Real Estate Blog

I’ve got government assistance on my mind this week. Whatever camp you choose when it comes to the government stepping in to help homeowners and home buyers, the programs keep rolling out and the issues are alive and kicking.

What if the funds from the $7500 tax credit the government passed were reallocated for a higher purpose? Say what? Let me rephrase. What if the government took the money it has allotted for tax credits (loans) and poured it back into the local economies to help stimulate a more natural home buying process? Could this money be used to build stronger communities, thereby increasing the wealth of all homeowners - current and future?

I am talking about housing assistance with a shelf life.

I recently spoke with Ashley Radke, a Connect2Agent member who sells real estate in Chesterfield, O’Fallon and St. Charles MO, who clued me in as to the different ways government assistance can strengthen the housing market. When I asked Radke if she felt the $7500 tax credit, the new refinancing options and the elimination of downpayment assistance would help the real estate industry, this is what she had to say.

On the new housing bill to assist homeowners in refinancing their high-interest-rate loans:

“If people can’t afford their homes, there are usually reasons. Usually a workout program will want you to catch up on what you owe. Sellers need to be proactive in becoming a part of the solution.”

On downpayment assistance being eliminated October 1st:

“I feel the new bill wiped out 200 to 300,000 buyers. It won’t be a good thing.”

Now here is where my ears perked up, because Radke offered an alternate solution when we discussed the $7500 tax credit, which she feels will ” … hurt mainstream homeowners.” I am offering it here verbatim from her lips to my ears and then to this post, as it could just be her line of thinking and others’ that could change the landscape of homeownership:

“There are other ways the government could spend the money that’s been allotted for the 7500 dollar tax credit. In my local market, they are shutting down a major highway. Why not take this opportunity to build a mass transit system? The money could be spent on renewable energy also. They could give farmers a credit to put up wind tunnels to help bring electrical costs down.”

Is government money the only way to bring real estate back? Radke believes homeowners need to almost start over again by living within a budget and planning for the future by saving money. Homeowners in St. Charles Missouri can take a more proactive role by increasing public awareness of their community and helping promote relocation to the city.

During the last four years, Radke has been campaigning to get her local communities in St. Charles County listed in the top 100 places to live. It made the list for CNN Money in 2006 and 2008. By bringing national public awareness to her area, it promotes more growth, thereby stimulating the local economy and real estate.

If you reside in St. Charles County and are interested in this proactive approach, Radke would be happy to hear from you.

Do you have any ideas for housing stimulation? I’d love to hear ‘em. Please share by commenting below.

Posted by Rebecca D. Levinson

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Housing assistance with a shelf life