Wednesday, September 12, 2012

Zimbabwe property

Midstar Poperties (Pvt) Ltd Business Category Property Developer & Contractor Cell Number +263775431598 City/town/suburb Harare Email sales@midstarproperties.co.zw Submitted by 41.190.42.193

Tuesday, September 4, 2012

The benefits of home ownership.

The benefits of home ownership - C.M. Heydenrych (September 2012)

How do individuals benefit from owning the property that they live in? What does home ownership do to a person? The bottom line is that owning a residential property acts as a powerful economic stimulus, benefiting the individual owner and the national economy. Here are some of the specific advantages that are gained by home ownership. But first – the problem.

The problem

The issue that lies at the base of poverty is that the wealth in many economically depressed areas is not in the form of legal titles to property; instead, these are “informal” ownerships not recognized or enforced by the authorities in these areas. (de Soto, 2000) This makes it difficult for the individuals in those areas to benefit from this wealth. One way to unlock this wealth is to ensure that individuals attain proper title to these properties. The benefits of such a process lies on different levels, which will be outlined here.

Individual benefits

Owning property in the form of a house provide individuals substantial economic benefit by helping them to build up substantial personal equity. This equity can be used to make home repairs or additions, to fund the school or university education of their children, or to start a new business.

Home equity is one of the largest sources of collateral for bank loans to start new businesses. It has been found that homeowners are almost three times as likely to own a business as renters.

With the benefit of home ownership one also has the duty to take responsible decisions. This helps people move from being dependent to being self-directed and take the actions that one would expect from citizens that see themselves as being accountable for carrying out their civic duties.

An interesting spin-off of home ownership is revealed in a research based article by the Habitat for Humanity - it is mentioned that the children of homeowners do better in school and are more successful later in life than those children that grow up in rented accommodation.

The direct benefits however are:

1. You cannot easily be evicted from the property since you hold the freehold title to the property. 2. You can then use the property as collateral to obtain study loans or a loan to improve your house. You can even borrow against a home's equity for other reasons such as medical or funeral expenses as well as starting a new business. 3. You can sell the house and realise the full value in cash. 4. You can bequeath the property to your next of kin.

The economy

Property ownership serves as the basis of many other business and economic activities that in the end works positively towards helping the individual to participate in the economy and in so-doing assists in creating a vibrant growing national economy. The housing sector is a big part of the overall national economy, through spending on housing related items, taxation, and other consumer spending by homeowners it contributes to the larger economy. A point that de Soto (2000) makes is that a modern economy can only function where there is secure property rights, efficient utilisation of capital, and transparent financial markets to release the productive potentials of assets and their owners.

The benefits to the community

Home ownership raises property values in that it creates a market for property – properties can be traded when necessary. The biggest result own owning property however is that there is a feeling of pride in ones home and in neighbourhood that one lives. It has been found that owners of homes are also more likely to participate in local organisations, they are more likely to vote, they stay in the neighbourhood for a longer period of time, and they are more satisfied with their home and their neighbourhood than renters. The following research studies are also quoted in the Habitat for Humanity article , and while the may not be completely valid to the South African situation, surely does have some relevance: • Homeowners vote at a substantially higher rate than renters, 69 percent versus 44 percent (Drier 1994). • Homeowners are 15 percent more likely to vote in local elections. • Homeowners are 6 percent more likely to work to solve local problems (DiPasquale and Glaeser 1998). • Homeowners are 12 percent more likely to garden (DiPasquale and Glaeser 1998). • Homeowners report that they attend church more regularly than renters (DiPasquale and Glaeser 1998). • Homeowners give significantly more money to their churches, about $150 more per year, than renters (Rossi and Weber 1996). • On average, homeowners are members of .25 more non-professional organizations than renters • Homeowners are found to be more likely to repair or improve their homes, more likely to maintain a garden outside their home and more likely to report they have worked to solve local problems.

Are there negative impacts of homeownership?

Homeownership is not right for some people. Renting allows people to move around. People don’t have the same kind of freedom when owning a home, but also don’t have the same responsibilities. Homeownership could entail a financial commitment to the upkeep and involves lots of responsibility to ensure that the property is maintained.

Concluding remarks

People that have lived in public housing and rentals sometimes do not even realise that they could have the chance to own a home; the idea is not in their mind. We are trying to work with the Municipalities in order to break the cycle of poverty. Living in a municipal owned house can also be demeaning if the properties are allowed to deteriorate because of a lack of resources. Therefore it is important work with the community to build trust respect and pride and excitement in each other to create the kind of society we want.

. Sources

Habitat for Humanity- New York City: Benefits of Homeownership. www.habitatnyc.org/pdf/Toolkit/homewonership.pdf

De Soto, Hernando. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books. 2000.

Add a cellphone number to the cellphone directory here.
Click here if you wish your business to be listed for free in our directories.

Anyone into property...

...should also be into property rights. There is a threat looming. Read this summary of Hernando de Soto's book published in 2000. http://www.fff.org/freedom/0201f.asp Add a cellphone number to the cellphone directory here.
Click here if you wish your business to be listed for free in our directories.

Monday, September 3, 2012

Increasing your property Value

http://www.freearticleforyou.com/Real-Estate/Real-Estate/tips-to-drive-up-your-house-valuation-perth.html Add a cellphone number to the cellphone directory here.
Click here if you wish your business to be listed for free in our directories.

In the streets of Johannesburg.

click to comment