Affordable housing

2014 United States Housing Bubble In December of 2007, the United States entered a recession that it did not begin to climb out of until June of 2009. The cause of the recession is most commonly attributed to the financial crisis that resulted from the housing bubble, which finally burst in late 2006. There were several causes of the Great Recession such as decreasing mortgage and short-term interest rates, lower standards for mortgage loans, and a false notion that the housing prices would…

Development of Ghost Cities To increase GDP growth several cities in China have been constructed, which are now home to very few inhabitants and are therefore called Ghost Cities. After having constructed the city it turned out that only a few people were willing to live in the new city others stayed away or couldn’t afford an apartment. Often prices are too high for the Chinese citizens willing to live there. This inefficiency is a serious problem. A substantial part of the lower class…

For some people, the foreclosures hit them with a force of a bulldozer rolling them out of their comfortable zones and forcing them back into the land of the rental. But for others, like myself, the foreclosure market was an amazing moment when the stars aligned and every house price dropped to prices that some of us could easily finally afford. Not only were we able to afford a house for the first time possibly in history, we were able to have our pick of the litter as it were. It was a buyers’…

sold throughout the U.S. housing market according to U.S. Statistics. This was a larger number of houses sold compared to previous years with a range of 609,000 houses being sold per year. This was expansion, with lower interest rates, economic booms, and most people living in houses they couldn’t really afford if you looked into their finances. This is what later created negative home equity balances, and forecloses along with many evictions. Before the collapse of the housing bubble more and…

the collapse of the housing market boom of the 1990s to mid-2000s. Lehman’s acquisition of subprime mortgage loans led to record profits during the housing bubble; however, these risky investments proved to be the major cause of their failure. (Investopedia, 2017) Subprime mortgage loans are described as mortgages issued to people who could not qualify for a conventional mortgage due to low credit ratings, and thus charge a higher than prime interest rate. During the housing boom, subprime…

On the 15th of September 2008 Lehman Brothers, one of the world’s largest investment banks, filed for bankruptcy. The main driver of which being deregulation. The ever-increasing returns obtainable from financial derivatives led executives, fueled by greed and a perverse incentive structure, to create an intricate securitization castle built on the sub-prime mortgage market. When the rate of return on financial investment is constantly higher than the rate of economic growth, then compound…

have a resulted in 1930s style global financial and economic meltdown with catastrophic implications. In 2000s, global investors were searching for a low risk, high return investment, and so they started to throw their money at the United States housing market. However, global investors feel trouble to deal with individuals. Instead, they bought the investment known as mortgage backed-securities. Mortgage backed-securities are created when huge monetary institutions purchase thousand of the…

and downs of the housing market. A few years back I could remember watching the news, seeing the reporters talk about the market and its continuous downfall. From how things looked, it was terrible. Even today, the foreclosure crisis is still an ongoing recovery. However, Boomerang buyers are a sure example of that road to recovery. So now due to the bettering housing market buyers should consider rental purchase or rent-to-own as more a secure option. In the past years, the housing market is…

States in effort to help them succeed. The IRC provides many different services; they provide economic well-being, education, health, housing, employment services, legal services for citizenship, power, and safety. Before the refugees’ land we prepare all the paperwork they will need to apply for Social Security cards and Food Stamps. We find them low income housing and set up the house with all the basic necessities including beds, blankets, couches, silverware, dishes, chairs, tables, lamps,…

2008 occurring from the housing bubble. The story is told by three groups of people during the same period. Michael Burry is a hedge fund manager of Scion Capital who discovers the tendency of a housing bubble in the near future. He finds that the housing market is backed by subprime loans which are poor credit rating loans and have high default risk. Then, he decides to bet against the housing market. After that, he offers the banks to buy short against the surging housing market, which is…