$15,000 first-time home buyers tax credit

[BlahBlahYouToo]

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

 

[bobcpg]

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

 

[Wonderful Pork]

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

The senate bill allows all buyers (not just first-time) to apply for the credit. Also, from what I read it will only apply to homes either bought in 2009 OR bought after the law/bailout/whatever is passed depending on which the reconciliation between the House and Senate.

Another difference is that the Senate credit is good for one year following its enactment and is not retroactive. Homebuyers who make purchases before the credit takes effect cannot claim it; under the House bill, they can because the credit is retroactive to the start of 2009 and expires at the end of June. In both bills, buyers must live in the home for two years or forfeit the credit.

$15000 for homebuyers

I say, it should only apply to 2009 and beyond, the folks who bought a house in 2007 and 2008 should not get this applied retroactively, they've already done their part stimulating the economy. This would just stimulate their bank accounts. Personally, I like the idea of a loan instead of a tax credit (7500 or 15000 doesnt matter, as long as its paid back).

 

[BlahBlahYouToo]

Originally posted by: Wonderful Pork

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

The senate bill allows all buyers (not just first-time) to apply for the credit. Also, from what I read it will only apply to homes either bought in 2009 OR bought after the law/bailout/whatever is passed depending on which the reconciliation between the House and Senate.

Another difference is that the Senate credit is good for one year following its enactment and is not retroactive. Homebuyers who make purchases before the credit takes effect cannot claim it; under the House bill, they can because the credit is retroactive to the start of 2009 and expires at the end of June. In both bills, buyers must live in the home for two years or forfeit the credit.

$15000 for homebuyers

I say, it should only apply to 2009 and beyond, the folks who bought a house in 2007 and 2008 should not get this applied retroactively, they've already done their part stimulating the economy. This would just stimulate their bank accounts. Personally, I like the idea of a loan instead of a tax credit (7500 or 15000 doesnt matter, as long as its paid back).

i promise i'll stimulate the economy if i get $15k tax credit.

 

[BansheeX]

Originally posted by: spidey07
WTF!? Prices are at all time lows right now, coupled with almost never before seen interest rates. Do you want to build wealth or not?

What we have here is the trifecta of wealth building - rates low, prices low, gubment giving you money. You jump on this ship or kick yourself for not taking advantage of it.

I can't tell if you're being serious or sarcastic, but if you're serious, god help you. Owning a deteriorating asset does not generate revenue, it costs money. In the long-run, if you someday pay off the mortgage, the costs of owning can be less than renting, but a home is not a revenue stream anymore than a car.

 

[Wonderful Pork]

Originally posted by: BlahBlahYouToo

Originally posted by: Wonderful Pork

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

The senate bill allows all buyers (not just first-time) to apply for the credit. Also, from what I read it will only apply to homes either bought in 2009 OR bought after the law/bailout/whatever is passed depending on which the reconciliation between the House and Senate.

Another difference is that the Senate credit is good for one year following its enactment and is not retroactive. Homebuyers who make purchases before the credit takes effect cannot claim it; under the House bill, they can because the credit is retroactive to the start of 2009 and expires at the end of June. In both bills, buyers must live in the home for two years or forfeit the credit.

$15000 for homebuyers

I say, it should only apply to 2009 and beyond, the folks who bought a house in 2007 and 2008 should not get this applied retroactively, they've already done their part stimulating the economy. This would just stimulate their bank accounts. Personally, I like the idea of a loan instead of a tax credit (7500 or 15000 doesnt matter, as long as its paid back).

i promise i'll stimulate the economy if i get $15k tax credit.

If I got 15K back, I would just throw it directly at the principle of the house. Or car, or whatever outstanding loan I had with the highest interest rate.

 

[StageLeft]

Originally posted by: Wonderful Pork

Originally posted by: BlahBlahYouToo

Originally posted by: Wonderful Pork

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

The senate bill allows all buyers (not just first-time) to apply for the credit. Also, from what I read it will only apply to homes either bought in 2009 OR bought after the law/bailout/whatever is passed depending on which the reconciliation between the House and Senate.

Another difference is that the Senate credit is good for one year following its enactment and is not retroactive. Homebuyers who make purchases before the credit takes effect cannot claim it; under the House bill, they can because the credit is retroactive to the start of 2009 and expires at the end of June. In both bills, buyers must live in the home for two years or forfeit the credit.

$15000 for homebuyers

I say, it should only apply to 2009 and beyond, the folks who bought a house in 2007 and 2008 should not get this applied retroactively, they've already done their part stimulating the economy. This would just stimulate their bank accounts. Personally, I like the idea of a loan instead of a tax credit (7500 or 15000 doesnt matter, as long as its paid back).

i promise i'll stimulate the economy if i get $15k tax credit.

If I got 15K back, I would just throw it directly at the principle of the house. Or car, or whatever outstanding loan I had with the highest interest rate.

Mine would go into savings. This economy is fvcked and the more savings the better.

 

[Xavier434]

Originally posted by: Skoorb

Originally posted by: Wonderful Pork
If I got 15K back, I would just throw it directly at the principle of the house. Or car, or whatever outstanding loan I had with the highest interest rate.

Mine would go into savings. This economy is fvcked and the more savings the better.

I never understood this mentality. Prices are so low right now. These are the times where millionaires are made. Why would you pass up on the opportunity?

Originally posted by: spidey07
WTF!? Prices are at all time lows right now, coupled with almost never before seen interest rates. Do you want to build wealth or not?

What we have here is the trifecta of wealth building - rates low, prices low, gubment giving you money. You jump on this ship or kick yourself for not taking advantage of it.

This is a rare moment where I 100% agree with spidey.

 

[Wonderful Pork]

Originally posted by: Skoorb

Originally posted by: Wonderful Pork

Originally posted by: BlahBlahYouToo

Originally posted by: Wonderful Pork

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

The senate bill allows all buyers (not just first-time) to apply for the credit. Also, from what I read it will only apply to homes either bought in 2009 OR bought after the law/bailout/whatever is passed depending on which the reconciliation between the House and Senate.

Another difference is that the Senate credit is good for one year following its enactment and is not retroactive. Homebuyers who make purchases before the credit takes effect cannot claim it; under the House bill, they can because the credit is retroactive to the start of 2009 and expires at the end of June. In both bills, buyers must live in the home for two years or forfeit the credit.

$15000 for homebuyers

I say, it should only apply to 2009 and beyond, the folks who bought a house in 2007 and 2008 should not get this applied retroactively, they've already done their part stimulating the economy. This would just stimulate their bank accounts. Personally, I like the idea of a loan instead of a tax credit (7500 or 15000 doesnt matter, as long as its paid back).

i promise i'll stimulate the economy if i get $15k tax credit.

If I got 15K back, I would just throw it directly at the principle of the house. Or car, or whatever outstanding loan I had with the highest interest rate.

Mine would go into savings. This economy is fvcked and the more savings the better.

Fair enough. But it would seem like most fiscally prudent people would not spend the money (other than to buy the house which they would have most probably done anyway)

 

[Xavier434]

Originally posted by: Wonderful Pork
Fair enough. But it would seem like most fiscally prudent people would not spend the money (other than to buy the house which they would have most probably done anyway)

They have to buy a house to get the credit though so prudent or not it doesn't matter. They are still circulating a lot more cash in the econ than they are getting back in the form of a tax credit. A lot of people that were planning on waiting to buy a home, including many conservatives, will find it hard to resist a 15k tax incentive so they will buy sooner than later and that is what this stimulus is all about.

 

[Wonderful Pork]

Originally posted by: Xavier434

Originally posted by: Wonderful Pork
Fair enough. But it would seem like most fiscally prudent people would not spend the money (other than to buy the house which they would have most probably done anyway)

They have to buy a house to get the credit though so prudent or not it doesn't matter. They are still circulating a lot more cash in the econ than they are getting back in the form of a tax credit. A lot of people that were planning on waiting to buy a home, including many conservatives, will find it hard to resist a 15k tax incentive so they will buy sooner than later and that is what this stimulus is all about.

I'm not arguing the fact that this should not be passed, there should be some type of tax refund, whether it be 15k or 7.5k. I'd just prefer it be a loan to be repaid, and have it apply to 2009 purchases only. But the decision isn't up to me.

 

[spidey07]

Originally posted by: Wonderful Pork

I'm not arguing the fact that this should not be passed, there should be some type of tax refund, whether it be 15k or 7.5k. I'd just prefer it be a loan to be repaid, and have it apply to 2009 purchases only. But the decision isn't up to me.

They tried that with the 7500 dollar loan. Didn't work and not a lot of people though it was worth it. This will make it VERY worth it and have the desired affect. That's why it cannot be a loan.

 

[Xavier434]

Originally posted by: spidey07

Originally posted by: Wonderful Pork

I'm not arguing the fact that this should not be passed, there should be some type of tax refund, whether it be 15k or 7.5k. I'd just prefer it be a loan to be repaid, and have it apply to 2009 purchases only. But the decision isn't up to me.

They tried that with the 7500 dollar loan. Didn't work and not a lot of people though it was worth it. This will make it VERY worth it and have the desired affect. That's why it cannot be a loan.

Exactly. We tried the loan version in 2008 which I didn't think was a bad idea, but unfortunately it just wasn't enough to get the job done properly.

 

[spidey07]

Originally posted by: Xavier434

Originally posted by: spidey07

Originally posted by: Wonderful Pork

I'm not arguing the fact that this should not be passed, there should be some type of tax refund, whether it be 15k or 7.5k. I'd just prefer it be a loan to be repaid, and have it apply to 2009 purchases only. But the decision isn't up to me.

They tried that with the 7500 dollar loan. Didn't work and not a lot of people though it was worth it. This will make it VERY worth it and have the desired affect. That's why it cannot be a loan.

Exactly. We tried the loan version in 2008 which I didn't think was a bad idea, but unfortunately it just wasn't enough to get the job done properly.

Alright, that's it. You agreed with me twice.

I'm outta this thread otherwise I think some sort of matter/anti-matter explosion is going to wipe out the universe if a 3rd time in the same thread happens.

 

[StageLeft]

Originally posted by: Xavier434

Originally posted by: Wonderful Pork
Fair enough. But it would seem like most fiscally prudent people would not spend the money (other than to buy the house which they would have most probably done anyway)

They have to buy a house to get the credit though so prudent or not it doesn't matter. They are still circulating a lot more cash in the econ than they are getting back in the form of a tax credit. A lot of people that were planning on waiting to buy a home, including many conservatives, will find it hard to resist a 15k tax incentive so they will buy sooner than later and that is what this stimulus is all about.

The only people who can fully exercise the full $15k are buying houses of such value that it is not a terribly big incentive. $150k is not the real ceiling, a tax liability of $7500 is. The typical middle class family with kids is not paying $7500 anyway or really anywhere close to it. And, if we assume this $15k will halve itself between buyer and seller in house value (because presumably a house that was $200k before at fair market value may be a bit more if the seller knows this $15k exists), it becomes even less meaningful. As mentioned elsewhere, this is simply a gimmick with limited impact.

Exactly. We tried the loan version in 2008 which I didn't think was a bad idea, but unfortunately it just wasn't enough to get the job done properly.

And neither will this be.

 

[Xavier434]

Originally posted by: spidey07

Originally posted by: Xavier434

Originally posted by: spidey07

Originally posted by: Wonderful Pork

I'm not arguing the fact that this should not be passed, there should be some type of tax refund, whether it be 15k or 7.5k. I'd just prefer it be a loan to be repaid, and have it apply to 2009 purchases only. But the decision isn't up to me.

They tried that with the 7500 dollar loan. Didn't work and not a lot of people though it was worth it. This will make it VERY worth it and have the desired affect. That's why it cannot be a loan.

Exactly. We tried the loan version in 2008 which I didn't think was a bad idea, but unfortunately it just wasn't enough to get the job done properly.

Alright, that's it. You agreed with me twice.

I'm outta this thread otherwise I think some sort of matter/anti-matter explosion is going to wipe out the universe if a 3rd time in the same thread happens.

:beer:

Ok, but I was thinking a more subtle approach to the rare occasion lol.

 

[spidey07]

Originally posted by: Xavier434

:beer:

Ok, but I was thinking a more subtle approach to the rare occasion lol.

Agreed.

GAH!
<boom>

 

[Xavier434]

Originally posted by: Skoorb

Originally posted by: Xavier434

Originally posted by: Wonderful Pork
Fair enough. But it would seem like most fiscally prudent people would not spend the money (other than to buy the house which they would have most probably done anyway)

They have to buy a house to get the credit though so prudent or not it doesn't matter. They are still circulating a lot more cash in the econ than they are getting back in the form of a tax credit. A lot of people that were planning on waiting to buy a home, including many conservatives, will find it hard to resist a 15k tax incentive so they will buy sooner than later and that is what this stimulus is all about.

The only people who can fully exercise the full $15k are buying houses of such value that it is not a terribly big incentive. $150k is not the real ceiling, a tax liability of $7500 is. The typical middle class family with kids is not paying $7500 anyway or really anywhere close to it. And, if we assume this $15k will halve itself between buyer and seller in house value (because presumably a house that was $200k before at fair market value may be a bit more if the seller knows this $15k exists), it becomes even less meaningful. As mentioned elsewhere, this is simply a gimmick with limited impact.

Exactly. We tried the loan version in 2008 which I didn't think was a bad idea, but unfortunately it just wasn't enough to get the job done properly.

And neither will this be.

All it needs to do is convince enough people that buying now will be better than buying later. The rest is just details that do not matter quite as much. The only real difference in the minds of many people both rich and poor, is that buying now vs buying sometime in 2010 will be that 15k.

I know that it is doing that for me. Am I a rarity? If so, then why? (not being sarcastic. I would really like to know if I am a rare exception and why that is the case if true.)

 

[BoberFett]

Originally posted by: bobcpg

Originally posted by: Phil21

WTF!? Prices are at all time lows right now

They are? Have a source for this? While this has been trumpted about a lot lately, I honestly am *not* seeing the "deals" that supposedly exist. Could just be my local market I suppose.

5-10% lowering of sale prices IMO is not "all time low". 30 to 50% and then I would consider housing to be in-line with what it probably should be (for this area).

I base this off of "percentage of income spent on housing". Has this really gone down a lot in the last year? At best, on a 15 year mortgage I can save about $40/mo from before the bubble burst.. Not what I would call "game changing" in any way for my financial situation.

So.. I really am interested - are there some areas where housing is depressed at an "all time" low (inflation adjusted of course!)? Sounds like there are some great investments to be had in such areas if so! The numbers for my local area don't even hit 10 year lows, from the limited data I've been able to find Not exactly really that interesting to me - 10 years is not a long time.

Please note again - I'm talking about housing in relation to buying power. Not new house sales, number of houses sold per month, etc. Yes, I would agree those are at or nearing historic lows. The price being paid for the houses that *do* sell however - not so much.

-Phil

I see that you live in Minnesota. I am also in the market for buying my first house in the Hopkins area and could not agree with you statement more.

Yes we see a little drop in housing prices but I am still looking for all these "DEALS" people keep taking about. All this especially in terms of Price vs. Buying power.

MN didn't bubble as much as other markets so it didn't crash as hard either. My wife and I are closing on a house at the end of this month and the sale price is around 88% of the estimated tax value and that's in Blaine. The further you get out from the cities the smaller the bubble was so the smaller the decline is price is.

I used to live in Hopkins by the way, a very good friend lives down there, I've spent a lot of time in those Main St bars.

 

[winnar111]

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

Then sell it to your 18 year old son or nephew.

 

[Xavier434]

Originally posted by: winnar111

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

Then sell it to your 18 year old son or nephew.

You cannot sell the house for at least 3 years either and by that time it has already fulfilled its purpose of circulating money and stimulating the economy.

 

[BoberFett]

Originally posted by: Skoorb

Originally posted by: Wonderful Pork
If I got 15K back, I would just throw it directly at the principle of the house. Or car, or whatever outstanding loan I had with the highest interest rate.

Mine would go into savings. This economy is fvcked and the more savings the better.

Current savings will be useless in a few years. If massive money supply increases is the only way to get out of this mess, that 15K won't be worth squat in a few years. Spend it now, if possible on a long term low rate loan.

That's why I'm buying a house. I just locked at 5 3/8%, and when inflation explodes that rate is going to mean my mortgage payment is folding money.

 

[Zebo]

You guys realize houses will go up by at least $15K right? What handout?

It's analogous to giving everyone $100,000 and expecting prices to stay the same. Why would someone need to go to their construction job with $100,000 in their pocket? You better pay a lot more than $12 an hour for every worker at the site to get them to show. The builder will also not settle for $30,000 profit but $130,000. and so on. Making that $100,000 handout quite worthless but of course adding to our debt burden and taxes raised.

 

[winnar111]

Originally posted by: Xavier434

Originally posted by: winnar111

Originally posted by: bobcpg

Originally posted by: BlahBlahYouToo

Originally posted by: winnar111
Buy your neighbors' house.

Sell him yours.

Profit!

i thoguht about this too but what about closing costs? and restarting your 15/30 year term all over again?

This would not work. You need to be a "First time home buyer" meaning you can not have owned a house in the last 3 years.

Then sell it to your 18 year old son or nephew.

You cannot sell the house for at least 3 years either and by that time it has already fulfilled its purpose of circulating money and stimulating the economy.

Then the 18 year old holds onto the house for 3 years.

If cutting checks to 6 figure families with college age dependents is a stimulus, might as well do that without the housing scheme. Tax dodgers are a lot smarter than the Democrats writing the tax code. Just look at Charlie Rangel and Tim Geithner.

Welfare queens scam the government all the time; I'm sure someone will figure something out.

 

[Zebo]

Originally posted by: BoberFett

Originally posted by: Skoorb

Originally posted by: Wonderful Pork
If I got 15K back, I would just throw it directly at the principle of the house. Or car, or whatever outstanding loan I had with the highest interest rate.

Mine would go into savings. This economy is fvcked and the more savings the better.

Current savings will be useless in a few years. If massive money supply increases is the only way to get out of this mess, that 15K won't be worth squat in a few years. Spend it now, if possible on a long term low rate loan.

That's why I'm buying a house. I just locked at 5 3/8%, and when inflation explodes that rate is going to mean my mortgage payment is folding money.

Excellent advice. Banks will soon pay you to get rid of fixed debt like your house.