Is this the wave of the future? Since Roman times the idea of buying votes with bread and circuses has been a staple of politicians. Vote for me, and I’ll make sure that you will receive farm subsidies and price supports. Vote for me, and I’ll make sure you’ll have free healthcare; I’ll pay off your student loans. And while we are at it, education is essential. So I’ll give you a free college education. Vote for me, and I’ll even pay you not to work. Now, this:
According to Realty Biz News, “Lawmakers in California have come up with a dramatic new proposal that, if it comes into being, would offer hope to first-time buyers that are struggling to find a home to buy in the state.
“California Senate Democrats have included a new program in a budget proposal unveiled last week that would massively subsidize the cost of buying a first home.”
“The California Dream for All program is a part of the Democrats’ larger Build Back Boldly program that was first outlined in April. Last week, lawmakers provided more details, saying the plan would subsidize up to 45% of the price of a home for a first-time buyer in the state, effectively slashing the price almost in half.”
The plan is a bit complex. First, the California Dream Fund would receive a one-time infusion of state and federal funds. Then, the state would sell shares of the fund to private investors who would benefit from earning tax-free returns on the appreciating value of the homes that money funds. So those investors, in effect, become silent partners of homebuyers who take advantage of the subsidy. The homeowners would be responsible for all of the maintenance costs, property taxes, and insurance premiums, and they would have the option to buy out the investors’ share in their home at a later date.
There is a housing shortage everywhere in the United States, and that shortage is causing prices to rise. A March survey found that nine out of 10 respondents considered housing affordability to be a serious problem.
How would the plan work? An example cited is of a home priced at $400,000. The idea is that the first-time buyer would find a house for $400,00. The buyer would agree to buy the house for $220,000 with the fund covering $180,000
Critics argue the seller would merely raise the selling price. Should that happen, this new program would produce no improvement in housing affordability and potentially make the problem worse for those who don’t end up qualifying for subsidies.
Is this the proper function of government? Does it protect our freedoms and provide safe neighborhoods? In our heavily indebted cities, states and government, can we afford another government giveaway?
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Instead, we offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.