Admin

TAX CREDIT - That's not my final answer and I'd like to phone a friend....

By
Real Estate Agent with The Mustafa Group

IT'S EXTENDED - IT'S ALSO EXPANDED - YEAH! THE EXTENDED EXPANDED TAX CREDIT WAS SIGNED INTO LAW!!! YEAH SAYS EVERYONE... Wait just a minute.....what was that 'fine print'?

Were we the conduit? Were the Realtors used for our mighty BIG push?

What happens after April? Would we have created a 'minny bubble'?

Won't this only work if home values remain 'under valued'? Won't this only work if the interest rates stay lower than 10 year norms? Are sellers starting to catch and keep their prices a little inflated because they know the buyer is getting a tax credit?

What if, what if, what if....

Has anyone ever found out where the money for the tax credit is really coming from?

Japan and China have bought treasury note totaling 560 and 467 BILLION respectively. When they want to cash in those notes, who do call? Right....the US GOVT....and who do THEY call.....right again, the tax payers.

While this is an assumption on my part, only because I really don't know - maybe you can help me...

WHO'S REALLY PAYING FOR THIS TAX CREDIT ANYHOW?

Posted by

Cindy Mustafa, REALTOR, ABR, CDPE, E-Pro

Comments(4)

Show All Comments Sort:
Roy Kelley
Retired - Gaithersburg, MD

We will be paying for these incentives for a long time. The tax credits will create more artificial price increases in many markets.

Nov 07, 2009 12:56 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I am very sad.....I had hoped they might have extended the contract by the end of the year and close by March, that might have truly kept the motivation up for first time home buyers...and short sale lenders to move faster. But this is just postponing things longer.....and many buyers believe that this is now a permanent tax credit. Any why does someone making $225,000/year need help buying a home?

Nov 07, 2009 01:11 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Cindy, I'm viewing ALL economic stimulus as something like CPR.  The economy just like a person in cardiac arrest should receive emergency aid. I'm just not sure when the economy should be considered to have it's life back and be able to support itself.  Just as Roy stated this "CPR" is going to take quite awhile to pay for.

Nov 07, 2009 03:39 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Cindy, These are tough questions. I think the Government's labeling the Banks as TBTF was due to their fear that if banks like the Big 5  failedl it could create a panic something akin to the Depression Era.  What if they were right? I personally don't know.  Providing for homeowners has become popular due to the shear numbers of families effected.  Is CPR the solution? This is the greatest financial challenge our Nation has faced. Not just due to the immediate crisis, but because of the massive debt and the associated long term effects.  I'm wondering how we're going to fix, the fix, that the government thought would fix us,LOL.

Nov 08, 2009 03:13 PM