The U.S. First Time Homebuyer Tax Credit offers up to $8,000 incentive for people to kick start the economy by buying homes. Today a leading real estate news service published an article that raises questions about the fairness. Let's take a look.
First, the Inman news service article reports an estimate that roughly 1.3 million households will be eligible and claim the credit, for a total government handout of roughly $8,800,000,000.
These are the "unfair" aspects mentioned in the article:
- The credit is not needs-based (except for the cap on high income earners)
- The "easy money" will tend to artificially inflate home prices
- It will tempt home buyers to over-borrow against the "phantom equity"
- It is a "hidden gift to lenders and investors" (who couldn't otherwise sell property)
- It helps some buyers compete unfairly against innocent others.
- It will tempt buyers in to home loans they will not be able to make payments on
- It hands over our tax dollars to people who's random luck is to want to buy this year
We may or may not agree with these assertions. As a taxpayer, what do you think? If you're a First Time Homebuyer getting $8,000 free money, what do you think?
Posted by Lee Alley, www.BHhomes.INFO, Rapid City, Black Hills, SD at 3:30 PM
Labels: Financing
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