What do politics and Real Estate have in common? Probably about as much as any other industry. The most important politics are at a State level but most of the attention is put on the race for President. We really miss very good opportunities when we do not pay close attention to the local and state elections. They affect our business more than anything else. However, since the race for President gets the most attention lets take a look at it.
First, I am not going to say who I am voting for. Instead I want to look at the 4 candidates involved in this race. I am not going to discuss scandals or news media created hype. There have been "scandals" about every candidate. If you or I were to run for office, the news media could probably drudge up as much if not more on us. It is pointless and takes our attention away from the real issues.
John McCain- There is no arguing that he has experience and he is definately a war hero. These two factors alone do not mean he should be President. His "Maverick" label seems to be appropriate. He has demonstrated his willingness to vote against his own party and his temper has angered a few of his own colleagues. He seems to waiver between conservatism (which he thinks will win votes) and wanting to follow his own thoughts which actually are very middle of the road. His own self professed lack of knowledge on the economy play well for fodder in the media but really will not matter if he can appoint a good and bi-partisan cabinet.
summary- with a couple of good cabinet appointments and deciding to be his own man and follow his own beliefs John McCain could make an excellent President.
Barack Obama- Wants to be the change agent in Washington. Perhaps his inexperience in Washington have not given him the experience to know that just talking about it is not going to get it done. The Democratic Party has control of the Congress and has not gotten much done. It will be interesting to see, if elected, if Obama can make a difference. His ideas do not seem to be very unique or different but he seems to have more passion about them. He is able to deliver these ideas very eloquently which inpsires people. The ability to inspire is an excellent quality for a President and one that is often overlooked. Obama should remain in the Senate for a few more years and get to know the system a little better before he tries to change it. He is well on his way to becoming a very influential leader.
summary-probably should have waited a couple of years but his well organized campaign has shown he is an effective leader and just might be able to inspire enough people to make a difference.
Sarah Palin- A great speaker and of course, a woman. This is a great opportunity for a little known politician outside of her own state. Unfortunatey I do not think she brings anything new, in the way of substance, to the McCain ticket. They have very similar views on most issues. They do compliment each other with her having more knowledge on economic issues and McCain having more knowledge of international issues. Her lack of international exposure does make her a risky choice for the VP, but so far she has been a quick study and may settle in very well. I have a wait and see attitude with regards to Palin.
summary - She doesn't have enough national experience for us to really get a clear picture. She has a lot of the same inspirational qualities as Obama but perhaps she is in a better position to learn as VP, making her a real force to contend with should she get elected to the position for the next 8 years. If McCain/Palin win and are able to have 8 good years, she will be the first female President. A lot of "ifs" there, but sorry Hillary, it looks like the torch is being passed.
Joe Biden- Another well experienced candidate who has the credentials to be President. His foreign policy knowledge is probably the best in the Congress. He is likeable but seems to know that and at times, seems to like himself a little too much. Biden is an odd pick for a "change" platform. He definately represents the Washington that Obama wants to change. He does add a lot of weight in the experience department which is why he was chosen. With his two prior failed attempts at the number one position I would guess he is thrilled with this opportuity and needs to make the most of it. This could be the ticket he has needed to finally make it to the top.
summary - Biden should be at the top of the ticket and Obama the number two spot. However, should Obama get elected it will be nice to have the elder statesman in the office offering sound and proven advice. He should be able to keep the change element within reasonable boundries and hopefully will offer the guidance needed.
This is definately an Historic election. We will either have our first black President or first female Vice President. Both parties offer a little of the same and a little of something new. Both parties have similar candidates but in different positions. I encourage everyone to register to vote and pay attention to the real issues. Stay focused and don't be side tracked by the Rev. Wright or Troopergate. I also encourage everyone to follow local and state candidates. THey make the most difference in our daily lives. They may not get national television coverage but they are far more important to our economic well being.
Please feel free to post comments but please nothing stupid about the latest tabloid scandal or unintelligent musings about your personal feelings. Hopefully, you will be inspired beyond party affiliation to try and make our country better.
The recent mortgage meltdown reminds me of the story of Chicken Little I learned as a child. Quite often we make the worst out of a situation. The current trends in the mortgage and real estate market are no different, especially in our area.
Many regions of the country are far worse off than ours. Is this the end for affordable housing and the dream of home ownership in these areas? The answer is a resounding NO! If you still do what everyone should do every day, financially speaking, there are extremely good mortgage rates right now and an abundance of housing inventory.
Anytime an industry gets ahead of demand there are corrections that need to be made. With a record of new homes being built, builders needed to sell houses. In order to sell more houses, they needed a new market. To create one, the lenders saw an opportunity with high risk buyers with poor credit. We began to see 100% financing, seller paid closing costs, 2nd mortgages applied at closing, and the list goes on and on.
This was not the correction we needed. Builders should have slowed the pace a little and the market would catch up. Now instead, we have more foreclosures than ever in history. People that couldn't afford homes or didn't have the financial experience to take on a mortgage were ushered into new homes that they are now losing.
Don't misunderstand me. It is sad to see anyone lose thier home and have thier dreams crushed. It is a reality, however, that not everyone should be a home owner. Below are several questions that you should be able to answer yes to before you even think about a new home.
1. Do you have a good credit score? This shows you can pay bills on time and understand the responsibilities of using credit.
2. Do you have money for a down payment? If you don't have money to put down, this means your budget is too tight and you won't have money for the first emergency that arises either. If you answered no to this question, review your budget and make some cuts and start saving.
3. Is your income level far enough over your level of debt? Just because you make a lot of money doesn't mean you have a lot of money. Home ownership is a big responsibilty. Review your budget and make sure a house payment fits in with all of your other monthly expenses. Having to barely scrape by each month takes a lot of the fun out of home ownership.
There are a lot of fingers to be pointed in this current so called crisis. In the end, it all comes down to corrections. The individuals that are financially responsible can still buy a home. Probably more home than they could before. The unfortunate event from all this is the people who have had a crisis and are back on track. That one bad mark on your credit or in your bank account may hinder you. It is unfortunate but part of the process. As the market corrects, and the economy strengthens, home ownership will once again be available to a larger percentage of individuals. I just hope we have learned and don't repeat our mistakes.