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Not a chance in hell.
- broker_GRI
- Contributions:3454
Nope
- BMFPitt
- Contributions:1207
I'd buy an $500 house in Detroit in December, and claim to live there. I'd use the tax credit to buy a "second" house when we hit bottom.
Other than that, no. It would probably make me less likely to buy because the subprime morons would try to jump back into th market and I'd want to avoid that scene.
- MRice20HD
- Contributions:328
Considering that I am married and have three kids, I already get the majority of my withholdings back. So, no.
- digiphaze
- Contributions:254
Only thing that will make me buy.. Is reasonable prices.. And thus far in my area, houses are still being listed 100% OVER 04, 05' prices..
So until people stop being absurd.. I'm holding onto my money.
- 2 Big 2 Fail
- Contributions:0
No. Maybe $80,000 will get people to buy.
"Only thing that will make me buy.. Is reasonable prices.. And thus far in my area, houses are still being listed 100% OVER 04, 05' prices.."
No they aren't. According to the Case Shiller index for Phoenix, prices are down 25%.
- chuckdog24
- Contributions:1520
Put the $8k into CDs & wait out the "correction".
Granted the CD's won't keep up with real inflation, but it sure beats the alternatives!
It would mean something to someone to get that credit if they still believed the house would appreciate so rapidly that paying back the credit would be easy peasy! Perhaps if I were buying a home under $50K........many people won't want to go in on a business deal like that with the gov't.
- 2 Big 2 Fail
- Contributions:0
There are plenty of houses for under $50,000 in Camden County, New Jersey. In northern NJ, $35,000 gets you an indoor parking spot at a Toll Brothers condo building.
- chuckdog24
- Contributions:1520
From what I've read, prices are falling fast in Cliffside Park (Northern NJ).
It will be interesting to see how Congress attempts to "fix" the housing sector. Governmental meddling in the free market system rarely works. Beyond that, it's so un-American.
You can park a small camper in that parking spot Alps, then re-fi and add on an addition :-)
- sunshineday
- Contributions:647
Nope.
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
$8000, what is $8000. I have credit cards worth more than that. How much is that really going to bring your mortgage down? Oh, um I don't know, like $3.00? So worth it!
- gstracer05
- Contributions:37
Does everyone qualify for this tax credit? Or do you get screwed as usual if you have a high income? I'm single and looking to a buy a home. Uncle sam already shafts me on taxes and takes a good 33% of my income, so $4000 would be a nice (nothing to write home about) to help offset closing costs. If i was not looking to buy already, $4000 is a drop in the bucket when it comes to purchasing a home in Southern California.
- nycbpc
- Contributions:189
No, because the sellers would just raise their asking price by 8K.
- digiphaze
- Contributions:254
I'm not in Phoenix Alpine. I'm in Flagstaff, AZ. People here are dilusional. Or I should say more so.
- pcmodem
- Contributions:116
I don't know many tax-savy first time home buyers. Most of them go to H+R Block for taxes, or their parents accountant does theres as an e-file with no special trimming. They aren't prepared to understand what that $8000 really is, nor will the bulk of them file in such a way as to take advantage of it.
- BrightGreen
- Contributions:20
OK there is a small catch to the new proposed bill.
Income restriction of $75,000 for singles, $150,000 for married joint filers.
Sorry Southern CA you get a raw deal again.
- BtrL8ThnNvr
- Contributions:3871
Why would you take the credit if you have to pay it back. F that! My answer is no.
- yourapostasy
- Contributions:32
This first time home buyer? No. The others have already outlined some reasons why this is such an incredibly bad deal for a first-time home buyer.
This is the wrong crowd to ask this question, IMO. Most Zillow discussion board buyers are savvy about personal finances, can read an amortization table, have the discipline to stick to a budget and savings plan, can calculate PITI and maintenance (i.e., total cost of ownership), and know the difference between nominal and inflation-adjusted asset prices. A lot of us simply won't buy until the price is right; for me, that is the historical mean as demonstrated by Shiller's data, plus adjusting for prevailing wages (which are trending down in the future with increasing job losses).
The people you really should survey are the ones who do *not* understand these issues and topics, and can bring enough cash to the table to close the deal. Considering the trajectory of your industry and tightening lending standards, I believe this population is dwindling. Perhaps a more pertinent question you might want to ask is "would an income-tested, $8K tax credit paid back over 15 years, convince enough first time home buyers to buy to keep home prices from declining or even goose home prices?" If the bill passes, you *will* get suckers foolish and/or greedy enough to take the bait. The real question for your industry is, will there be enough suckers to put off the reckoning of the past ten years of unsustainable excesses.
This is the wrong crowd to ask this question, IMO. Most Zillow discussion board buyers are savvy about personal finances, can read an amortization table, have the discipline to stick to a budget and savings plan, can calculate PITI and maintenance (i.e., total cost of ownership), and know the difference between nominal and inflation-adjusted asset prices. A lot of us simply won't buy until the price is right; for me, that is the historical mean as demonstrated by Shiller's data, plus adjusting for prevailing wages (which are trending down in the future with increasing job losses).
The people you really should survey are the ones who do *not* understand these issues and topics, and can bring enough cash to the table to close the deal. Considering the trajectory of your industry and tightening lending standards, I believe this population is dwindling. Perhaps a more pertinent question you might want to ask is "would an income-tested, $8K tax credit paid back over 15 years, convince enough first time home buyers to buy to keep home prices from declining or even goose home prices?" If the bill passes, you *will* get suckers foolish and/or greedy enough to take the bait. The real question for your industry is, will there be enough suckers to put off the reckoning of the past ten years of unsustainable excesses.
- yourapostasy
- Contributions:32
Coming up with cash is not the problem for me. We already have the 20% down, plus inspection costs, plus closing costs, plus move-in costs, plus property tax escrow, plus first year maintenance costs (so we are not saving for maintenance in arrears). So even an $8K outright grant is not going to sway a buy decision. The prices are simply too high for what we get, especially taking into consideration the anticipated economic conditions going forward.
In any case, house prices in metro areas are so high that fiscally responsible buyer households are most likely going to have incomes higher than the cutoff that the bill proposes. So the very buyers who are most likely to qualify for mortgages at the moment are the least likely to be eligible at all for the bill's benefits.
In any case, house prices in metro areas are so high that fiscally responsible buyer households are most likely going to have incomes higher than the cutoff that the bill proposes. So the very buyers who are most likely to qualify for mortgages at the moment are the least likely to be eligible at all for the bill's benefits.
- digiphaze
- Contributions:254
Saving up 20% as a new home buyer when median home prices are 340K in my area means.. No purchase no way no how. My 3x to 3.5x price puts me at 260K home. Thats still well over 40K down. I've no credit debt, no vehicle payments, only a 260/mo student loan payment and split rent with a roommate and It would still take a number of years to save up 40K for a downpayment. Of course all the money I put away is evaporating faster than I can save it thanks to inflation.
So the deal is, for new home buyers to really truely purchase a house in a fiscally responsible mannor, 1 of 2 things has to happen.
1. Rich inlaws give you the down payment.
2. Houses have to come down A LOT.
- longlifehoward
- Contributions:1
is the $8000 RETROactive, does any one know,
and nis the cut off date, expiration date on offer.
$8K? ROFL. And lost about $200k in 2 years?
Here's your answer: HELL NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
- bursts your bubble
- Contributions:78
No way in Hell 8 grand could make me drink that kool aid!
- FatNoah
- Contributions:253
The $8000 is NOT retroactive, at least according to the version I read a couple weeks ago. My wife and I just closed on our first house on the 8th. If we were in the same situation now, I would wait for the bill to pass or be signed before closing so I could claim the tax credit. I wonder if the impending bill will cause a brief slowdown in sales since first time buyers may want to wait another month to be sure to get the credit.
- Brian G. Allen
- Contributions:334
Do you all know what a credit is? It is a 100% percent reduction of your taxable income after deductions, getting a credit is huge and $8,000 for most of you will pay your taxes for the year it is equalivent of earning 29K tax free for singles and $58k tax free for married, most would probably carry excessive deductions to the following year add this credit to the mortgage deductions already allowed and for one year a W-2 employee would work tax free. Washington D.C was literally revitalize when they instituted their $5,000 tax credit. "Don't look a gift horse in the mouth"
well, that should take care of about the next three months worth of price drops in Phoenix/las vegas/florida, and maybe one month of the price fall in california!
Plus, we need a first time buyer who A. has a downpayment, B. good credit, C. stable job... D. has not realized that prices are dropping, and he/she would be better off waiting more. Those are kind of getting in short supply these days.
- farfig13
- Contributions:49
So I guess all of you that are not buying right now are wasting your money on rent ? Then since you can't deduct your interest on homes that you don't own are giving away more money to the government come tax filing time ?
Would $8,000 make first time home buyers buy now?
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- 5.0/5.0
- (7 reviews)
Contributions:20If you got $8,000 for a tax credit, would that make you want to buy a home today? That's what congress is proposing. From the new law that's going through congress today. They are proposing a better way for you first time home buyers to get up to an $8,000 tax credit for buying your first home. It's up to $8,000 for couples, $4,000 for individuals.
But is that enough for first time home buyers to enter the market?
Those who benefit would have to pay back the credit over an extended period (two reports I read show up to 15 years). Or if you sell the property, convert it to a rental or second home - you would need to repay the credit. Since it was a tax credit it would be easy to track for the IRS because it is on your tax returns. But would this really get first time home buyers back into the market?
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