This Dirty Word Not Banned On Active Rain

By
Real Estate Broker/Owner with J. Luis Properties, Inc.

Ok here we go. I'm going to try and start some dialouge about one of the most controversial subjects in the world. That's right politics.....alright I said it , there. Here in Florida, we have major elections Tuesday. I need a little direction. I am a life long bleeding heart liberal democrat because I grew up not so well off and after that I got a job which required union membership. I still believe in government provided social services, but now that I am an independent contractor, seems like there's a conflict in my former political standing. I still believe the only way to keep America strong is by providing Americans good wages, good benefits and a safe environment to work in. With all the pressure to reduce costs, how do we accomplish this and remain competitive? If we can't fix the wage problem, how do Americans afford housing? I believe this is the reason the government loosened banking rules, so more people could afford homes (albeit temporarily), thus spurring the economy and housing boom. Where do we go from here, there's only so much that our investors can invest and save the economy. Somewhere down the line someone will have to buy these homes to live in. How can anyone afford these homes after being marked up by investors and the banking industry being forced to tighten the rules? Does anyone foresee another interest rate drop to make homes affordable?

Our political process will play a major role in deciding the future of our industry, especially in the short term. I am just looking for answers to these questions for guidance, plus I love hearing (reading in this case) others views.

Florida has a unique housing problem, skyrocketing insurance because of the busy hurricane season we've had. Another problem, which is probably a nation wide problem, is R.E. taxes. 

Noel

Comments (1)

Jim Lee
RE/MAX Shoreline - Portsmouth, NH
Portsmouth NH Realtor, Portsmouth, NH

"I still believe the only way to keep America strong is by providing Americans good wages, good benefits and a safe environment to work in."

No arguement there but all those things have a price tag attached that someone has to pay, usually the employer.

What good does it do for someone to be getting $30.00 an hour with retirement, medical, vacation, if there is no employer to pay it???

 With all the pressure to reduce costs, how do we accomplish this and remain competitive?

Find better ways to do the same thing. 

If we can't fix the wage problem, how do Americans afford housing?

Wages aren't broken; people still earn pretty much what they're worth to an employer. 

 I believe this is the reason the government loosened banking rules, so more people could afford homes (albeit temporarily), thus spurring the economy and housing boom.

I don't think so. Money is a commodity just like corn & soybeans. Investors put it where they can get the best (and safest return). The government actually has very little to do with the supply and demand for money. Granted they can massage the rules a little but we're in global economy now and

 Where do we go from here, there's only so much that our investors can invest and save the economy. Somewhere down the line someone will have to buy these homes to live in. How can anyone afford these homes after being marked up by investors and the banking industry being forced to tighten the rules?

Home prices are a function of supply & demand; it may be skewed for a short time or for a longer time in certain areas but it always equals out. There's usally always a buyer for a particular home; just not at the price a seller might want.

Does anyone foresee another interest rate drop to make homes affordable?

Homes are very affordable right now with the current interest rates.

Interest rates are also a function of supply and demand. I was selling real estate in the early 80s when interest rates were 18 & 20% on fixed rate conventional loans.

Bought my first house about 30 years ago with a VA loan and my interest rate was 8%. The VA rates increased to 8.5% about 2 weeks after closing and my wife and I were so happy we got that low, low 8% rate. Point being people buy houses no matter what the interest rate is. Lower rates are obviously better but they're only one piece of the puzzle.

Politics is not a dirty word but some of the people that practice politics are certainly giving it a bad name.

One solution; don't vote for any current office holders; they're the ones responsible for the current mess.

Oct 31, 2006 06:11 AM

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