Saturday, November 26, 2016

Home Ownership is an Extension of Property Rights


Since a home is basic need commercial rental properties do not have to negate the goal of housing every American family irrespective of income level. Commercial interests have to tie home ownership to income levels to stimulate active participation of families in the investment activities and circulation of money in the communal leveraging efforts. There is no law specifying that a family must attain certain level of income to invest in home ownership since housing is basic human need. I pointed out in previous blogs that rental housing has always been a proportional part of every local housing market for leasehold arrangements among households. Since a home is basic need every family should normally seek to participate in the local housing market as an investor.


To ensure social justice, American families should not be inadvertently dispossessed of their property rights by commercial interests. That is, our public policy must continue to promote active participation of families in their local housing markets as investors. Home ownership is the great equalizer. With the expansion of commercial interests, home ownership could become morbid desires. At the same time, commercial interests continue to promote various forms of exploitative deals in equitable values of landed properties. Some scholars are already advocating re-thinking of home ownership disregarding the need to encourage families to invest their local housing markets. Community Housing Market Support Network Inc (CHMSN Inc.) is encouraging active participation in your local housing market as investors. Real estate is not a wasting asset. Its equitable value appreciates overtime if properly maintained. 

Wednesday, November 9, 2016

There are general misconceptions about home ownership and rental housing market that need clarification for successful maintenance and management of housing units as capital assets. The misconceptions are due to the paradox of housing as landed properties with respect to land tenure and land value. Every housing unit has to be developed and/or maintained at a unique location for considerable length of time or tenure. Also, though a housing unit depreciates with respect to its development costs overtime; its value overtime appreciates in terms of supply and demand. Although this depends on the changes in the community, the home owner has right to the equitable value for managing and maintaining the landed property overtime. All the characteristic features make a local housing market heterogeneous and monopolistic with respect to available housing units. Disregarding equitable rights of owners of landed properties has led to various misconceptions about home ownership and rental housing market in terms of buying and selling.

However, the legal system of possessing and using landed properties is outright purchase or leasing. Rental housing market is in fact leasehold housing market for various forms of arrangements among households to meet housing needs. That is, irrespective of income-level, a household could still choose leasehold arrangement to meet immediate housing need for shelter. This implies that vice-versa a household, irrespective of income-level, should be able to choose among a spectrum of leasehold arrangements up to home ownership to meet housing need since every household is being leveraged. Therefore, the relationship deserving nonprofit management attention is not capital value and rental value of landed properties, but capital value and equitable value of landed properties. Landed property owner should be free to market equitable value of landed property to encourage innovative and competitive leasehold arrangements among households.


Ideally, low income households could be leveraged indirectly through various innovative leasehold arrangements. To be equitably leveraged, families with low incomes only need nonprofit holding and management of the landed properties as capital assets in their local housing markets, not rental homes. However, the common understanding about local housing market is a particular community or neighborhood where one could either rent or own a home. People do not commonly think of local housing market as a local environment where various housing needs could be met as landed property rights are sold and purchased to work and live in the housing community. In view of the general misconception, renting a home is equated to permanent housing. This has led to thinking that some households need subsidies to gain access into their local housing market either because their incomes are too low or because housing prices/rents are too high. Consequently, a local housing market is thought to comprise of market rate and subsidized housing. The ambivalent conceptualization is currently preventing efficient local housing markets in various cities in the United States. Community Housing Market Support Network Inc (CHMSN Inc.) is a nonprofit institution set up to address the misconceptions in Louisville metro housing market.