2008 Meltdown Case Study

The 2008 meltdown had taught lessons to essential market actors, such as banks, governments and nations worldwide of interconnected actions and following consequences of financial hardships. The introduction of Emergency Economic Stabilization Act of 2008 and the fact of actually surviving the meltdown had slowly earned back Americans’ trust in real estate market investments as of today. Real estate seems to be a great method for people to invest their money in until obtaining an ownership or investing in several properties and renting them out to potential buyers. It does pay off to those who have decided to invest in houses in order to earn money, but it has to be wisely intact with several factors. The buyers should understand the timeline of owning a house, so that three or four …show more content…
In a perfect scenario, for an owner more than half of the houses should be smaller in value, easily managed and paid off if needed without the pressure of losing everything at once. Some of his or her properties could be comparingly larger and much more extravagant, so that in case of a real estate value decrease, not much of possessions would be lost. The 2008 meltdown did teach people to not solely rely on the belief of invariable homes’ increase over time, but in fact possible decrease or loss of it in the long run. With todays’ low interest rates, the rent-to own option is a popular choice in the market for boomerang buyers, but they need to take into consideration unstable markets’ value, leasing agreements and possible rate increase by the Fed before signing the contract. From the 2008 meltdown, the most trustworthy method for boomerang buyers who have been affected by foreclosures and are willing to move into the house again, meanwhile saving their finances for a down payment and work on the credit scores would be the rent-to-buy