Simple Steps Toward Economic Recovery

While it is true that we have a complicated economic system, there are still simple rules that we should follow in order to move us out of this current real estate slump that we are in. There are not many markets that affect the economy as a whole in the way that real estate does. The good news is that fixing the real estate market can have a domino effect that helps stimulate other parts of the economy. All it requires is the first domino to be pushed. Unfortunately, we seem to be having a hard time doing that. We should be focusing on increasing consumer demand, rather than trying to sustain people who are really in no position to benefit from the assistance for the long run.

One difference between real estate and other markets is that stimulating demand is done a little differently. Yes, reducing prices and home improvements always help, but another way is to move more people into the position where they can actually get approved for a loan. Not many people can honestly say that they do not want to own a home; it is the American dream. So, unlike clothes or furniture, we do not need to make people want to buy, but rather make them able to buy. This is how we stimulate demand in real estate.

Once we successfully stimulate demand (by moving more people into a position to purchase), we will begin seeing home prices increase. The more demand for a product there is, the more the price of that product will increase, with all other things being equal. With so many Americans underwater, there is a stagnate portion of our market that is simply waiting for their home prices to go back up. Once home prices go up, and people begin moving into the positive equity zone, we will see more refinances, cash out, second loans, etc., all things that encourage spending. This spending will increase the number of jobs that are available, which will increase the demand for real estate, starting the process over again.

According to the Bureau of Labor Statistics, the unemployment rate in America is 9.1%. While this is above average, it is important to recognize that over ninety percent of American's are still working. There is obviously plenty of room for economic growth, and increasing home values will lead to more investments and spending, which leads to more jobs. Our government is spending at record levels, with much of the money allocated to real estate recovery going to the wrong places. If we stimulate demand for (ability to purchase) real estate, we will see the economy begin recovering, starting with the housing crisis correcting.

Rent To Own - Forecast Bright As Home Sales Continue To Be Gloomy

Housing remains the weakest part of the American economy, analysts tell us, and we shouldn't expect much improvement over the next few months. "These numbers are at rock-bottom by historical standards," said U.S. economist at IHS Global Insight, Patrick Newport. This report comes at a time of the year where home sales should be at its peak. However, while traditional home sales reports have been bleak, the rent to own market is on the rise because, for many, it's become the only way they are able to buy or sell a home.

Obtaining definitive numbers for these types of purchases is difficult since they are private rental agreements with a purchase option until later recorded as a home sale when the transaction is completed, often 2-3 years depending on the agreement terms. But indicators of increased on-line searches, books and documents sold, as well as general inquiries throughout the real estate and mortgage industry show that interest is strong and many rent to own transactions are being generated.

For many home sellers who've had homes on the market for many months with little or no activity, the immediate interest generated from one rent to own advertisement can be overwhelming. Today's market is flooded with better-than-average risk buyers whose credit issues are recent due to current market and economic circumstances, but previously were responsible and timely with their obligations.

With a bankruptcy or foreclosure would-be buyers are unlikely to qualify for a home loan for some time, and with the great increase of home-owners-turned-renters, the price of rent continues to increase. A rent to own home agreement fixes the cost of rent for the specific period of the agreement, giving buyers another incentive to buy.

Wednesday, June 22, Federal Reserve Chairman Ben Bernanke said the housing market was a strong and persistent factor hurting the broader economy. With the continuing vice-like grip on traditional lending and increase of the rent to own home trend, it would not be surprising if the federal government at some point were to identify this trend as a viable way to increase housing sales, and possibly offer incentives and tax benefits for these types of purchases, and strengthen protective regulations for both buyers and sellers.

It could also be to the benefit of real estate agents and brokers to be willing to facilitate these types of sales, although it would mean a delay of their primary commission for 2-3 years. Frequently real estate professionals will provide property management services during the lease period, since most property managers are real estate brokers. They can charge an up-front fee for providing initial services; paperwork, credit and background checks, bringing in a buyer or seller, etc., and if they choose, they can administrate the monthly payments for an additional monthly income until the sale closes in 2-5 years.

The rent to own option, when properly administrated, could help put people back to work, stop the housing drag on the economy, and pay mortgages that may otherwise be forced into foreclosure. Those looking into this option for themselves need to research the topic well and make themselves aware of any potential pitfalls to avoid, but a rent to own home sale can not only be a good option for buyers and sellers, but potentially can be a good trend for the American economy.

Deltona, Florida Real Estate and a Little History

Florida became a state in 1845. Just prior to that, the Timucuan Indians were the original inhabitants of what is now known as the City of Deltona in Volusia County. Fish and fresh water was plentiful. When Florida became a state, steamboats began making regular trips up and down the St. Johns River to Lake Monroe. Soon, visitors began settling in the state and a community developed on the shores of Lake Monroe near the steamboat landing. The City of Deltona was founded in 1962. It is the largest city in Volusia County and is located east of Interstate 4 and north of Lake Monroe. Deltona, Florida is the twenty-ninth largest city in Florida with an estimated population in 2009 of 84,264. It is North of Orlando, Florida and is considered a suburb of Orlando. The City of Deltona is almost entirely residential. The city's economy is largely a state and regional economy depending on surrounding communities for work, shopping and entertainment. The economy in Deltona is mostly service oriented.

There are 7 elementary schools, 3 middle schools and 2 high schools in Deltona, and approximately 4 private schools. A campus of Daytona State College is within the city limits. Also nearby there is Seminole State College and the University of Central Florida.

Deltona is served by Central Florida Regional Hospital, Fish Memorial, Florida Hospital/Deland, Florida Hospital Altamonte, and Florida Hospital at Lake Mary. Florida Hospital Medical Center and Orlando Regional Healthcare System (ORMC) are less than 45 minutes south of Deltona via I-4. Travel a bit farther and you'll find Walt Disney World, Universal Studios and Sea World. Recently opened in Orlando is the new Amway Arena, home of the champion NBA Orlando Magic. Just east of Deltona are miles of pristine beaches on the Atlantic Ocean including the World's Most Famous Beach, Daytona Beach.

The name, Deltona, comes from a combination of two nearby cities: DeLand and Daytona. It has grown steadily since it was officially incorporated as a city on December 31, 1995.

Deltona's Parks & Recreation Department consists of 18 neighborhood and community parks and provides recreation for all ages. One of the parks, Tom Hoffman Park, now has a butterfly garden, a walking trail, and an open-field play area. Campbell Park has a floating dock, lighted tennis courts, beach volleyball courts, picnic areas, gazebos, a playground and the Lake Monroe Boat Ramp. There is also a fitness trail. Future projects include a new 122-acre sports complex in the Alexander/Providence area. The city continually strives to provide safe areas for its citizens to enjoy the nature trails in the city parks. They are currently working with Volusia and Seminole Counties and the St. Johns River Trail system to connect the trails into the Seminole County Lake Monroe Loop and the East/West trail.

Previous, current and planned park improvements have improved the city environment. The city plans to continue recreational and environmental improvements for years to come. Deltona is a community that cares for its residents.

The average sales price of a house in Deltona, FL was $86,865 in June 2010. The median home value was $143,910. There are currently an estimated 17,067 households in Deltona. This is a family oriented community minutes from major entertainment, beaches, playgrounds, and healthcare facilities in a natural setting. Come home to Deltona.