"Oct. 28 (Bloomberg) -- Senate Democrats plan to extend an $8,000 tax credit for first-time homebuyers and allow benefits for some people who already own residences, a spokeswoman for Majority Leader Harry Reid said.
The proposal would let homeowners qualify for a $6,500 credit if they have lived in their residence for five years, said Reid aide Regan Lachapelle. . . .
The homebuyers’ credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law, Lachapelle said."
Wednesday, October 28, 2009
And So It Continues. . .
Posted by Harriet at 6:42 PM
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11 comments:
extending it to second homes is just stupid.
It's beyond stupid. We've been discussing what the impact will be on the market. Rather than pushing demand and re-inflating the bubble, they'll be pushing supply. Basically it's just NAR trying to generate sales volume to make their NARbots rich. Disgusting.
Something that just occurred to me... so this stupid bribe is now being offered to move-up buyers, but only those that have owned for 5+ years. While that seems sort of inconsequential given that anybody that's bought in a bubble market in the last five years is either underwater or in foreclosure at this point anyway, it does discriminate against those who bought with a hefty down payment. That is, the only ones that bought in the past five years that could sell now. Why would they do this? It makes no sense, unless they're anticipating the continued flux of people scamming this b.s. bribe, including the buy-and-bail crowd that bought during the bubble. Still, the stupidity of Congress seems to reach new accolades by the day.
I'm hoping rents go lower because of the renters taking the plunge.
Well they've now made the income limits higher for everyone rather than just for step-up buyers, so this means the "frenzy" can disrupt higher priced homes than it did before. Great....
It's just bizarre and I really hope it dies. If not in the Senate, then in reconcilliation.
Because the entire concept of shoving all potential sellers next year into the first quarter is the stupidest thing I've ever heard of.
I know it could mean lots more selection for me, but it's just plain stupid.
Hi, Our lease for a townhouse near Dunn Loring is up at the end of Dec. The rent is $2,400 and will go up to $2,700 if we stay for a year or go month to month. We wouldn't mind staying in the rental for another year but think that townhouse prices & interest rates are good now. But if prices for townhouses and rents are going down, we would like to wait another year so we could save more and buy a better place. Any suggestions on how to get the landlord to keep our rent at $2,400 after Dec if rents are going down.
waiting_too,
Look for comparable rentals on craiglist and in the MLS (one of Harriet's links on the front page lets you search for rentals). Be prepared to move into a new rental if need be, and bring the comps to your LL. Getting a new tenant in the winter is tough.
However it may be the case that your current landlords are not covering their mortgage with your rent and are trying to get you to make up more of the difference. In this case, keeping your rent low may not seem like an option to them, and moving may be your best option if your home search makes you decide against buying soon. You can always go month to month for a few months and then move into a new rental when you find a really good rental.
How was Japonica and stuff yesterday?
Next year the Fed is supposed to stop propping up the mortgage market as much as they have been in the past. This along with all the money printing that's happened in the last year is going to mean higher interest rates. This will mean that home prices may indeed fall during this higher interest rate period.
Even if home prices do fall, the monthly payments will not since the higher interest rate will raise your payment. This can be advantageous if you plan on staying in the house for a long time. Then you can wait out the market cycle (it could be 10 year easily) and refinance when rates go down again.
Of course, this is all guess work and no one can predict the future. Ultimately, I wouldn't rush into a home purchase unless you know you're ready. Falling home prices shouldn't make a huge difference unless you plan on selling soon after buying or unless they fall so much that the principle you pay into your loan takes 15 years to break even with the new home value. If that's the case, then you're stuck in your house for the long run.
If you're ready to buy but are worried, then maybe you should wait another year or two for everything to finish settling out. Otherwise, you might regret your actions.
How many bullshit articles have I read about the rug being pulled out from under the market after the $8k ends November 30th 2009? Now, I suppose they'll update the articles and insert April 30th, 2010.
Good luck trying to wait out the USG supporting the housing market. Talk about banging your head against the wall.
Robert, probably the same number of times our bullshit congress has said that we need it to prop up the housing market. The effects of it are undeniable.
This is the sort of stupidity that really makes me lose faith in our government.
Does anyone without a lobbying group really have any influence anymore?
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