The Housing Plan—Herman Cain Should Tweak and Roll Out
With one of the biggest drivers of our economy in the dumper, someone (Herman Cain) needs to roll out a plan to address the backlog of homes currently on the market and the shadow inventory on the banks books.
One idea—instead of throwing money down a hole by extending unemployment benefits at a cost of $257 billion of the $450 billion Obama wants, lets do this instead.
1. Leverage the private investor with tax credits up to $100K on the first $1M in existing real estate inventory purchases and a cap of $500K on $5M. This allows more people to participate with good credit that is locked up in the bank looking for the next opportunity. (Now these are tax credits–dollar for dollar not tax deductions which are .28 cent on the dollar)
2. Require that you must have an 85% occupancy level (renters) in order to receive the credits.
3. Rinse and Repeat next year and sun-set the program after 4 years.