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Should the first time home buyer's tax credit be extended?2

Discussion in 'Political Discussion' started by PatriotsReign, Mar 6, 2010.

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Should the first time home buyer's tax credit be extended?

  1. No, I think it should expire as scheduled.

    7 vote(s)
    77.8%
  2. Yes, for another 6 months

    0 vote(s)
    0.0%
  3. Yes, until the end of the year

    1 vote(s)
    11.1%
  4. Yes, indefinately

    1 vote(s)
    11.1%
  1. PatriotsReign

    PatriotsReign On the Roster

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    The current "expanded" version of the first time home buyers tax credit of $8,000 is due to expire at the end of April. Do you think it should be extended further? if so, how long do you think it should last?

    I am going to be a first time home buyer this year. I've been in the market for almost a year. It is my opinion that this credit has definately kept home values stable. and that is prolly the reason it was created...so I think we can say it's been a success.

    But...I don't think it's good to keep home values artificially high and even though I'm eligible to get the $8k, I don't like it. I'd rather see home values bottom out to their true value.

    The reality is, unemployment is going to be high for a long time (3-5 years), so true demand won't increase significantly. What this policy is doing is bringing demand forward and it has to end sometime.

    Why not now?
    Last edited: Mar 6, 2010
  2. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    I think it should, but I have a selfish reason, I'm selling and I think it will help my house sell faster.......:D
  3. PatriotsReign

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    That's ok Harry...it's free country last I looked. Good luck selling your house!

    BTW...is your house one that first time home buyers can afford? Typically, first homes are in the low range...maybe up to $350K max. Most are $300K or less.
  4. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    No, thats going to be a problem, I'm asking $700,000 so I will probably kick the bucket before it sells unless somebody comes along that can afford it, the house itself is just a regular ranch but I also have a 200 ft salt water beach in a private cove and a small beach house so that is what I am counting on to sell it, some Rich Democrat Lawyer can use it for a summer place and skinny dip with his girl friends...................:rocker:
  5. PatriotsReign

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    It's amazing what you were able to acquire on the money that you made. I'm happy for you...not envious at all. But I do think it's sad that an average or slightly above average income earning can't possibly acquire what your generation could.

    I'd have to make 2-3 times the income I make to afford your home. And I make a fair amount more than the average family income for Massachusetts. What the hell happened to the middle class my man?

  6. DarrylS

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    Could this be a self serving thread following up on your intent to buy a house and take advantage of all of the freebies associated with buying a new house and the insulations welfare checks...

    Find it ironical that there are posters who continually whine about how the economy is in the shytter, but want to continue sucking the big breast of government handouts.. does not make much sense.

    Would prefer that we give people a "hand up", rather than just another "hand out"... not sure what that means, but it makes me feel all warm and fuzzy
    Last edited: Mar 7, 2010
  7. PatriotsReign

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    Now I'm beginning to wonder if you really are an intelligent man. Do you have any reading comprehension or do you just like to take the opposite stance when commenting in a fellow member's thread that you don't care for?

    Again, for the comprehension challenged Darryl....

    Good Lord, I LOVE the fact that I really get on your nerves!! :D :rocker:
    Last edited: Mar 7, 2010
  8. Mrs.PatsFanInVa

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    #24 Jersey

    You'd probably feel differently if you were selling a home rather than buying one.

    Please don't forget that some home buyer's have lost much of what once was the "true value" of their homes. It's really hard to tell someone who paid $300,000 fomr their home in in 2007 that it's "true value" is only $153,000 today. In fact, I really don't think they're going to believe you.

    That being said, I'm ok with the rebate being offered. I recently sold my mother's house in Illinois. It sold quickly and it sold without my having to invest a lot of time and money in trying to sell it and I didn't have to lower my asking price a penny. (I did set the price based on a current appraisal because I didn't want to hassle with it being on the market for a long time but I didn't go under the appraised value at all - which the real estate agent told me I should do if I wanted it to go quickly.)

    The buyer was a "first time" buyer and he was taking advantage of the government offer and I really think that had it not been available I'd still be paying taxes, insurance and utility bills on a vacant home.

    He was happy, I was happy, the realtors were happy, the banks were happy....what's wrong with any of that?
  9. PatriotsReign

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    If someone purchased a home in 2005, they didn't get it at it's true value. They purchased it at the peak of "inflated values" due to the banks lax lending standards which were supported by Bush's administration.

    The problem with the current FTHB tax credit is that we are preventing what recessions are supposed to do. But allow me to back-track for a second and remind everyone that "Recessions are GOOD for our economy" because they restore balance and confidence.

    By preventing various major sectors of our economy from finding that balance, we are fighting against the good things that recession do. Which is why confidence remains at historic lows. The real estate market is a tough one because there are sellers and buyers. But when a person purchases real estate, they are owed nothing. They aren't guaranteed their home will increase in value. In fact, it may decrease...that is the risk they assume and the risk I too will assume.

    The bottom line is that this program MUST end at some point. We can't subsidize home owners and buyers indefinately and eventually, real estate WILL find it's bottom.

    All we are doing is setting up the perfect scenario for another real estate bust because this program is bringing demand forward. When it ends, sales will decline and prices will drop once again. There are still millions of home owners being foreclosed upon...that is the reality of our foreseeable future.

  10. wistahpatsfan

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    #75 Jersey

    GREAT IDEA!

    Lets repair the economy by perpetuating the myth that an economy built on us selling our houses to each other is healthy! AWESOME CONCEPT!

    Let's just keep whistling past the graveyard!
  11. PatriotsReign

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    YES!! Let's drive up the prices of our homes once again by buying each other's homes!! Good one!

    We may not agree on everything Wistah...but we see eye-to-eye on this one!

    People forget or just don't realize that the ONLY THING that "should" determine the price/value of a home is the average income of the population that lives within a particular radius of that property. Home values can only be set by the household income of any given area.

    If the average HH income of an area is $55K, then a starter home can't be valued at $325K...it's really pretty simple....OH...unless we SUBSIDIZE it!! ;)

    Last edited: Mar 7, 2010
  12. Harry Boy

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    No, I didn't buy this house, it has been in my family for over 150 yrs I am the last, my Great Grandparents built it back in the 1800's, it was passed down to me about 15 yrs ago, I am getting to old for it, I will probably just keep it and pass it on down to my kids, I have a place to go when I can't ride my horse anymore.....
  13. DarrylS

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    Some might say that this is a followup to the Nihilistic Congress thread, i.e. take advantage of or try to abort a proceeding, and then say how broken our Government is..

    Some people would follow their convictions, and not take it.. but that is ethics, not situational ethics..
  14. Patsfanin Philly

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    #95 Jersey

    If someone bought their home back in say 1995, they've seen it rise about 100% or more depending on the market, even after the downturn. The problem (as noted by RP in his post) is that prices got overinflated in the late 2000's and went up to a relative value of 3.0 ,compared to 1995 value of 1.0. After the bubble burst, it is now 2.0 (down 50% from the high). Whether you lost a bundle ( if you bought in 2005) or kept pace with inflation or even beat it (bought in 19950, depends on when you bought.
  15. BelichickFan

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    #24 Jersey

    Nope. We already prop up house values by the inexplicable tax deduction on mortgages. Why we should prop them up further this way, I have no idea.
    Last edited: Mar 7, 2010
  16. Mrs.PatsFanInVa

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    #24 Jersey

    Much of that depends on where you bought it. My mom's house is in a Southern Chicago suburb where most of the industry was steel. They bought it in 1987 for $1,000.00 less than I sold it for last month - and that's after probably $30,000.00 worth of improvement over the years.

    Hardly a 100% increase. My sister lives in the same area and bought her house in 1985 - it appraises out at less than they paid for it.

    God help those poor people who bought the same type houses in the same neighborhood back in 2005, however.....we had my mom's house appraised back then in an attempt to get her out of the house before she couldn't care for it anymore and they were selling for $150,000.00 more.
  17. Patsfanin Philly

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    #95 Jersey


    That's why I said it depends on the market. In Nevada, California, Miami and Phoenix, the problem was no doc loans and balloon payments that came due after the bubble burst and mortgages were under water, with more owed than the home was worth. In other areas, like Detroit,Youngstown and manufacturing areas, it's a depressed economy that killed the housing market with a glut of homes for sale that pushed down prices. In many other areas, my hypothesis ( prices slowly increased and the decrease hasn't been as steep)follows the model.
    Last edited: Mar 7, 2010
  18. PatriotsReign

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    Since I put more $$ into the tax pool than most, I'd not only be stupid not to take it, it would be against the very principles I trying to get across here.

    Any home I purchase in my market (southeastern MA) is still over-valued. I'd prefer to pay less and not get the rebate. But if I'm FORECE to over-pay, then accepting the rebate still leaves me paying a higher mortgage than the $8k rebate.

    Good thing you're not a good judge of character mon frere.

  19. BelichickFan

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    #24 Jersey

    Darryl is what Darryl is. A self righteous, pompous (pick your word). As a taxpayer you are PAYING into this program, you would have to be a total moron to not participate in it if you are eligible. People like Darryl want the rest of us to pay more taxes but you can bet your bottom dollar that he isn't sending in extra.
  20. PatriotsReign

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    Maybe someday we'll all learn that only an idiot believes artificially inflating the price of anything is a good thing.

    Last edited: Mar 8, 2010

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