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Latest news coming out of the very partisian meeting taking place, is that the tax credits are now out completely. The one tiny item that was not pure socialist pork, is out. So much for creating jobs and stimulating our economy.
Latest news coming out of the very partisian meeting taking place, is that the tax credits are now out completely. The one tiny item that was not pure socialist pork, is out. So much for creating jobs and stimulating our economy.
Guess we will all have to go back to chanting (Cable Guy reference) "Real Estate prices going down. Down down down."
Finally I think Its wiped out...son of guns...2009 i will be paying $10K property tax + $20K-$25K from job -- I am paying $35K; Anyhow thats the way it is...
"""""""""""Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said. The agreement would allow taxpayers to deduct the sales tax paid on new car purchases, but not the interest on loans for the same vehicles."""""""""""""
Stimulus pared to $789 billion in race for deal (http://news.yahoo.com/s/ap/20090211/ap_on_go_co/congress_stimulus - broken link)
Again but here....
"""""""""""
Nelson also confirmed what CNN reported last night, that negotiators are scaling back a Senate-passed tax credit for homebuyers and are likely to eliminate a tax deduction for car buyers.
Earlier in the day, top lawmakers and White House officials told CNN that after working late into the night Tuesday, they were cautiously optimistic a deal could be reached as early as Wednesday."""""""""''
Neither of the homebuyer credits apply to anything other than someone's main residence. So neither of them 'encourage investment into multiple residences'.
I was referring to our tax system in general.
Quote:
Are you equating 'real estate investment' with 'home ownership'?
Yes, that is correct.
Quote:
If so, I don't see your objection. There are good reasons to encourage home ownership, among which are studies that have shown that populations that are largely transient have negative effects on the economic stability and overall desirability of a given area.
My contention is that our various homeownership tax breaks contribute to higher prices. Higher prices make it more difficult for renters to enter the market, which results in exactly the opposite of the stated goal.
All of it out as of the last talking head interview. What a shame that Obama has failed to uphold his promise of "fix housing first" instead of pandering to his special interest groups like ACORN. Well, at least we all bleed together.
All of it out as of the last talking head interview. What a shame that Obama has failed to uphold his promise of "fix housing first" instead of pandering to his special interest groups like ACORN. Well, at least we all bleed together.
I think by not artifically proping up house prices is the first step in FIXING housing but what do I know.
So, with this new version what happens to existing $7500 provision? Is it still an interest-free loan with income restrictions?
I think this provision needed to NOT pass, though from a selfish perspective I stood to benefit. Alot of homebuyers are simply going to wait for more price drops before buying. I know I am.
Once house prices drop further, hopefully sooner than later, affordability will get better and encourage those select buyers with good credit to get back in.
Why would I buy now for $500K, when by the end of this year I can buy the same place for $450K? Even if you rent, you will not be paying $50K in rent over the next 12 months for such a place.
And with the market getting ready to be flooded with foreclosures from ARMs resetting and borrowers not being able to refinance due to poor credit and mostly negative equity, expect even more downward pressure on prices.
2010 and 2011 may prove too optimistic for a bottom price-wise in housing. I hope not, as I would like to buy in the next year or so, but will wait it out if I have to (I already have a place that I own and live in). Even if I were renting, I would probably not buy right now or for the next few months unless I found the perfect foreclosure or shortsale.
All of it out as of the last talking head interview. What a shame that Obama has failed to uphold his promise of "fix housing first" instead of pandering to his special interest groups like ACORN. Well, at least we all bleed together.
I'm not sure Obama ever said, "Fix housing first." I believe that was McConnell, the builders and the realtors. I do recall Obama talking about helping homeowners stay in their homes-- a $15k credit for homebuyers has nothing to do with that. If you find a quote from Obama saying, "Fix housing first," I'll rep you for it and stand corrected.
As a potential buyer, currently holed up in an apartment after selling my home last year, the $15k would've benefited me. In looking at a home last week that dropped its price significantly, we factored that $15k in and were grateful for it.
That said, the $15k credit was completely bogus. Nobody besides builders, realtors and desperate sellers thought it would do much to move the needle on prices or sales.
Unfortunately, the only "fix" for housing is for prices to return to local historical trends, in most cases, whatever the trend was pre-1999.
This correction is ugly. I'm sick of it. It's disastrous for many people. But a bad idea by a special interest lobby wasn't going to make it any better.
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House Prices need to drop to fix housing
