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A Gift of Love from the Heart, Posted by Moe

51e5h7XJ6qL__BO2,204,203,200_PIsitb-sticker-arrow-click,TopRight,35,-76_AA300_SH20_OU01_I have been reading a different philosophical bent on the housing market of late, and it just plain makes me mad.  No, it’s not about volume or pricing or foreclosures; it’s what some people have been saying about housing in America.

I’ve read that some of these pundits believe the worth of the home purchase isn’t what it once was, and may never be a valuable asset. I’ve read that, in an uncertain economy, these brainiacs think buying a house is too much of an anchor on an individual or families mobility. Not a long term valuable assets? Too much of an anchor? What in the heck are these folks smoking? Are they nuts?!

These “chicken littles” are the same “sky is falling” addicts that would have you believe that…

Find out what the “chicken littles” are saying after the jump…

1)The millions of folks that came here to settle America had no interest in private property ownership,

2)A home or piece of land they could own was not only worthless but also not a primary reason for their migration here away from home and family,

3) The millions of new citizens that continue to come here from every part of the world work and slave so they can…what?… raise their kids in a palatial rental?

Give me a break! Owning a home of their own, maybe not for some, but for the vast majority has been a benchmark of success and stability in their lives and that of their children as well.

Let me tell you a story about the real value of homeownership. My dad met my mom and they always had the dream of owning their own home. He bought my mom the home of her dreams as a gift of his love with the belief that it was better to pay off something that he owned with his wife and raise his kids there than to rent.

That home was purchased in the 1960s for $16,000, with a few hundred dollars down, an FHA-backed loan, and an interest rate of 5 percent. The real value today is about $275,000. You do the math on an investment of a few hundred dollars and tell me if housing isn’t worth the risk.

In spite of everything that housing has gone through the past couple of years – and I’ll admit it’s been a tough time – housing still remains the best way to build long-term wealth. Nothing else compares. Doesn’t even come close.

Yep, we take a risk when we buy home. But I’ll bet you a dollar to a donut that the risk remains one of the best ones you’ll ever take in your life. There is good risk and bad risk. Bad risk is unintelligent investment, banking on unrealistic expectations bolstered by uncertain outcomes. Good risk is knowing as much about the investment as possible, consulting with folks who commit to your intelligent purchase.  When you are working with an experienced REALTOR® who can identify the pitfalls and the multiple future benefits, housing becomes as good a risk you can take.

There are so many other values housing provides. It’s not just the peace of mind offered by owning something that is yours, but also can provide the foundation on which your life will be built. When my Dad bought my Mom that house, it created their home, and it built their life, mine and my sister’s too.  – Moe Veissi, 2010 NAR First Vice President

Comments
  1. Elaine Elliott

    Everyone wants to write a book these days. I must admit, I would be curious to read this book but it would serve no practical purpose. We who have worked full time in real estate for 20 to 30 years are the true experts. Perhaps we should collective write our own book.

    Elaine Elliott

  2. Ronda Tompers

    Thankis Moe such a well written article and from the heart. We all have so much to be thankful for and owning a home is one. You said it all and you said it all with so much heart. thanks for all you and the entire leadership team do for all of us. Real Estate is still the best and always will be the best investment anyone can make. Forget about those who want to be negative as they have nothing better to report. It’s up to us to promote the value and the rights of property owners and that we will always do!

  3. I met a young man the other day..he was about 27 or so. I was looking for a small grill and he was more than willing to answer my questions. He was so enthusiastic about my new grill. I then found out why. He was closing on his first home in a few days and he was so excited. He said that since he had been out on his own he had rented an apartment. Now he was going to own a home with a patio and he, too, would be able to have a grill. I have had so many grills in my life and this wonderful young man made me realize how wonderful the little things in life are. A home that you own gives you the opportunities to enjoy the little things. Yes, it is the best way to build wealth..and I feel that wealth is not only money but the quality of our lives..with our family and friends..the memories we will always have. I was lucky to grow up in a home filled with love and fun. It was the only home I knew and I lived there until I married. Sometimes, when I go back to the old neighborhood (which is in a different state) I drive by and sit out front. The memories flood in. How I which I could knock on the door and ask if I could just walk through. But I know it has changed and I will be disappointed. So I just sit in my car and remember. That is what the $6,000 investment with a 30 year fixed rate loan @ 3.5% provided my parents and their family and friends. All the memories I have are due to their investment in home ownership..the American Dream. And the investment keeps paying as now in their retirement, the house is sold, the investment has been reinvested and our life continues…in a new home we own, with a grill on the patio and the knowledge that one day my child will drive by this home….. and remember.

  4. Bruce

    Moe,

    This is not the 1960′s any more. I’ve seen the NAR commercials on television, and my response is, “Why would I commit myself to decades of constant toil, for an asset that will be declining in value for many years?” As a renter you can give your place up and move when you like. Plus yardwork, maintenance and repairs are someone else’s problem.

    When the giant real estate Ponzi scheme collapsed, it was not a game-changing event, it was a game-ending event. The bubble is gone forever.

    Your corporate propaganda has caused many families to overspend on housing, and it is reprehensible. When you stop smoking the NAR drugs, you’ll see that the American Dream is a scam, and you are all part of it. I dare you to print this.

  5. Robbin

    The response from Bruce is ignorant as everyone knows that the crash came from an artificially created value caused by a rush of buyers given loans that they could never keep paying under any financial stress. In the old days, not only did you need a down payment, you needed excellent credit. The recent years showed folks getting loans with no money down, no regard to existing debt, having only so so credit, and mortgage payments much higher than the buyer’s paycheck could ever have sustained realistically over time.
    My dream has always been to own my own home, and only recently did it finally happen. I live right where I want to be in my area and I know that every 6 months my landlord is not going to do a drop in and inspect my home. If I get tired of the color of the floor I can change it. I live in peace knowing that if I have to move from my home it will because I want to, not because my landlord wants his house back. I can invest in labor for a future outcome and know that I will reap it’s rewards such as planting shrubs, landscaping, growing a vegtable garden. I do not have to call my landlord and beg for gutters, so that I can get out of the house when it is raining. I no longer have to make multiple phone calls asking for a new toilet as the ancient one never completely flushes. And best of all I don’t worry that one day out of the blue a painter shows up and starts painting the house pink. This really happened to me as a renter, and because of this I don’t care if the value of my house goes down. It’s my home and I will never paint it pink.

  6. Moe, I could not agree more with your comments on homeownership. I believe
    Real Estate will always be the best investment for many reasons. I still contend
    that homeownership creates neighborhoods that create workforce which is one
    of the major factors in sustaining our economy. Families are far more engaged
    in homeownership versus renting. It will be the decline of our country when
    we stop promoting homeownership.

  7. Moe,
    Thank you for reminding us of the true value of home ownership. I totally concur with you and in fact your account of returning to your home town and recollecting your childhood memories brought tears to my eyes – a very sentimental account but so endearing and very true! Home ownership and the American Dream is not all about the investment advantages that all too many buyers tend to focus on and so much more about having control over the lives we create for ourselves and our family while at the same time building and contributing to a neighborhood. And as someone else pointed out how all that works to create jobs and a community with good schools. Those who possess an attitude in line with that of Bruce’s just don’t get it!

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