Housing declines dragging down broader economy, visas for int’l buyers, and why you might suck at twitter
The New York Times had an article that diagnoses our national economic gloom to be a result of falling housing prices. The story cites a 2007 CBO review that calculates that:
people reduce spending by $20 to $70 a year for every $1,000 decline in the value of their home. This “wealth effect” is significantly larger for changes in home equity than in the value of other investments, such as stocks, apparently because people regard changes in housing prices as more likely to endure.
In these belt-tightening times, money from a permit to drill for natural gas on your property would sure be welcomed by most. But before you sign, realize that it could cause you to default on your mortgage. Banks are beginning to scrutinize these leases, wondering if at the end they are going to be stuck with a toxic waste site that they can’t sell.
More on a story from last week’s WWR blog entry: two Senators are preparing to introduce a bill that would give residence visas to foreigners who spend at least $500,000 to buy houses in the U.S. Overseas buyers spent $82 billion buying up U.S. homes in the 12 months ended in March, up 24 percent from a year earlier.
Social Media expert Chris Smith offered a Twitter webinar this week with enlightening and useful take-aways on how to improve one’s Twitter presence. Jeff Turner shares a nice write-up of the event and gives reasons why you might suck at twitter.