Not only is the homebuyer tax credit extended until April 30, 2010 but there is also an expansion to include the following: increase income cap and number of homeownership years with a stipulation.
"More than 1.4 million Americans have claimed the homebuyer credit at a cost so far of about $10 billion, according to the Treasury Department. The legislation approved today would allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.
"It would allow homebuyers who have owned their residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible...
"Extending the credit to those who already own homes won’t reduce the excess inventory of housing blamed for the slump because “every buyer taking advantage of the move-up credit would necessarily be a seller,” Goldman Sachs said. It said the plan may increase housing prices by 1 percent because “sellers are likely to incorporate a fraction of the credit amount in their sale prices.” See Full Article by Brian Faler with Bloomberg.com
I like to say that this extension is a good change, however, it has very serious and dire consequences, at the end of the tunnel, whether we choose to acknowledge it or not. Who will pay for the cost of the extension and expansion? I'm all for selling more houses because that is my business but at what cost and to what end?
"We", seemingly the majority, claim that we are fed up with the avalanche of mortgage fraud, money sucking CEOs, and dishonest political dealings that has entrenched us in an insurmountable deficient and yet we the people are not up in arms about the homebuyer tax credit extension and expansion. Don't mind the extension, what about the expansion?
I think that most of us feel a disconnect with events far away or events that we do not feel a part of, to some respect, and don't fully comprehend their tidal affect until it hits our shore, i.e. our pocket book, our retirement account, more taxes, increased food prices. Should we not act now to secure our future by putting aside our desire for immediate gratifications by investing in our nation's financial future, so we and our future generations may reap of its benefits and rewards, later?
"More than 1.4 million Americans have claimed the homebuyer credit at a cost so far of about $10 billion, according to the Treasury Department. The legislation approved today would allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.
"It would allow homebuyers who have owned their residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible...
"Extending the credit to those who already own homes won’t reduce the excess inventory of housing blamed for the slump because “every buyer taking advantage of the move-up credit would necessarily be a seller,” Goldman Sachs said. It said the plan may increase housing prices by 1 percent because “sellers are likely to incorporate a fraction of the credit amount in their sale prices.” See Full Article by Brian Faler with Bloomberg.com
I like to say that this extension is a good change, however, it has very serious and dire consequences, at the end of the tunnel, whether we choose to acknowledge it or not. Who will pay for the cost of the extension and expansion? I'm all for selling more houses because that is my business but at what cost and to what end?
"We", seemingly the majority, claim that we are fed up with the avalanche of mortgage fraud, money sucking CEOs, and dishonest political dealings that has entrenched us in an insurmountable deficient and yet we the people are not up in arms about the homebuyer tax credit extension and expansion. Don't mind the extension, what about the expansion?
I think that most of us feel a disconnect with events far away or events that we do not feel a part of, to some respect, and don't fully comprehend their tidal affect until it hits our shore, i.e. our pocket book, our retirement account, more taxes, increased food prices. Should we not act now to secure our future by putting aside our desire for immediate gratifications by investing in our nation's financial future, so we and our future generations may reap of its benefits and rewards, later?
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