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Dear President Obama:
Congratulations on your historic presidency! The country has put its faith in you and has high expectations that I am confident you will fulfill.
I have a suggestion as to how we can jump-start the economy that I don’t believe is being currently proposed.
It all has to do with people buying houses. As a Broker/Owner of a Residential Real Estate Company in Essex County, New Jersey, I know there are a lot of buyers waiting to purchase a home. They are waiting even though they can afford to buy now, however, their concern is that prices may go lower due to a worsening economy.
What I would like to recommend is a real housing Stimulus Plan that will encourage purchasers to buy NOW.
The Plan should include the following:
1. 30-Year Fixed Mortgage Rate of 4-1/4% an historic low. This can be accomplished with coordination between the Fed and major lending institutions.
2. Buyer credits at closing from the Federal government of $12,000 toward closing costs, property taxes or tax credits. This $12,000 credit would have no contingencies and be available to all buyers.
3. A loosening of very high credit requirements on mortgages that currently exist. This can be coordinated with FANNIE MAE & FREDDIE MAC and major national lenders.
4. Some relief to current homeowners threatened by Foreclosure.
If the above four programs happen at once and are presented as a Housing Stimulus Program to encourage buyers to buy now, THEY WILL!
It will work and then the entire economy has a tremendous chance of bouncing back quickly.
The following people will increase their income and or get their jobs back.
1. Home Inspectors.
2. Tradesmen and their suppliers - Carpenters, Plumbers, Roofers, Electricians, Handymen, Landscapers, Masons, Painters, Pest Control, etc.
3. Moving Companies.
4. Realtors, Real Estate Assistants and Administrators.
5. Real Estate Attorneys, Administrators, etc.
6. Home Furnishing Establishments and Home Improvement Centers
· For Housewarming Gifts
· New Furniture
· New Carpeting
· New Accessories
· Paint, Wallpaper etc.
· Outdoor Furniture, Barbeques, etc.
7. Building Supply Companies utilized for construction of New Homes, Lumber, Insulation, Electrical, Plumbing, Flooring, etc.
8. Contractors and Laborers needed to build houses.
9. Mortgage Lenders, Loan Officers and Admin.
10. Appraisers, Title Companies and Surveyors.
11. Newspapers, Advertising Agencies, Premium Sales Companies, Photographers, Internet Sites and other venders utilized by realtors to promote their listings.
12. Homeowners Insurance Agents and Administrators, as well as Home Warranty Companies.
It is estimated that between 4 and 5 million unemployed and underemployed will be positively affected.
And guess what? When all these people go back to work and are making money, maybe they can buy American cars. Even the Chairman of G.M. was blaming the economy as a factor as to why their cars are not selling. In addition, the positively affected individuals mentioned above may now have enough money to start frequenting their favorite restaurants again and may even be able to spend money on a vacation.
So let’s stop bailing out everybody – it’s just patches. We need to make buyers want to buy and spend money, and this plan will do just that. Millions of people will either get their jobs back or will be earning what they were previously earning.
Seniors will be able to sell their homes for a fair price and buy retirement homes throughout the country. It’s a Win, Win, Win.
This plan will succeed. If anyone asks where you heard it from, just say “Dan the Realtor.”
Best Wishes
Daniel Yanofski
Danandfern@eliterealtorsofnewjersey.com
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