« Want a Great Show?... | Main | Tips for Staying... »
 

Entry bubble Expanding the Home Buyer Tax Credit

By: Jess | October 15, 2009 | Category: Home and Family

House soldTwo of my friends bought their first house this year and are moving in this weekend. They get married this spring, but they wanted to take advantage of the $8,000 first time home buyer tax credit, which meant they had to buy the house before Dec. 1, 2009.

However, now there is a debate in Congress on whether the tax credit should be expanded or continued next year.

Some of the potential expansions include increasing the amount of the credit from $8,000 to $15,000, making the credit available for all of 2010 and opening the tax credit to all home buyers who meet the income requirements (currently $75,000 for those filing taxes separately and $150,000 for those filing jointly.)

Those who support the idea expanding the tax credit believe the credit will help cut down on the amount of foreclosures and prevent the housing market from falling farther.

Those who are in favor of letting the credit expire at the end of this year worry that expanding the credit would inflate house prices temporarily causing a severe drop off when the credit eventually does expire. They also worry that eventually the credit will have to be paid for through higher taxes.

So where do you stand on this issue? Are you in favor of expanding the credit or letting it expire after this year?

| Post a Comment | View Comments [9] | envelope E-mail This Entry | Tags: home_buyer   jess   tax_credit  

Comments (9):

blue comment bubble Posted by Karen on October 15, 2009 at 11:30 AM EDT

I want it to be expanded to include everyone who wants to buy a house. Meaning, I want to sell my home, and buy something smaller and cheaper. So I think I should be given a tax credit also.

I hope this happens, since I want to put my home up for sale in May of 2010.

Comment Permalink | Post a New Comment

blue comment bubble Posted by Kristine on October 15, 2009 at 12:51 PM EDT

As a buyer who has yet to find the right house, I am all for this. I'd hate to settle on something in the next couple weeks just to get the tax credit. Even if the amount stayed the same, it would be nicer to have a little more time to find the right fit.

Comment Permalink | Post a New Comment

blue comment bubble Posted by Leigh on October 15, 2009 at 08:38 PM EDT

I too am looking for a home and having trouble finding one I can afford. It would be great if it was extended to allow additional time to find the right home.

It would also be great if persons wishing to purchase a home to live in rather than just for an investment were given priority on bidding on a HUD home or foreclosure property. Seems we are always outbid by someone who has cash.

Comment Permalink | Post a New Comment

blue comment bubble Posted by Bryce Hardy on October 18, 2009 at 04:26 PM EDT

I don't support the idea of the government artificially propping up house prices or artificially subsidizing mortgage lending. House prices may have come down slightly from their astronomical highs, but they are still too high for most people. In this case I support letting the prices fall to their natural and sustainable levels.

Comment Permalink | Post a New Comment

blue comment bubble Posted by Bad policy on October 21, 2009 at 08:56 AM EDT

it is bad fiscal policy to subsidize the purchaseof a home. people should buy a home because they can and want to. I understand that the currnt recession started in the real estate market (enhanced by bad policy which promoted predatory lending to people with bad credit). Generally speaking the government screws up anything it touches. Too many cooks spoil the stew. Government agencies have too many people with conflicting priorities and interests. I should know, i work for one.

There is no long term gain for the government, or the people it purports to represent by extending this past stabilization of the market.

Comment Permalink | Post a New Comment

blue comment bubble Posted by Erica on October 26, 2009 at 03:35 PM EDT

"They also worry that eventually the credit will have to be paid for through higher taxes." Huh? Of course the credit will have to be paid for....through higher taxes by somebody else, or by these same folks in later years. If people are paying less in taxes because of this, that revenue has to be made up somewhere else. Simple math.

Nevertheless, a credit may be a nice way to stir up and thus boost the housing market. We could use that. But that's it. Anyone who can't afford a house payment and is destined for foreclosure before the credit will be in that position eventually after the credit. It does nothing to change the monthly mortgage. The government has to stop making lenders make bad loans. More simple math.


Comment Permalink | Post a New Comment

blue comment bubble Posted by Daniell Law on November 17, 2009 at 09:06 AM EST

I dont know anyone who has recieved there $8,000.00 FHB credit.. I bought my home in March and the IRS keeps telling mr longer and longer times.. Alot of poeple are hoping to get there money back but it almost seems like a scam from the U.S govermment to get people to spend.. I will be postin blogs about the scam on all websites.. Dont buy a house.. Its a scam ur house will forclose before you get that money.. It a well marketed scam..

Comment Permalink | Post a New Comment

blue comment bubble Posted by Daniell Law on November 17, 2009 at 09:09 AM EST

The government is on an alltime sick scam.. Dont buy a home the first time homebuyers tax credit is a lie.. I dont know antone who hs recieved there money for buying the house.. I do know two families who are losing there homes do to the First time homebuyers tax scam.. Dont buy a house

Comment Permalink | Post a New Comment

blue comment bubble Posted by Daniell LAW on November 17, 2009 at 09:10 AM EST

I hope this aint a sweep it under the rug republican site.. lol

Comment Permalink | Post a New Comment