I’ve been thinking about this past Memorial Day weekend and how all of us are free to purchase whatever we want and to do so in a manner and environment that allows us to decide independently how, when, and where we can do it. I believe to some degree we take for granted and forget how easy life is to excel, prosper and do and be whatever we want to be without any interference.
Buying real estate is one thing that comes to mind since in some other countries one has no right to possess their own home or investment property. China, Laos and Vietnam are Communist countries that do not allow personal ownership of property. I am quite sure those in the inside of government and those who have connections might have a way to circumvent the strict policies. Foreigners, too, are restricted from ownership in Vietnam, Mexico, Greece, and Thailand, but again it’s not what you know but who you know that allows those that are connected to sidestep the normal rules and layers of restrictions.
Communist countries, unfortunately, control property and don’t allow their citizens ownership (except Cuba, which changed its constitution in 2019 to allow one to own their own home and investment property while also assuring the central government’s authority over the regulation of production and land). However, foreigners cannot own property directly but use third parties indirectly to obtain ownership.
In Communist countries, the competitive spirit is squashed and the government controls almost everything that is consumed. However, Russians can use their wages to purchase their home and goods as needed. But whether it is a foreigner or citizen, one cannot own the land beneath the property which is controlled by the government. The value is more or less controlled by the state. It is much more difficult and takes more time to save to be able to be in a position to purchase due to the value of the Ruble. The exchange rate of one dollar equals 73.32 Rubles as the currency is far less valuable.
Romania has the world’s highest homeownership of 96 percent, followed by Singapore with 90.8 percent and Slovakia with 90.3 percent.
We as Americans have truly no restrictions on purchasing our own homes or investment properties as long as we have the ways and means to accumulate the necessary funds to close the transactions. We take for granted how free we are to amass our own individual wealth by ownership when some other countries do not provide that right to their citizens. The concept of appreciation and getting rich is extremely limited to those who are connected to the insider group.
Can you imagine what your life would look like if you couldn’t own your own home or an investment property? How would you accumulate long-term wealth? It would most likely have to be in ways that would be illegal in countries that restrict ownership of property. The Black Market proliferates where severe policy restrictions occur.
What would the United States look like if we had those restrictive policies in place? I am quite sure many would move out of the country. Our economy would seriously falter over time and would not be the once “free to earn and invest” in an unrestrictive environment that it once was. I believe that is why so many have come here and still yearn for the “American Dream” in being able to immigrate to the United States, which has now been more restricted in gaining U.S. citizenship.
A few questions come to mind if and when tax laws are altered and changed in the U.S. Over the next few years what effect will it have on our real estate? Will the benefits and values that currently exist be radically changed? Will owning one’s home and/or investment property be worth the time and effort? Are we at the crossroads of change that will adversely affect our economy and country?
My professional opinion is that those in charge must be made very carefully as to what changes are being considered and whether or not we lose or win the battle of fairness and equity. The distribution of wealth to those who truly deserve it because of their entrepreneurial, physically earned “sweat equity” efforts and those who do not deserve sharing should be a major factor to be considered. The future could be quite beneficial for a greater number of people or quite bleak if decisions are made to benefit only a small minority.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 39 years of experience in the Real Estate industry and has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S). For a “FREE” 15 minute consultation, a value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com
I had to read this opinion a few times as I honestly could not believe what I was reading. Did a professional real estate person honestly just open this essay by saying how lucky we ALL are and that ‘we take for granted and forget how easy life is to excel, prosper and do and be whatever we want to be without any interference.’ Perhaps the author failed to note the recent investigation in NEWSDAY which revealed despicable practices by real estate professionals treating people quite differently based on their race. The author notes that the ability to purchase property allows persons to build wealth. Unfortunately he ignores that until about 50 years ago it was legal to discriminate based on race including in housing. Restrictive covenants based on race were perfectly acceptable! He also ignores that when the Fair Housing Act was passed to remedy this discrimination new ways to keep people of color from the ability to invest the American dream were crafted such as redlining. Of course all of these practices – which NEWSDAY shows continue to this day just in different form – have resulted in extreme disparities amongst demographic groups in their abilities to accumulate intergenerational wealth. But despite this, the author believes that possible changes to the tax code by the Biden administration will dictate if ‘we lose or win the battle of fairness and equity.’ I would argue that history has already made clear who the winners and losers are on this front and to argue otherwise is not only ignorant it’s abhorrent.
GM Kate, somehow I missed your comment and I feel you have taken my column a bit out of context. After coming back from Spain recently from my Global Committee convention with 800+ other Realtors, and realizing a learning that there is no licensing whatsoever there and in many other countries, we are in so many ways far ahead of most supposed civilized places. Yes discrimination will always exist in this world as long as there are humans that fail to realize that we all bleed red and are the same flesh and blood. However, that being said, when one gains the knowledge (which so many in our industry lack due to the less than stringent past requirements in the licensing process). But since Newsday’s 3 year investigation and catching 68+ agents, associate brokers, brokers and even those teaching the classes, which I believe is the tip of the iceberg, there has been much greater emphasis on increased education requirements, e.g. fair housing, ethics and other legal classes for all NYS licensed real estate individuals. When hiring an Broker one should go through an interview process similar to applying for a job. How many years have they been practicing, are they part-timers as almost 50% of the 1,450,000 agents are in the U.S. What, if any, designations have they earned (I am a G.R.I., Graduate of the Realtor Institute, C.I.P.S. Certified International Property Specialist (there are only 3,764 designees out of 7.2 million agents globally) and most recently have earned the National Association of Realtors “Green” industry certification for solar, energy cells and eco-friendly construction, Geothermal HVAC, 3D printing foundations etc.). Combined I am 212 hours of instruction and accreditation above a standard Broker’s license of 150 hrs and less than 1% of all brokers have attained those certifications. When seeking out a Broker, some hire their friends and many times they have such a lack of knowledge but that seller and/or purchaser is handing over the responsibility of the most valuable asset that the majority of Americans own or will own to build their long term wealth.
Our agents never ever discriminate as we teach and train them in the proper ways to do business and treat others. We have standards of practice with respect to agency, disclosure and there are approximately 22 protected classes throughout the U.S. which we adhere to. We look only to make sure that our clients are qualified to purchase with the proper income, debt/income and credit. We also assist those with vouchers from DSS or Section 8 (Dept. of Social Services) who are in need of our help due to their disabilities or unfortunate circumstances.
Lastly, even with the current continued problems with discrimination, having the necessary consumer education and seeking out the proper and qualified Real Estate professional will for the most part find that the majority of the time those individuals do not discriminate and handle their clientele with fairness and respect. However, professionally speaking, I believe that even more education is required and necessary for all agents especially in earning an income in real estate. The problem is a majority of agents are not really equipped to do this business and as I have said barely treat it like a business or a job. Even though a number of years ago the number of hours required to earn your license increased from 45 to 75, it’s still way too easy to obtain one’s license and there still isn’t enough education and training to make sure agents will do the necessary job in handling one’s most valuable asset.. In Uruguay and the Philippines you need 4 years of college to qualify. It has been so very easy over the past 10+ years and especially since Covid as 500,000+ alone exited NYC for more safety and space alone, to earn money in our industry due to the excessive demand that has caused a buying frenzy and making our inventory the lowest in history combined with the previous lowest interest rates in 50+ years! But obviously, those days are long gone for now.
Regardless of the current environment with discrimination, block busting, redlining etc. more people in the past and currently still have found the U.S. the land of opportunity and it surely still is. I have found with all the current turmoil and stumbling blocks that face the average person there are those who have come here with barely the shirt on their back and a few dollars in their pockets and have become extremely successful individuals. Nothing can stop the human spirit if one has the desire and need to excel and be prosperous. Those that don’t put in the blood, sweat and tears will never, ever make it. As they say, “no pain, no gain.” One must provide the require concerted efforts, disciplined actions and the sacrifice of their valuable time to make it; but most do not and only complain about their situation. I have an acquaintance name Nick Vujicic who was born with no arms and no legs and after you google him let me know your thoughts about obstacles in becoming successful. Have an enjoyable and relaxing weekend!
Thanks to boomers like you, most young people will never get the chance to own property anyway.