African American Homeownership Falls to 50-year Low, Lowest Since 1968


Da Sleeper

Da Sleeper

Well-Known Member
http://www.nareb.com/african-american-homeownership-falls-50-year-low/

As a people Americans of African heritage should be concerned about this home-ownership decline. This has major ramifications in the short and long term. A higher percentage of Americans of African heritage owned homes in 1968 than in 2017.
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This should be a School Daze "WAKE UP MOMENT"
 
I believe it's true. I get 20:1 calls for rentals versus buying a house from black folks. And how many rent to own calls do I get. Just about damn near every house I put on the market, I get 5 - 6 are they willing to rent calls the first day. The sign clearly says: FOR SALE.
 

And many of them can't buy a home. Bad credit from bullshit. I mean, how you gonna get a Belks card, run it up to $1000 and never pay it...then can't buy a home. You don't have to have a great job to have good credit. I get SO frustrated with people over this. I counsel my students...try to avoid debt. Work the summer, pay for school...but so many look like deer in headlight when I tell them to pay for classes out of pocket if they can. That that loan has to be paid back by THEM...it doesn't compute...until they get the loan booklet...then they allow it to default and can't get a govt job.....smh. Financial education is a MUST in our communities. Instead of being jealous of what others have...how about you ask me what I did and how I got it?
 
It's harder to buy a home in 2017 than in 1968. It's harder to save a down payment AND closing costs. It's harder to get approved. The underwriting process with mortgage firms, even today with the Equal Opportunity checkpoints, still gets busted for discriminatory practices. Actually, it's harder for everyone to get approved, but the lack of generational wealth puts Blacks even further behind the curve.
 
They have many first homebuyer programs....they have foreclosures to fix up....they have the 203K financing program....country banks have the little down and balloon payment you can refinance at the end of 5-10years....anywho, that's around me...yet, I ask if they want to buy and you can hear them mentally running away
 
chocalate_topaz said:
And many of them can't buy a home. Bad credit from bullshit. I mean, how you gonna get a Belks card, run it up to $1000 and never pay it...then can't buy a home. You don't have to have a great job to have good credit. I get SO frustrated with people over this. I counsel my students...try to avoid debt. Work the summer, pay for school...but so many look like deer in headlight when I tell them to pay for classes out of pocket if they can. That that loan has to be paid back by THEM...it doesn't compute...until they get the loan booklet...then they allow it to default and can't get a govt job.....smh. Financial education is a MUST in our communities. Instead of being jealous of what others have...how about you ask me what I did and how I got it?
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Amen, you need a youtube channel.

What truly breaks my heart is when I see these homes in traditionally Black neighborhoods that granny worked 30+ years scrubbing someone else's house on her hands and knees to pay for and the heirs just loose them because they wouldn't pay back a $300-400 a month reverse mortgage. Where the fugg do you thing you can live for $300-400 a month.

Then a Mexican family comes along buys it and it's gone. Likely to never return to black ownership.

Oh and yes yes yes...will you owner finance? I consider is sometimes with a significant down payment. But these jokers want you to let them in with just the first payment. lol
 
Da Sleeper said:
Amen, you need a youtube channel.

What truly breaks my heart is when I see these homes in traditionally Black neighborhoods that granny worked 30+ years scrubbing someone else's house on her hands and knees to pay for and the heirs just loose them because they wouldn't pay back a $300-400 a month reverse mortgage. Where the fugg do you thing you can live for $300-400 a month.

Then a Mexican family comes along buys it and it's gone. Likely to never return to black ownership.

Oh and yes yes yes...will you owner finance? I consider is sometimes with a significant down payment. But these jokers want you to let them in with just the first payment. lol
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I handled an owner finance last year for a client. I had to educate the gentleman who was buying it when he said, I put down a $1500 security and she can't give me until the end of the month for the rent? I nicely informed him, he had a MORTGAGE which was NOT rent...he was now a HOMEOWNER, not a tenant. The $1500 wasn't coming back if he paid not another penny...he'd be on the streets in 30 days though, so it was up to him to decide. The light bulb clicked on and he smiled...He found the money and hasn't missed a note. Keeps it up nice too.
 
chocalate_topaz said:
I believe it's true. I get 20:1 calls for rentals versus buying a house from black folks. And how many rent to own calls do I get. Just about damn near every house I put on the market, I get 5 - 6 are they willing to rent calls the first day. The sign clearly says: FOR SALE.
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My Godmother told me to live in her home until we buy one. She was like, "Don't make anybody else rich."

As black people we don't do what the white folks do. In my job I see so many white folks who parents have co-signed for them a home loan. Then the parents downsize and take that money and buy a smaller one out right then put the rest toward the kids house. My wife and I are building next year after I pay off the 2 acres because I don't want it in the mortgage.
 
chocalate_topaz said:
They have many first homebuyer programs....they have foreclosures to fix up....they have the 203K financing program....country banks have the little down and balloon payment you can refinance at the end of 5-10years....anywho, that's around me...yet, I ask if they want to buy and you can hear them mentally running away
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You beat me to it!! Plenty of programs, the city was even doing money management classes with free credit repair. The participants could get grants to use as down payment or towards repairs/improvements on homes in areas designated for redevelopement.
 
Da Sleeper said:
You beat me to it!! Plenty of programs, the city was even doing money management classes with free credit repair. The participants could get grants to use as down payment or towards repairs/improvements on homes in areas designated for redevelopement.
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My mother had our company doing it before she passed. The people who called all day rarely showed up. But those that did...we got them into homes.
 
chocalate_topaz said:
Man, one of the best kept secrets is: DUPLEXES/TRIPLEXES. If you can find one, buy that sucker. Make the rental side really nice and let it pay for the mortgage.
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That was my biggest mistake when I moved to Arkansas. I had the chance to buy one like that. Instead I bought the house.
 
Good, but startling article....When I saw that Hispanic stat, I thought about how true that is here. They are buying up homes much faster than we are, especially in the South. But part of it is because they still see home ownership as something of value and preach its importance to their children. A lot of my friends, especially the 28 to 35 crowd are still paying $1200 a month in rent so they can move at the drop of a hat and not be tied down when the next opportunity comes along in another state. I tell them all the time, that is a mortgage. But I think the shift in homeownership is the result of a change in priorities and mentality, and of course because folks are settling down much later in life than when you guys probably came out of college. It is weird though now that I think about it...most of my college friends aren't homeowners but making good money, while my friends from the country might be on their second home already. Goes back to that priorities and mindset thing I guess.
 

TSUGIRL07 said:
Good, but startling article....When I saw that Hispanic stat, I thought about how true that is here. They are buying up homes much faster than we are, especially in the South. But part of it is because they still see home ownership as something of value and preach its importance to their children. A lot of my friends, especially the 28 to 35 crowd are still paying $1200 a month in rent so they can move at the drop of a hat and not be tied down when the next opportunity comes along in another state. I tell them all the time, that is a mortgage. But I think the shift in homeownership is the result of a change in priorities and mentality, and of course because folks are settling down much later in life than when you guys probably came out of college. It is weird though now that I think about it...most of my college friends aren't homeowners but making good money, while my friends from the country might be on their second home already. Goes back to that priorities and mindset thing I guess.
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I'm finally getting 1 of my sons interested in owning real estate. Well, actually, I gave him part of his inheritance early by gifting him the house he lived in while in college. He's had it rented steadily and is enjoying that money. He just did a makeover of the outside...I'm proud of him. I can see it in his swagger once he became a homeowner.
 
TSUGIRL07 said:
Good, but startling article....When I saw that Hispanic stat, I thought about how true that is here. They are buying up homes much faster than we are, especially in the South. But part of it is because they still see home ownership as something of value and preach its importance to their children. A lot of my friends, especially the 28 to 35 crowd are still paying $1200 a month in rent so they can move at the drop of a hat and not be tied down when the next opportunity comes along in another state. I tell them all the time, that is a mortgage. But I think the shift in homeownership is the result of a change in priorities and mentality, and of course because folks are settling down much later in life than when you guys probably came out of college. It is weird though now that I think about it...most of my college friends aren't homeowners but making good money, while my friends from the country might be on their second home already. Goes back to that priorities and mindset thing I guess.
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Your generation is being conditioned right out of one of the most basic wealth principals. I traveled around also as a younger man. I have a house I paid 78K for back in 1997. When I went away I rented it out through a property management company. I was out of that house for 15 years. When I went through my divorce I was able to move back into with only 6 years left to pay (I should have it paid off in less than 3 years), a $650 a month mortgage and about 130-150K in equity. Saved my ass that I owned this property before I got married. Tell your friends to think longer term.
 
chocalate_topaz said:
I'm finally getting 1 of my sons interested in owning real estate. Well, actually, I gave him part of his inheritance early by gifting him the house he lived in while in college. He's had it rented steadily and is enjoying that money. He just did a makeover of the outside...I'm proud of him. I can see it in his swagger once he became a homeowner.
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How do we replicate this and get more young people interested? We have to turn this downward trend
 
Da Sleeper said:
Your generation is being conditioned right out of one of the most basic wealth principals. I traveled around also as a younger man. I have a house I paid 78K for back in 1997. When I went away I rented it out through a property management company. I was out of that house for 15 years. When I went through my divorce I was able to move back into with only 6 years left to pay (I should have it paid off in less than 3 years), a $650 a month mortgage and about 130-150K in equity. Saved my ass that I owned this property before I got married. Tell your friends to think longer term.
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Trust me...I have tried Sleep....with home ownership and life insurance (which is a whole different discussion). Some take heed, most don't listen. The financial literacy ministry at our church spends a few sessions going over the importance of homeownership and programs to help you...I don't think most people take advantage. With the way the market is rising in DFW though, I will say I am glad we bought when we did. Discussions like this makes me grateful for my dad staying on us about certain subjects. But yall don't quit on us lol As a generation, we will figure it out sooner or later lol
 
TSUGIRL07 said:
Good, but startling article....When I saw that Hispanic stat, I thought about how true that is here. They are buying up homes much faster than we are, especially in the South. But part of it is because they still see home ownership as something of value and preach its importance to their children. A lot of my friends, especially the 28 to 35 crowd are still paying $1200 a month in rent so they can move at the drop of a hat and not be tied down when the next opportunity comes along in another state. I tell them all the time, that is a mortgage. But I think the shift in homeownership is the result of a change in priorities and mentality, and of course because folks are settling down much later in life than when you guys probably came out of college. It is weird though now that I think about it...most of my college friends aren't homeowners but making good money, while my friends from the country might be on their second home already. Goes back to that priorities and mindset thing I guess.
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People living in the country gain more wealth over time because they require less.
 
chocalate_topaz said:
I believe it's true. I get 20:1 calls for rentals versus buying a house from black folks. And how many rent to own calls do I get. Just about damn near every house I put on the market, I get 5 - 6 are they willing to rent calls the first day. The sign clearly says: FOR SALE.
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How you gonna buy that $30k or $40k car every 3 or 4 years when you tied up in a 30 year mortgage?:D Folks know their priorities.
 
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MetroPhillyTiger said:
How you gonna buy that $30k or $40k car every 3 or 4 years when you tied up in a 30 year mortgage? Folks know their priorities.
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Folks don't realize how powerful a marriage can aide in increasing wealth. My wife and I sat down one day and did a strategy on how we will proceed with life. We build a house and never purchase a brand new car ever again. Never get anymore credit cards, and take 1 vacation a year with family. I see folks getting married, build a over size home, and have two high end cars in the garage. SMH.....
 
The Founder said:
People living in the country gain more wealth over time because they require less.
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Founder did you forget I am a country girl from east Texas... I know that LOL but I still think it goes back to mindset and priorities no matter where you live...especially with my generation...just my two sense.....
 
The Founder said:
Folks don't realize how powerful a marriage can aide in increasing wealth. My wife and I sat down one day and did a strategy on how we will proceed with life. We build a house and never purchase a brand new car ever again. Never get anymore credit cards, and take 1 vacation a year with family. I see folks getting married, build a over size home, and have two high end cars in the garage. SMH.....
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Most married people need to do this, if they did not before saying I do...We had to do this during marriage counseling and I am so glad that we did. I know other people who go through Financial Peace University to get the understanding and be on the same page.
 
The Founder said:
My Godmother told me to live in her home until we buy one. She was like, "Don't make anybody else rich."

As black people we don't do what the white folks do. In my job I see so many white folks who parents have co-signed for them a home loan. Then the parents downsize and take that money and buy a smaller one out right then put the rest toward the kids house. My wife and I are building next year after I pay off the 2 acres because I don't want it in the mortgage.
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We just sold our home in Maryland three weeks ago. We bought a new home in Dallas and moved in almost two weeks ago. Ownership is the best route.
 
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