It worked once during the great depression, why wouldn't it work again? During the great depression Milwaukee developed a plan. In stead of setting up the soup kitchens and feeding people day to day the County of Milwaukee created programs that put people to work. Among these projects was the creation of America's greatest public parks system, including Alfred Boerner's botanical gardens. Http://www.keymilwaukee.com/0505/cover.html
Milwaukee embarked upon projects like Grant Park along the lake shore, County Stadium, the County Zoo and others. Http://www.milwaukeecountyhistsoc.org/exhibits/past_exhibits.html At first the country looked at these projects with scorn and ridicule, calling them a waste of money. It did not take long for other cities, states and the federal government to take notice of the first city in the United States to emerge from deficit spending to a city collecting more taxes than what was necessary to fund these enormous projects during the great depression.
Our elected representatives need to study history and find out how our forefathers defeated the last depression. Why not copy a system proven by trial and error and finally success during the bleakest economic turn down in the history of this world?
There are many types of loans and assistance programs available. Listed here is a short sample. Due to the frequent changes in the lending market you should check the links provided for the latest information and consult with a Wisconsin licensed lender.
The following list is a brief explanation of some of the programs offered. Check the web sites for more and current information.
Select Milwaukee
Http://www.selectmilwaukee.org/sitehome/home.aspx
Select Milwaukee offers grant information and buyer education programs to people interested in buying property in Milwaukee.
2209 N. Dr. Martin Luther King, Jr. Drive
Milwaukee, WI 53212
(On the corner of King Drive and Garfield Ave. one block south of North Ave.)
Office Hours: Monday - Friday 8:30 a.m. - 5 p.m.
Email: info@selectmilwaukee.org
Phone: 414.562.5070
Fax: 414.562.5072
Housing Resources Inc.
Http://hri-wi.org/
Housing Resources Inc. has many types of grant programs and a buyer education program in Milwaukee and surrounding areas.
Housing Resources, Inc.
8532 West Capitol Drive #201
Milwaukee, WI 53222
Phone: (414)461-6330
Fax: (414)461-6320
Home Buyer Education,
Counseling, Grant Assistance,
Reverse Mortgage Counseling
WHEDA Loans
Http://www.wheda.com/
WHEDA Loans can offer you the following advantages.
Competitive interest rates
Loans with credit scores as low as 620
Home buyer education classes
Unemployment insurance
Major rehabilitation loans up to $10,000 above the purchase price
For single family homes, duplexes and condominiums
New construction loans with a 700 credit score
Reduced interest rates in targeted areas
Lender training
WHEDA Loans may have the following restrictions
Only for first time home owners or if you have not owned a home for three years
Income and purchase price limits
Recapture tax if you sell within the first 9 years
Condominiums may have restrictions
3%, 5% or 10% down payment required based on credit score and type of property
FHA Loans
http://www.fha.com/
FHA insurance is backed by the U.S. Government
FHA loans are assumable
No income limitations
Loan amounts to $271,000
Single family homes, duplexes, four family units and condominiums
All property must be owner occupied
Loans with additional money for improvements
Loans for manufactured homes
Additional loan amounts for energy efficiency updates
Disaster loans
No minimum credit score
Loans up to 31% of income for principle, interest, taxes and insurance
3% down payment that may include the closing costs
I don't know about the rest of the country but we are seeing buyers come out in numbers we usually see in April. Many of them I have talked to expect prices to rise in the spring, so they are doing the smart thing, looking in winter.
One agent I talked to had 25 couples in open houses this weekend. I wish I had those number, but I was able to pick up 4 new buyers and 2 listings over a 2 day period. Not bad for the first four days of January.
Interst rates are low and there is still a good choice of homes. If this continues we may have a record spring when it comes to sales figures.
How is business in other parts of the country?
Is the housing crisis over? Could this be the best time to buy? We will never be able to answer that question until we have visited the future. What we do know is, Wisconsin has not seen the plummeting prices experienced in other regions of the US. We have also not experienced the double digit price increases over consecutive years that those regions have experienced. That does not stop people in this region from thinking they can make it rich in Real Estate. The simple fact of the matter is, Wisconsin, Real Estate prices have remained relatively steady throughout the years of double digit increase and during these times of economic crisis. Wisconsin is not the area to test one’s expertise at buying and selling Real Estate for unprecedented profits. Wisconsin Real Estate is known for being a sound investment.
Does that mean Wisconsin will be following much of the country when prices do begin to rebound, or will Wisconsin be a leading indicator in the market? I have not seen data supporting either model. What I do think is, Wisconsin will find it’s own way out of this economic slump, regardless of what the rest of the country does. The banking system in Wisconsin and the Midwest is stronger that other parts of the country. The number of foreclosures are much lower, hence prices have remained strong. People in the Midwest tend to do business the old fashion way. They are drawn to small banks and credit unions. There seems to be a trust in the smaller institutions. And with good reason. Most of the smaller financial institutions have not been effected by the problems plaguing the financial giants. The smaller institutions have very few foreclosures. Their lending practices are may be tighter but they provide a much higher standard of service at a much lower cost. In the Midwest these smaller banks and credit unions are known and recognized for their value.
Since we are experiencing lower highs and avoiding the radical lows in housing prices how might we recognize an upward swing in housing prices? This is the answer everyone is looking for. We may be able to learn a lesson from stocks which operate on a much greater accelerated market. Some of the stocks I have been following lost a great deal of money over a period of just a few months. But in a few weeks some of them have bounced back. Following are some examples.
ABAT 26% gain between Dec 3 - 7
AFSE 36% gain between Dec 13 -16
JASO 72% gain between Dec 16 - Jan 3
MDTL 94% gain on Dec 26
SOL 63% gain between Dec 10 - 30
GRZ 344% gain between Dec 10 - 31
CHP 96% gain between Dec 3 - 20
How quickly will Real Estate prices bounce back? Not as fast as some stock prices but consider a small price increase and what it may cost you. A 1% increase on a $100,000 home will add $1000 to the sale price. On a $200,000 home it will add $2000. If prices were to spike a modest 2.5% a $100,000 would sell for $102,500, a $200,000 home would sell for $205,000.
Here in Wisconsin we have seen prices rise as much as 8% in a year. The one thing statistics do not show is the timing of the price changes. Prices generally rise in the spring. In the past we have seen prices spike as much as 12% in a very short time. A $100,000 home would increase in price by $12,000. In past years the most desirable homes sold quickly at the higher prices. As the year would drag on the homes that had trouble selling would reduce the price to a modest 4% price increase.
Why wait for prices to increase and the inventory to diminish before making the decision to buy? Begin your search today while the choices are plenty and the market is still in the buyer’s favor.
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