Norhill Realty Posted November 5, 2009 Share Posted November 5, 2009 As you may have heard, the tax credit for First-time homebuyers was set to expire at the end of this month. This deadline has caused a lot of prospective homebuyers to rush to find a new home in the past few weeks and many will not make it. Also, there has been a lot of concern that the expiration of the First-time Homebuyer credit might put a halt to the recovery currently going on in the new residential construction market. The Senate, in their benevolent wisdom, has passed a bill that will extend and expand the tax credit. In its current form, the bill will extend the $8000 tax credit through April 30th of next year. Also, it will increase the qualifying income levels for couples up to $225,000/year, an almost $55,000 increase. Furthermore, the credit will be expanded to include existing homeowners that have owned their current primary residence for 5 of the previous 8 years. These individuals will be eligible for a tax credit up to $6,500. The bill still needs to work its way through the House of Representatives, and some of the details might change. However, this action is a good step in the right direction for prospective homebuyers. For more information about the Senate Bill, go here. Quote Link to comment Share on other sites More sharing options...
feufoma Posted November 6, 2009 Share Posted November 6, 2009 Furthermore, the credit will be expanded to include existing homeowners that have owned their current primary residence for 5 of the previous 8 years. These individuals will be eligible for a tax credit up to $6,500. For more information about the Senate Bill, go here. So, if a couple makes more than $225k they're out of luck? Not fair... Quote Link to comment Share on other sites More sharing options...
Jeebus Posted November 6, 2009 Share Posted November 6, 2009 Or if you've owned your first home for only 4 years as of this month you're S.O.L. too? Quote Link to comment Share on other sites More sharing options...
GettaClue Posted November 7, 2009 Share Posted November 7, 2009 Or if you've owned your first home for only 4 years as of this month you're S.O.L. too? Yep. And also if you owned your home for 20 years, paid in full, and finally bought another one last month. And even if you skipped the Cash for Clunkers deals (which you really could have used for replacing your 16 and 12 year old vehicles) so that you'd have the cash you needed to comfortably buy the new house. IOW, line up here beside me and we can commiserate. Quote Link to comment Share on other sites More sharing options...
Jeebus Posted November 8, 2009 Share Posted November 8, 2009 I'm so pissed off by all these B.S. deals. I've responsibly purchased a home I could afford and got a fixed rate versus an ARM AND purchased and paid off my two post year 2000 model vehicles. Where in the hell is my reward for being responsible? At least under G.W. I got a check in the mail. Under B.O. I haven't got ANYTHING. Quote Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted November 9, 2009 Share Posted November 9, 2009 Darn, I was hoping for a retroactive $15,000. After all, I deserve free money, right? No, ENTITLED to it... lol Quote Link to comment Share on other sites More sharing options...
RedScare Posted November 9, 2009 Share Posted November 9, 2009 I'm so pissed off by all these B.S. deals. I've responsibly purchased a home I could afford and got a fixed rate versus an ARM AND purchased and paid off my two post year 2000 model vehicles. Where in the hell is my reward for being responsible? At least under G.W. I got a check in the mail. Under B.O. I haven't got ANYTHING. I'm getting $1500 back for those energy efficient doors and windows I just bought. Go buy something. You'll get a check. Hoard your cash, you'll get nothing. Quote Link to comment Share on other sites More sharing options...
Jeebus Posted November 10, 2009 Share Posted November 10, 2009 I'm getting $1500 back for those energy efficient doors and windows I just bought. Go buy something. You'll get a check. Hoard your cash, you'll get nothing.You mean SAVE my cash? Jeez, do you really practice what you preach? Why should I have to spend money on something I don't NEED in order to get a tax credit?I don't remember doing ANYTHING to get my tax-rebate check from G.W., short of what I already did - which was to work, pay taxes, pay my bills, and spend/save responsibly with what was left. Quote Link to comment Share on other sites More sharing options...
crunchtastic Posted November 10, 2009 Share Posted November 10, 2009 You mean SAVE my cash? Good luck with that, what with inflation and the shitty state of current credited interest rates. Other than gambling on the markets, you're better off putting in under a mattress or spending it on cards and hookers. Might as well buy the windows. 1 Quote Link to comment Share on other sites More sharing options...
RedScare Posted November 10, 2009 Share Posted November 10, 2009 You mean SAVE my cash? Jeez, do you really practice what you preach? Why should I have to spend money on something I don't NEED in order to get a tax credit?I don't remember doing ANYTHING to get my tax-rebate check from G.W., short of what I already did - which was to work, pay taxes, pay my bills, and spend/save responsibly with what was left.Well, you've got to remember what these stimuli are attempting to accomplish. The Great Recession caused consumers to stop spending, either because they were frightened, or because their credit cards and home equity loans were cut off. In an economy 70% comprised of consumer spending, the only way to get it back to where it was is to encourage consumers to spend again. Now, I am not saying that it is a good strategy for an individual consumer, or that we can get back to where we were. I'm just saying that this is the purpose of these stimulus packages.The fact is, we cannot get back to where we were without going back to stock bubbles, housing bubbles, or some other type of bubble. But, no American politician can say that. Democrat, Republican or Libertarian, they all would be doing some kind of stimulus to spur consumer spending, lest they be a one-termer. But government spending in a recession means huge deficits due to lower tax revenue, so they're going to get criticized for that too. Fact is, in this political climate, any president during a recession is going to be a one-termer, simply because he or she will be blamed for not doing the impossible, which is end the recession immediately, reverse the job losses, and balance the budget while doing so. I don't know if the people complaining about Obama are too ignorant to know, or if they don't care, but I know for a fact that if McCain were in office, there would be Democrats complaining about the same things. And both would probably lose in 2012.BTW, to answer your other question, I do generally practice what I preach. The doors and windows are going on the garage that I am building, which is spending, not saving, but it is being paid for in cash. No borrowing. Take that for what it's worth. And, I was putting those good windows on regardless. I just got lucky about the tax credit, but I'll take it nonetheless. Quote Link to comment Share on other sites More sharing options...
crunchtastic Posted November 10, 2009 Share Posted November 10, 2009 I'm in favor of no more bubbles. Wages are trending down. Permanent underployment will be one of the new normals=price bubbles bad. 1 Quote Link to comment Share on other sites More sharing options...
RedScare Posted November 10, 2009 Share Posted November 10, 2009 I'm in favor of no more bubbles. Wages are trending down. Permanent underployment will be one of the new normals=price bubbles bad.Oh, you haven't heard? Super low interest rates are already creating a new bubble in stocks and commodities. Quote Link to comment Share on other sites More sharing options...
crunchtastic Posted November 10, 2009 Share Posted November 10, 2009 Oh, you haven't heard? Super low interest rates are already creating a new bubble in stocks and commodities.Why yes I have heard! That's the one I'm not a big enough trader to profit from!Pardon my grammar. Sometimes my lack of outsized annualized returns affects my communication skills. Quote Link to comment Share on other sites More sharing options...
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