We have a huge inventory of unsold homes. Unfortunately low income people cannot afford to buy a house at this moment. Many are unimployed or have shaky future income. Rich people can afford buying more homes. So my plan is: Anyone who already has a house and buys up to 4-5 houses with at least 30% downpayment won't need to pay property tax for those houses for 5 years. So simple.
Thats a stupid use of capital. No person who is rich is gonna buy 4-5 Cheaply built in the middle of nowhere McMansions in Arizona that have no intrinsic value left. That will not work
agreed with KOS. if you really want to do something with the inventory. eliminate transfer tax, do away with city regulating (fines, licenses etc), allow investors to manage properties as rentals for the banks. either way, the property has to cashflow and must be purchased at a very deep discount. if flipping and not renting, there needs to be a boost in the FHA market which is directly related to lending stips and job security. Both lending and job security suck right now, so ......
Definitely they will be selective. They will buy houses in big cities. I am sure my plan will have positive effect and if it does not work, we will not lose anything.
Better yet. Drop the principle of every underwater home out there. The holdup on that simple doable solution to get the economy again and increasing the velocity of cash flowing again is.................THE FREAKING TAXES on the home would in tandem need to be legally decreased unless the property tax tables in your hood were changed. Decreasing property taxes in mass would create another can of worms to be opened.................where would the city, town etc get the money to steal, to inflate their over inflated pensions, etc, etc, etc, etc. Schools need all the money they can get, we are dumbing down America enough without decreasing the school cash flow. Face it!!!!!!! America is in the crapper and no easy solution out there. Maybe we should just FLUSH and get it over with and start over. PS: Your solution is not only stupid, it is moronic. The rich got us in this fucking problem...............how the hell do you imagine the rich are the answer? They are as we speak trying to figure out the next scam to screw the working folks. BELIEVE IT!!!!! Hog OUT
This actually will work somewhat if you limited it to single family housing only. ( IE, no condo, apartment or townhouses. ) By the way, you do lose something. ( Property tax )
you don't understand how much revenue the govt generates from property taxes, especially from the riches. govt is probably better off offering 8k first time home buyer credit for the next decade.
I have a better idea. Execute Frank and Dodd with a few other political scumbags, hang all the exec's that worked at Countrywide, throw in a few GS pukes for good measure...OK, I admit that won't help the housing market, but it wouldn't hurt it either and we'd all feel better. Too extreme? What would we have done had the guys who orchestrated this disaster been Muslim terrorists? The bums who did this are no different. Well, OK, they are different, they're worse!
I have a better idea. All banks open a property management desk and rent the houses out until property values come back