A completely new proposal to save the real estate market. It's not as crazy as you might think!

Great Idea!  It's simple and straighforward.  No complicated, convoluted tax code needed.

Richard I think the tax credit needs to go bye bye.I had a listing sell recently where the seller took advantage of the credit...but I'll bet they would have bought it anyway.

We need to get back to a true market, now I'm off to read your featured post.

Your idea has my vote, Richard!

I like it!  Maybe people would actually start saving money for down payments.  Larger down payments = more affordable monthly payment = less foreclosures/people losing their homes. 

I think if a buyer cannot afford to buy a home at these low prices and low interest rates - they are just not ready to make the purchase. I say no more government hand outs. Everyone including companies need to learn to live within their means and save up money for the hard times. Old fashion but solid. 

Yes Richard. This sounds more reasonable than the $8,000 tax credit. However, everthing has a price tag. It is time for the market to self correct. This correction in prices (downward) should be incentive enough for any buyer at any price range.

Richard...Thanks for you idea and energy. The Tax Credit favoring first time buyers only was a weak gesture, it should have been extended to all Buyers. Your plan, may give Congress the opportunity to distroy the deductibility of mortgage interest, that may be a consequence worth accepting. In so far as more than 46% of the population pay no income tax at all, the impact on the high end purchases may work, big time. Good thought! Now let's keep Barney Frank away from your idea, he'd kill it for sure.

Great idea, getting it implemented is something else.

I like this idea for a primary home, with a limit with not quite a dollar for dollar deduction after a certain high cap. I say forward this to NAR and others as another idea. I haven't thought much about what this means to the almighty government tax dollar but it does stop taking "credit" money directly out the pockets. Interesting idea to really ponder.

Only way I would be for something like this is if it was for a buyer who was actually going to live in this home.  Investors with cash are taking away opportunities in our area from buyers who can not out bid them

I'm not sure, it makes sense so the politicians will never go for it. Make it complicated and stupid - then you've got a winner in Washington!

Certainly sounds like something to think about. Great idea to have more people with equity!  Just wonder if there shouldn't be a limit to the amount they could deduct.  And how would this effect taxes in the short term and long term?  Always have to think about Doctrine of Unforseen Consequences.

I think that would be a GREAT idea! What better way to stimulate the economy? Buyers would get something tangible for their investment.

Judging from all the comments, it would seem that you managed to strike a nerve with this one Richard.

Richard, i like this idea. I believe the tax credit should expire. I am not sure how it would work if the seller brings the closing money to the table.

Cheers,

Derrick Allison

da@midohio.twcbc.com

Very interesting. It's good to see someone thinking outside the box. Now, can you get big brother to get on board.

well intentioned,  but we've had FAR too much intervention already.  as you can see from  the responses, it seems like a good idea but the efforts to limit it or change it are evident even in this first blush effort.  that's the reality of anything that comes from DC...it typically starts with a good intention, but soon morphs to a frankensteins monster and the end result is nothing short of disaster as the unintended consequences become clear.

to continue to distort market forces is simply to invite the compunding of prior attempts to get people to do what they will not do without a subsidy.  if you have to pay someone to do something...it's a bad idea.

we've seen  the market return to levels that are affordable by most families and a return to underwriting.  the suggestion  that we must do something to get away from  that is just looking for the next unnatural bubble.  those with less than five years in  the business can be excused for not understanding that stated income loans FOR ANYONE WHO ASKED FOR ONE were a recent development...and you can be excused for not understanding that homes sold well without a tax credit.  everyone else should take a step back  and ask if the continued, or expanded, intervention of the government in our trade, OR ANY OTHER TRADE (HEALTHCARE?), is really what we want.

if we learned anything from  the current bubble it should be that homes are homes first and investments second.  to induce people to buy for reasons other than shelter is simply returning to  the "home as an ATM" mentality that has visited massive and possibly irreversible harm on our economy.  to encourage purchases that are unaffordable otherwise is very bad policy.  a tax deduction is simply a twist on a credit...either way the taxpayer foots the bill and we pay for it.  no thank you.

Dear Washington DC, we've seen what happens when you try to "help".   you guys could screw up  a trainwreck, do us all a favor and stop helping.

What a great idea, this would stimulate several industries, not just real estate.  Sellers wouldn't have to pay taxes on the proceeds from their home enabling them to spend money on whatever they like.  I like it a lot!

Richard, An excellent idea- allow buyers to take the deduction off their income taxes. Wouldn't it be nice if we could actually simplify the process.