Professor Lends Insight Regarding Benefits of Home Ownership, Renting
NU faculty serve as a valuable resource to local and national media.
August 10, 2012
Northwood Florida professor George Stamas recently reminded South Florida WPTV (NBC) viewers the formula to determine whether or not they should purchase a home.
"For the housing market to make sense from a financial point of view, to get a return of investment on your down payment, the rate of increase of the home has to be greater than the rate of inflation over time," he said.
The interview was part of a story in which the benefits of buying versus renting were carefully weighed. In a recent report obtained by WPTV (NBC) Impact 5 producer Matthew Harris, Zillow.com information indicates that one will need to own a home in Palm Beach County only 1.6 years before they break even and start to make a profit. The device called the 'breakeven horizon,' has become a popular tool for those debating home ownership.
Stamas shared that a variety of factors need to be considered when deciding the purchase of home including a lack of mobility and flexibility one may encounter in an uncertain job market, high debt ratios, interest rates and fees which could be included with bad credit, additional costs of home ownership such as private mortgage insurance, monthly maintenance fees, property taxes, and more.
Stamas serves as Adjunct Professor of Finance and Entrepreneurship at Northwood University Florida. For 17 years he was a banker in New York City and Chicago working in the corporate and merchant banking departments of large international banks with focus on developing and maintaining relationships with large multinational companies. His last position was with Swiss Bank Corporation (now UBS) where he was VP-Department Head in charge of relationships with large high tech companies on the East Coast of the U.S.
He then moved on to an entrepreneurial career when he and a partner bought a small, struggling software training company in New Jersey and successfully turned it around. He and his partner sold the company to the employees after three years. His next venture, with another partner, was to start up a branch of a day trading company in New Jersey. After several years, the trading environment changed dramatically due to 9/11, changes in trading rules implemented by the SEC and the stock market crash, all of which resulted in the closing of the operation in 2002.
Presently, Stamas is Adjunct Professor of Economics and Management at Northwood University in West Palm Beach. He is also a Managing Director of Nova Associates, Ltd., a Florida-based financial advisory firm that provides management with corporate finance advice and assists in raising debt and equity.