dan Derito
Success! Real Estate - Brockton, MA

Jon- Ijust worry that we are under attack from the Feds.  They want to take away the tax benefits of owning a home and get everyone into subsidized housing. Just my opinion.

Apr 28, 2014 05:09 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I hear you Dan, however, I still think homeownership makes good sense, in spite of the increases in property taxes and insurance premimums.  I hope your fears of a plot to get us all into subsidized housing is wrong. Yikes.

Jun 03, 2014 12:13 AM
Dan Derito
Success! Real Estate - Brockton, MA

I fully agree Debb.  Homeownership for the working middle class is vital to our way of life.

  

Jun 03, 2014 11:24 AM
Suzanne De Vita
RISMedia
Online Associate Editor

Dan, homeownership's never been an investment to be taken lightly, but those of us in the middle are definitely feeling it. Great post!

Jun 25, 2014 03:03 AM
Dan Derito
Success! Real Estate - Brockton, MA

It was a piece of the American Dream for that generation Suzanne.  My dad worked in a machine shop, carpooled with 3 other guys, and took on side jobs on weekends.  My friends folks did the same thing.  It was a source of pride since it was so much more than he or my mom ever had growing up.  

Jun 25, 2014 02:10 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Dan, I have to agree with you; the property taxes in some areas in my market are insane. Owning a home today is not the same as it used to be. I've known a few homeowners that after they've paid off their 30-year mortgage, they want to move. 

Jul 26, 2014 03:38 AM
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

Many do not understand that with an increase in value there will be an increase in taxes. I LOVE the settlement company I work with as they are very good at explaining this which is a great way to enforce what I have already told them. 

Jul 27, 2014 11:57 PM
Dan Derito
Success! Real Estate - Brockton, MA

Good point Shannon.  Having good vendors on your team makes everyone more comfortable during the transaction.

Jul 28, 2014 10:13 PM
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

Dan Derito  looking forward to your next post.  I know you have been busy, but I saw you commented recently on a post.  You are good writer and I am looking forward to seeing more.

Oct 19, 2014 01:04 PM
Dan Derito
Success! Real Estate - Brockton, MA

Pamela Seley, I have had many friends who loved living in Cali but, had to move back here.  Every time we discuss the crazy pols that run our state, we marvel about the nut cakes who run things there.

 

Anna Hatridge, thank you for your kind words. You have made my day.

Oct 20, 2014 12:09 AM