[quote=jstoesz]For once I Agee. Although, left unchecked it still has the similar negative repercussions. The extent of the damage was not exclusive to single homebuyers. Clearly the repercussions were greater. But the same flawed logic was in play. The unintended consequences must be analyzed for every well-intentioned policy!
CAR, argue the intent of the previous statement, the extent of the devastation is another discussion. If you disagree at all, that is.[/quote]
Okay, while I agree that we should not hand out “free homeownership” vouchers to every indigent person, I do believe that society is better served when everybody has something at stake.
Owners, even the less responsible ones during the bubble, tend to be more concerned about the appearance and maintenance of their homes than landlords and renters. They are also inclined to get more involved in their communities and watch out for each other if they feel they have roots in an area. I believe these are desirable traits.
What I would like to see in the housing market is subsidized, government loans (100% public, no private middlemen) with very tight lending standards. These would be made available to lower-middle income earners who are buying a single, owner-occupied home. They could not have two loans at the same time (cannot keep one “subsidized” house as a rental if one moves up).
I also believe that anyone who buys an investment property that already exists (they are not building a new building) should not have Prop 13 protection, and should not be able to deduct any expenses from their taxes unless they agree to certain forms of rent control.
The “investors” should have to rely 100% on the private mortgage market.
This would give people who want to own their own home an advantage over speculators/investors, and would strengthen communities and help people during their retirement years because they would have a better chance of having a fully paid-off house in retirement.
I believe in an “Ownership Society,” but not one that is infested with middlemen and speculators.
