Monday, June 18, 2012

It's Your Money: City Will Pay 30% of Mortgage for New Home Buyers in KC

As part of Obama's stimulus, Rep Emanuel Cleaver secured an $8 million dollar pork barrel investment to rehab Kansas City's inner city homes.  The money was used to renovate 45 properties, only one of which buyers have been interested in.  To try and move these empty homes the city is now offering to pay a 30% down payment for buyers as long as they promise to own the home for at least 10 years.

Here's an example of the improvements that $8 million bought taxpayers:

Before:


After:

Aside from an iron railing on the front steps, it appears the only renovation down to this home are a new driveway and some grass.  Despite this, it's not a bad looking home considering you'd instantly have 30% equity in your home if you bought it for around $99,000.  Unfortunately, you'd still have to live in this neighborhood:


If all 45 homes are sold under the program, it will cost tax payers an additional $1.5 million, bringing the total cost of the project to $9.5 million. Based on the current asking prices of these 45 homes, the project is valued at roughly $4.5 million.  Unfortunately, this spend $2 to earn $1 way of doing business still won't be enough evidence to deter leftists from insisting that government spending is a net gain.

1 comment:

LeaderOne said...

This could be a great opportunity for new home buyers.