All About Realestate

By Stefan Hyross

You have spent the last few years saving your money, driving around and looking at homes for sale on the Internet. Today, you decided to go for it and started looking for your first home. You have mixed emotions - part of you is really excited about the prospect of owning a home and the other is terrified. No need to be. Here are a few common mistakes first-time home buyers make and how to prevent them.

No mortgage pre-approval
First-time home buyers can sometimes confuse pre-approval and pre-qualification. The first thing to do before you begin your search for a home is to get pre-qualified. The lender will let you now how much money you can borrow and therefore how much you can afford to pay for a house. Next comes the pre-approval. A pre-approval letter is a written commitment from a lender for a specific amount of money at a determine interest rate. A pre-approval letter usually has a validity of three to six months.

Holding out for the perfect home
It’’s a common impulse. First time home buyers often search for the perfect home, the home that will meet everything on their wish list. This can be a costly mistake as you may be passing up on homes that would meet 85 or 90% of your requirements. Often times, buyers end up buying something they don”t really want because they have run out of steam. Waiting for the perfect home can also be a costly gamble as the longer you wait, the higher the prices will rise. This means that you may have to pay more for a home a year from now. Make a list of your requirements and determine which ones are the most important. This will help you choose a home that will meet the most important elements of your wish list.

No home inspection
Unfortunately, this is a mistake that a lot of first-time buyers make. Particularly if they are caught up in a multiple offer situation or stretching their financing too thin. Skipping a home inspection can have disastrous consequences. A home inspection will cost you on average around $400 and could save you ten times that amount by alerting you to potential issues. It will also offer you peace of mind. Plan for this expense and do not hesitate to bring in a professional home inspector to confirm your choice of home.

Buying above your means
It has been happening in major cities across Canada for years. More and more first-time home buyers are house poor! Do not get carried away when searching for your home and remember, you do not have to spend the whole amount for which you are pre-approved. We would all love a large and beautiful home but if there is no money left over for furniture or to run and maintain the house, this beautiful large home can rapidly become a bit of a prison.

Beware of first impressions
Keep an open mind when looking for a home. Many of us are easily influenced by first impressions but try to stay objective when considering the potential of a home. Whether the current style of the house is good or bad, don”t let looks dictate your decision. An “ugly” house could have very good bones and lots of potential. On the other hand, a beautifully decorated home could be hiding structural problems. In either cases, a thorough evaluation of the home, including a home inspection, should be the deciding factor. Not looks alone.

Buying a first house is an exciting time for anyone. Just remember to do your homework before you embark on your search and keep your eyes and mind open to avoid potentially costly mistakes.

About The Author

Stefan Hyross writes on topics that include Toronto real estate. For more information about Toronto properties, related real estate articles or to search for a ReMax Toronto professional, please feel free to visit this website.
http://www.realtronhomes.com/

By Kevin Simpson

The foreclosure rates across New York have increased tremendously. The number of repo houses in New York has increased as direct fallout due to the foreclosures. The numbers show that there has been an increase in the number of repossessed houses in New York. This is in line with national average for Repo homes across the country. There is certain pattern in the sub prime loan that was given to homeowners. This has also resulted in the number of repo homes in New York increasing.

Statewide the 1 in 4 subprime mortgage loans were high. In fact in 2006 and 1007, the number of new loans (that were subprime and high) that were disbursed was as high as 28% (approximately). In fact the Bronx and the Montgomery counties have the highest percentage of subprime loans that stands at 40%. This is the reason that the percentage of repo houses in New York is also highest in these counties.

The high cost leading to repossessed houses in New York is only a part of the picture. The other aspect is the distribution of the loans among the population. The minority communities and the minority borrowers have in fact received the subprime loans at a disproportionate level as compared to others in the mainstream.

For many of those in the minority communities, they may have also received the subprime loans since they had low credit scores or high debt ratio. This also led to foreclosures and in context more repo homes in New York happening. But many of the qualified minority borrowers may actually have been steered towards taking the high priced loans. With the effect that it’’s increased the number for repo houses in New York for the minority community.

Those who stay in high minority areas and neighborhood have actually paid more than there counterparts and this is also the reasons that the number of repossessed houses in New York have increased. In fact the counties that have the more number of repo homes in New York include New York City, Westchester, Monroe Kings and Albany.

Banks have also been callous when they have disbursed the loans and this has made the delinquency rates go up with the result that repo houses in New York numbers have steadily shot up. The scenario for the repossessed houses in New York is getting quite worse as the foreclosures are climbing steadily over the past years. Recently the gas prices have risen sharply and this has affected many households and their budgets.

But those who had taken fixed rate mortgages have been far better off than those who had taken ARM mortgages. In fact the ARMs have steadily risen over the past year with the property prices declining or falling flat. This also led to an increase in the repo houses in New York. With the interest rates cuts however the Arm are also steadily falling giving the much needed beak to homeowners.

About The Author

Kevin Simpson, has been working on NewYorkRepoHomes.com studying the foreclosures market, helping buyers on the finer points of repo homes. Try to visit NewYorkRepoHomes.com and read all about New York Repo Homes.
http://www.newyorkrepohomes.com/

By Kevin Simpson

New Hampshire Repo Homes are one of the best places for most first time buyers and investors to put their money in. These property options are the cheapest as the sellers are not interested in the market value of the property and just like to sell the property to recover their outstanding debt from the loan.

Some banks and government lending authorities; repossess the property after the loan is defaulted by the borrower. The lenders do not immediately sell off the prop which saves the neighborhood price from being affected and sell it on a future date for recovery of the loan amount. The sale is done in an auction which requires the bidders to bid for the same.

Repo Homes have been easily available online also and with the technology revolution, the banks and authorities are able to list such properties on the internet. The buyers have real ease while searching as they can just check out the best available option with the click of a button. The buyers can also see the price demanded to save their time and plan their budget. The best suited property is sought for purchase by doing some checked by the buyer.

Foreclosure process leads to Repossessed Homes and New Hampshire Repo Homes have some norms to be followed while sale which are specific to some laws.

The seller in these cases has the option to sell the property directly or in an auction. The auction process can be done by issuing a notice of default.

The repossessed homes are property of the lenders after the loan is defaulted the same shall be sold by the lenders. The lender has the complete ownership after repossessing and the tile shall be transferred form the lender to the buyer.

The buyer should not go in for the property blindfolded and check for the condition by visiting the same. The property should be minutely checked for cosmetic or structural damage which shall be of utmost relevance to the buyer. The cosmetic damages can be repaired and the buyer can request the seller to do so that the buyer can save some more money.

Repo Houses after foreclosure are best option to purchase as there is complete surety of closing the deal as there is no redemption period. The buyer can plan accordingly and check for related properties in the price given.

The lender has the option to accept or reject the offer made by bidders in the auction and the lender shall be interested in selling only when the loan is recovered. The buyers should start the auction from the base price which is the outstanding loan amount and the same is sought by lenders.

By far this is the best option of investing and people looking for purchasing property should not miss New Hampshire Repo Homes which give value for money.

About The Author

Kevin Simpson, has been working on USRepoHomes.com studying the foreclosures market, helping buyers on the finer points of repo homes. Try to visit http://www.usrepohomes.com/ and begin your repo homes search.

By Chris Sandberg

It is not a really big secret that the United State’’s housing market is continuing to slide downhill in one of the worst recessions in recent history. According to huduser.org, 2008 data shows up to a 36 percent decline in housing production indicators when compared to the same indicators in 2005-2006, when the market peaked. Most American’’s are painfully aware of the current housing situation the country finds itself in.

During the past one year, home sales, particularly new home sales, have declined dramatically. Builders sold 482,000 new single-family homes in 2008, down 38 percent from the 776,000 homes sold in 2007. And builders attitudes about the housing market have never been lower. In many markets “we are no longer competing with other builders. We are competing with foreclosures,” said Steve Ruffner, president of the Southern California division of KB Home. As foreclosures and short sales flood the market, driving prices lower, its become even harder than ever to sell new homes, especially since the foreclosed homes are often virtually new and significantly cheaper. In some markets, builders have even reached that point where the cost of building is more than the selling price, and have thus even stopped building completely.

But all is not doom and gloom. There are some bright spots to this down market. The housing market is great for first-time home buyers because of a combination of the government’’s $8000 refundable tax credit, historically low interest rates, and exceptionally low housing prices. Some industry analysts are predicting that we are approaching the bottom of the housing recession, if not already on our way back up. The National Association of Home Builders baseline forecast shows a bottoming-out of sales in both new and existing homes in the first quarter of 2009, aided by the economic stimulus bill signed into law this past February by President Barack Obama and seasonally adjusted net sales showing a modest recovery since last November 2008.

Yes, there are still many signs that the housing market is continuing to decline and will remain in a slump for some time still, but there are signs of improvement. Despite all the negative news in the housing market for many people, mainly first time home buyers, today’’s housing market presents a once in a lifetime buying opportunity. While most are fearful the smart buyers today will find and scoop up opportunities which may never present themselves again.

About The Author

Chris is an editor for http://inside-real-estate.com, a blog network of Realtors sharing their expertise on real estate.

By Jason Haines

If you are homeowner and have equity in your home and need some extra money a remortgage could be for you. A remortgage is a way of renegotiating the terms of your existing mortgage, usually after a price rise on your property, and increasing your mortgage amount. For example if you had a mortgage of 100,000 but your property has increased in price to 150,000 you could, in theory get a remortgage for 135000. This would pay off your original mortgage of 100,000 leaving you with 35000 to pay off debts, use for home improvements or use in any other way you like.

Taking out a remortgage will usually involve your home being re-valued in order for your lender to assess if a remortgage is viable. Some people however prefer to change lenders to remortgage if they will get a better deal elsewhere.

How do I find the right remortgage deal for me?
If you would like to remortgage your home for whatever reason you need to get an idea of how much you can expect to get for your remortgage. You can do this by contacting your existing lender and seeing what they can offer you or you can do some research yourself. If you prefer to search the market yourself there are many websites that offer remortgage information on many different kinds of remortgage including 90% remortgage, discounted rate remortgage, fixed rate remortgage, bad credit remortgage and many more.

Remortgage Calculator
One of the best ways to work out if you could afford the remortgage repayments should you take out a remortgage is to use a remortgage calculator. Using a remortgage calculator is simple and does not take up too much time; all you have to do is fill in a questionnaire which will ask you about your income and outgoings, the value of your house, your current mortgage details and the amount you wish to remortgage your home for. Once all this information is inputted the remortgage calculator will work out how much you could expect to pay for your remortgage payments each month and amount you could receive for your remortgage.

Remortgage advice
With interest rates at an all time low there are now many long term fixed rate remortgages available in the market place. These types of mortgage offer stability for when interest rates eventually go up your mortgage payments will still the same until the fixed period ends. It is always beneficial to speak to an independent mortgage advisor about your remortgage options, many mortgage advisors do not charge a fee, and so make sure you check this first.

About The Author

Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK’’s most trusted information site about personal finance.

http://www.godirect.co.uk/remortgages.php

By Petros Sivitanides

Achieving big profits is something that is desired by every property investor. However, not every property that is for sale has true potential of delivering double-digit returns over the investor’’s holding period. Many properties that are up for sale are touted by their sellers and promoters as great investment opportunities, but only some selected ones have very high chances to actually deliver really high returns.

First of all, unless the investor is buying property in a highly risky country/market where prevailing prices allow above 10% initial yields, double-digit returns can not be accomplished if significant value gains are not attained after the property is acquired. The secret then to achieving big profits through real estate investing is to spot properties, which have very high chances of registering strong value increases after they are acquired. Within this context, it is extremely important for investors to know what kind of clues can help them identify properties with such potential.

Based on empirical evidence describing the behavior of real estate markets and property values over the past decades in free economies, we can argue with a high degree of certainty that properties that are found under a particular set of economic/market synergies and circumstances have very high chances to register strong income and value gains in the short to medium term. On the other hand, we can also argue with a high degree of certainty that properties that are found under another set of economic/market synergies and circumstances have very small chances to register any value gains over the short to medium term.

In addition, based on empirical evidence regarding the spatial dynamics of real estate demand, property rents and values within contemporary cities and urban areas, we can argue that, under a specific set of circumstances, there are specific locations within a metropolitan area that have significantly greater chances than other locations in the same urban area to register strong property value gains in the short to medium term.

Investors who are serious about sharpening their ability of sorting out among the many opportunities that come to their attention only the ones that have the highest chances of delivering big profits, need to understand the general categories and subcategories of properties with big profit potential as defined by a set of market/economic synergies and circumstances, as well as a set of locational parameters.

About The Author

Dr. Petros Sivitanides, the author of real estate Investing for Double-Digit Returns, has a Ph.D. from M.I.T. and over 17 years of experience in real estate investment consulting. More on property investing for high returns at http://www.property-investing.org/investing-for-big-profits.html

By Michael Branson

I always have people asking me which option is better, a fixed rate or an adjustable rate for their reverse mortgage. Both have benefits and both have drawbacks. And what about now while the margins keep moving and since lenders just announced another round of margin increases.

The answer I give the person asking the question is invariably the one that is right for YOU. And then we start to discuss their personal goals and what they intend to do with their reverse mortgage. But everyone needs to understand that margins just went up again and that affects all senior borrowers looking to get reverse mortgages.

I explain to the borrower that a fixed rate reverse mortgage is a closed end instrument, which means that they get their initial draw and then there are no additional draws.

For borrowers who wish to take all their funds in the beginning to pay off a current mortgage, for other purposes, or for the HECM for purchase, this might not be an issue as they need to make a full disbursement at the very beginning anyway. However, for the borrower who wants a payment for life or a line of credit from which they can draw later, the only option available to them is the adjustable rate option.

For borrowers who intended to take all the funds in the beginning, they can choose either a fixed rate or an adjustable rate. Borrowers utilizing some needs based programs such as Medicaid cannot take all their funds at once and put them in the bank or they risk making themselves ineligible for those programs. All borrowers utilizing the adjustable rates are affected when the margins rise as they have been doing over the past 12 months and as they did again today.

So then the next question is; if you are going to take all the money up front, which would be the better option? Here again, it depends on you and your circumstances and your preference. Right now, the adjustable rate accrues interest at a lower rate than the fixed rate does, meaning the balance on the loan will not rise as quickly. And in the past a borrower could get more money with the monthly adjustable rate due to the fact that the fixed rates higher and the margins on the adjustable rates were lower.

However, with margin increases on the adjustable rate reverse mortgages, many times when we run the loan comparison, the borrowers actually have a higher benefit with a fixed rate than with the adjustable option. Also, the fixed rate will never increase through the life of the loan and the rate at which your interest accrues on the adjustable can increase - as much as 10% on the monthly adjustable program over the life of the loan.

With the changes in the pricing for reverse mortgages due to all the credit industry has undergone in the last year, borrowers must now lock their rates differently than in the past. Borrowers are now subject to signing all their disclosures, only to find out that the margins or the fixed rates increased in the marketplace before the loan can be submitted to underwriting and with that, the cash they planned to receive suddenly decreases. Will margins come back down any time soon?

No one can say for sure. But many borrowers who have been sitting on the sidelines kicking the tires and thinking about it have seen their values continue to drop and the margins continue to rise, some to a point where they could no longer get sufficient funds to pay off their existing mortgage.

With the way margins have increased in the past 12 months, going up as much as 200 basis points (2%) and the way values have gone down during that same time period, margins may soon become the deciding factor on whether or not some borrowers qualify.

About The Author

Michael G. Branson is a Mortgage Broker Licensed in several states who has over 31 years of mortgage banking experience.

http://www.allrmc.com
(888) 801-2762

By Jason Haines

One type of mortgage that you might not have heard about is the Libor mortgage. This is a mortgage that, like many other mortgages it tracks a rate of interest. However unlike the vast majority of mortgages it does not track the Bank of Englands base rate, it tracks the London Inter Bank Offered Rate.

Mortgage lenders who offer a Libor mortgage will track the Libor base rate and apply any changes in it accordingly to the interest rate of their mortgages. Many of the mortgage lenders that will offer a Libor mortgage are lenders who deal with sub prime mortgages (bad credit mortgage) and self certification mortgages. Both of these types of mortgage are seen as more risky than many other mortgages and as a result have higher interest rates. Sub prime mortgages for example are usually given to people with a poor credit history and little equity. Self certification mortgages rely on the borrower to provide all their financial details, often if they are self employed.

Mortgages and the Credit Crunch
Many mortgage lenders have stopped offering bad credit mortgages and self cert mortgages as they continue to reduce the amount of risk they are prepared to take in their mortgage lending. In 2008 there were over twelve specialist mortgage lenders offering self cert and bad credit mortgages, today there are less than five. There are still lenders offering libor mortgages but at the time of writing this article there is currently only one lender offering libor mortgages in the UK.

Pros and cons of a Libor mortgage
If you are thinking about a Libor mortgage here are some pros and cons of them

Pro
If you are in, or have been in financial difficulty you may find that you are accepted for a Libor mortgage. As a Libor mortgage tracks the London Inter Bank Offered Rate every three months it may take longer to apply any interest rate changes than a mortgage that tracks the Bank of Englands base rate.

Con
You may have to pay a higher interest rate with a Libor mortgage.

Libor mortgage advice
To read more information about a Libor mortgage you can visit one of the many mortgage comparison websites. If you would prefer to speak to a mortgage advisor then get in touch with an independent mortgage advisors to give you professional mortgage advice with no fees tailored to suit your financial needs.

About The Author

Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK’’s most trusted information site about personal finance. one of the UK’’s most trusted information site about personal finance.

http://www.godirect.co.uk/mortgage-repayment-calculator.php

By Tom Fazio

Lights, action, bring on the buyers. I don”t really mean put them on stage. Staging is a term used for decorating a house. It’’s actually turned into a whole profession. People go around dressing up other peoples” houses. You can even rent furniture to do it. It’’s really neat.

This is wild. In the old days people would get an agent or put out their own sign, clean up their houses the best they knew how, and start showing it. Some folks still do that. New knowledge can”t hurt and even if you don”t think it makes sense right now, it actually works so give it some thought.

You”ve lived in your house for a while. You may be very hip. Very fashion conscious. Very creative. Up on all the new trends. Aware of all the classic home features and architecture. Whatever. Unfortunately, I”d be willing to bet you are not capable of being completely objective. Right? Come on. You are probably emotionally attached and if not then rationally attached to what you have done with your home. Oh I did this because of this and that reason. Or. I did that because it really felt good to me.

Great. Unfortunately, you may be the only one who appreciates seeing that eight foot tall paper mache dinosaur you made in an art class, right in the middle of your living room. Yep the first thing a buyer sees when they walk into your home. Umm. What are you thinking? Let me back up. If you are considering hiring a realtor who makes no comments or recommendations as to how to improve the appearance of your house in order to facilitate the sale find someone else. If they don”t have any comments either they aren”t telling the truth, they have no idea what they are looking at, or you are a walking miracle and just have the golden touch (or you are a professional home stager).

Everyone is in love with their own ideas; a quote from an old friend. Just cause you have a thought or idea doesn”t make it right or a universally acceptable act. If you can agree with that then we are on to something. If you think everyone of your thoughts is a pearl to be honored then I”m amazed that you”ve read this far. Still reading? Good.

Now after having discussed the finer points of self awareness, home decor and objective analysis I am really trying to get to staging your home for sale. Get a recommendation from your agent. These folks stage new model homes, as well as lived in homes. If they tell you to get the dinosaur out of the living room do it. Here’’s the hard part. If they tell you the grand piano is too big for the room, or grandma’’s dining set is a bit dated. LISTEN. Don”t take it personally. Have the kids keep their rooms clean (I know.), pack up everything you aren”t using now and get it put in storage or somewhere.

You need to take this very seriously. Staging can be a major factor in selling your home instead of your neighbor’’s. This along with the yard, fence, paint, kitchen and all of those other things. But staging (from personal and professional experience) is the job of an object professional who knows what neutral palatable and tasteful home decor is about. I don”t care what you paid that fancy designer to do. Now you need to appeal to the masses. Not you and the fancy designer.

So. If this has made sense to you then fabulous. I realize it may be a bit of a reality check. We all have reasons or emotions as to why we do things and the way we live. That doesn”t mean it’’s a good way to present your home. I like the way I live. It doesn”t mean I”d leave it this way to sell my house. Then again. Maybe I should hire someone to stage my house and see how it feels? What do you think?

About The Author

Thomas Fazio does Equity Marketing, real estate Consulting and is a Licensed Realtor in the state of Colorado. He provides free real estate information at: http://www.trolleyrealty.com/
http://www.littletoncohomesforsale.com/
http://www.denverhouses-denvercondos.com/

By Fritz Pfister

On my weekly radio program the warning was issued in October of 2005 that the supply of homes for sale had crested the record high. While numerous home owners, builders, and Realtors were unaware, remaining in a state of false euphoria about record numbers of home sales, and rapidly rising prices, reality was approaching.

In 2005 nearly 500 building permits were issued in Springfiled for new home construction; in 2008 only 97. The inventory of homes listed for sale with Realtors jumped from the new record high of over 1500 in October of 2005 to over 2000 by August of 2008. Today nearly 1700 homes continue to be listed for sale. The inventory has trended downward, however at a very slow crawl compared to demand.

Home sales fell by over 500 down by 13.5% in 2008 over 2007. January and February home sales continued the decline in demand with March rebounding to save the first quarter. Sales in March were up 34 closed sales to 288 or by 13.4%. The first quarter ended with 648 home sales down by only 3.2%, however represents the fewest first quarter home sales since 2000. The same is true for March, although up 13.4% to 288 home sales, still 31% fewer than the record 423 closed in March 2006, a mere three years removed.

That sets the table for today’’s housing market in Springfield Illinois. The second highest supply of homes for sale on record, the weakest demand since 2000.

Why the spurt of activity in March? The Federal Reserve pumped over a trillion dollars into treasuries that resulted in the lowest interest rates on record. The stimulus bill created tax breaks for first time buyers. Although the median sale price, down in 2008, rebounded in February and March to settle at $105,750 for the first quarter, Springfield remains one of the most affordable markets in the state and nation.

Why wouldn”t demand be stronger with this potent combination of interest rates, affordability, selection, and tax incentives; result in even more home sales? Consumer confidence is at a record low. People without confidence don”t rush out to make major purchases when they are not confident about the future. Consumers of Springfield just proved the point. April home listings under contract were running about 8% behind 2008.

How can this be, closed sales and pending sales down in the first quarter? What could cause such low consumer confidence in the face of the most favorable home buying conditions? The reasons are numerous.

People are concerned about the security of their jobs with unemployment rising to 8.5% and predicted to go higher. Regardless how secure people feel in their employment, they fully realize the impact of higher unemployment upon their business. They may not lose their job, however they realize finances will become tighter.

The uncertain outcome of the Obama administration and the Democratic congressional response to the financial crisis has consumers scared. Dating back to the misdirected seven hundred billion dollar TARP program, initial billions in bailout money for AIG implemented by the Bush administration, the Obama plan quadruples down on the Bush initiatives with the Omnibus spending bill, eight hundred billion dollar stimulus bill, and now their first budget of three point eight trillion dollars under the pretense that government is the solution to the financial crisis. If they are right it will be the first time in history.

The non-partisan Congressional Budget Office, contradicts Obama economists by predicting this spending will cause nine trillion dollars in additional deficits by 2019, will require eight hundred and six billion for interest only payments, and will cause the GDP to shrink. Obama economists predict a growing GDP of 3.5% by 2012 with deficits of only one half trillion dollars annually. Either way there are massive deficits on the way, and consumers are taking a wait and see approach, because they don”t know who is going to pay the tab. Consumers understand huge tax increases are probably inevitable, enslaving generations to come.

In my opinion the federal government should not be borrowing, running up deficits, to inject liquidity into the market, and to provide bailouts to failing companies on the taxpayers dime. A more prudent approach would be to cut personal income taxes, capital gains taxes, and corporate taxes to encourage investment into the private sector. The Obama approach is a repeat of the failed FDR approach that extended the Great Depression, and as Secretary of Treasury Morgenthau under FDR said; we have spent more money than ever and it has not worked, unemployment is still the same as when we started (19%), and we have a load of debt to boot.

Now comes the state of Illinois under Quinn and Democratic control making similar proposals. An increase in income, and corporate taxes by 50%; combined with another round of fee increases, and sin taxes, will only extend the economic woes of Illinois. A double whammy if you will from both the Federal and State governments that threaten the economy, and will without question extend the recession.

One would guess in hindsight, that it was truly amazing so many homes did sell in March, although down 31% from the highs.

If government were serious about building consumer confidence instead of building constiuenties of dependent voters, government would make doing business in the U.S. and Illinois more affordable.

This would allow the capitalist free market, that has produced the most prosperous nation on earth, with the highest standard of living in the world, to correct itself. Would businesses fail? Yes, but they would be replaced with others that would flourish. This is the natural cycle of free markets. This would be a much shorter route to economic recovery than government intervention.

There are two economic ideologies; one involves the belief in the individual operating within a free market, and the other is the belief government can provide the solution. I would bet on the free market and trust in the indivdual as the solution. Regrettably those in power believe government is the solution. On the Federal level the adminstration believes in the Kanesyan theory that government spending produces a stimulus to the economy, when in reality government spending removes from the private sector money that would have been invested in growth.

As Kane said, government spending will provide stimulus for the short term. When asked about the long term, Kane replied; who cares, we won”t be alive long term. God help our future generations.

On the state level the governor and legislature still believes government is the solution to all problems, and instead of cutting spending for programs that are ineffective, outdated, inefficient, and unnecessary; they propose gargantuan tax increases.

And some question why there are 1136 Tax Protest Tea Parties scheduled on April 15 throughout the nation.

As consumer confidence goes, so goes the demand for housing. There doesn”t appear to be much to inspire consumer confidence as Americans watch the unfettered expansion of government, growth in government spending to 27% of GDP, that will confiscate their earnings, and limit their liberty. Consumers are rightfully concerned.

About The Author

Fritz Pfister was voted ”Best Realtor” by readers of The State Journal Register in 2007, & 2008 Fritz hosts Let’’s Talk real estate on AM970 WMAY, streaming live at WMAY.com Saturdays at 10am. Widely recognized as the local housing expert.
Fritz’’s website is http://www.SpringfieldHome.com