There’s probably no one in the country that isn’t aware of the massive government bailout plan designed to address the country’s financial sector by keeping banks and important financial institutions afloat. It also addresses the housing market in an effort to get people interested in buying up the vast amounts of vacant homes in various states and counties, Palm Beach real estate included.
Opinions on the bailout decision are sharply divided, with some seeing at as something that had to be done and others seeing it as another method of taking taxpayers’ money. While the plan is intended to tackle the economy and the housing market, some followers of real estate don’t think it will do enough to boost the latter so much as it will the former.
One need only take a look at existing figures to see that mortgage rates are still exceedingly high, removing the average homebuyer from being able to buy real estate like Palm Beach condos since the monthly mortgage payment will be much too high. This is assuming this average homebuyer was actually able to obtain mortgage approval in the first place. Now that the bailout plan is in place, the government should strongly consider lowering interest rates.
As everyone knows, the mortgage is only one element when buying a home. The other part that requires lots of money upfront is the down payment which also necessitates a considerable amount of funds and again, prevents most people from ever owning a home. This problem can perhaps be ameliorated somewhat if the government provided some kind of financial assistance such as matching the down payment up to a certain amount.
The government has already begun rolling out the Hope for Homeowners program which targets homeowners stuck in unmanageable mortgages and lets them renegotiate into a fixed one. Regardless of what real estate experts think, do you think the government is doing enough to get interested in Palm Beach homes again?