We all know the horrors of the Bush/Reagan economic legacy-the staggering unemployment, the crumbling of our infrastructure, the assault on public institutions, the frontal attack on the stability of the middle class, the redistribution of wealth to the wealthiest, etc, etc. But my story is one of very significant benefits to the middle class, some of them directly attributable to the policies of the President, others close enough to make a political statement.
The real estate market is supposedly the epitome of doom and gloom. When my new job became stable enough to move my family we had to buy a new house and sell the old one.
Obama Economy Benefit One: I was able to buy a wonderful 80-year-old home on a real boulevard-you know, with an island of mature trees in the middle of the road at a terrific price (one of the down sides of the Bush economy which created a buyer's market-good for me, but not so good for the seller....). But here's the kicker. I received a $6,500 tax credit for purchasing a home for more than I paid for my previous one. Thanks, Mr. President! We'll turn that around immediately, when we either finish the attic, or buy a Prius plug-in (hey, maybe that qualifies for the low-emission vehicle tax credit! Thanks, again!)
Obama Economy Benefit Two: Now the task moved to selling house one. We approached this with great trepidation. The home purchase tax credit expired last year (we rushed to close on time, and the market was hot-our new home was only on the market a few days when we snapped it up). Our old home was wonderful, mature trees on a large lot, solidly constructed of Indiana limestone in an established neighborhood. But it was in the south side of Indianapolis, where Republican tax irresponsibility had taken hold. The schools were underfunded and headed toward mediocrity. There were no cultural institutions to speak of, and the fetish of the automobile meant few walked or biked. This contrasts with the north and established side of town, with walkable neighborhoods, locally-owned restaurants, older gentrified neighborhoods, many of them in the wonderfully revitalized downtown and midtown. And there were lots of bargains up there, so why would anyone look in my neighborhood?
What to do? We would have been very happy to get what we paid for the house-a good deal ten years ago in a similar down market. However, we very in for a very pleasant surprise. We sold the house for 7% more than we paid for it. In 6 days.
How did this happen? First, we took good care of the house, improving it gradually over the years. Second, we timed the sale perfectly, as spring was springing. Third, we had a great agent, who knew how to remove the clutter and create a tableau where the buyer could project their own desires on the property. Fourth, we were creative with color schemes, bright yellow for the laundry area, sunshine yellow for the family room, purple for a bathroom, a spring green for my daughter's bedroom. Finally-what I call "house porn". The agent created a web tour with expertly taken photos, including the "Ken Burns" effect, several animated 360 shots, and a (pretty good!) smooth jazz sound track (maybe Kevin Eubanks?). It was stunning.
What are some of the lessons? First, if you're going to compete in this market, you have to find the strengths of your property and go all in. This is no time for complacency-it's all in or nothing. Second, we priced appropriately. We didn't make much money, but we had lots of equity-so we got it all back.
We are engaged in a full-pitched battle against the rump of the voodoo trickle-downers. We know where the front-lines are-Wisconsin, Ohio, Florida, Michigan, and yes, Indiana. The Hooverites have abandoned any pretense are openly attacking our security. We must fight back and put the stake in the heart of the zombie economics. But, let's not lose sight of the benefits that the President's policies have contributed to. Real estate is only one area-my modest investments are benefiting from the Dow now well over 12,000. And what about that whole saving-the-American-car-industry thing?