I feel the biggest reason for a need to return to at least a calm, but not falling real estate market, is to right the ship of the financial companies in our land. If you have not been paying attention the losses being announced by this industry are staggering to say the least. A recovering real estate market could at least limit the future losses and eventually reverse the financial drain as real property seeks a better price level. Do we need a runaway market? Absolutely not! We need a return to normalcy with moderate growth in most areas with commensurate price improvement. Let the industry be quiet and uninteresting for a few years and the country can go on with its business. If we don't work for this it could turn out to be our undoing even though you personally may not be affected by the collapse. Something to think about.
The final points of increasing the Gross Domestic Product and gaining additional revenues for the treasury are paramount to the survival of our country as we know it. With a weak dollar comes a torrent of foreign buyers who have a huge discount on the real property in this country. They have much less to lose because of the discount they receive by having a stronger currency. Their buying is not just limited to our real estate but our companies as well. Many of the well known companies on Wall Street have majority ownership by citizens of foreign countries. When foreign ownership of our assets becomes more than prevalent our way of life is threatened. Again something to think about!
We need the employment, the buying an selling of real estate and the building aspects of the industry to create wealth that is taxed and keeps our government functioning. If you take the time to read the budget each year you find that a great deal of it is essential, obviously not all of it, and it needs to be paid for. The real estate industry has carried a big portion of this and needs to continue so we may enjoy our way of life.
Without a vibrant real estate industry where are you going to live? I leave you with your own conclusion and hope you find some of my points valuable to your beliefs.
Roger Schlesinger
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.
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