| Owning a house is part of the American Dream. | | | | grass in a certain way. The grass started dying in the |
| Depending on where you live in the US - home | | | | dry Colorado summer. The outside appearance of the |
| ownership can be around 70%. That means that 70% | | | | former $265,000 home took a toll. Currently a real |
| of people own their own home. That is very high | | | | estate agent estimates the value of this house in |
| compared to other countries. Owning a home is usually | | | | question at $250,000.The lady from our example took |
| a nice piece of independence and also part of building | | | | her home and did not treat it as an investment. If she |
| a nest egg for retirement. Home ownership is | | | | would have to sell her home now she will have |
| considered an investment. But then it is surprising how | | | | difficulties to receive her invested money back. If she |
| many home owners treat their own home as if it | | | | would continue to treat her home not as an investment |
| would be something they don't own.Imagine the case | | | | she will eventually turn the investment into a liability and |
| of a lady in Highlands Ranch, Colorado. She bought a | | | | risk her credit history. Especially as her home is in a |
| ranch-style home in late 2004 for $265,000.00 - mainly | | | | covenant controlled area she faces extra cost |
| financed through a mortgage. She owes about 95% of | | | | associated with her house. The covenant community |
| the house value to a mortgage company. Highlands | | | | association can even put a lien on her home and |
| Ranch, Colorado is a covenant controlled | | | | enforce the covenant rules by sending in a landscaping |
| neighborhood. Strict rules are in place of how to | | | | company to fix the problem - at the owners |
| maintain a certain level of landscaping and to keep the | | | | expense.In our example the Highlands Ranch |
| property in shape (+ many more things). The covenant | | | | Community Association has started the initial process |
| rules give a development a more standard | | | | of getting the property back on track. A dated |
| appearance, and control some of the activities that | | | | notification has been send to the home owner to bring |
| take place within its boundaries. When enforced, | | | | the property back into compliance with the rules.Overall |
| covenants protect property values. When buying a | | | | - if investing money and letting interest in maintaining |
| house in Highlands Ranch the new owner agrees to | | | | the investment slip, means the person involved is |
| obey the covenant rules by contract.The lady from our | | | | throwing money out of the window. If you have |
| example above decided to let maintenance of her | | | | enough cash this is not a problem but who has enough |
| landscaping slip. The grass was growing out of control. | | | | cash to do this? Buying a house means to take on the |
| Then summer came along and as she did not have an | | | | burden to maintain it. Failing to do basic maintenance |
| automated sprinkler system for her yard no watering | | | | means to lower the value of the property. |
| was done at all. This took care of the fast growing | | | | |