You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Real Estate is about Jobs, Posted by Ron”.
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Real Estate is about Jobs, Posted by Ron”.
Long term resolutions to the current distressed financial markets entail staying to the basic practices of good underwriting standards, amending current appraisal laws to give credit for improvements, and borrowers’ reasonable savings rates.
No matter what legislation is passed regarding the future of the Government Service Enterprises (GSEs) and private financial institutions, successful lending practices depend on the borrower’s ability and responsibility to repay any loan. Federal Reserve and private bank officers commented with great concerns in 1998 regarding the 1996 financing act that lowered the underwriting standards on loans the GSEs were required to purchase.
Unfortunately in response to much financial fraud, particularly in New York and New Jersey the resulting Home Valuation Code of Conduct led to artificially devaluing properties with legitimate upgrades. This legislation needs immediate change if residential and commercial properties are to be refinanced, built, or remodeled with new energy efficiency features. Otherwise, such efforts will be futile.
In the Las Vegas market better performing loans underwritten since January 2008 resulted from lower pricing that enabled qualifed borrowers with a good savings history to finally purchase homes that met their needs. Many examples include couples with children who were able to move out of a one bedroom apartment into single family homes. A client and father of three daughters worked overtime to pay off some debts and build up a down payment for a great single family home.
In conclusion, attendance the past four years at NAR Conventions reveals our lobbyists are utilizing their political credit as well as possible in addressing critical issues that take time to resolve. As President of the Greater Las Vegas Association of Realtors I am encouraging our members to take advantage of the NAR web site for updates and attend the conventions whenever possible.
A strong housing market is crucial to our economy turning around but we can’t go back to giving away homes to anyone who asks – sub-prime lending is big reason why we are in this recession.
The MID is a joke. What we need is THE FAIR TAX!! Get rid of the income tax & replace it with a consumption tax. (Every body pays based on consumption) By eliminating corporate taxes, you would see tons of new businesses coming to this country. This plan would help to create jobs & working people need homes (one they can pay for). If NAR realty wants to support Realtors, I expect them to be in Washington promoting the Fair Tax, (HR 25 I think)
Real Estate has always been about jobs. As goes Real Estate so goes the economy. With tight budgets and municipalities looking at shortfalls – people have to realize real estate is and always has been the life blood of the economy. Real estate development/construction and sales is the only thing that increases tax base without making people angry. As costs continue to sky rocket the only way to get more money to pay them is through growth and real estate. No real estate market – no growth; no increased tax base; no increased revenue; no money. Very basic. The country, the economy nieeds real estate to survive.