2011 May 19th
Categories: Finance, For Buyers, Hoboken Condos
Here is a message from the National Association of Realtors:
As you may know, there is a proposal before regulators to require a minimum of 20 percent down on all residential transactions. If allowed to take effect, the rule would put home ownership out of reach for middle-income Americans. It would take the average family 14 years to save up the down payment to buy a home. We just don’t need more hurdles. So please take time to visit the REALTOR® Action Center to answer the Call for Action and tell Congress this does not work for our industry or our country.
I am not so sure that requiring 20% down is a bad idea. Is it bad for realtors and the real estate business? Sure. But there are way too many realtors out there today and anything that thins the ranks so that only the competent ones survive is a fantastic thing, in my opinion. Is it bad for the economy? How can anyone look at the credit crisis of ’08 and not realize that risky lending was a huge component of the cause. Of course, the banks were at fault, and the rating agencies and mortgage lenders, too. Yet this sense of entitlement to buy a home even when you can’t afford it does not sit well with me. What do you all think?
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