First-Time Home Buyer Tax Credit Expanded to $15,000?

[Maxwell76]

Homebuyer Tax Credit May Not Be Going Away So Soon


If they raise it to $15k that would be enough to convince a lot of people to buy. That would be too good to pass up. They need to move quickly though or they may risk stalling the housing recovery as perspective buyers may pull back and wait for a possible higher increase.

[project15]

Not gonna happen. There was talk of this exact same plan right before the $8k credit was passed. This is just a real estate agent's dream.

[cptacek]

Why do you say "not gonna happen"?

[Snodog]

I agree this most likely won't happen. If I understand correctly its just one guy in congress who used to be a real estate agent who wants to do this.

IMO If they do anything they will extend the current $8000 break for 1st time buyers which seems to be working. Giving it just to 1st time buyers gives them the most bang for their buck.

[Ima saver]

I think they should extend it to anyone buying a new home.

[southerndoc]

I know Senator Isakson (who is re-introducing the bill). This will be the third time it's been introduced, and he doesn't seem confident it will pass this time either. Nonetheless, at least he's trying. A $15k tax credit with no income limits will definitely start the movement of higher-end homes.

[momof1in150]

As a REALTOR I have seen the impact of the $8000 credit on the market in RI. The problem is that only houses under $350K here are selling. That is the first time home buyer market here. Nothing over $500K is selling and that is a big part of our market.

I don't agree that is should be $15K and I am not sure I even think we should do anything at this point. I am concerned about how we are going to pay back this program in the future. We are going down a slippery slope and I think that these credits are a bandaid fix.

[Goldy1]

ok um can I get a credit toward my principle for not upgrading my home to one I couldn't afford and being fiscally responsible and not taking out any home equity even though I had a line (I always wanted to go to Hawaii)? I have been here since per 2000 and live in less house than we could afford for years.

[disneysteve]

ok um can I get a credit toward my principle for not upgrading my home to one I couldn't afford and being fiscally responsible and not taking out any home equity even though I had a line (I always wanted to go to Hawaii)? I have been here since per 2000 and live in less house than we could afford for years.

I agree. Why must the government be so intent on getting people to spend money. Isn't that what caused so much of the economic trouble to begin with - people spending money they didn't have and couldn't afford to buy things they didn't need?

[cptacek]

I agree with Goldy1 and DisneySteve...but if the program passed, we'll look at taking advantage of it.

[disneysteve]

Isn't the current $8,000 not really a tax credit anyway in that it needs to be repaid? I thought it was just a 0% loan.

This is as bad or worse than cash for clunkers, worse because it involves a far more expensive purchase than a car.

[Goldy1]

It's like someone is sitting on a cloud with a gazillion dollars thinking of new ways to hand it out to get people to buy things and not learn anything.

[momof1in150]

Isn't the current $8,000 not really a tax credit anyway in that it needs to be repaid? I thought it was just a 0% loan.

This is as bad or worse than cash for clunkers, worse because it involves a far more expensive purchase than a car.

It changed at the beginning of 2009 and became a $8000 tax credit instead of the $7500 loan.

[disneysteve]

It changed at the beginning of 2009 and became a $8000 tax credit instead of the $7500 loan.

I didn't realize that. That's even worse. At least the other money had to be repaid.

[southerndoc]

I agree. Why must the government be so intent on getting people to spend money. Isn't that what caused so much of the economic trouble to begin with - people spending money they didn't have and couldn't afford to buy things they didn't need?

Because there are plenty of people making >$200k/yr who would buy homes they can afford but are waiting for the tax credit so they can reduce their taxes.

There are also people making $350k/yr that want to buy a small house but would like to get the tax credit like those making less than $75k/yr.

The people making above the income exclusion for the tax credit are less likely to default on the loans.