Comments on: Will The First Time Homebuyer Tax Credit of $8,000 Be Expanded To Everyone And Increased To $15,000?

By: Carmen Arruda

Carmen Arruda — Thu, 12 Nov 2009 22:23:05 +0000

Check out this story about the extension of the housing tax credit:

http://abclocal.go.com/wabc/story?section=news/politics&id=7087955

If you want to skip it, here’s the interesting part (which they do not explain in detail):

1,400,000 homebuyers have taken advantage of the tax credit.

The story specifically states that NAR estimates that 350,000 of those wouldn’t have purchased without the tax credit, meaning 1,050,000 would still have purchased without the tax credit.

This means the total cost of the program breaks down like this:

1,400,000 x 8,000 = $11,200,000,000 (11.2 BILLION)

This means the total cost to give the 350,000 people who wouldn’t have purchased a home without the tax credit was the 11.2 Billion; which means:

11,200,000,000 / 350,000 = $32,000 per transaction

So:

It cost $32,000 for each individual who got the $8,000 tax credit, to motivate them to purchase a new home.

Wow.

By: jennifer

jennifer — Tue, 03 Nov 2009 19:54:49 +0000

In all fairness the income limit for single 1st time home buyers should be raised. It seems a dirty trick, especially in California (Bay Area) that I can not make more than $75,000 to recieve the $8000 tax credit. Single people making less than that have a hard time buying Anything in the high cost of living cities. And couples, with duel income house holds have a higher income ceiling??? Whats this about? Hey you two make more money so lets give you more opportunity then that single income person! Makes sense…Not.

By: Min-may

Min-may — Thu, 29 Oct 2009 19:10:35 +0000

Parts of the 15k is a good idea. I have been looking into purchasing for a while now, with getting laid-off, injuries/illness and loss of medical, I no longer have any means for a down payment. I don’t believe it should be available for everyone. If your a millionaire you can afford down payments, closing cost, etc. The kinds of houses a millionaire would be looking to purchase is more of a luxury then a practicality. The people who really need this credit are the ones who just want a roof over their heads with enough room for their family. Even if it doesn’t go to 15k, I would just like to see the 8k get extended so the lower guys/gals on the totem pole can find a permanent place to live.

By: Jeff

Jeff — Thu, 22 Oct 2009 19:22:39 +0000

My wife and I purchased our home in April 2009. But,even though I was a first time home buyer,we didn’t qualify for the $8000 because my wife owned a home(we married in 2008)in the previous 3 years.(we figured this was a slap-in-the-face to married couples with the same predictament. But oh,if a couple was fornicating(living together) and the situation was the same,they could have gotten it,just put the house in his name) Anyway,does anyone know if this will be retro-active. We would love to even just get the $8000.

By: Robert

Robert — Wed, 14 Oct 2009 17:21:43 +0000

Great point! Investors are he ones screwing this hole thing up for the rest of us. By letting invesrtors in this deal it’s only making the rich richer.

By: robert

robert — Wed, 14 Oct 2009 17:15:48 +0000

I like the Idea of increasing the credit to 15k but I think it should still be limited to first time home buyers. If people that own homes buy newer bigger homes what are they going to do with heir first home? Will they let it go into foreclosure, which would in a round about way get us right back into the same situation in the housing market. Foreclosures will increase and will in turn make that “move up” buyers new home price deflate. Or will they be able to pay for it until the market swings and they can regain their original investment? If we limit it to first time buyers there will be less homes on the market, which will in turn make the “move up” buyers property value increase. Then allow them to reclaim their original investment and move up.

By: esbateman

esbateman — Tue, 13 Oct 2009 19:06:48 +0000

I agree with byran. pretty disgusting to already have the home of your dreams and still not be satisfied. if this gives some of the rest of us a chance to have a dream, i’m all for it- at any cost.

By: Roseanna

Roseanna — Sun, 11 Oct 2009 17:06:53 +0000

Yes I think this would be a great Tax credit to hepl inprove the sales of homes.

By: mitchell

mitchell — Wed, 30 Sep 2009 07:42:34 +0000

Right now I have been struggling with the credit reporting agencies to fix my credit after numerous flaws have damaged my score. I have been trying to buy a home, but I cant get the score to jump fast enough. The 8,000 tax break is just what i need to afford a home. I understand that some people feel as if the government is giving home buyers free money, but in all honesty i pay taxes, and Ive seen what some big business have done with our money, and they managed to get help. Well, consider this the governments way of helping out the average american for all they have done for their government. If it wasnt for my tax dollars the government wouldnt have the money in the first place. They’ve taken my money and made money off of it, and i appreiciate the fact they are helping americans out in return.
With the tax break i would pay off any and all debt and would be able to afford a house payment. This is a great incentive and would not be able to afford a home if it werent for the 8,000.

By: efrain

efrain — Sun, 27 Sep 2009 18:41:41 +0000

If they expand the credit to everybody, I hope they keep investors in the exception, because investors would not help neither the economy nor the regular home buyer. When an investor buys houses, He will hold them until favorable times to resale, thus causing no progress to the economy and largely slowing the regular home buyer possibilities by causing the supply of homes to shrink an prices to inflate, and don’t forget; we all will have to pay the cost of this credit in the form of taxes (not only the investor)