U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-31-2008, 06:37 PM
 
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,248 posts, read 21,907,377 times
Reputation: 3587

Advertisements

This is an idea that I thought of- instead of tossing all the billions at trying to boost home values on the mortgage side, why not instead insure home values at the purchase price for homeowners? If the government were to insure homes at the price you buy them at- much like the FDIC does with banks- and you know your home can never lose value, this would do more to boost confidence in the markets than anything else. What do you think?
Reply With Quote Quick reply to this message

 
Old 12-31-2008, 06:50 PM
 
Location: Where the sun likes to shine!!
20,521 posts, read 27,050,294 times
Reputation: 88591
Why should the gov't insure something that someone bought when it was overpriced? Should they also insure the Mac mansions that 2 people are living in? Homes should lose value if your neighborhood goes to crap, if there are no jobs there, etc. Real estate is not a guaranteed investment.
Reply With Quote Quick reply to this message
 
Old 12-31-2008, 07:04 PM
 
Location: Heartland Florida
9,324 posts, read 24,272,537 times
Reputation: 4927
Price controls are insane. There should be no support for residential real estate, something which is a consumable and produces nothing. Government guarantees are why we have an economic mess. Get the government out of the market and let prices fall. Real estate can never be too low.
Reply With Quote Quick reply to this message
 
Old 12-31-2008, 07:23 PM
 
11,266 posts, read 45,052,000 times
Reputation: 15138
Very BAD idea.

Not worth even putting down all the reasons why ... except to say that it's not the gov't's responsibility to protect/guarantee individual purchases.
Reply With Quote Quick reply to this message
 
Old 12-31-2008, 07:30 PM
 
48,509 posts, read 86,196,823 times
Reputation: 18105
Let ther markets work on their own.Price controls didn't work in teh 70's recession.
Reply With Quote Quick reply to this message
 
Old 12-31-2008, 08:37 PM
 
3,722 posts, read 4,718,320 times
Reputation: 4751
Quote:
Originally Posted by KevK View Post
This is an idea that I thought of- instead of tossing all the billions at trying to boost home values on the mortgage side, why not instead insure home values at the purchase price for homeowners? If the government were to insure homes at the price you buy them at- much like the FDIC does with banks- and you know your home can never lose value, this would do more to boost confidence in the markets than anything else. What do you think?
I think that is absurd!

BUT if this ever happened, the homes should be deed restricted and when the homeowner goes to sell their property they can only make a certain amount of profit by law. I'd say 1% per year. The property should also be owner occupied only.
Reply With Quote Quick reply to this message
 
Old 12-31-2008, 09:01 PM
 
1,566 posts, read 2,843,468 times
Reputation: 1262
the govt should stop in aiding in creating articially high prices for homes (artifically low interest rates coupled with tax incentives for home owners- basically selling people on the idea they everyone deserves a home)
Reply With Quote Quick reply to this message
 
Old 01-01-2009, 07:18 AM
 
Location: Where the sun likes to shine!!
20,521 posts, read 27,050,294 times
Reputation: 88591
Lets be blunt. The government should just stop interfering with businesses and housing. If a person or company screws up then it's their fault. Let it fall on it's own and let's get this mess cleaned up. The more government interference the longer this will all last. Rip that band aid off and let us begin to heal.
Reply With Quote Quick reply to this message
 
Old 01-01-2009, 11:49 AM
 
Location: Wouldn't you like to know?
9,114 posts, read 15,967,950 times
Reputation: 3698
KevK, good effort but its an awful idea.

What do you have against prices dropping until home prices get in line w/avg incomes?
Reply With Quote Quick reply to this message
 
Old 01-01-2009, 11:54 AM
 
3,283 posts, read 4,758,060 times
Reputation: 753
Quote:
Originally Posted by CouponJack View Post
KevK, good effort but its an awful idea.

What do you have against prices dropping until home prices get in line w/avg incomes?

great question, i'd love the real estate cheerleading crew to answer that one. fmv, you around?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 09:03 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top