This book should be mandatory reading.
When I discovered this book a few years ago, I did not expect it to have anything to do with real estate. However, what I was reading made me think differently about what I’ve been doing for the past fourteen years. The case the author presented was so clear and the facts so overwhelming that I wished his findings were common knowledge. I highly recommend this book: The Mystery of Capital
Property ownership leads to business ownership
Over 80 percent of all businesses in this country are started because the entrepreneur puts up the equity of his home as collateral. The home is much more than a place to stay; it’s productive capital. A home owner’s title policy is only a representation of the home, but this abstract is actually more important than the tangible property. Most significant in the establishment of property rights were the Preemption Act of 1841 and the Homestead Act of 1862.
Legal Ownership of Property Essential for Economic Growth.
The “Mystery” in the Mystery of Capital is the legalized and codified ownership of real estate. De Soto estimates that about $9.3 trillion of real property is owned outside the legal system. It took generations to overcome such conditions in this country making the private ownership of property a cornerstone of our political and economic system. As a real estate agent, I am proud to be playing a significant role in a process that is essential to our way of life.
For the complete version of this post see Seattle Real Estate News - SERENE™.
© 2015, Gerhard N. Ade, (Original post published in 2006)
Happy New Year!