Home Ownership: Still the American Dream
In spite of all the bad press decrying the demise of the housing industry, the dream of home ownership remains. Early in this century, owning a home was “the impossible dream” for most Americans. After world war II, the suburbs, with small homes, sprouting like shrubs, appeared across the landscape. The “American Dream” of home ownership was born.
Being a product of the 50’s, I caught the dream and determined to make this dream a reality. After a three year stint in the army and a few months of renting, my bride and I purchased our first home in Palm Beach Gardens, FL, in 1960. For an initial investment of $350.00 and our signatures on a thirty year mortgage, we took possession of a new three bedroom, two bath, $11,600 house in one of those new subdivisions springing up all over Florida. The dream was realized by this twenty two year old real estate novice. Since then, I have purchased and lived in six homes. Although the purchase was primarily for a place to live, all have been excellent investments contributing toward my retirement.
Real estate investors, Freddie Mac, Fannie Mae, government mandates, greedy lenders have all had a hand in tearing down the “American Dream”. But there is good news for those who still have that dream. Buying a home is the very best investment you can make and there has never been a better time. With more inventory, there has never been as many choices or more attractive prices. When I bought my first home, interest rates for a thirty year fixed rate was 6%. Today’s buyer with a good credit score can beat that. Home prices will begin to rise as inventory decreases and that has begun to happen. For those who have that “American Dream”, I encourage you to go for it. Not only will you begin immediately to enjoy the many benefits of owning your own home, but you will reap the additional reward of a tax-free capital gain when you sell it.
Time is on the side of today’s homeowners. The longer you own the property, the greater the profit. Those who purchased property at the top of the market a couple of years ago, need only to wait a while before selling. It is only those who are forced to sell immediately who will lose in this down-turn. No one else will be affected. Needless to say, the biggest losers were the “spec” builders and investors, not the average homeowner.
Even though you cannot purchase a new home today for the price I paid in 1960, nevertheless, the principle has not changed. Regardless of inflation, market conditions, or any other factors, there is nothing that can replace the “American Dream” of home ownership. There is never a bad time to realize the dream!
Written and submitted to The Black Mountain News by Sid Blake, ERA Pinnacle Properties