$15,000 Tax Credit for Home Buyers?

[sdduuuude]

Just thinking out loud here.

Seems to me that they would eventually have to end such a program, and when they end the program, housing prices would just revert back to where they were.

So, lets say today the market value of a home (without the tax break) is $200K. The gov gives a $15K tax break, meaning people would be willing to spend more than $200K on that house – because they aren’t really paying $200K. Lets say market forces bring about a situation where buyer and seller split the 15K so the house is purchased for $207,500. The buyer spends $192,500.

Lets say a few years pass, and the house value doesn’t change. Expected purchase price is still $207K.

Then, the govt nukes the $15K tax benefit. Without the tax benefit, the expected sales price of the house would go back to 200K. The net effect on housing prices is 0.

If the government reduces spending in other places to make up for the $15,000 loss in revenue, I’d be all for it as it would effectively be a tax reduction. I doubt that will happen.

Really, the govt is keeping gov. spending the same, borrowing the money they didn’t get from the buyers, and paying interest on it all for the purpose of keeping housing prices up for as long as the program is in place.

A truly unsustainable program.

[freshman]

That’s why Ben said to keep the low rate for “extended period” and ignore little inflation. The tax credit doesn’t help much for the buyer, it is just a sweet treat only. People start to pick up now, main reasons are the reasonable house price and low mortgage rate.

Early this year, the selling price was lower than listing price. Now, the selling price is higher than listing price, people bid for cheap house. For the house with reasonable price on market, it is gone in few days.

[freshman]

That’s why Ben said to keep the low rate for “extended period” and ignore little inflation. The tax credit doesn’t help much for the buyer, it is just a sweet treat only. People start to pick up now, main reasons are the reasonable house price and low mortgage rate.

Early this year, the selling price was lower than listing price. Now, the selling price is higher than listing price, people bid for cheap house. For the house with reasonable price on market, it is gone in few days.

[freshman]

That’s why Ben said to keep the low rate for “extended period” and ignore little inflation. The tax credit doesn’t help much for the buyer, it is just a sweet treat only. People start to pick up now, main reasons are the reasonable house price and low mortgage rate.

Early this year, the selling price was lower than listing price. Now, the selling price is higher than listing price, people bid for cheap house. For the house with reasonable price on market, it is gone in few days.

[freshman]

That’s why Ben said to keep the low rate for “extended period” and ignore little inflation. The tax credit doesn’t help much for the buyer, it is just a sweet treat only. People start to pick up now, main reasons are the reasonable house price and low mortgage rate.

Early this year, the selling price was lower than listing price. Now, the selling price is higher than listing price, people bid for cheap house. For the house with reasonable price on market, it is gone in few days.

[freshman]

That’s why Ben said to keep the low rate for “extended period” and ignore little inflation. The tax credit doesn’t help much for the buyer, it is just a sweet treat only. People start to pick up now, main reasons are the reasonable house price and low mortgage rate.

Early this year, the selling price was lower than listing price. Now, the selling price is higher than listing price, people bid for cheap house. For the house with reasonable price on market, it is gone in few days.

[Nor-LA-SD-guy]

[quote=CardiffBaseball]Jesu Christo!!! 15K, and my company talking of moving us to the land of the mouse in central Florida. Homes now under $100/sq. foot (and for good reason, it’s hot, humid and yucky)….

15K would go a long way over there where a really nice screened in pool house in a good nabe isn’t much over 200k. Anyone know any Orlando housing blogs?[/quote]

Most People I know who left California (esp. because their employer left the state in the early 1990’s) always regretted it dearly later and have spent most of their time wishing they could come back.

I know of one who quit his job to buy a home in T.V. as a way to get back to SoCal even though he does not have a job here, but he may early retire if nothing comes up so his case was a little different.

Maybe look for another Job ??

Just my two cents.

[Nor-LA-SD-guy]

[quote=CardiffBaseball]Jesu Christo!!! 15K, and my company talking of moving us to the land of the mouse in central Florida. Homes now under $100/sq. foot (and for good reason, it’s hot, humid and yucky)….

15K would go a long way over there where a really nice screened in pool house in a good nabe isn’t much over 200k. Anyone know any Orlando housing blogs?[/quote]

Most People I know who left California (esp. because their employer left the state in the early 1990’s) always regretted it dearly later and have spent most of their time wishing they could come back.

I know of one who quit his job to buy a home in T.V. as a way to get back to SoCal even though he does not have a job here, but he may early retire if nothing comes up so his case was a little different.

Maybe look for another Job ??

Just my two cents.

[Nor-LA-SD-guy]

[quote=CardiffBaseball]Jesu Christo!!! 15K, and my company talking of moving us to the land of the mouse in central Florida. Homes now under $100/sq. foot (and for good reason, it’s hot, humid and yucky)….

15K would go a long way over there where a really nice screened in pool house in a good nabe isn’t much over 200k. Anyone know any Orlando housing blogs?[/quote]

Most People I know who left California (esp. because their employer left the state in the early 1990’s) always regretted it dearly later and have spent most of their time wishing they could come back.

I know of one who quit his job to buy a home in T.V. as a way to get back to SoCal even though he does not have a job here, but he may early retire if nothing comes up so his case was a little different.

Maybe look for another Job ??

Just my two cents.

[Nor-LA-SD-guy]

[quote=CardiffBaseball]Jesu Christo!!! 15K, and my company talking of moving us to the land of the mouse in central Florida. Homes now under $100/sq. foot (and for good reason, it’s hot, humid and yucky)….

15K would go a long way over there where a really nice screened in pool house in a good nabe isn’t much over 200k. Anyone know any Orlando housing blogs?[/quote]

Most People I know who left California (esp. because their employer left the state in the early 1990’s) always regretted it dearly later and have spent most of their time wishing they could come back.

I know of one who quit his job to buy a home in T.V. as a way to get back to SoCal even though he does not have a job here, but he may early retire if nothing comes up so his case was a little different.

Maybe look for another Job ??

Just my two cents.

[Nor-LA-SD-guy]

[quote=CardiffBaseball]Jesu Christo!!! 15K, and my company talking of moving us to the land of the mouse in central Florida. Homes now under $100/sq. foot (and for good reason, it’s hot, humid and yucky)….

15K would go a long way over there where a really nice screened in pool house in a good nabe isn’t much over 200k. Anyone know any Orlando housing blogs?[/quote]

Most People I know who left California (esp. because their employer left the state in the early 1990’s) always regretted it dearly later and have spent most of their time wishing they could come back.

I know of one who quit his job to buy a home in T.V. as a way to get back to SoCal even though he does not have a job here, but he may early retire if nothing comes up so his case was a little different.

Maybe look for another Job ??

Just my two cents.

[sobmaz]

This is RIDICULOUS!!!!

How is a paltry 15K going to affect the housing market?

I propose a 300K payment for anyone who buys along with one year paid vacation. Along with a 5 year tax forgiveness on all income, a 30K bonus for your Realestae Agent and 10K for the NAR for having to think up ideas.

If the 15K doesn’t work I am positive our smart wonderful politicians will begin to think like me.

God help us all.

[sobmaz]

This is RIDICULOUS!!!!

How is a paltry 15K going to affect the housing market?

I propose a 300K payment for anyone who buys along with one year paid vacation. Along with a 5 year tax forgiveness on all income, a 30K bonus for your Realestae Agent and 10K for the NAR for having to think up ideas.

If the 15K doesn’t work I am positive our smart wonderful politicians will begin to think like me.

God help us all.

[sobmaz]

This is RIDICULOUS!!!!

How is a paltry 15K going to affect the housing market?

I propose a 300K payment for anyone who buys along with one year paid vacation. Along with a 5 year tax forgiveness on all income, a 30K bonus for your Realestae Agent and 10K for the NAR for having to think up ideas.

If the 15K doesn’t work I am positive our smart wonderful politicians will begin to think like me.

God help us all.

[sobmaz]

This is RIDICULOUS!!!!

How is a paltry 15K going to affect the housing market?

I propose a 300K payment for anyone who buys along with one year paid vacation. Along with a 5 year tax forgiveness on all income, a 30K bonus for your Realestae Agent and 10K for the NAR for having to think up ideas.

If the 15K doesn’t work I am positive our smart wonderful politicians will begin to think like me.

God help us all.

[Author]

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