Please, This is NOT the solution!!!!
So beyond all the noise of Debt Ceiling, Currency Down Grades, etc did you hear that the Government is thinking about becoming a Landlord???
I have to tell you I busted out laughing when I first read this but as I thought about it I started to get mad and very concerned.
Lets just play this out together:
So the government can't sell the homes so they are going to create rentals. Sounds like a change of ownership to me. So what does that mean. Well that means we the tax payers step up and pay the bankers off for the house. Anyone think the governemnt will negotiate a good deal or will they just pay 100 cents on the dollar???
Then once they have the property can you hear all the noise about low income housing. Regardless of location or area I see a lot of low income housing being passed out. I suspect some very nice neighborhoods are going to have some new neighbors who pay the rent via Section 8. Can you see it now a development with doctors and lawyers and 3 Section 8 families. That should be fun to watch.
Now property values. Anyone think property values go up when renters move in and blot the nieghborhood. Owner occupied areas are about to get hit with a nasty surprise.
Can anyone imagine a house that is low income today ever being sold as anything but low income tomorrow. I can't
As a tax payer can you already see 12-15% management fees, charges of 100 for simple drive by and $800 charges to fix a leaky sink. Can you just smell the waste of money???
Lastly I see this becomeing yet ANOTHER entiltement program we can't afford, just stop the madness PLEASE.
This is going to be SOOOOOOO BAD!!!!!!!!!
Oh well if it happens we will just need to figure out how to make money and move on.
But please Don't Do this!!! Just take the money you were going to waste on this and create some investor loan programs. You are not a landlord!!
Comments (4)
As a Tax Payer I would be Very Afraid!!! If they do this they will over pay, mis manage and end up selling at a loss. As a Real Estate Investor I say bring it on. A big buyer like the Federal Government might be big enough to get this shadow inventory on the street so we can turn this thing around and we can see prices rise back to replacement cost. They can and won't buy everything so keep doing your homework and making offers and we will be fine. But again as a Tax Payer I am very afraid because I don't want to lose/waste money and I really don't want another entitlement program we can't afford!!!!
Michael Zuber, over 13 years ago
Mike, I am actually pretty scared about the whole idea because I can actually see it happening. What do you think it will do to the small-time investor like us? A few of my thoughts - further decline of home values, expensive "new" branches within the government - housing aforability act (just made up the name), I think it will drive down rents in many markets since Uncle Sam doesn't need to be profitable. I hope this whole thing falls on its face. The problem is that even if a program isn't working the Gov. will still keep it running. This really makes me nervous. Any thoughts on how we can protect ourselves?
Arthur Garcia, over 13 years ago
I'm thinking a government eviction will take at least 9 months and cost the taxpayer $25 grand.
Jon Klaus, over 13 years ago
Michael~~ I think you have pretty well nailed the scenario we will see play out. It is hard enough for dedicated investors to make a profit.....hmmm......Government running this ?? SOOOOOOOOO BAD is true.
Dennis Gross, over 13 years ago