Housing Stimulus Solutions: Some Radical Approaches To Consider!
October 20, 2009 by Jim Walberg · 4 Comments
Bob Waun and I met several years ago at the annual Ragatz Conference in San Francisco – the annual “state of the union” on the world of fractional deeded ownership projects around the world. Since then, Bob’s company, Vacation Finance, has been our go-to source for financing for the second home markets. He published a book last year titled, “Besting: Better Nesting” which is about the dramatic shift in the real estate needs and desires caused by the Boomer generation – the first wave hitting the beach in 2008.
Here is Bob’s guest editorial to our blog from his Second Home 411 blogsite. I look forward to your comments and feedback.
From Bob Waun: Want the price of something to rise? The formula is simple: increase demand or decrease supply. People want scarce things, things that are scarce are ‘valued’. So,let’s explore some easy ways to limit the supply of homes:
1. The banking system has already stopped lending to new construction projects, heck, we aren’t even lending to many half finished projects. This has constricted supply of new inventory and will for the foreseeable decade to come. No new building.
2. Municipalities have a wonderful chance to create new park land, consolidate development areas, increase density (walk-ability), land use and conservation, and revamp zoning. Governments should ‘buy up’ strategic property now, as these actions will increase the value later.
3. Creative deconstruction. The US housing stock is on average 45 years old. My opinion is that many homes built before 1970 are actually better made, but this statistic does lead one to wonder if ‘recycling’ much of the housing in our country isn’t warranted? For every new home that is permitted, maybe one somewhere should be taken apart – much like wetland mitigation.
4. Encourage vacation home ownership. Yes, many of the homes that are vacant today were envisioned to be ’second homes’ (condos). Seeking out foreign citizens to buy these homes as their ‘cottage in America’ using a special Visa and may be an incentive that would sell thousands of condos. Foreign buyers are the best, because each offshore dollar into US real estate balances our trade deficit, pays US property tax burdens and increases their spending in our retail market. The US railroads were built by foreign capital, and the railroads served the growth of our Nation well.
Real estate is the one product that can’t be imported or exported. When some one buys real estate, the US Government (local & federal) is assured that tax payments will be made. Real estate is also the largest employer in the US. Creating new jobs to ‘recycle housing’, finish partially constructed housing, redesign/configure (green) old housing, or turn existing housing into parkland, green space or ethanol fields is good work for Americans. All of this increases US government tax receipts without increasing the burden on tax payers.
Any thoughts about Bob’s radical ideas? CLICK HERE for more information about second home financing options. Until next time…your East Bay lifestyle detective remains on duty.
Related posts:
- East Bay Real Estate News: Housing Tax Credit To Be Extended?
- September U.S. Home Sales UP 9.4%! An East Bay Real Estate False Indicator?
- East Bay Real Estate Crisis Is Over!
Filed Under: Blog, Buyers, Fractional Ownership, News, Real Estate, Sellers
Tagged: Bob Waun, housing stimulus package, Ragatz Conference, Second Home 411, Vacation Finance
Great ides! My personal belief is that the less the Government is involved the better. These are wonderful forward thinking ideas based on the fundamentals of supply and demand. Neil
Jim,
Interesting information. I’d say all those suggestions are good ones… except maybe the “recycle” or deconstruct older homes one.
I might favor that idea if the homes that were “deconstructed” belonged to and were currently occupied by politicians responsible for some of the new and wacky laws negatively effecting the market’s ability to recover… read, making it harder for us to move real estate.
As always, thanks for the great info Jim.
Kirk
Great suggestion regarding the deconstruction of the homes of the politicians that are not supporting free market initiatives. Thanks for checking in, Kirk.
Thanks for your comments, Neil. Yes, free marketing fundamentals are the key to thriving.