Will the $8000 Tax Credit Be Extended?

By
Real Estate Broker/Owner with Ursula Gray Realty

Mortgage Brokers and Real Estate agents will be very busy over the next few months.  Everyone will be finalizing deals with clients who want to take advantage of the ferderal tax credit for the frist time homebuyers.  It would definitely help my business but that feels a little selfish.  I think as long as the interest rates are low, people will buy.  It has help me get those buyers that are sitting on the fence.  I think it was definitely needed for the time because it helped turn around the recession. But to extend it...well I'm not so sure.  I don't want to be a hypocrit like some agents...They complain about the stimulus the same time they are folding their mailers advertising the $8000 tax credit.  There is currenly legistature in place...even the request to up it to $15,000.00.  Extending the $8000 tax credit for 6 months could cost $17 Billion Dollars.

Maybe I shouldn't look a gift horse in the mouth! What do you think?

Comments (2)

John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

It is time to let it die! No market has ever been manipulated without negative impact- Enron learned that as did the brothers that tried to capture the silver market years ago. A few peple were put into a home hey otherwise may never have been able to. Most of hose homes will be in foreclosure in the future. The majority simply bought 2 - 5 years earlier than they would have. Many areas have seen the entry level inventory be reduced to the point prices rose and will fall farther when the program eventually ends. The media tried to make it sound like a much better idea than it is but many see it as a ploy of greedy real estate agents. So, we made a few sales now that will be missed down the road. Do not forget someone has to pay for the program. We, our children, and grandchildren will be repaying the money plus a lot of interest for decades.

Sep 28, 2009 02:27 PM
Anonymous
ANdrew

I have been feverishly looking for for a house along with my new bride. We are both architects, and as such in this economy, are reduced to part time work. We have had to scrimp and save as well as make finding work a full time job. Just about everything we can afford is not a , and we'd have no money to buy materials to fix it up. Our only debt are student loans. We are smart with our money and invest. Our cars are both 13 and 14 years old, and American. When we were married (last week) I moved into her apartment (Our beliefs and faith in God has blessed our decision to not live together beforehand).

We had an AWESOME small wedding, which we paid for ourselves with a budget. We both have Masters degrees. We are both very good at what we do. I am in the Marine Reserves but do not qualify for a VA loan. So here we are pushing thirty, with a meager savings, minimal bills to pay, and little work. Our dollar is being stretched further and further. I am however thankful that our situation is better than many.

Now it is our turn to take root and make a home. This $8,000 is a huge help to us. This is possibly the most helpful thing anyone, including Governmental, could have ever done for us. It is an awesome gesture and the first time anything has been done to benefit us. I feel like it is about time the little guy gets something back. With this % or $8,000 tax credit, the almost 30% of my taxed self-employed income would come back to me...(as I am self-employed now doing freelance because no one has enough work). I have been paying for everyone and everything else, and it great that finally I get something back. I have never collected unemployment or wellfare. I am willing to go and fight for my country as a Marine.

The bad news is even though we have been looking for a home for about 6 months, time is running out and due to closing times we may not receive the tax credit. I think extending the tax credit would be a really smart thing to do (not just because it helps me). There are many people in a similar situation. I feel like our older people are upset with this spending for whatever reason...but they shouldn't be, because we pay for them, and houses arn't $10,000 anymore. Things are proportionally (compensating for time) more expensive than they were 40-60 years ago. To those more middle-aged opposers who own already, I say remember you were there once and how this would have really helped you. To those well-off...not everyone has the money you have and it doesn't mean that we are frivolous, not smart, or don't work hard. It seems that more people oppose this mortgage tax credit than the cash for clunkers deal. I think it should be the other way around. I would like a new car. My car is 14 years old. It is not sexy or what I want, but it works most of the time.

With rising apartment rental costs, as well as, rising heating/utility costs...it can be very close to a monthly mortgage payment. But I guess you can live in your new car.

Oct 09, 2009 02:20 AM
#3