The Government's Response to the Housing Crises

With the foreclosure rate in the housing markethas any knowledge of investing in the housing
at an all time high, real estate investors are havingmarket would consider any of the proposed laws
to maintain a very watchful eye on there bottomto be of any benefit, for example:
line. The practice of purchasing a home, makingOne of the proposed laws is to not allow anyone
minor repairs and then selling it for a quick profit isto have more than 10 mortgages. How is stopping
gone. For the real estate investor that is in thesomeone who has a proven history of
business for the long haul, it is the perfect time tosuccessfully managing real estate investments
increase there holdings and yet the government isfrom purchasing new property? How would this
trying to make it impossible.law help stimulate the purchases of foreclosed on
The current housing market crises was notproperties?
caused by real estate investors that purchasedThe current law for selling a home you have lived
single family homes and apartments to hold forin for at least 2 years in the last 5 years is no
the long term for asset appreciation. It wastax on the profit of $250,000 for a single person
caused by the Home Builders, Banks andand $500,000 for a couple. Obama wants to have
Mortgage companies that sold homes to peoplea 28 percent tax on profit from all home sales. If
that could not qualify for a conventional homeyou plan to downsize your home after you retire
mortgage.and use that profit to help finance your
The practice of creating a sub-prime mortgageretirement you could now loose 28 percent. This
was just another way for the lenders to say, weproposal will adversely effect the elderly who are
know you do not qualify for a home loan now butcounting on the profit from the sale of there
perhaps you may in the future and in the meanhome as part of their retirement income and as
time our share holders will love our bottom line.an investor it makes me want to reevaluate any
Since the housing market was increasing in valuepotential new real estate investment.
at such a rapid rate at that time, the lendersThere is a proposal to have new taxes on homes
could foreclose on property and then resell it atthat are more than 2,400 square feet. Let's see
even a higher rate than they did the first time.now, I have a 5 bedroom home I want to sell
Great for our share holders, bad for ourand if you add new taxes on the property it will
customers (Let the Buyer Beware).be easier to sell, right?
Now that tens of thousands of homes have beenIt seems that ever time the economy gets into
foreclosed on, the price of homes are 10, 20 andtrouble; the governments' knee jerk reaction is to
even 30 percent below that they were just aput the blame on one of the minorities. Today it is
few years ago. Lending institutions are now stuckthe business people that invest in real estate. Our
with properties that they cannot sell. Thesegovernment has no business in the business mans
lending institutions are not in the business ofpocket. Leave the free market place alone, it will
owning, managing, or renting real property. Theytake care of itself and look to your own house.
are in the business of lending money.Our government already has a proven history of
It looks as if our government law makers arenot being able to manage money responsibility. If
just trying to pass new laws for the sake ofthe government needs to address a problem,
appearances or to show concern for the currenthow about taking a look at the deficit or social
housing crises and not to actually help or solvesecurity?
the problem. I cannot believe that anyone that