By Sidney Perez
Thanks to the plan initiated by Geithner ( Treasury secretary), prices of houses increased a little bit these last days.
Does that mean that it will keep increasing again?
Is it time to invest again in housing to make huge profits?
Is the government paying premium by buying these toxic assets?
All are crucial questions for the consumer who wants to invest now in housing.
What I think is that prices of houses will not reach the price they used to have before the crisis because now banks are aware of the risks of such a speculation. And not only the banks are aware but also the federal government is going to supervise the actions of the Banks to ensure that such a speculative crisis does not happen anymore.
Thus, maybe if you want to buy a house now it can be a good time, especially if you have cash because prices are so low now that they should raise a little bit or be stable at least.
But if you do not have cash, will the banks lend you money in this hard economic context (still)?
Banks, even if the government buy their toxic assets, are going to be very careful and then it should be harder and longer to get a loan, so try to save money right now if you want to buy a house in order to give a guarantee to the bank that you will pay them back.
Finally, we are all paying for these toxic assets as taxpayers. But are we paying a premimum for them..
That is a good question which I do not know the answer, but if yes it is just a scandal...
Sources :
1)http://www.texasgulfcoastonline.com/News/tabid/86/ctl/ArticleView/mid/466/articleId/126/Default.aspx
2)http://www.ofheo.gov/
3)http://www.ofheo.gov/newsroom.aspx?ID=500&q1=1&q2=None
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