Homebuyer tax credit

Homebuyer tax credit

PostBy: ceccil On: Thu Nov 05, 2009 8:50 am

Just found this. Seems their looking to extend the homebuyer tax credit and even expand it to those who have owned their homes for at least 5 yrs.


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Re: Homebuyer tax credit

PostBy: WNY On: Thu Nov 05, 2009 10:03 am

Dang, only owned it for 4 years.... :(
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Re: Homebuyer tax credit

PostBy: SMITTY On: Thu Nov 05, 2009 10:32 am

......First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years.........

It's only for first time buyers who just bought a home no more than 3 yrs ago, & second time buyers no more than 5 yrs ago. You had me excited there for a second! :(
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Re: Homebuyer tax credit

PostBy: 4tees On: Thu Nov 05, 2009 11:56 am

First off let me say that I am a Realtor...

This whole first time homebuyer TAX CREDIT was not thought out by our "leader(s)"...
First they had the $7500 first time home buyer "Tax credit/no-interest-loan" that needs to be paid back to the government at $500 over the next 15 years. Many first timers rushed to close before this "credit" disappeared, only to find out that if they had waited a few weeks or months that they could have instead qualified for the $8000 TAX CREDIT which is FREE MONEY with no payback.

Now they are throwing existing homeowners into the tax credit, BUT only if you owned your current home for 5+ years. How exactly did they come up with 5 years? I would love to know the logic in this. Should we really be giving tax credits to people buying homes up to $800,000. Do people buying $750,000 homes really NEED a tax credit? Again with this FREE MONEY thing!!

My opinions on tax credit.
1- Did it "stimulate" first timers to jump into home ownership? I believe just like the cash for clunkers program it got people who were thinking of buying to jump off the fence and commit. Hey it's FREE MONEY.
2- Did it help first timers buy homes? NO, because this credit was after the fact. The buyer had to qualify for a mortgage and come up with all the up-front money to be able to close. They then submit an ammended tax return to get the cash. What are the first-timers doing with the tax credit? Saving it, paying off credit cards, buying ipods/flat screen tvs...
3 - What did it do to the real estate market? Well, number of sales increase for homes in the first-timer's price range 100-200K. Home prices were driven down further because in general first-timer's do not have lots of cash. So, they are making low ball offers, asking for lots of seller assist. Seller's are giving in, driving prices down. This is also creating a price gap between first-timer homes and non-first-timer homes. Non-first-timer home prices just above the 100-200K range are now coming down to close the gap. It comes down to I can buy this house for 200K or this one for 225K. Those sellers of the 225K homes are now dropping their prices. Vicious cycle.

Do I as a Realtor like the first time tax credit or the proposed version of the tax credit? Yes, it creates a buzz to get people who otherwise may be sitting on the fence to commit. I may make a few more sales because of this.

Do I personally believe in the tax credit? ABSOLUTELY NOT. This government cannot continue to just GIVE MONEY AWAY!!! If you want to help first-timers why not give an home buying incentive where buyers can get a "low-interest" up-front payment to help them pay that downpayment. This must not be a no-interest loan like the $7500 tax credit. The government MUST get some return on it's money. Now people who may be short of cash to get into a home can buy. We are not asking the seller's to continue to lower prices and give seller assist to complete the sale.

I could go on....
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