You're watching...
Realtor Connie DeGroot discusses the government’s decision to lower loan guarantees from $729,750 to $625,500.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
It's a small step for the government is starting to get out of the mortgage business by lowering the amount of loans it will guarantee from 729.
Thefts and to 625.
'cause still sounds like a lot of money to -- but.
I am real estate -- -- -- group in LA are outraged claiming the reduction will make a bad real estate market even worse she joins us now and I'm Heidi I I do respect your opinion -- -- you know more about real estate and practically.
Anybody in the country but I think you're dead wrong on this I don't think the government I think taxpayers.
Should be guaranteeing anything over 500 even 500000.
Dollars is a lot of money no.
Well I can understand why you would say that but Los Angeles -- is Boston -- is Honolulu Hawaii Seattle Chicago.
These areas you know you might think that you could get could very nice home for 500000 dollars.
But you really can't.
And also we have like -- families need to send their kids a lot of them to private schools which cost 20030000.
Dollars a year -- yeah.
I think I because I got to stop you right there executive family's okay this and -- kids deprives.
I mean frankly that's not the job but the taxpayers to be concerned that somebody can't send their kids to products have private school that's not our concern what this what government getting into the housing business is all about is helping people -- at the very lowest rung on the latter.
And frankly I raised a family in a in a small apartment with one bathroom and we did pretty damn well so you don't necessarily need a 500000.
Dollar house to live a good life and -- country.
Well David I sentient a bunch of properties they sent over to -- -- some -- started to let people.
I to let people know what you get perhaps a million dollars -- and you know and I think that America would be very surprised at what people.
-- and for a happen I heard.
Connie -- Charlotte I'd like I agree got to present I thank you for these first one is on -- and avenue LA 449000.
Dollars.
Four bedrooms and just one bath like -- -- -- their -- gonna have to learn to get along with just one bath.
Hold on a second day I've told their three -- -- it's a it's one bad for my Paper here but I'm told their three best go ahead.
You know on the web at lot Angeles where you know but -- you know you know Santa Monica down and bomb -- there are homes under a million dollars.
But -- I could only find fourteen most of them were one or two bedroom homes around a thousand square feet.
And they were -- -- they were really awful.
So as so they only other alternative is to go to the valley these are other areas that I that I sent you but it but we have traffic and and you might have to drive all.
-- an -- to get in loans.
All I know I don't cutting.
I'm not gonna be playing a violin for people and have to spend a little yeah.
I'm -- traffic.
That's what you are reserved for archiving and David -- you're hurting middle America you are hurting -- regular family in the middle America and.
And I without government supports further 5060700000.
Dollar home even if they have kids -- sovereign that you the inequity of being a traffic for an extra half hour.
David David if you are well qualified you're a good -- the people that are qualifying for loans today.
Are good written -- they are good at it the problem is not the government with them while pregnant -- a long time -- -- that we're no.
There weren't -- standards and that's why we got all these bad.
-- -- the benefit but there are well qualified people moving forward.
It should have the right to jump and it's turning to move up higher market here it's hurting middle America we have seen Americans get -- what we.
Yeah seen over the past four years is how badly government involvement in the real estate market has hurt not only the real estate market but the entire economy.
And that sooner -- we began to -- The government out of this process the better.
David you can't say that you can't say it's all good or it's all bad there were there were there were people that were asleep at the wheel they were not following.
Things that made sense there were allowed people stated income people that didn't have a job didn't have a not enough money to get -- that was bad to say the whole system was bad.
Is not current Connie let me look like look at another property here 500000.
Dollars and again 500000 is still a 120000.
Less than what the government is gonna drop it down to budget think this -- This is hardship pay to buy a 500000 places the one and arapahoe street.
In LA four bedrooms two bats 2772.
Square feet again that's probably about twice what I have in Manhattan.
You -- some good ones what what you're showing our some good what I know -- -- these houses are there in sketching neighborhoods.
They're on sometimes busy streets sometimes Alley streets there at their next apartment buildings with a lot of noise I still won't -- you -- -- it's very very well.
We I mean you're -- yeah seven big for no Yorker who has used a loud noise in small places I mean you know.
Let's face it you what you deal with a clientele that is pretty -- has has very high stand on -- tonight that's a bit of that -- -- is -- taxpayers should not be forced to bail out people who have to live in -- 600.
700000 dollar house.
David David the last two years -- -- disagree that last few years I've been working with people -- under a million I've been working with people that are moving here from all over the country.
And they are -- there.
Regular -- that are working are nothing special they're not millionaires not even close they're struggling they cannot believe that people are paying what they're paying.
-- and in these com.
Because it's different -- -- or I do know that -- nobody's for.
Don't have the option you could you are not planning -- it is it is a free country you can still rent and rent a lot of potash and replace it -- it has a lot of street noise.
Hello I'm not but you shouldn't really handle take my tax money in order to live -- a 700000.
Dollar house.
David I'm having a great time with you but the price.
I have to say one thing that out that -- Rent and Los Angeles have been going up and so really I have a house on the market Bruce -- about 800 that basically you can buy that house own house.
We're less that you could live in that neighborhood to rent -- hello.
Friday -- I gotta say if anybody's in California anywhere -- where you see this woman because again nobody knows real estate like this when she's the only person should buy property from.
But again on this issue of government support for real estate -- -- about it.
We'll never very.
-- thanks a -- are a bigger good to see -- --
