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Senate approves jobless, housing aid - Yahoo! News (http://news.yahoo.com/s/nm/20091105/bs_nm/us_usa_economy_congress_senate - broken link) The new credit, which is due to expire on November 30, would be extended until April 30 and expanded to include more affluent homebuyers. People who have owned a home for at least five years would also be eligible for a $6,500 credit if they move.
Can someone explain this to me? I need to move for work, yet the credit won't apply to me because i've only owned my home for 2.5 years. What is the point of limiting this to A) first timers and B)5 year owners. What about those of us in the middle?
It's so people will buy homes. No idea why they limited it to just first time home buyers. That's what happens when the government meddles.
I think it's unfair that I have to pay my $7500 back, when had I bought a few months later I would've got $8k scott free. Personally, I think it's unfair anyone got any money.
On the plus side I don't think Raleigh home values have gone down that much, and all this is doing is inflating the purchase prices. A house just like mine (actually in a slightly worse lot) just sold for $20k more than I bought mine for 1.5 years ago. Inflation at its best.
In fact, now that this credit has been extended I have enough time to get my place ready to sell. If I can make $20k in the worst housing market in the recent past I should probably pull out while the getting is good .
Years ago, when I first became a Realtor, I remember a class in which the instructor told us that the gov't. would NEVER allow housing to go into a downward spiral because the economy is so tied to housing. Well, look what happened. The gov't screwed up and thus look at the repercusions!
The tax credits are the gov't. way of getting us back on track. In my opinion, they should just give a credit to EVERYONE and ANYONE that buys a house right now to get the economy going.
Sorry, SF but if the gov't. gives a tax credit to renters, that only helps the rental company.
Giving a tax credit to home buyers puts A LOT of folks back to work AND helps the economy. Look at it this way: a buyer buys a new home. The builder has work, the painters and flooring people have work. Even Wal Mart gets help...people buy new things for their new home! It trickles down to everyone, including Realtors and Lenders and just goes on and on.
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Quote:
Originally Posted by sswaring
Senate approves jobless, housing aid - Yahoo! News (http://news.yahoo.com/s/nm/20091105/bs_nm/us_usa_economy_congress_senate - broken link) The new credit, which is due to expire on November 30, would be extended until April 30 and expanded to include more affluent homebuyers. People who have owned a home for at least five years would also be eligible for a $6,500 credit if they move.
Can someone explain this to me? I need to move for work, yet the credit won't apply to me because i've only owned my home for 2.5 years. What is the point of limiting this to A) first timers and B)5 year owners. What about those of us in the middle?
What about those of us who just pay and don't intend to move?
The economists are scared and just trying to churn the bucks instead of letting them sit stagnant.
Some smart folks I speak with think churning the bucks may be one way out of the current economic climate.
Something is working in some ways. Inventories are down. New unemployment claims down, and that is a trailing indicator of the economy. There will be jobs to replenish inventories.
The evolution of tax credit stimulus for home buyers:
2008: Up to $7500 interest-free loan. (Doesn't seem fair to me, but I don't see them being 'forgiven.' Not enough empathy.)
2009: Up to $8,000 fully refundable 1st timers tax credit.
2010: *Up to $8,000 fully refundable 1st timers tax credit, and $6,500 for move up buyers, both with broader limits. *Still in process, and likely to be law before Veterans Day.
Going out on a limb:
2011: Eggs in everyone's beer!
Really, if EVERYONE gets $6,000 or $8,000 or $15,000 in gubmint charity, it will be easy to track the negative impact on inflation and the economy. The messing with the number makes it harder to track, more arguable on either "side," and provides the economists with work.
No one can truly tell which of the three programs is "best."
The reason they put the 5 year limit on was so house flippers would not get the tax credit. Some house flippers buy the house, live in it while they work on it on the side so it may take them 1-2 years. I don't know why they went as high as 5 years though, seems overkill to me
The reason they put the 5 year limit on was so house flippers would not get the tax credit. Some house flippers buy the house, live in it while they work on it on the side so it may take them 1-2 years. I don't know why they went as high as 5 years though, seems overkill to me
But flippers are easy to spot, and I"m clearly not one of them. I doubt my house has increased in value due to anything I've done to it. Just basic maintenance. And I can clearly document that I'm buying a new house due to relocation.
Wouldn't flippers get their due when it comes time to pay capital gains tax? And couldn't it be said that Flipping is GOOD for the economy so they would want to encourage it?
Flipping isn't common in my area, housing is plentiful and it just isn't profitable here.
Senate approves jobless, housing aid - Yahoo! News (http://news.yahoo.com/s/nm/20091105/bs_nm/us_usa_economy_congress_senate - broken link) The new credit, which is due to expire on November 30, would be extended until April 30 and expanded to include more affluent homebuyers. People who have owned a home for at least five years would also be eligible for a $6,500 credit if they move.
Can someone explain this to me? I need to move for work, yet the credit won't apply to me because i've only owned my home for 2.5 years. What is the point of limiting this to A) first timers and B)5 year owners. What about those of us in the middle?
The benefit to you is that there will now be more buyer's in the marketplace so you should have an easier time selling your house.
Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 11 days ago)
Location: Cary, NC
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Quote:
Originally Posted by LONGISLAND2NC
Mike (or any realtors) - are you seeing people delaying their closing until after the bill is enacted so that they may qualify for the credit?
No.
But I AM seeing confusion in the market, as the meddling has created some demand but has also put some folks into the "Let's wait and see if they sweeten it" mode over the summer.
NAHB and NAR were talking up a $15,000 credit at one point. For all Buyers. Elective buyers who heard that hesitated.
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