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jerryking : home_ownership   16

‘Rich people own stocks. Poor people own houses’ - The Globe and Mail
SCOTT BARLOWMARKET STRATEGIST
PUBLISHED 13 HOURS AGO
UPDATED JANUARY 31, 2020
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The headline / twitter link is misleading. It should be "Rich people have a larger proportion of their wealth in stocks - Poor people have a larger proportion of their wealth in houses." The original headline implies that poor people are poor because they own a home, when in reality the lack of equity is due to available funds not preference.

To me the more interesting take away is that we often are told that the rich are rich primarily because they own land and other real estate. When this research would suggest that real estate is in reality a pretty insignificant part of the equation. It should come as no surprise that that the bottom 50% have minimal direct equity holdings given their ability/propensity to invest vs. save. A more interesting and informative statistic or graphic would have shown what the middle 49% are doing.
equities  high_net_worth  home_ownership  personal_finance  real_estate  wealth_management 
18 days ago by jerryking
Black Folk's Guide to Making Big Money in America
A primer on personal finance, business and real estate. It is truly comprehensive and a must read for anyone serious about improving their financial situation.
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First, Trower-Subira emphasizes the central importance of home ownership as a source of equity capital. He decried the usage of earned income and accumulated home equity to fuel (conspicuous) consumption binges. Trower-Subira got it right when he said that real estate should be the base asset for African Americans from which to build wealth. As long as you borrow against your home to acquire other, income producing assets, you are doing yourself a favor by pursuing homeownership.

Second, he stressed the importance of financial assets in building wealth. Trower-Subira puts forth a brilliant explanation of the types of assets that produce income and that African Americans in particular should endeavor to pursue (real estate is just one of several).

Third, Trower-Subira emphasizes the importance of continuing education combined with an asset-based approach to wealth building. Trower-Subira wrote in the context of his day, but now the game has shifted somewhat. That is not to say that the problems of his day are no more; indeed, many of the problems of his day still relentlessly follow the African American community, and in too many instances, the problem have actually gotten worse. Although we are presented with new opportunities, we also face new challenges- on top of the same old challenges that we have yet to vanquish.
'80s  advice  African-Americans  Amazon  books  business  home_ownership  mindsets  personal_finance  primers  real_estate  self-help  wealth_creation 
april 2019 by jerryking
Opinion | The American Dream Isn’t for Black Millennials
Jan. 5, 2019 | The New York Times | By Reniqua Allen. Ms. Allen is the author of “It Was All a Dream.”

....I marched up to my new, small, one-bedroom apartment on the Hill, satisfied. It felt as if I’d broken barriers.

But when I got a notice in the mail about five years after I closed, I felt dizzy. It was not long after the financial crisis. The letter said that my mortgage company had been charged with giving subprime loans to black and Hispanic people around the country and asked if I wanted to join a class-action suit. I had most likely been the target of predatory lending. I had known from the start that my income could make me a target. I’d heard the words of the broker. But because of my race? It hadn’t crossed my mind. I was devastated......How much room is there in anyone’s life for a mistake or the perception of a mistake if you’re young and black in America? How much of the American dream hangs in the balance? For the dozens of people I talked to, the reality is that if we want our dreams to come true, all too often we have to be almost perfect, making the right decisions all the time. Not getting that ticket. Not listening to that mortgage broker. Not speaking up.....I know the history of this country, know the history of redlining, know how my grandparents were locked out of neighborhoods because of their skin color. But for some reason I was still surprised. I would say I was mad, but more than that, I was hurt that I had been lulled into some kind of false bourgeois comfort that had made me think that my life was different from my predecessors’ lives. Sure, I had made it up that Hill, but at what cost?
African-Americans  downward_mobility  economic_downturn  millennials  the_American_dream  subprime  predatory_practices  racial_disparities  redlining  home_ownership 
january 2019 by jerryking
The Widening Racial Wealth Divide
OCTOBER 10, 2016 ISSUE | - The New Yorker | By James Surowiecki
THE WIDENING RACIAL WEALTH DIVIDE
It would take black Americans two hundred and twenty-eight years to have as much wealth as white Americans have today.

As Thomas Shapiro, a sociologist at Brandeis and the co-author of the seminal book “Black Wealth/White Wealth,” told me, “History and legacy created the racial gap. Policies have maintained it.” Together, they contribute to what he’s called “the hidden cost of being African-American.”

Start with history. Beginning in the New Deal and on into the postwar years, the federal government invested heavily to help ordinary Americans buy homes and go to school, via programs like the Federal Housing Administration and the G.I. Bill. That fuelled an economic boom and fostered the growth of a prosperous middle class. But black Americans received little of this assistance. Redlining by banks and by government agencies prevented black families from buying homes in white neighborhoods; in a thirty-year period, just two per cent of F.H.A. loans went to families of color. G.I. Bill benefits went disproportionately to white veterans. Black agricultural and domestic workers were excluded from Social Security until the fifties. As Dedrick Asante-Muhammad, the co-author of the CFED/I.P.S. report, told me, “Massive government investment helped create an American middle class. But it was a white American middle class.”
racial_disparities  James_Surowiecki  race  African-Americans  redlining  discrimination  generational_wealth  racism  education  housing  intergenerational  New_Deal  wealth_creation  home_ownership  books  post-WWII 
october 2016 by jerryking
How Segregation Destroys Black Wealth
SEPT. 15, 2015 | NYT | By THE EDITORIAL BOARD.

The Federal Housing Administration, created during the New Deal to promote homeownership, openly supported these racist measures; it forbade lending to black people even as it subsidized white families that moved from the cities to the suburbs. Cut off from fairly priced home loan credit, black neighborhoods deteriorated and their values plummeted....Many discriminatory practices were formally ended with the civil rights and fair lending laws of the 1960s and 70s. But these were quickly replaced by subtler techniques that encouraged ghettoization, like channeling black families away from white areas and banks’ and mortgage brokers’ systematically pushing middle-income black families into high-cost, high-risk loans when they could have qualified for more affordable loans....This history of discrimination has taken an enormous toll on black wealth, as is shown in research by Douglas Massey and Jonathan Tannen at Princeton University’s Office of Population Research. In 1970, two years after the passage of the Fair Housing Act, for example, the average well-off black American lived in a neighborhood where potential home wealth, as measured by property values, stood at about only $50,000 — as opposed to $105,000 for affluent whites and $56,000 for poor whites.

By 2010, affluent African-Americans had passed poor whites in potential home wealth but had fallen further behind affluent whites. There is more than money at stake, Mr. Massey and Mr. Tannen write, because home values “translate directly into access to higher quality education given that public schools in the United States are financed by real estate taxes.”

Throughout history, ethnic groups have been able to translate economic gains into housing in better neighborhoods and advantages for their children. But for African-Americans, the researchers write, that transition has been “thwarted by segregation and the prejudice and discrimination that create and maintain it.” In other words, the damage reaches across generations and continues today
African-Americans  discrimination  education  Fair_Housing_Act  generational_wealth  home_ownership  housing  intergenerational  New_Deal  prejudices  public_education  public_schools  racial_disparities  racism  real_estate_taxes  redlining  segregation  wealth_creation  wealth_management 
september 2015 by jerryking
The Performance of Remodeling Contractors in an Era of Industry Growth and Specialization
December 2007 |Joint Center for Housing Studies
Harvard University | by Abbe Will and Kermit Baker.
Harvard  skilled_trades  housing  home_ownership  home_renovations 
december 2011 by jerryking
As Public Sector Sheds Jobs, Black Americans Are Hit Hard - NYTimes.com
November 28, 2011 |NYT | By TIMOTHY WILLIAMS.

The central role played by government employment in black communities is hard to overstate. African-Americans in the public sector earn 25 percent more than other black workers, and the jobs have long been regarded as respectable, stable work for college graduates, allowing many to buy homes, send children to private colleges and achieve other markers of middle-class life that were otherwise closed to them.
public_sector  African-Americans  layoffs  middle_class  downward_mobility  college-educated  home_ownership  overrepresentation 
november 2011 by jerryking
One Way of Insuring The Risky Business of Life - WSJ.com
APRIL 24, 2003 | WSJ | By DAVID R. HENDERSON. Financial derivatives have, in essence, allowed companies to buy insurance against swings in prices.

Wouldn't it be nice if individuals could join this game, hedging against, say, losses in income or in the equity value of houses? We will probably soon be able to, according to Robert J. Shiller in "The New Financial Order" (Princeton, 366 pages, $29.95).

Mr. Shiller, a finance economist at Yale University, writes that the information-technology revolution is making it easier to get good data on the home prices in various markets and on incomes in various occupations -- and to subject such data to reliable analysis. Once we know the numbers, he argues, we can hedge the risks.
hedging  derivatives  risks  book_reviews  personal_finance  Robert_Shiller  Yale  home_ownership  personal_beta  human_capital  quantified_self 
november 2011 by jerryking
Forty Acres and a Gap in Wealth
by HENRY LOUIS GATES Jr.
Published: November 18, 2007

The telltale fact is that the biggest gap in black prosperity isn’t in income, but in wealth. According to a study by the economist Edward N. Wolff, the median net worth of non-Hispanic black households in 2004 was only $11,800 — less than 10 percent that of non-Hispanic white households, $118,300. Perhaps a bold and innovative approach to the problem of black poverty — one floated during the Civil War but never fully put into practice — would be to look at ways to turn tenants into homeowners. Sadly, in the wake of the subprime mortgage debacle, an enormous number of houses are being repossessed. But for the black poor, real progress may come only once they have an ownership stake in American society.

People who own property feel a sense of ownership in their future and their society. They study, save, work, strive and vote. And people trapped in a culture of tenancy do not.

The sad truth is that the civil rights movement cannot be reborn until we identify the causes of black suffering, some of them self-inflicted. Why can’t black leaders organize rallies around responsible sexuality, birth within marriage, parents reading to their children and students staying in school and doing homework?
Henry_Louis_Gates  African-Americans  owners  land  property_ownership  achievement_gaps  racial_disparities  personal_finance  wealth_creation  real_estate  social_classes  subprime  home_ownership  generational_wealth  ownership 
november 2011 by jerryking
Foreclosure Rise Brings Business To One Investor - WSJ.com
MARCH 14, 2007 | WSJ | By JAMES R. HAGERTY
BARGAIN BASEMENT
Foreclosure Rise Brings Business To One Investor
Mr. Barnes Buys Dregs From Worried Lenders; A Dozen for $35,250
foreclosures  housing  investors  subprime  mortgages  home_ownership  low-income 
october 2011 by jerryking
Forget the House | The American Prospect
Homeownership programs that focus on financial literacy can still serve as a means to build assets for low-income families.
Monica Potts | April 27, 2010
financial_literacy  ufsc  home_ownership 
may 2010 by jerryking
Weisberg: What Else Are We Wrong About? | Newsweek Newsweek Voices - Jacob Weisberg | Newsweek.com
Jacob Weisberg
What Else Are We Wrong About?

Homeownership encourages longer commutes. And at least one study says it makes you fat and unhappy.
Published Apr 4, 2009
From the magazine issue dated Apr 13, 2009
commuting  counterintuitive  happiness  home_ownership  unhappiness 
april 2009 by jerryking

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