Comments on: First Time Home Buyer Tax Credit Extension Thoughts

By: Erin

Erin — Sat, 28 Nov 2009 00:22:32 +0000

I, after running in circles with the IRS for almost a year, am NOT in favor of this credit (if you can even call it one). Due to the incredible amount of fraud surrounding this credit, those of us who are honest, tax-paying citizens will probably never see a dime! I bought my house in January, amended my 2008 return in February, and have been sending in “additional information” on the purchase every two months since. In fact, my most recent correspondence informed me that I needed to send in a copy of the final closing statement (that was the first thing I sent!).
So, I, having once been the trusting American citizen who saw a saving grace in this credit, am now somewhat bitter. I am just thankful that I have the money to have purchased this home anyway. Some, as you pointed out, do not.

By: Writers Coin

Writers Coin — Wed, 25 Nov 2009 13:17:52 +0000

I’m agnostic about it even though I’ll probably get the $8k myself. People look at it as free money, without realizing that $8k is nothing compared to the overall amount of money being spent over the life of the loan.

It’s chump change, really.

But you know what? Getting $8k back months after closing on your first place….that would certainly help to cover all the moving expenses, furniture buying, etc. Replenishes that emergency fund nicely…

By: Financial Samurai

Financial Samurai — Sun, 22 Nov 2009 01:10:48 +0000

Housing is affordable when we can put 100% down and pay cash money, just like everybody did in the old days!

By: John DeFlumeri Jr

John DeFlumeri Jr — Sat, 21 Nov 2009 21:09:42 +0000

Great if it keeps real estate moving, which is what we need.

By: MoneyNing

MoneyNing — Sat, 21 Nov 2009 20:44:13 +0000

But even our skillful politicians would have a hard time spinning that one as the “American” Dream.

The Chinese might help though since it’s a better use of their money unless we fix the long term trend of the US dollar decline.

By: MoneyNing

MoneyNing — Sat, 21 Nov 2009 20:40:50 +0000

Shouldn’t is a very broad, but I will answer assuming that you mean “affordability”.

When is a house really affordable? Is 20% down and 30% income affordable? If so, what happens the minute you lose your job? Too many Americans stretch their purchasing power to the limit based on the relax (still) lending standards and then find themselves in real trouble as soon as a recession hits because they lost their job.

In the city where I live, there are currently bidding wars on houses that are $1 million dollars, even though the median household income in the same city is just $90,000.

You are right, we weed out the very low end but a person making $45,000 buying a $500,000 house is just as dangerous as a $90,000 income earner buying a $1,000,000 house.

Actually, the latter is even more risky to the system as a whole.

By: MoneyNing

MoneyNing — Sat, 21 Nov 2009 20:30:42 +0000

I think most people will take a tax break instead. The effort is honorable and all but I don’t think most people like to have their wealth redistributed involuntarily.

By: CreditShout

CreditShout — Sat, 21 Nov 2009 20:29:55 +0000

I personally don’t think the current home buyers tax credit goes far enough to waste our money. I think while we’re out it we need to throw a trillion or so at building an amusement park on the moon.

By: Hank

Hank — Sat, 21 Nov 2009 20:15:37 +0000

Do you really think that the people buying homes right now are the ones who shouldn’t be buying? I think that we have weeded out all of the people with not enough real income, and the banks are very scared to lend. So, I think that those buying a home right now are people who have the income, can afford it, buying the right size home, etc.

I do think that the program shifts demand instead of creates it. We are just robbing demand from the future with this program. At some point, the program has to end and demand will fall off a cliff. Or, the worst thing can happen…the program never ends!

By: Oliver

Oliver — Sat, 21 Nov 2009 19:39:01 +0000

Another stupid bailout. They keep saying that we are out of a recession but they keep issuing more bailouts. I sincerely hope that we don’t see more in 2010.