Comments on: 8000 Tax Credit, What a Bad Idea

By: Home Buying Guide | Things to Consider when Buying a Home

Home Buying Guide | Things to Consider when Buying a Home — Fri, 12 Mar 2010 22:44:31 +0000

[...] available for first-time and existing homeowner buyers. The reason I bring this up – that pesky little home buyer tax credit is set to expire in just under 50 days, and I don’t know that [...]

By: Jayson

Jayson — Fri, 30 Oct 2009 06:46:49 +0000

@James – the tax credit did help sell some homes, but I’m not sure if it was substantial. I can’t imagine anyone saying “oh, let’s buy a home so that we can get $8,000″, at it’s best, it may make people buy earlier.

I think foreclosures will drive home prices down even if there’s a tax credit. It certainly is a damned if we do and damned if we don’t situation.

I just can’t stomach getting our kids into more debt, we’re fiscally irresponsible and we need to wise up. Just my opinion though; thanks for chiming in.

By: James Wheelock@Houston Neighborhoods

James Wheelock@Houston Neighborhoods — Thu, 29 Oct 2009 13:35:06 +0000

I don’t know how I feel about the tax credit in general, but what I do know is without it we will see both a substantial fall in sales from where we are today, continued price declines in most markets, and a return to price declines in a handful of others. I mean lets be honest the tax credit did not only spur sales to first time home buyers it also helped move up buyers make their change.

Having the credit will assure that we see a large number of buyers purchase early which will lengthen the time before we see a real recovery. Trouble is if we don’t sell new homes we will see a huge number of new layoffs. What a sticky situation heading forward. At this point with as high of unemployment as we have I would say we are damned if we do and damned if we don’t. That could be the perfect reason not to do anything by not extending the credit.
.-= James Wheelock@Houston Neighborhoods´s last blog ..Montrose Neighborhood Introduction =-.

By: South Dakota Rent To Own Homes

South Dakota Rent To Own Homes — Wed, 28 Oct 2009 14:27:12 +0000

I don’t think $8k credit is a bad idea that much. You will see success as long as you are transparent with your clients.

By: Lee Earls

Lee Earls — Wed, 28 Oct 2009 13:34:33 +0000

Well, I personally think this is a great idea. Yeah, one could say that it is adding to the deficit. But I think it might help it. The government may be 8 grand out initially, but many people buy so many things after purchasing a house to outfit it that it will reduce that amount greatly as well as stimulating the economy in other ways. This will increase spending in other areas, and eventually lead to more tax money for the government.

By: JaysonNHS

JaysonNHS — Tue, 27 Oct 2009 22:22:09 +0000

@Matt – I hope they don’t raise interest rates, but you can’t trust anything those folks say. There are more than a few reasons why they’d have to raise interest rates without “wanting” to.

I understand why you’d want the credit extended, I would too if we weren’t flat broke. Bottom line is that we can’t afford bubble gum let alone a billion dollar/month program.

They need to be addressing those foreclosures if anything. The problem is much more supply side than demand side.

thanks for stopping by

By: Matt@Roswell Real Estate

Matt@Roswell Real Estate — Tue, 27 Oct 2009 17:14:46 +0000

@Jayson – I don’t see the Feds raising interest rates anytime soon and they have made that clear many times. You definitely won’t see increased interest rates until the jobs return.

I think the credit should be extended (only for the short term) and even opened up to “move-up” buyers. No jobs are creating the foreclosures, but at least the tax credit is helping people buy them up instead of sitting on the market dragging down values even more. I know in my market, foreclosures account for more than 50% of the sales!

By: JaysonNHS

JaysonNHS — Mon, 26 Oct 2009 17:01:49 +0000

@Mike – I definitely agree. The only way we won’t see a drastic drop is if they do a short-term extension. Either way, there’s going to be a drop sometime and that’ll just send a wave of bad news.

My biggest fear is that they’ll continue with the tax credit, then when it’s set to expire next year, they’ll raise interest rates around the same time. That would devastate the market. If they end the credit now, we still have low interest rates

By: Mike Taylor

Mike Taylor — Mon, 26 Oct 2009 16:27:02 +0000

I think we are going to see drastic drop in sales once this expires or even if it does get extended. This credit has prematurely pushed a lot of buyers into the market who would have waited until next year to buy. I predict a big drop in sales after November.

By: JaysonNHS

JaysonNHS — Mon, 26 Oct 2009 16:12:57 +0000

@Augusta New Homes – it certainly is a heated discussion, and for good reason. I think we’d do fine without it.

@Denver Homes – You’re right about home sales spurring the economy in other ways; I think I saw the same report that mentioned $63k was generated from each home sold. I think the amount includes everything that a home generates – taxes, income for workers, product sales etc. I certainly think home sales are a great idea, but it’s not the government’s job to give out tax credits, they already back loans and facilitate an incredible interest rate.

@Sundream Estate – It has been good for the market – thanks for chiming in

@Chas – I can agree that inventory needs to be trimmed and that it needs to stay down, but I don’t think the government needs to keep handing out money for buying things. If people aren’t going to buy, then they’re not going to buy. I think a portion of this mess was caused because we tried getting more people to buy a home.

I saw your post awhile ago; it did generate a lot of comments – http://www.lvrealty.net/news/first-time-home-buyer-tax-credit -