Next … Direct Housing Bailout?
National Association of Realtors and the National Association of Home Builders are calling for another stimulus package aimed directly at assisting home buyers. Well, why not? We are bailing out Wall Street, foreign investors, banks & insurance companies.
Why not? The recent pick-up in real estate sales in the last few months show that the system works without government interference. In any area, when home prices reach a level considered to be good buy, people will step up and buy.
Sooner or later, housing prices, like water, will find their own level. That level is what people can afford to pay, not what the government can borrow and lend to them to make a down payment. Unfortunately, in many areas, it appears that we are still some distance away from housing prices finding their level.
For those who think a government intervention is the only way out, I would say do it without direct taxpayer money. The undisputed key to this recovery is housing. If the government truly wants to ignite a fire under the housing market, I personally would propose a very simplistic approach that would have immediate results.
The government should pass a bill that allows any home purchaser, owner-occupied or investor buyer, who buys a residential property within the next two years and holds that property for a minimum of three years (and a maximum of ten) to be free of federal capital gains taxes upon selling the property. The potential, tax-free profits on my idea would be a huge incentive for investors to jump back into the residential housing market. This increased demand would clear the built up housing inventory in a matter of months for most areas.
Some prior posts on the government bailout:
Real Estate Bailout Bill — How They Voted
So Much For The Bailout
Housing Bailout & Your Vote
#1 EZ Fix to The U.S. Housing Market
Emergency Rescue Package – The Devil’s in The Details
Are the Rating Agencies at The Cause of Our Financial Mess?
Housing Bailout – The Real Cause?
Government Bail-Out – Risk & Reward
Summary of the “Housing and Economic Recovery Act of 2008
Second Home Foreclosure Tax Penalty
san diego commercial real estate
Most of you are conditioned sheeple. The majority of homeowners did not buy in the last 3 years. The majority of homeowners have plenty of equity in their homes. It’s a very small group in trouble. Those in trouble will become renters again. Owners with equity will buy up most the foreclosed homes. Renters: look for the notice that your rent is going up. The rich get richer the poor get poorer. Pay attention.
Texas Lawyers
“We’re nearing a plateau” – this is wishful and dangerous thinking. We’re not even halfway through the subprime resets, and starting next year a wave of even more toxic Option ARMS will start resetting. Home prices will be falling for the next 10 years. Buy a home to ENJOY if you must, but don’t look at it as a get rich quick investment.
San Diego county cosmetic surgery
There’s an extremely simple way to avoid foreclosure: make your mortgage payments on time every month. If you are unwilling or unable to do so, then you will lose your house. This is exactly what you agreed to in the mortgage contract that you signed. Expecting the rest of us to “bail you out” is a morally indefensible position.
San Diego clinical research
Now I realize Greenspan probably kept interest rates too low after the dot.com bubble and 9/11 and Congress may have been too aggressive in requiring banks to lend to ‘sub primers’ and Bush may have gone overboard with his ‘ownership society’ schemes but at the end of the day it was the American people that did this. No one was frogged marched down to a mortgage brokers office and water boarded until they signed a loan to buy a house they could not afford. People did it to themselves. I was tempted too I admit and even looked at houses. Met an agent who had drawn up an offer. Looked it over and said ‘lemme think it over’. Called him back the next day and said ‘nope, don’t need a new house.
San Diego bail bonds
Why always blame somebody else? What happened to self responsibility and self accountability? If you cannot afford the house payments then don’t buy a house. If you cannot qualify for a fixed-rate 30-year loan, then that means you are not qualified! It’s your responsibility to know how much you can afford. It’s as simple as that.
acne medicine
This is all Obama’s and his leftist friends from Chicago fault. Individuals are walking away and not taking responsibility for their financial commitments. They know Obama and Co. won’t do anything. It’s his fault. I can’t wait for him to be defeated in November.
San Diego attractions
Property prices are only beginning to tumble. They will stabilize when they finally hit or surpass equilibrium value as determined by their P/E Ratio.
Hoodia Diets
The 80/10 loan: You bought a house you can’t afford. Why should the bank bail you out? Jeez, you took out 2 loans because 1 bank knew you could not afford the house you wanted.
San Diego California real estate
We, my husband and I, are new to real estate, and I am curious about federal gains
taxes. Exactly what are they, and how could they help the real estate market?
Thanks for your responses.
Tammi