I am a first time homebuyer and in the market for a new home. I have been speaking to a real estate agent who confirmed what I have already noticed myself, that I am in a seller’s market (conditions favor the seller - higher home selling prices). He also confirmed what I had suspected; a lot of home investors buy up properties and either rent them out at high rates and/or fix up the homes and sell it at a high rate. This upward cycle drives new and all home prices up even further. It seems this greed is an upward spiral that favors the sellers and makes buying a home out of reach for many people of modest to moderate means.
What would be the most fair option below to new home buyers to keep home investors from getting out of control and driving home prices through the roof? These options would apply to a person who has bought more then two homes in the past 2 years and/or over 2 homes in their lifetime if they are listed as living in another address.
1. The interest rate is for each new home that this person buys is 10 times more than the standard interest rate for new home buyers. For instance, a new home buyer may get a 3% interest rate but an investor would pay 30% montly.
2. A $10,000 - $50,000 penalty for selling a home off early (earlier then the loan term) depending on the purchase price and final sale price
3. Limits on owning more then 2 homes in one’s lifetime if the owner is not the resident and is listed as living in another address.