Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
Reputation: 958
Advertisements
Quote:
Originally Posted by RedRockAAAA
The 4% mortgage, like the 15%($15,000) tax credit for a house purchase, is a Washington thought being bantered about. None of us know where it will end up.
The $7500's mentioned is real and in force.
If a first time home buyer purchases a home between April 8, 2008 and July 9, 2009 he/she/they will receive a $7500 LOAN, received via a tax credit, from the Feds at 0% interest to be paid back via their tax return at the rate of $500 per year for 15 years if and only if they have not owned any part of a home for the 3 years prior to the qualification dates.
As regards the 4% mortgage ... wouldn't it be grand. All mortgages across America at 4% fixed for 30 years guaranteed by the government. Every home owner would have $100 to $800 or more per month to help the economy. It would get rid of all bank properties.
Why do we keep saving the fat cats? The current crisis started with a screw up by fat cats in the mortgage and investment industries. So, fix the average family's mortgage and let the recovery begin. Of course other issues need to be addressed; infrastructure, wall street bonuses, etc.
I disagree (remember this is coming from someone with a financial interest in a buying and refi boom). The problem is that because of the way the current system works, the additional interest at market rates above and beyond that 4% would be subsidized by the government. Where do you think that government subsidy is going to come from? The fat cats will still get there's, and it will still come out of our pockets (or our children's pockets, or our grandchildren's, etc.). We need to quit looking at short term "fixes" and address the long term issues that guarantee this will happen again and again.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
Reputation: 958
Quote:
Originally Posted by Jade456
Exactly. We need to fix the housing problem now. Real estate is one of the pillars our economy is based on.
I agree but "fixing" the housing problem with these taxpayer funded gimmicks does not address our failed economic policy, our crumbling infrastructure, our losing battle with emerging markets with regards to college grads, or are growing unemployment problem. We need to invest in infrastructure (both transportation and energy) and we need to invest in education. These are the sectors that will help our economy become great again, not in the short term but in a long term sustainable way. Printing money at will does not address anything and instead saddles future generations with mountains of debt.
So, some of the fat cats have spoken. Yes, Warren Buffet also just bought $300 million of Harley's debt. Do you think motorcycles will sell in this economy? No, he, like the fat cats, is planning to benefit when things get back to 'normal'.
Heavens no, don't you fat cats dare think of mid America jobs or home losses. Let's get those prices way down there so you can buy more properties. Well, thank you very much, but I have been trickled down on long enough to know it doesn't work. Hey I'm fine. Bought my home at the right time. Not looking for any handouts. But I do understand the economics of the masses vs. the few. When the masses go under so do the few. So start looking for programs that bring back middle America or there will be more cheap real estate than you can afford, but no one with a job to rent all of your units from you. Careful what you wish for...
Good comments by all. I actually don't see a problem with the 15,000 tax credit. It is money that never was, so the Government can't give it away to someone else. While 4% would be nice, I like Daddys comments that someone will have to pay for it, and that will no doubt be someone with a job.
They should cut spending right to the bone from the government. Have a lot of government backed operations (youth clubs, rec centers, museums, etc...) get donations and seek volunteers to run these programs. With unemployment bascially in the double digits, there are plenty of people with time on thier hands.
This is UGLY and unless they fix issues for the long term instead of spending us into Bankruptsy, it will get uglier. When all this kicks in, they'll tax welfare to get money back to fix this situation.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
Reputation: 958
Quote:
Originally Posted by RedRockAAAA
So, some of the fat cats have spoken. Yes, Warren Buffet also just bought $300 million of Harley's debt. Do you think motorcycles will sell in this economy? No, he, like the fat cats, is planning to benefit when things get back to 'normal'.
Heavens no, don't you fat cats dare think of mid America jobs or home losses. Let's get those prices way down there so you can buy more properties. Well, thank you very much, but I have been trickled down on long enough to know it doesn't work. Hey I'm fine. Bought my home at the right time. Not looking for any handouts. But I do understand the economics of the masses vs. the few. When the masses go under so do the few. So start looking for programs that bring back middle America or there will be more cheap real estate than you can afford, but no one with a job to rent all of your units from you. Careful what you wish for...
I hope you are not referring to me as a fat cat. I am far from it. The fact is that you are looking at this for your short term comfort levels, and I am looking at this for the long term health of our nation's economy.
The fact is that in many markets housing is still unaffordable for the masses you are so concerned about. In a place like San Francisco where the median income is $70K give or take and the median home price is still over $700K it stands to reason that for the masses to benefit the prices need to correct some more.
The fact is that by subsidizing 4% mortgages you are taking money from the masses and padding the banks pockets, the same thing you say you wish to avoid.
So again I say, if you truly wish to help the masses, if you truly wish to create jobs for middle class America, if you truly wish to fix the economy without the rich getting richer then you need to abandon the concept of a taxpayer funded tax credit, or a taxpayer funded subsidized 4% mortgage, or a $800 billion stimulus package that does not address not only our current economic situation but the other problems our country faces. Infrastructure and education need help badly, and these things WILL put America back to work.
I don't know any millionaires that pour concrete or set forms. I don't know any fat cats that operate graders and dozers. I actually don't know any millionaires at all, but that is beside the point. These jobs will help not only our blue collar workers, but our construction materials industries who are also hurting (US Steel anyone?). Conversely I do know many blue collar workers that would LOVE to be able to take a prevailing wage job right now. They would also like to put their children through college. Put them to work on infrastructure projects and subsidize their children's educations. I would absolutely not mind paying a few extra dollars in taxes for something truly beneficial.
Daddys....surprise....it wasn't directed at you. I was speaking in general to anyone who might fit the shoe.
I agree with almost everything you said. You articulated it better. Our difference is only in the short and long term solutions. We didn't arrive at this point in just the last eight years. Eventhough I'd love to blame it on Bush, its just not fair. I'm 60 and have watched this economy dwindle every year of my life. I too would be more than willing to pay more taxes, if they were spent wisely on your long term projects. I remember EVERY school having music programs. Now they can hardly find dollars to teach the 3 R's.
I find myself at 60 receiving tax dollars back that I didn't even pay/have deducted/send to the government in any form. Why do I need a tax refund? Where did it come from? They are giving me free money that, yes, our children will pay for in the long run. Who do I send it to? Go back and reread the post. Just because it followed yours is no reason to assume it was directed at you. Sorry it was taken that way. The point is fat cats do not trickle down any benefits to the masses. Greed has ruled for a good many years. If the masses were taken care of, this crisis would not exist. All of your points are right on target for the long term. But we have to get back on track in the short term or the infrastructure you speak of will never get fixed. A drowning man needs a rope before he can handle a cup of water.
I qualified for the $7500.00 "credit" and checked the box when I filed my taxes on line. 10 days later it was in my savings account. Had someone not given me a heads up about it, I would have skipped right over it.
I don't really plan on spending it, but it could not have come at a better time. Its nice to have an extra seven grand handy during these economic times. The extra cash gives me a little more confidence to take some career risks. Its easily paid off too. From what I understand the IRS takes $500.00 out of your tax return or tacks it on top of what you already owe every year until it is paid off.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
Reputation: 958
Quote:
Originally Posted by RedRockAAAA
Daddys....surprise....it wasn't directed at you. I was speaking in general to anyone who might fit the shoe.
I agree with almost everything you said. You articulated it better. Our difference is only in the short and long term solutions. We didn't arrive at this point in just the last eight years. Eventhough I'd love to blame it on Bush, its just not fair. I'm 60 and have watched this economy dwindle every year of my life. I too would be more than willing to pay more taxes, if they were spent wisely on your long term projects. I remember EVERY school having music programs. Now they can hardly find dollars to teach the 3 R's.
I find myself at 60 receiving tax dollars back that I didn't even pay/have deducted/send to the government in any form. Why do I need a tax refund? Where did it come from? They are giving me free money that, yes, our children will pay for in the long run. Who do I send it to? Go back and reread the post. Just because it followed yours is no reason to assume it was directed at you. Sorry it was taken that way. The point is fat cats do not trickle down any benefits to the masses. Greed has ruled for a good many years. If the masses were taken care of, this crisis would not exist. All of your points are right on target for the long term. But we have to get back on track in the short term or the infrastructure you speak of will never get fixed. A drowning man needs a rope before he can handle a cup of water.
My mistake. I should not have assumed that it was directed at me (you know what they say about assumptions). Obviously you can't send that tax money back, and as such I suppose you should use it in a way that is beneficial to you. I agree that the fat cats do not trickle down (with a few exceptions of course, there are quite a few very wealthy people that continue to focus on creating jobs and taking care of their employees, these folks also live a very simple life regardless of their net worth). I also agree that there is no way that this happened in the last 8 years. I would never blame this on Bush (I think that is giving him too much credit but that's a topic for another thread). I do know that if Graham Leach Bliley would not have been passed, and Glass Steagal had not been repealed (both parties helped that one along, politics aside every politician in Washington had a hand in that one) then the problem would not have gotten out of hand as it has. Subprime loans would not have existed (no way to securitize them) and credit default swaps would not have existed (thusly saving large amounts of wealth in the forms of pensions and retirement accounts). I do agree that short term fixes do need to be looked at. I just feel that the current ones being floated do not help the long term and as such are not really going to help anyone in a significant way. $15,000 is alot of cheddar, I will never deny that and alot of families could use that right now. However, I do remember a very famous teacher saying something about teaching a man to fish, etc.
Quote:
Originally Posted by MR77
I qualified for the $7500.00 "credit" and checked the box when I filed my taxes on line. 10 days later it was in my savings account. Had someone not given me a heads up about it, I would have skipped right over it.
I don't really plan on spending it, but it could not have come at a better time. Its nice to have an extra seven grand handy during these economic times. The extra cash gives me a little more confidence to take some career risks. Its easily paid off too. From what I understand the IRS takes $500.00 out of your tax return or tacks it on top of what you already owe every year until it is paid off.
I'm surprised that your real estate agent or loan officer did not mention this to you. As it stands currently, the $7500 does need to be paid back and it is $500 a year over the next 15 years. You do not start paying it back for 2 years though, so not next year but the year after you would start paying it back.
Quote:
Originally Posted by Aqua Bliss
Does anyone know if the proposed $15k tax credit would apply only to primary residence, or also to vacation homes, and/or rental properties?
Primary only if it passes in it's current form.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
