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- Should President Obama use TARP funds to help fix the unemployment crisis?
- Do you agree with Bernanke? Is recession 'very likely over?'
- Fed Chairman Bernanke see economy recovering by the end of the year. What do you think of his prediction?
- How nervous do you feel about your job?
- What is an appropriate pay limit for executives receiving federal funds?
NO - We have to stop this craziness!!!
This is just stupid. No more giving away tax payers money. Fire all who vote for this.
For once the tax-payers are getting their money back, instead of funneling it to the Millionaire I-Bankers and Sub-Prime Lenders that enjoyed the summer off in there mansions in their Mansions in the Hampton's while collecting a weekly stipend (unemployment) which they spent on a bottle of Dom at night.
Who do you think is collecting the interest on the mortgages? and if the mortgages go into default government will bail them out with taxpayer money again.
Taxpayers are in effect paying taxes which are then being used to help keep housing artificially inflated. In order for there to be long term economic health the market needs to correct itself without the artificial interference of a taxpayer subsidy, it is only prolonging the correction at a great cost to the future.
I am a real estate agent who is against the extension. We are just kicking the can down the road. This tax credit is helping to create an bubble within the market. It is helping to keep prices inflated by creating an artificial short term demand. The banks are taking advantage of the opportunity by slowly releasing their REO inventory and controlling the supply thereby further driving up the prices. The only people really being helped by this in the short term are the banks. Once the credit ends, the hangover is going to be bad and prices will continue to fall.
If this extension had not included all buyers this time I would be against it. The Tax Credit has driven the real estate market this year, 75% of my business this year has been 1st time homebuyers. Unfortunately most of these are deadend sales and nobody moves up, that is why I feel that it was necessary to expand the credit to all buyers so the domino effect would carry sales through all price ranges.
It doesn't include all buyers. In some areas of this country making 75K+ is not rich by a long shot, it's average at best, and anyone making that is frozen out. All this does is keep house prices artificially inflated. I still can't afford to buy anything in my own neighborhood.
So I guess your input is take a bad program and make it bigger? Who's money do you think is being used to help the firstime buyers? Yours!!!!! Well not just yours, actually everyones. But for you it's good since you are getting part of the bribe. And so expanding the bribe to everyone will certainly help you but don't you think that is just a little selfish?
Tell me again why are we trying to keep housing prices inflated and encourage more people to buy houses they cannot afford?
Several of the people in my office are all suddenly buying houses, or working on it. Me included. Probably going to take that leap in the next week or so. I've figured out that I can buy a bigger, nicer house than the rental I currently have, and the mortgage will be less than what I pay for rent. I am far from alone.
The tax credit (and it's old expiration date) is inspiring a lot of things that probably would not otherwise be happening right now.
Housing sales and turnovers lead to sales of the stuff that goes into houses, plus services (carpentry, plumbers, cleaners, painters, new appliances, carpet installers, etc) when those new houses turn out to need work, and of course people rent trucks or hire movers and all sorts of other things that only happen when they move. So money spent on this kind of thing gets cycled back into the economy very effectively, far more so in my opinion than the cash for clunkers thing.
So explain to me how clunker houses differ from clunker cars? Is it because the waste to cost ratio is higher?
House prices must be allowed to return to normal. Houses are not an investment, but rather a stable place to live. Clearly at 2005 prices - not so stable.
GHX- I have to disagree. For 90+% of the population housing will be the largest Investment that they ever make which in return will be their largest Asset they will ever have. Real Estate was never meant to be a get rich quick scheme but rather a long term investment.
I paid $120k in 1996 for my house and it is worth about $225-230 even in todays market. I'm quite happy with my Investment.
Come to Minnesota and look me up, I will teach you how to make money by investing in Real Estate. I do it everyday!
Time for the taxpayer revolt to start. Even moderate democrats like me say enough is enough with this garbage.
Stop taking thousands from our kids to line the pockets of every lobby in town.
In my area all this has done is keep the Realtors, closers, movers, painters, carpenters, plumbers, electricians and inspectors fed. The money works its way down from them to the grocers, restaurants, malls and all the others that these working folks support. That in turn pays our tax base. This is a system that works to get money into the base of the economy. My kids and their schools appreciate the help.
Well, if someone who probably makes more than me can get a tax credit for just buying a new car, then why shouldn't I get a tax credit for buying a home? Seems fair enough. Everyone else is getting freebies, welfare, handouts, tax cedits and more, so I should as well.
YES I work hard for my money , Rent is getting nuts, I payed more for rent and maintance than a house payment and I don`t have to listen to all tha bull from the people next door . I fill that If you do not own a home when you bought a home that you should get a tax credit .
How will Congress replace the revenue? It is also my understanding that many of homes purchased with the tax credit program were purchased with very little money down -- we may be creating a new bubble. Do we ever learn?
if the rich can get tax breaks then why cant a first time home buyer?
NO !! We're just creating more problems. The banks are doing all they can to shove people out of their homes so they can move new people in. Who wins ? the Realtors get their commissions, and the banks, mortgage companies reap the interest payments. No one seems to care that these are real family's losing their homes. For many it's their own fault .. but for the most, it is the fault of the banks & mortgage companies that encouraged them into the trap. Same goes for "Cash for Clunkers" .. the car dealers & manufacturers won .. but if people can't make their house payments, how are they gonna pay for a new car ??
The concept & idea are sound and in the right direction, but wrong in its application - it won't help the struggling average American household trying to make ends meet, living barely pay check to pay check.
Extending the tax credit won't help those unemployed to keep their houses or homes as more of them are exhausting their emergency/extended benefits.
Banks aren't helping with their underwriting (lending) criteria and credit scoring are making it very difficult for home buyers to qualify for a mortgage unless substantial down payment & solid, steady work history (oops ....) are verified.
This won't do anything positive to "consumer confidence" or spending and create the illusions that the recession is likely over. The White House & Congress need to get the priorities straight and LISTEN to the voters cause we are going to VOTE next Tuesday (and early too - - - exit polling ??)
Absolutely NOT!
The American people have overspent on everything in their lives.
No more credits. No more points. No more relief.
We'll only spoil them, and they'll overspend, no matter how many relief programs we invent for them. They have already overpopulated our nation in a huge 300+ million people society.
Bring back self control, birth control and get a grip.
NO MORE HELP for the "shoppers"
Yes they should but I think no one should be able to purchase a house unless they are going to live in it at least 6 months. We are right back to where we are investors are buying up the affordable housing from our young people with cash and making it hard for them to compete agains the cash these investors have. Same old housing problem that started this problem to begin with.
The exstention is my prayer answered! Halleluyah!! I'm 29, single, with no children in Pittsburgh, PA. I work full-time and pursue a bachelor's degree part-time. My financial decisions allow me to lead a mellow lifestyle but my dream to own a home has been out of my grasp thus far. The credit will propel me into a reasponsible finacial position as I stroll into my thirties. My generaton deserves a helping hand!
It's harder now to get ahead then it was for the baby boomers.....
This credit is not free money...its a loan!!!! Please consider repayment when taking this credit. If you sell your home, get divorced or transfer title, you are liable to repay the lump sump owed to the IRS. If you must sell quickly you could have repayment on top of a capital gains tax. This program is a drain on both the consumer and government. The 2009 credit cost out government $16 billion, more than double its initial price tag. Calculated Risk estimates that the 350,000 sales that the credit generated cost the government $45,000 each. (These are sales that would not have occurred without the tax credit) If something sounds too good to be true.....
Please do the research if you are considering this tax credit!!!!!
We elected this president with programs like this in mind. The other party has rarely extended a hand to help the lower and middle class. This program does just that. Also look at most relied upon economic indicator - Housing starts. When housing construction goes up it fuels the rest of the economy. Stimulating the housing market is key as long as it is done right. However it can't be done the way we have the past 8 years, by relaxing credit rating requirements and having people who don't have to prove income buying houses.
Europe and China are doing much better than the U.S. at recovery because they did just that. The thinking process of some folks is amazing. They have been successfully brainwashed into thinking anything done by government is just plain wrong. In the mean-time the very people in Washington who cheerlead this crap give every tax break and contract to the super-rich and big business. Now, ask yourself if this: if this worked would we be in resession? Afterall, this is what we have been trying for the last 8 years. Drop the political BS and use the stimulus to help the people of this country by creating jobs. People must have jobs before our service driven economy will ever improve.