Why not make the $8k voucher program available to investors? Instead of limiting the program to people who are looking to buy their primary residence, how about we get these homes off the market. Granted, there are investors who should not be allowed to participate in the program. Criteria should be setup to ensure that the right investors are being encouraged to purchase homes. Requiring them to have tons of cash on hand is not a solution. It just limits the investors chosen to those who have lots of money anyway. They can afford to buy up houses at deep discounts. Instead, find the small investor who has less homes than the Fannie Mae loan limit which sits at 9 right now. Help them buy another home or two so that they can successfully manage the property as a productive asset. Tenants need places to live, but if the investor is having trouble, it is going to affect the tenant. There are lots of small investors out there who cannot buy homes because of how tight credit is, and the increase in rates and requirements they must meet to purchase a home. Freeing up these small investors to buy a home or two will take lots of homes off the market. It is also very likely that the homes will be managed much better as it will be more than just another home. It will be their 3rd home or 8th home. Some of these small time investors will make it big and buy up yet more homes. They just need an environment where they can grow. Right now there are so many rules, limits, regulations, and requirements; it is impossible for them to take advantage of the cheap housing that is flooding the market today.
Posted under Economy, Rants, Real Estate
This post was written by robert.casto on May 9, 2009
