Finally, an action which may help the ailing housing industry. Contact your Congressional representatives NOW!
Now is the time for all good men (ladies also) to come to the aid of their country! Is that too dramatic? I don't think so. I can still remember May 1977 when my Internet leads dropped by 90% from the previous month. Well, that was just over two years ago. This whole thing has been horrible for America, horrible for all of us.
This is a clarion call for home buyers, home sellers, real estate agents and anyone who wants action NOW. Everyone is being hurt because we are all affected by the crisis in housing. I feel bad, don't you?
Congress has taken baby steps (I know, some of you may think that they shouldn't even have taken these steps) to rejuvenate our industry via a $7,500 First Time Home Buyer credit (repayment required), then an $8,000 first time home buyer tax credit (no repayment required).
Then there was the hope of providing the tax credit and allowing it to be used as part of the required down payment. States and private parties were trying to get into the act of providing the $8,000 in advance. Then the IRS killed the whole thing with their requirements that the rebate only go to the actual person due the rebate.
WHAT A ROLLER COASTER RIDE! Disneyland in a Haunted House!
So, here's the latest, by the way $15,000 was the originally proposed tax credit which fell apart into a $8,000 tax credit. Read the details Will the $8,000 First-Time Home Buyer Tax Credit Expand to $15,000?
Senator Johnny Isaacson (GA) introduced a bill to increase the first time home buyer tax credit from $8,000 to $15,000 on Wednesday, June 10th. And the $15,000 tax credit would not be limited to first time home buyers, but could be taken by anyone who buys a primary residence, instead of only by first-time home buyers. The bill would also remove income limits.
This means that, not only first time home buyers, but any home buyer will be able to take advantage of this $15,000 tax credit. How many buyers do you know who have fears of home values continuing to drop, so they continue to wait for the bottom in the housing market? Move up buyers feel poorer when they sell their homes.
Until now I have looked at the $8,000 first time home buyer tax credit as a benefit to help cut the cost of getting into a home. Now I am looking at the $8,000 or $15,000 tax credit as a payment for a decline in home values over the next year. The Government is taking that loss out of play! Imagine what would happen if a year of home buyers didn't lose value in their new homes because they joined a movement in home buying which created faith and optimism in the future! Could that help turn things around?
Sadly, there are obstacles to getting this home buyer tax credit passed into law. More roller coaster.
Yes I make a living in the real estate industry, but that is just how I make a living. That has nothing to do with my opinions on this matter (well, a little more business would feel good and help pay the bills!).
We truly need to contact our Congressional members about passing this bill because it is in America's best interest to take action to preserve our housing stocks value- yours, mine and theirs. Don't leave it up to NAR, NAHB or any other lobby group. Take an action yourself! Contact your elected officials today!
We will feel richer and be in a better mood once the fear of the future is diminished. It is about time that we take control.
Interesting thing is that this didn't start out as a call to action. But that is what we need to do!
Home buyer note:
One last thought... I wonder if buyers will hold off buying, for the extra cash? I hope not, especially since this may never come to fruition given the governments track record. Will you be able to close by the Cinderella date? Will interest rates continue to climb?
Rising rates are like a thief, they steal from you every month, month in month out. On a $300,000 mortgage a 1% rise in interest rates will cost you $183 per month more ($11,000 over 5 years).