The first reason I believe that the homebuyers tax credit is good, is that it will give deserving people an extra boost in realizing what is buying a home. It is an extremely good opportunity for those purchasing a home for the first time. It is basically free money that the government is offering to those who fit the criteria, in a sense to make up for all the predatory lending that had such a ripple effect that lead us to where we are now. This opportunity combined with low interest rates and low property prices makes for a win/win situation. This tax credit might also "help reverse the sentiment of many potential homebuyers who are waiting for prices to fall further before they act."What more can one ask for when making one of the biggest decisions of ones life, like buying your very first home.
The second reason I believe that the homebuyers tax credit is good, is that it will help boost the ever so needing real estate market. For the past couple of years as the real estate market plummeted, many homes where foreclosed, many properties lost value because of this. "The National Association of Realtors estimates that this year the tax credit will attract an additional one million buyers who would otherwise have remained on the sidelines." Lawrence Yun, chief economist of NAR says "consumers will view the tax credit as they do lower home prices." There will hopefully be a decrease in bordered up homes in America and our neighborhoods will look like they once did.
The third reason I believe that the tax credit is good, is that it will affect the economy in a positive manner. The amount of money that is spent by consumers the first year in a new home is very high. That means that money will be put out in the market, for example, furniture stores, chain stores, electronic stores, home improvement stores, contractors, landscapers, insurance companies. These are all people that will benefit from one person buying a home. The more homes sold, the more these homebuyers will spend, the more of a demand for different job positions; it is like a ripple effect.
Of course I recognize that people will say that this will not impact the economy in any way, with all do respect, if this tax credit means; one more person realizing their dream, one more store staying in business, one more person keeping their job, one less bordered up home, than what do they define as impact?
Comments(2)