Posted on 09/18/2009 2:07:23 PM PDT by Admiral_Zeon
DALLAS - When Congress passed an $8,000 tax credit for first-time home buyers last winter, it was intended as a dose of shock therapy during a crisis. Now the question is becoming whether the housing market can function without it.
As many as 40 percent of all home buyers this year will qualify for the credit. It is on track to cost the government $15 billion, more than twice the amount that was projected when Congress passed the stimulus bill in February.
In the view of the real estate industry and some economists, all that money is well spent. They contend the credit is doing what it was meant to do, encouraging a recovery in the housing market that is gathering steam. Analysts say the credit is directly responsible for several hundred thousand home sales.
(Excerpt) Read more at msnbc.msn.com ...
What? Cost more than double what our congress-criter “economics flunkouts” forecast?
It’s a shocker, I tell you.
Health care is planned by these same high school flunkouts. (Law degrees do NOT equal an education.)
When governments prop up markets bad things ultimately happen.
I’ll tell you what I think...
I think the Federal Government has no Constitutional authorization to forcibly take money from one group of citizens through taxation and then give that money to another group of people to help them buy a home.
Diversion.
The mortgage deduction itself should be eliminated, or a tax break on renting should be established. the great unreported story of the housing bust was the perverse incentive NOT to rent to folks who then used ARMs to buy what they could not afford.
An even better idea - repeal Amendment 16, the Slavery amendment.
My tax dollars already helped a bunch of people buy new cars, no more new houses on my dime!!!
“As many as 40 percent of all home buyers this year will qualify for the credit.”
how can 40% of the market be first time buyers???
the numbers don’t add up
The jolt was like a fix to a heroin junkie. Now we get the horrific, convulsive symptoms of withdrawal.
This money is better spent than the 8.5B given to ACORN.
It likely is worse than that. The tax credit, plus the 3.5% down payment, plus the seller picking up the closing costs and possibly somehow the down payment through other credits lower it even more.
People are buying a payment.
We're setting up the same thing once again. Isn't the saying, "like a dog to its vomit."?
closed on a house at a straight 6% one month before the august '08 hedge fund run on the banks. Bought at 180,000, down from the 224,000 asking price the year before.
They automatically dropped the value to 150,000 immediately
goodbye 10% down, goodby closing costs, goodbye 30,000 in value
Hello 30 years paying for the 180,000.
Hello surprise $5,000 supplemental tax bill from the county
hello 50% drop in income because ALL commercial investors pulled out of construction when the markets crashed
No ACORN coming to my rescue, because I am not a stupid a$$ picking up an ARM, no reward for me.
no hope of a re-fi to the going 4.5 % loans out there
no $8,000 tax credit for me
I have been borrowing from my savings to pay my mortgage each month for about the last nine months. It's almost all gone
Goodbye lifetime of hard work to finally get here only to watch it slip away
I hate the US government
I hate Obama ( hate Bush also)
every time I see an Obama bumper sticker I have to fight the urge to flip the a-ho commie off
When Congress passed an $8,000 tax credit for first-time home buyers last winter, it was intended as a dose of shock therapy during a crisis. Now the question is becoming whether the housing market can function without it. As many as 40 percent of all home buyers this year will qualify for the credit. It is on track to cost the government $15 billion, more than twice the amount that was projected when Congress passed the stimulus bill in February.Really? $15 billion? That much? Wow. And how much did the Demwit-engineered banking crisis cost the government (iow, the taxpayer)?
We’ve had 10 or so first time home buyers this summer. 2 of them knew about the tax break and the others we had to tell them. soCal buyers.
I do, I bought my house with money I earned for the down payment. My wife and I paid it off with money we earned. It took more time than it should have because the stinking government was taking large chunks of our money to shower largesse on whoever the hell they pleas.
Care to guess where I stand on more of my money going to people who didn't earn it?
It's a wash.
The home buyers don't benefit, but the home seller and real estate agents benefit.
The home buyers are being suckered.
I hear that many have used that $8K as the only down payment.
So guess what: when the tax credit ends and home prices start dropping again . . .
And when mortgage rates go up, as they will, these home buyers will be upside down.
Those who used the credit as the only down payment, will be mailing in their keys.
Thanks nufsed.
Sorry to hear about your plight.
As for this: every time I see an Obama bumper sticker
I live in Obama country and drive past his house regularly (can I call it his house even if it was earned through nefarious means?) People still worship him here. Sick.
Several hundred home sales? How about close to two million?
EXTEND the reduction of COBRA costs to 35%!!!
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