VR SAM® PROPOSES
A “SAFETY NET” FOR MILITARY HOME OWNERS
(All rights reserved by VR SAM®)
“Relief is Overdue for our Military Families”
Like their fellow federal employees, MilitaryFamilies purchasing and selling homes should be reimbursed for their settlement costs and should not be left holding the financial bag when forced to sell their home in a down market!
There, somebody has finally said it!
We think it is high time that this major quality of life issue be thrown “on the table” and addressed head on! VR SAM® believes that a thoughtfully developed program can be a win for the government, the taxpayer, and a huge win for the military family!
If this resonates with you, then please read on!
When relocating due to government orders, many federal employees can sell their existing home and purchase a home in their new “duty station” without fear of a catastrophic financial loss from unfavorable real estate market conditions. This is possible due to government assistance with settlement costs and guaranteed “buy out” programs. This enables federal employees to participate in the potential appreciation and tax benefits from home ownership. Similar programs are available for most large corporation employees as well. They are a reasonable expectation when required to relocate to meet employer needs. Such programs likely result in increased family stability, retention, overall employee morale and productivity.
This same benefit is not available to uniformed service members who daily risk life and limb in the defense of our country. Perhaps no professional group in the world is subject to more involuntary relocations in a career. Short notice orders to a new duty station are not unusual, creating increased family stress compounded by financial turmoil. Military Families are frequently assigned to high cost areas where leases are expensive and with limited or perhaps no base housing options. Many of them, from junior enlisted to senior officers, will only purchase their first home after they leave or retire from the service. If they do purchase a house, they are completely on their own to sell or rent the house. If all else fails, they leave their Families behind until such time that they can liquidate their residential asset. Whether they purchase out of choice or necessity, the Military Family alone absorbs the settlement costs out of their own hard earned savings and incur all of the risk inherent in a home purchase, even though the relocation is imposed by military orders!
Have you been there? Or have these concerns prevented you from buying your own home?
Why Hasn’t a Safety Net Program for Military Families Been Developed Previously?
The ASSUMPTION that such a program would be too expensive given the large number of Service Members!
VR SAM® contends that no professional group in our country is more deserving of financial support in homeownership than the men and women of the US Armed Forces. Simply by virtue of their service to our country, the “American Dream of homeownership” is extremely hard to achieve, extremely risky, or simply out of reach.
Today’s service members are highly educated and more sophisticated in financial matters than in years past. They invest in mutual funds, understand markets, and retirement plans. They also understand the tax advantages of home ownership…specifically that home ownership offers the best potential for investment appreciation and building wealth for most American families.
A “Safety Net” program for the American Service Members and their Families similar to that enjoyed by their fellow federal employees and employees of large corporations is clearly overdue. The associated costs of a well designed program could most likely be off set, or even result in cost decreases relative to current programs to house Military Families.
Could a Safety Net Program Be a Win / Win /Win for Service Members, the Government, and the Taxpayer?
ABSOLUTELY!
VR SAM has developed a "strawman proposal" that goes beyond the scope of this article, but we are convinced that it could be cost neutral! Here are possible offsets for the costs.
• Increased retention, and therefore reduced recruitment & training costs. We believe that these savings alone could potentially pay for the program.
• Reduced expensive government-owned and / outsourced base housing costs.
o Please note! Present base housing out-sourcing initiatives clearly benefit developers and property managers. A safety net program could gradually shift some of the profits enjoyed by developers / property managers to home investment appreciation and tax advantages for military families!
• Reduced federal government subsidies for school districts with large “base housing” student populations.
• Increased local property tax bases.
• Increased benefit to local community economies - builders, building supplies, home improvement, merchants, financial institutions, etc.
Intangible Benefits to Military, Families, and Local Communities
• Increased service member / family choice, independence, and morale.
• Increased integration and involvement by military families in all aspects of the local community / affairs.
• Improved perception, appreciation, and understanding of military / culture in general by the citizenry.
Although a thorough study may demonstrate that the costs of a “safety net” program may fully offset, or even save taxpayers dollars, the primary reason for such a program is simply that it is
“The right thing to do!”
Who are likely Supporters and Champions of a Military Safety Net Program?
• VR SAM®!!! We are dead serious about making this an issue that must be addressed!
• Federal Politicians – With the upcoming 2008 Presidential / Congressional elections on the heels of an extended war, politicians from both major parties can find lots of reasons to support a win / win / win! This is a great way to go beyond rhetoric, letters, banners, cookies, etc. to really “Support the Troops!”
• State and local politicians, and Chambers of Commerce, with military installations in their districts for the same “Support the Troops” reason. Plus it increases the property tax and business bases in their respective districts!
• Powerful trade organizations for Realtors / Mortgage Brokers / Home Builders / Insurance Underwriters!
• Powerful Non-profits Organizations that support military causes.
• • Powerful Military Friendly Media - Military.com, Military Times, Fox News, etc.
VR SAM® works with Military Families every day dealing with the tough and highly stressful issues addressed in this article! We firmly believe that a “Military Safety Net Program,” similar to that enjoyed by other federal employees can be a win for everyone. More importantly, it is clearly the equitable and right thing to do for our Military Families! As always, we want to express our sincere gratitude to our Military Members and Families for their service and sacrifices!
VR SAM® sincerely appreciates Military.Com affording us the opportunity to share this concept with you. PLEASE, MAKE YOUR THOUGHTS KNOWN ON THIS FORUM AND FORWARD TO YOUR FAMILY, FRIENDS, AND PROFESSIONAL ASSOCIATES. AND STAY TUNED FOR MORE ON THIS CRITICAL ISSUE!
On behalf of Veteran Realty Serving America's Military, Inc. "Thank you for Serving our Great Country!"
Joe Gladden, Managing Partner, VR SAM Inc. |