Wednesday, September 1, 2010
Brainstorming..Here's a new Housing Recovery Idea!
BRAINSTORMING AT WORK HERE! With rumors looming like another tax credit being considered by the administration, I THINK THERE ARE BETTER IDEAS TO CONSIDER FIRST. We all know the Housing Market drives the economy, so with that in mind, here's a thought. Over the last 3-4 years as a result of the housing market crash, there have been millions of short sale and foreclosure casualties. Many of these were homeowners that lost their homes by either jobloss or other circumstances beyond their control. Otherwise, they had great credit and were responsible citizens. (IDEA!) Why isn't their a Lender Protection or Insurance Program either Privately owned or Government Sponsored (like FDIC), that would allow these ready, willing, and able buyers to purchase a home sooner. Such a program (like Private Mortgage Insurance) could be paid by the buyer or seller of the property, so there shouldn't be any cost to taxpayers. Of course, there would need to be qualifications so those that were true victims are able to get back on their feet and back into the housing market. This would allow a huge source of buyers to get back into the market (increasing demand), more homes would sell (lowering supply). Seems like one simple Program like this would bring a huge # of buyers into the market which would have an enormous positive impact on all of us. PLEASE GIVE US YOUR THOUGHTS!
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We've exhausted the first time homebuyers tax credit. This country needs to come to the realization is that it's OK for some to rent that can't afford to buy. Instead all our policies are toward home ownership. Why focus solely on families that can buy just 1 home when there are others with capital to put to work that can buy 5 or 6 homes? I
ReplyDeletewould like to see the govt give incentives to landlords that put 25%+ down on a home in order to clear inventory. An incentive like mortgage rates being similar to primary homeowners, or property taxes being pari-passu with primary homeowners, or long-term capital gains breaks. Any of the 3 would make real estate look like a more appealing investment vs. the alternatives. People think the "leverage" is enough of a factor to make real estate a good investment. They are WRONG.
I agree with you James. I think any program that helps clear the inventory is great and should be the focus. I still believe strongly that you have a tremendous supply of buyers that want to buy but can't buy because they were a victim of the economy. Seems like some type of simple insurance product that they could opt to take advantage of, which would make lenders comfortable enough to lend to someone that doesn't meet the typical guidelines. Or maybe there's another idea to tap into this pool. It's a big pool. I couldn't agree with you more, if someone wants to rent, great. If they can't afford to buy, they shouldn't. I'm an investor too, and love to have a steady pool of renters out there. But, this bubble of buyers that are now renting mainly because they lost their homes would willingly help clear out that inventory. Your ideas would also be a huge boost too. I like the idea of benefits to those investors that put down more. Thanks for the post! ^ Andy
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