Thursday, December 25, 2008

Bailing Out Homeowners?

I hope they help renters also with the broader issue of affordable housing. More money for HUD.

Also they shouldn't just help current homeowners. What about those who have already been foreclosed on and are no longer in their homes? Back to square one.

How about people who never bought in the first place.

How about subsidizing more folks to become first time home buyers? Someone like me could buy a condominium if there was a $50,000 grant to help defray the cost. On my income, I could possibly put up the other $50,000 based on borrowing with house payments being around 1/3 my income. The grant would be a good boost toward the bottom of our local condo market which still hovers over $100,000.

If they want more people to be homeowners, let's get some new homeowners in the market. Grants for renters to become homeowners? Government pay half the mortgage? Then when you sell, the government's $50,000 investment would stay with the condo to keep it affordable for the next owner. There's actually a program like this that I read about.

What about the folks that have already had their homes foreclosed on? They are now out of the market as if they were starting over again. How about giving them money to get back into the market? Like giving folks money who haven't bought yet.

The Federal Reserve can just print up all this money. More money in circulation leading to inflation eventually.

Inflation across the general economy can bring everything up to the level that property values are still at, to a large extent.

Either that or property values will have to come down some more.

One should also ask, "is home ownership the holy grail of life?" Should everyone strive to be a homeowner?

Or are we better off finding other solutions for some people; like affordable rent?

I've had a good landlord so far.

Another solution to the housing debacle is to allow more renters in single family neighborhoods. Let homeowners rent out rooms to help pay their mortgages.

That could help both renters and homeowners.

These changes would have to be done at the local level, but Obama can use the "bully pulpit" to advocate this.

Allow more density. It could reduce commute times also as more people could afford to live closer to work. Reduce traffic. Save energy.

Bump up density in many of the current residential zones. Wouldn't be as much of a problem if people weren't so dependent on automobiles.

Traffic? Parking in the neighborhood? Cars in the front yard?

It wouldn't look so bad if it was bikes inside the house or people taking the bus.

So many things interrelate.

1 comment:

Unknown said...

I got a grant from the federal government for $12,000 in financial aid, see how you can get one also at