June is National Homeownership Month. So what, right? You are probably wondering what that really means to you. Well, this year, Texans have several reasons to get excited about homeownership. From targeted money to tax relief, National Homeownership Month is a time to celebrate – particularly in our great state.

President George W. Bush declared June as National Homeownership Month in an effort to promote homeownership across the nation and to raise awareness of the benefits of owning a home. Throughout Texas, REALTORS®, housing advocates, local lenders, and other groups are organizing community involvement projects and media events to commemorate this special month. Even the government is lending many Texans a helping hand.

GO Zone
June is a great month for those of you looking to buy a home – particularly those of you who live in the “targeted” 22-county area of Southeast Texas designated by Congress as the Rita GO Zone. Targeted areas of the state are typically areas of severe economic distress whose residents receive significant financial allocations from the Texas Department of Housing and Community Affairs to purchase homes. This assistance comes in the form of closing-cost and  downpayment grants or below-market mortgage interest rates. Due to The Gulf Opportunity Act (a.k.a. Rita GO Zone), those of you looking to buy in the following counties have access to a large supply of funds, and the first-time homebuyer requirement is waived: Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. If you are looking to buy in any of these counties, contact your Texas REALTOR® this June. While more than $100 million has been allocated for the Rita GO Zone, funds may go fast.

Why now?
Our state was founded on the right to own and use real property, and owning a home is an important part of the American Dream. While most of you have heard that before, you may not be aware of the real benefits of owning a home. There are the tangible benefits, which include mortgage interest deductions and increased personal wealth, but you may find the intangible perks to be even greater.

Tangible perks
Whether you own a home now or are still looking, you probably know that the first several years of mortgage payments for most types of loans are almost strictly paying interest. Most consumers don’t make payments to the principle until well into the loan. The IRS allows homeowners who itemize their taxes to deduct the interest portion of their mortgage payment from their federal income taxes. While this is a nice way to get some tax relief at the national level, Texans are also getting statewide property-tax relief.  

In May, the House and Senate passed a plan that will lower property taxes and reform the school-finance system. The tax-reform package gives property owners an approximately one-third reduction in school property taxes, allowing for a property tax cut of 11% this year and a total of 33% in 2007. Overall, this tax package will give Texans a $6 billion reduction in property taxes – the largest tax cut in the state’s history. If you’ve been holding off on buying because of Texas-sized property taxes, you may want to look into homeownership again.

Intangible benefits
In addition to the tax perks, the personal wealth statistics are astonishing. A study by NAR estimates that the median net worth of a renter was $4,800 compared with $171,700 for homeowners.  So, it’s obvious that the tangible – or financial –  benefits exist. But what about the intangible perks? Homeownership also benefits children, the economy, and the community.

If you are a parent, owning a home provides a broad range of benefits to your children. According to Habitat for Humanity, children of homeowners are well-adjusted, do better in school, and are more successful as adults. Children who grow up in transitory housing have more behavioral problems, are more likely to become teenage mothers, and experience lower high school graduation rates. Children who grow up in a stable home are less likely to rely on welfare and are more likely to become homeowners themselves.

So maybe you don’t have kids? That certainly doesn’t mean that you don’t benefit from being a homeowner. Research suggests that homeowners have lower levels of depression, enjoy healthier lives, report higher life satisfaction, and higher self-esteem than renters. 

Of course, the real estate market also is a major driver of the economy. Home equity is the largest source of collateral for bank loans to start new businesses, and homeownership fuels our local economies through direct spending on housing, furnishing, and remodeling.   

Finally, owning a home benefits the community at large. Most homeowners value their homes and their neighborhoods and strive to be positive role models. A study done by the National Association of REALTORS® suggests that homeowners are more civically engaged and volunteer in community organizations, including neighborhood associations, clubs, and religious institutions.

Texas lags behind the nation in homeownership, but we are improving. Texas REALTORS® are dedicated to making homeownership more attainable and affordable for all Texans and continuously strive to educate and inform consumers about available housing opportunities. If you are considering purchasing  a home, contact your Texas REALTOR®. Let’s make June a month to remember.