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livinincali
ParticipantLook at the bright side at least their home equity is up in CV.
ParticipantWhat’s really interesting about this situation is I thought about the possibility of this but dismissed it because of how stupid it would be to take the free rent and spend it all in the economy. Why wouldn’t you save it so you would be fairly well setup when you eventually lose the house. Of course by dismissing it as being a dumb decision, I made other mistakes about judging the economy. This is one of the traps that I’ve fallen into countless times. You apply you’re personal experience and values to the macro situation which turns out to be wrong because people don’t think like you do. I’ll never understand the “American Idol” thing but because I don’t, I’m not a very good judge of the macro thought process of the American psyche.
Anyways that said it should be interesting to see what happens in the next 6 months. Lots of new uncertainties although people seem to becoming pretty convinced this is no longer just a bear market rally that the trend has changed back to a long term bull. Let’s see if that’s really the case. Bear market rallies usually top once people are convinced the larger degree bull market trend is back in tact. That’s the whole goal of a bear market rally to convince you things have turned the corner.
ParticipantWhat’s really interesting about this situation is I thought about the possibility of this but dismissed it because of how stupid it would be to take the free rent and spend it all in the economy. Why wouldn’t you save it so you would be fairly well setup when you eventually lose the house. Of course by dismissing it as being a dumb decision, I made other mistakes about judging the economy. This is one of the traps that I’ve fallen into countless times. You apply you’re personal experience and values to the macro situation which turns out to be wrong because people don’t think like you do. I’ll never understand the “American Idol” thing but because I don’t, I’m not a very good judge of the macro thought process of the American psyche.
Anyways that said it should be interesting to see what happens in the next 6 months. Lots of new uncertainties although people seem to becoming pretty convinced this is no longer just a bear market rally that the trend has changed back to a long term bull. Let’s see if that’s really the case. Bear market rallies usually top once people are convinced the larger degree bull market trend is back in tact. That’s the whole goal of a bear market rally to convince you things have turned the corner.
ParticipantWhat’s really interesting about this situation is I thought about the possibility of this but dismissed it because of how stupid it would be to take the free rent and spend it all in the economy. Why wouldn’t you save it so you would be fairly well setup when you eventually lose the house. Of course by dismissing it as being a dumb decision, I made other mistakes about judging the economy. This is one of the traps that I’ve fallen into countless times. You apply you’re personal experience and values to the macro situation which turns out to be wrong because people don’t think like you do. I’ll never understand the “American Idol” thing but because I don’t, I’m not a very good judge of the macro thought process of the American psyche.
Anyways that said it should be interesting to see what happens in the next 6 months. Lots of new uncertainties although people seem to becoming pretty convinced this is no longer just a bear market rally that the trend has changed back to a long term bull. Let’s see if that’s really the case. Bear market rallies usually top once people are convinced the larger degree bull market trend is back in tact. That’s the whole goal of a bear market rally to convince you things have turned the corner.
ParticipantWhat’s really interesting about this situation is I thought about the possibility of this but dismissed it because of how stupid it would be to take the free rent and spend it all in the economy. Why wouldn’t you save it so you would be fairly well setup when you eventually lose the house. Of course by dismissing it as being a dumb decision, I made other mistakes about judging the economy. This is one of the traps that I’ve fallen into countless times. You apply you’re personal experience and values to the macro situation which turns out to be wrong because people don’t think like you do. I’ll never understand the “American Idol” thing but because I don’t, I’m not a very good judge of the macro thought process of the American psyche.
Anyways that said it should be interesting to see what happens in the next 6 months. Lots of new uncertainties although people seem to becoming pretty convinced this is no longer just a bear market rally that the trend has changed back to a long term bull. Let’s see if that’s really the case. Bear market rallies usually top once people are convinced the larger degree bull market trend is back in tact. That’s the whole goal of a bear market rally to convince you things have turned the corner.
ParticipantWhat’s really interesting about this situation is I thought about the possibility of this but dismissed it because of how stupid it would be to take the free rent and spend it all in the economy. Why wouldn’t you save it so you would be fairly well setup when you eventually lose the house. Of course by dismissing it as being a dumb decision, I made other mistakes about judging the economy. This is one of the traps that I’ve fallen into countless times. You apply you’re personal experience and values to the macro situation which turns out to be wrong because people don’t think like you do. I’ll never understand the “American Idol” thing but because I don’t, I’m not a very good judge of the macro thought process of the American psyche.
Anyways that said it should be interesting to see what happens in the next 6 months. Lots of new uncertainties although people seem to becoming pretty convinced this is no longer just a bear market rally that the trend has changed back to a long term bull. Let’s see if that’s really the case. Bear market rallies usually top once people are convinced the larger degree bull market trend is back in tact. That’s the whole goal of a bear market rally to convince you things have turned the corner.
Participant[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.
I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.
This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.
Participant[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.
I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.
This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.
Participant[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.
I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.
This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.
Participant[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.
I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.
This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.
Participant[quote]
I think they’ll only deduct 57% or 70% from the $100 million total for the purpose of deciding when to stop accepting applications.
[/quote]I really don’t see anything in the text that suggests they’ll stop accepting applications. It seems like they’ll reduce payments to all that applied to stay under the cap. Maybe I’m reading something wrong though. See the second paragraph.
I’m not saying that I wouldn’t take this credit if I was planning on buying but sometimes people just hear the headline 10K tax credit to buy a home in CA and assume it’s just like the federal tax credit when it’s not.
This credit is a nice benefit to those who buy at the expense of the other tax payers but most won’t get the full benefit out of it.
ParticipantAfter itemizing taxes especially with the mortgage interest deduction you’d probably have to make a little over $100K gross to get the full credit. For example you could pay CA 4,000 dollars, normally get back 1,200 and then the tax credit would be worth 2,800 instead of 3,333. I guess the way to look at it is you won’t be paying CA taxes for the next 3 years but that might not add up to 10,000.
The other thing to think about is the stipulation in the bill that if too many people take the credit then the amount you receive will be reduced. I.e. the first time buyer credit can be reduced to a total of 5,700 or 1900 a year if too many people take it and the money runs out. There’s 100 million dollars for the first time buyers credit but it’s difficult to estimate how far that money will go because not everyone will get the full amount. I’d assume that once 15K to 20K homes are sold to first time buyers there will be some deduction in payment.
ParticipantAfter itemizing taxes especially with the mortgage interest deduction you’d probably have to make a little over $100K gross to get the full credit. For example you could pay CA 4,000 dollars, normally get back 1,200 and then the tax credit would be worth 2,800 instead of 3,333. I guess the way to look at it is you won’t be paying CA taxes for the next 3 years but that might not add up to 10,000.
The other thing to think about is the stipulation in the bill that if too many people take the credit then the amount you receive will be reduced. I.e. the first time buyer credit can be reduced to a total of 5,700 or 1900 a year if too many people take it and the money runs out. There’s 100 million dollars for the first time buyers credit but it’s difficult to estimate how far that money will go because not everyone will get the full amount. I’d assume that once 15K to 20K homes are sold to first time buyers there will be some deduction in payment.
ParticipantAfter itemizing taxes especially with the mortgage interest deduction you’d probably have to make a little over $100K gross to get the full credit. For example you could pay CA 4,000 dollars, normally get back 1,200 and then the tax credit would be worth 2,800 instead of 3,333. I guess the way to look at it is you won’t be paying CA taxes for the next 3 years but that might not add up to 10,000.
The other thing to think about is the stipulation in the bill that if too many people take the credit then the amount you receive will be reduced. I.e. the first time buyer credit can be reduced to a total of 5,700 or 1900 a year if too many people take it and the money runs out. There’s 100 million dollars for the first time buyers credit but it’s difficult to estimate how far that money will go because not everyone will get the full amount. I’d assume that once 15K to 20K homes are sold to first time buyers there will be some deduction in payment.
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