Apparently the Feds don’t read the HomaFiles …

A couple of years late, the WSJ reports that …

The Obama administration will announce plans to seek investors’ ideas for turning thousands of foreclosed properties owned by government-backed entities into rental homes, .

The move is intended to put a floor under declining home prices by creating a way to deal with hundreds of thousands of potential foreclosures in coming years.

No kidding …

Loyal readers know that the HomaFiles has been all over this issue for a couple of years,  Original post

Ken’s Plan:

Some simple tax code changes can unleash private capital to suck up bargain priced residential real estate and induce investors rent it out.

Specifically, eliminate future capital gains taxes on any residential property bought in the next 2 years, allow investors (i.e. landlords) who rent the properties to depreciate the properties on an aggressively accelerated basis (i.e. say, 5 years), and allow any excess tax losses from renting to be applied to ordinary income.

The likely outcome: a massive inflow of private capital to buy residential properties, housing prices would be bid up, folks would have access to affordable rentals, and the economy would be stimulated … REALLY stimulated.

The downsides?

The higher prices would be somewhat artificial, unless the model becomes a new paradigm – replacing the American Dream of home ownership.

And for sure, the tax benefits would accrue to “fat cats”.

So what, let’s get the economy rolling …

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One Response to “Apparently the Feds don’t read the HomaFiles …”

  1. TK Says:

    Another step towards Feudalism…

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