Military personnel are faced with having to move every three to four years, making it extremely difficult to build any equity in a home when they are forced to refinance their loan every time they buy and sell their home. This continuous churn of home loans over a 20 year career, results in military personnel ending their career with little equity in a home because they have primarily only paid the high interest portions of the loans to financial institutions and any equity gained from rising home prices is offset by closing costs.
This research will review the current approaches to housing for military personnel, develop the stakeholders needs, propose new approaches to meet these needs, analyze these new approaches and identify the recommended new approaches.
The major players in military home purchases have been the service member, Department of Defense, local real estate services, and financial institutions. Local real estate services and financial institutions are currently the groups benefiting from the churn of homes by service members so they have no obvious incentive to change. The research will break down the resources of each of these players and align them with new approaches to real estate. The new approaches listed below will establish the need for large property management/developers that have purchasing powers within the real estate markets similar to Wal-Mart/Sams Club within the consumer goods market. With the military base realignment and closure almost complete, Department of Defense looking to get out of the housing business and the military clearly at a low manning level, the markets are now primed for this transformation.
New approaches include planned communities that are built specifically for military personnel and owned by the corporation. These communities can be strategically located near the bases (real estate values are often low adjacent to military bases), constructed according to the Basic Allowance for Housing (BAH) rate for each location, constructed for frequent resident moves, service contracts for maintenance, utilities maintained by corporation and then billed directly to residents, community center geared toward spouse and military activities and key business (veterinarian, pet boarding, video store, coffee shops, restaurants, military gear store, etc). If the corporation owned 2000 houses, there would be 4000 members with 30 year loans to maintain the equity for the homes.
| Identifer | oai:union.ndltd.org:GATECH/oai:smartech.gatech.edu:1853/7144 |
| Date | 08 June 2005 |
| Creators | Williamson, Marcus Eaton |
| Publisher | Georgia Institute of Technology |
| Source Sets | Georgia Tech Electronic Thesis and Dissertation Archive |
| Language | en_US |
| Detected Language | English |
| Type | Thesis |
| Format | 4104853 bytes, application/pdf |
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