[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.

Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.

[chrisp]

Again point taken. What is everyone’s thought on inflation though? Is that an additional incentive to get in now?

[chrisp]

Again point taken. What is everyone’s thought on inflation though? Is that an additional incentive to get in now?

[chrisp]

Again point taken. What is everyone’s thought on inflation though? Is that an additional incentive to get in now?

[chrisp]

Again point taken. What is everyone’s thought on inflation though? Is that an additional incentive to get in now?

[chrisp]

Again point taken. What is everyone’s thought on inflation though? Is that an additional incentive to get in now?

[chrisp]

Its more responsible for me to pour $75K down the drain renting for the next few years? Your argument is that it would be for society for me to wait? But wouldn’t the economy then get worse? Is your issue irresponsibility or wanting the price to be low for yourself?

I didn’t say there would be less risk if I put 10% down. I said it doesn’t mean I wouldn’t be able to make my payments because I only have 10% down.

Yes, something terrible could happen, yes I understand the concept of an emergency fund. Yes, I plan (I understand I don’t have one now) to have one. Yes, I know plans don’t always work out.

I appreciate your argument more now. I might be able to afford the payments, but can’t sell without foreclosure if prices continue to decline AND something bad happens.

Still to make me or people like out to be awful human beings by putting all your money at risk seems a little exaggerated. I believe this discussion has educated me and made me better understand the risks. However, I believe this crisis was a result of lose lending and unregulated credit-derivatives. While prices may continue to fall and cause foreclosures in the circumstance you described, not everyone will fail. And I would guess that the magnitude of that consequence will not be as bad as the decline we are currently in.

Also, I may not know enough about TARP, but wasn’t it a 1 time (3 payment) thing? Yes, a huge multi-billion thing? But, you envision that things will only get worse and you’ll end up footing the bill? I imagine what your’re describing wouldn’t be close to the magnitude of the first credit crisis. Is it terrible to say it will be a drop in the bucket? When combined with keeping prices inflated it is? What about causing the economy to go further in the shitter and make people loose more jobs?

[chrisp]

Its more responsible for me to pour $75K down the drain renting for the next few years? Your argument is that it would be for society for me to wait? But wouldn’t the economy then get worse? Is your issue irresponsibility or wanting the price to be low for yourself?

I didn’t say there would be less risk if I put 10% down. I said it doesn’t mean I wouldn’t be able to make my payments because I only have 10% down.

Yes, something terrible could happen, yes I understand the concept of an emergency fund. Yes, I plan (I understand I don’t have one now) to have one. Yes, I know plans don’t always work out.

I appreciate your argument more now. I might be able to afford the payments, but can’t sell without foreclosure if prices continue to decline AND something bad happens.

Still to make me or people like out to be awful human beings by putting all your money at risk seems a little exaggerated. I believe this discussion has educated me and made me better understand the risks. However, I believe this crisis was a result of lose lending and unregulated credit-derivatives. While prices may continue to fall and cause foreclosures in the circumstance you described, not everyone will fail. And I would guess that the magnitude of that consequence will not be as bad as the decline we are currently in.

Also, I may not know enough about TARP, but wasn’t it a 1 time (3 payment) thing? Yes, a huge multi-billion thing? But, you envision that things will only get worse and you’ll end up footing the bill? I imagine what your’re describing wouldn’t be close to the magnitude of the first credit crisis. Is it terrible to say it will be a drop in the bucket? When combined with keeping prices inflated it is? What about causing the economy to go further in the shitter and make people loose more jobs?

[chrisp]

Its more responsible for me to pour $75K down the drain renting for the next few years? Your argument is that it would be for society for me to wait? But wouldn’t the economy then get worse? Is your issue irresponsibility or wanting the price to be low for yourself?

I didn’t say there would be less risk if I put 10% down. I said it doesn’t mean I wouldn’t be able to make my payments because I only have 10% down.

Yes, something terrible could happen, yes I understand the concept of an emergency fund. Yes, I plan (I understand I don’t have one now) to have one. Yes, I know plans don’t always work out.

I appreciate your argument more now. I might be able to afford the payments, but can’t sell without foreclosure if prices continue to decline AND something bad happens.

Still to make me or people like out to be awful human beings by putting all your money at risk seems a little exaggerated. I believe this discussion has educated me and made me better understand the risks. However, I believe this crisis was a result of lose lending and unregulated credit-derivatives. While prices may continue to fall and cause foreclosures in the circumstance you described, not everyone will fail. And I would guess that the magnitude of that consequence will not be as bad as the decline we are currently in.

Also, I may not know enough about TARP, but wasn’t it a 1 time (3 payment) thing? Yes, a huge multi-billion thing? But, you envision that things will only get worse and you’ll end up footing the bill? I imagine what your’re describing wouldn’t be close to the magnitude of the first credit crisis. Is it terrible to say it will be a drop in the bucket? When combined with keeping prices inflated it is? What about causing the economy to go further in the shitter and make people loose more jobs?

[chrisp]

Its more responsible for me to pour $75K down the drain renting for the next few years? Your argument is that it would be for society for me to wait? But wouldn’t the economy then get worse? Is your issue irresponsibility or wanting the price to be low for yourself?

I didn’t say there would be less risk if I put 10% down. I said it doesn’t mean I wouldn’t be able to make my payments because I only have 10% down.

Yes, something terrible could happen, yes I understand the concept of an emergency fund. Yes, I plan (I understand I don’t have one now) to have one. Yes, I know plans don’t always work out.

I appreciate your argument more now. I might be able to afford the payments, but can’t sell without foreclosure if prices continue to decline AND something bad happens.

Still to make me or people like out to be awful human beings by putting all your money at risk seems a little exaggerated. I believe this discussion has educated me and made me better understand the risks. However, I believe this crisis was a result of lose lending and unregulated credit-derivatives. While prices may continue to fall and cause foreclosures in the circumstance you described, not everyone will fail. And I would guess that the magnitude of that consequence will not be as bad as the decline we are currently in.

Also, I may not know enough about TARP, but wasn’t it a 1 time (3 payment) thing? Yes, a huge multi-billion thing? But, you envision that things will only get worse and you’ll end up footing the bill? I imagine what your’re describing wouldn’t be close to the magnitude of the first credit crisis. Is it terrible to say it will be a drop in the bucket? When combined with keeping prices inflated it is? What about causing the economy to go further in the shitter and make people loose more jobs?

[chrisp]

Its more responsible for me to pour $75K down the drain renting for the next few years? Your argument is that it would be for society for me to wait? But wouldn’t the economy then get worse? Is your issue irresponsibility or wanting the price to be low for yourself?

I didn’t say there would be less risk if I put 10% down. I said it doesn’t mean I wouldn’t be able to make my payments because I only have 10% down.

Yes, something terrible could happen, yes I understand the concept of an emergency fund. Yes, I plan (I understand I don’t have one now) to have one. Yes, I know plans don’t always work out.

I appreciate your argument more now. I might be able to afford the payments, but can’t sell without foreclosure if prices continue to decline AND something bad happens.

Still to make me or people like out to be awful human beings by putting all your money at risk seems a little exaggerated. I believe this discussion has educated me and made me better understand the risks. However, I believe this crisis was a result of lose lending and unregulated credit-derivatives. While prices may continue to fall and cause foreclosures in the circumstance you described, not everyone will fail. And I would guess that the magnitude of that consequence will not be as bad as the decline we are currently in.

Also, I may not know enough about TARP, but wasn’t it a 1 time (3 payment) thing? Yes, a huge multi-billion thing? But, you envision that things will only get worse and you’ll end up footing the bill? I imagine what your’re describing wouldn’t be close to the magnitude of the first credit crisis. Is it terrible to say it will be a drop in the bucket? When combined with keeping prices inflated it is? What about causing the economy to go further in the shitter and make people loose more jobs?

[Author]

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