Thursday, Feb. 12, 2009
How to Fix the Housing Market
By Barbara Kiviat
Here's a thought: let's have the government do something to fix the housing market. Now what would that be?
Ideas are flying around Washington. They include tax credits and cheaper mortgages for home buyers as well as leaning on lenders to rewrite mortgage terms for struggling borrowers. But maybe we should ask what, exactly, fixing the housing market means--and prepare ourselves for the limits of what these policies can actually accomplish.
Consider our recent track record. Last July, Congress passed a bill to help the housing market. In an effort to churn demand and stabilize home prices, the bill created a $7,500 tax break for first-time home buyers. It also created a program to prevent...Click On Link Below For Complete Article
http://www.time.com/time/magazine/article/0,9171,1879184,00.html
3 comments:
too little too late?
i took my licks, why does our gov need to bailout people.
i think a lesson learned is just that.
history is going to be repeated.
As far as the housing issue goes we need to define exactly what it is "Affordable Housing" is around these parts.
Seems to me we seem to be focusing on rehabbing existing structures and inventory of long outdated, overworked buildings to rent to those in need cheap housing.
Is that the impression you get?
I am certain whatever the answer will be, it will involve "Public/Private" investment and subsidy.
That being the case, how cost effectively can good, solid, affordable housing that meets minimum code be built and offered to the home buyer of limited means?
This would be an interesting excercise in hard costing a house to absolute minimum specs.
in my mind, affordable housing is just that. i guess affordable to who is the answer we are looking for.
you are correct that affordable housing for the impoverished can only exist by subsidy in the way of tax incentive or outright funding.
regardless of the buzzword, it is a mountain i feel is unclimbable. or at least not sustainable.
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