Some buyers may not otherwise have enough time to save up for a down payment on a house, but if they were given enough time to prepare to purchase the home, then they might be ready. Some other changes that would prev... ... middle of paper ... ...entives for the home owner to continue making payments on their mortgage because of the lower payments. The buyer also receives an incentive if the government purchases the higher priced house and sells it at the market value. Incentives will assist the market’s equilibration and the stop of foreclosures. Extended tax credits to all home buyers and an extended time period will provide some incentives for people who would otherwise not purchase a home.
We have many houses in foreclosure that can be prevented; one way is to have the banks be regulated ... ... middle of paper ... ...rom that. One thing is banks could start making money again and even start giving out more loans (good loans). The other thing that could come out good is the economy could get even better; people are staying in their homes now so they would want them to be in good condition. They would spend more money on home improvements which will help out the local stores. Maybe even the housing market would improve with fewer foreclosures on the market.
With more job opportunities on the horizon, Americans will feel more confident that they can afford a home. As the trust of the American workforce increases, so too will the competition among those looking to buy a house. This will ultimately drive up the cost of houses, making the real estate market a thriving market. In the past decade, it has become increasingly clear that further education helps to provide better earning potential for workers. Higher wages will help more Americans achieve the goal of home ownership by providing the necessary income.
Sustainable architecture provides this linkage. Once the trends in housing produce sustainable homes that reduce the cost of utilities and maintenance, then people will be able to afford better homes without overextending their budgets, because they are already saving money in utility costs. The problem of foreclosures can be eliminated if the root of the problem, the home, is effectively evaluated and improved upon.
Apartments can be very affordable in a rent-controlled neighborhood, and are much more feasible for families, or students just starting out on their own; whereas, in the country, you may have to buy a home or hard to find cheap rentals. Transportation costs, groceries, taxes, and utilities are common expenditures for any adult. But, many may find that a large amount of money can be saved on these living expenses in a city.
Many building companies have also respond to the increases in demand, however this response will not be immediate. Another reason why we saw the price of houses rise was due to the low interest rates. This means the borrowing of money to buy a house is significantly cheaper, which is therefore retaliated with via the increase in the actual cost of a house. London being so close is another major pull factor for people wanting to live as near as possible to where work is more likely to be found. Commuting times and facilities like trains and motorways play a major role in opening up areas as 'commuter land'.
Yet more disclosure needs to be emplaced, to prevent the frauds and executives from raping a company for selfish gains. I don't appreciate executives from AIG spending half a million tax payer dollars on an executive get away because they think they need it. That money could have been used towards product development, and employment, and corporate health. This could help stimulate the housing economy by providing these employees with a means to purchase a new house. To sum up my ideas, to cure the housing economy, we need to create more employment, restructure subprime loans to be more reasonable, getting banks to reinvest in America and lend out money again, keeping interest rates low, and finally let the market do what it is going to do.
Capitalizing on HUDs approach and showing the home owner how to make the most of their investment is a great solution to red... ... middle of paper ... ... homes purchased that cannot be afforded, plummeting property values, a group of consumers not prepared for unexpected expenses and emergencies, poor refinance decisions and bank lending practices needing reform. Implementing the solution of requiring home buyer and refinance education classes will empower consumers to be smarter buyers. It will also help to secure long lasting financial stability in the housing and other economic markets. Firmer lending regulations will keep the banking industry alive but with more responsibility on realistic returns on buyer’s investments and loans they provide. I plan to make a wise choice when I am able to purchase a home in the future.
Additionally, lenders will see that the real estate market will become more stable, that they are receiving higher profits due to higher percentages collected from down payments, and more customers overall. Mainly, they will be dealing with less delinquent loans. This should clear up their books, create a hard line to track and manage profits, and secure investments for the companies’ future in lending. It is the government’s responsibility to clear up the markets, but more must be done then to reform laws through the slow democratic processes. A shift in educational approach could cost near nothing to enact, and at the same be responsible for saving not just the real estate market, the economy, or the country, but for saving each and every American family’s homes, health, and well being from now until the distant future.
Foreclosure is a growing national disaster in the United States. Every time you tune in to your local news, there is a new family whose house is being foreclosed. Every time you ride around the neighborhood, there is another house up for sale. There are several solutions to this increasing trend including cutting government spending and cutting funds towards unsuccessful government programs, devising financial plans to assist families by setting up payment plans that they can afford, getting communities more involved, more stimulus packages, raising the taxes of the wealthy to lower rates, and easing the limits on section eight housing. Cutting government spending and cutting funding to the government programs that are unsuccessful would solve a tiny piece of the puzzle.