Can any Bailout Help the US Real Estate Market?

If you have listened to the news in the last sixty days.  The word bailout has dominated the news.  Every week there is another group lining up at the trough for some taxpayers money.  Without getting into the apparent moral hazards of these bailouts or realizing that all the money from the Treasury and government is looted from the taxpayers, the problem of how to "fix" the real estate market has been constantly debated.

The latest proposal has been to achieve a fixed mortgage rate of 4.5% in order to stimulate the housing market.  How this would take place is covered well here.  A number of other plans have also been floated around by both the NAR and NAHB.  Both plans offer different ways to stimulate the housing market.

Perhaps the best idea I have heard, was from one of the members of Congress.  They suggested reducing the capital gains tax on investment homes.  The tax incentive would definitely stimulate the housing market.  Those who have been contemplating buy a second or investment home would now have a great incentive.  The tax incentive coupled with the current low mortgage rates, would definitely help spark a renewed interest in Sea Isle city condos and beach homes in general.

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: