New Orleans Real Estate News: Turning Tenants into Home Owners

Turning Tenants into Home Owners

Westwego to offer home ownership opportunity for renters

The Times Picayune today published an article about a project being funded by several public and private agencies that will give low income families an opportunity to become home owners through a long term lease purchase agreement.  The first homes in the Claiborne Homes I subdivision are expected to be complete by the end of 2007.  Read the complete article here.

It's always exciting to see more families have the opportunity to own their own home.  Besides the personal benefits of home ownership to the individual, there are benefits to the community in the form of an increased tax base and the potential for increased involvement in the school system, elections and other area activities. 

My concern about this project is the amount of time tenants must rent before being allowed to purchase - 15 years!  That's a very long time to remain a tenant in the same location.  I wonder how many tenants will actually become home owners under this scenario.  The intentions of the agencies are good, but will it work in the long term? 

Your West Bank Real Estate Specialist

8 comments • Lisa Heindel, New Orleans Real Estate Broker • September 14 2007 09:39AM

Comments

Lisa -

I agree.  I wish more agencies across the country would aid renters in becoming homeowners, but 15 years is just WAY TOO LONG.  People do not stay in the same home for that long, even as homeowners!  What are the ramifications if they don't purchase in 15 years?  How much do they lose?   

 

Posted by Lori Mode and Bruce Durham 916-230-0371 DRE License #00935148 and #00875356 (Keller Williams Realty - Elk Grove, CA Homes for Sale) over 4 years ago

Lori,  thanks for reading a boring localism post :)

A part of the tenants rent each month goes towards building equity for the purchase.  If they move before the 15 years is up they lose everything they paid towards it!  I just don't envision that many tenants staying long enough to benefit from the program.

Posted by Lisa Heindel, New Orleans Real Estate Broker (Crescent City Living LLC) over 4 years ago
Lisa, It's a wonderful idea but that time frame is SO long:  15 YEARS?  I get stuck when people ask where I see myself in Five years (or one, for that matter :).  Otherwise it's a wonderful opportunity.
Posted by Laura Cerrano and Carole Provenzale Owner, Feng Shui Long Island & New York (Feng Shui Long Island & New York City/Feng Shui Manhattan ) over 4 years ago
Carole, you are so right!  I love the idea, just think the details need some tweaking.
Posted by Lisa Heindel, New Orleans Real Estate Broker (Crescent City Living LLC) over 4 years ago

15 years!

We have a great program with the County of Riverside, if people qualify (they have income limits).  The County will kick in 20% towards the home and in 15 years...it's forgiven. 

If you're going to wait 15 years for something, I think that's a better option!

btw - I actually sent a postcard to renters once to encourage them to buy.  The headline?  Fire your landlord!

Posted by Joey Aszterbaum (Jolynne Photography) over 4 years ago
Joey, that does sound like a better program.  It appears to me that these folks do not take title to the property until the 15 years is up - maybe more details will come out later, but from what I see this is not the optimal way to day it.  Thanks for reading.
Posted by Lisa Heindel, New Orleans Real Estate Broker (Crescent City Living LLC) over 4 years ago
I have to agree.  15 years sounds excessive!  We have a program in our area that is basically rent-to-buy, and theoretically tenants can do so with 1-2 years perfect payment record.  'Problem is, they keep changing the qualifying rules, and fewer than a dozen tenants have qualified to even move in, over about a six month period.  I would worry that this 15 year program might die before good tenants can qualify to be buyers - you know how these government programs come and go.
Posted by Margaret Woda, Maryland Real Estate & Military Relocation Services (Long & Foster Real Estate, Inc., Crofton, MD) over 4 years ago
Margaret, you are so right!  Since Hurricane Katrina, there have been tons of programs that never got off the ground here and I'm afraid this may fall under that heading. 
Posted by Lisa Heindel, New Orleans Real Estate Broker (Crescent City Living LLC) over 4 years ago

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