Atlanta Daily World

Home Buying "Chumps"
(From The Cincinnati Independent)

It is the ambition of most people to own a home with some green grass and all that sort of thing but some of us are overdoing it. We are reminded that in these times when there are many things we cannot buy, we find many Negro families rushing to put their meager savings into a home, leaving no reserve to take care of emergencies. For your information, there are certain things against which we should guard when we are looking for property. Of course, the first consideration is how much it will cost us.

One should consider this rather than the amount of the down payment and how much they will pay each month. Actually, we can be paying only the interest over a period of time and not retiring the principal at all. Even in legitimate deals, we will find that in most cases, a piece of property selling for six thousand dollars will, in reality, cost twice that amount or twelve thousand dollars when interest, insurance, titles, etc., are considered. It is generally acknowledged that no family should purchase a home if the income is less than two thousand dollars per year. If one is purchased, it should not cost more than two and one half times the total income. One should also not pay more than one-fifth of the monthly income for rent.

Now, try to tell this to a number of Negroes who are being suckers for real estate boards and shyster real estate dealers. Try to explain to them that there is a vague possibility of their becoming jobless or having to work for less money when the war is over. Ask them how they will meet the stiff payments and who will take over the great obligation they have accepted. Try to tell them that their savings and home will be wiped out by these same shysters who have oversold them; that they are paying two to three thousand dollars more for property now than it is worth in normal times.

Truly, it is high time we begin thinking of the way we spend our earnings; especially such a large portion of them in such a risky matter. The buying of property should be encouraged but not the "chump" buying we are discussing above. Make sure that you have a good investment, that you can meet your obligations and carry your responsibilities without exhausting your savings, war bonds, or the security of your family.