Yeah. I’m Still Opposed to Extending the $8,000 Tax Credit
You might have seen my previous post on this topic of the potential of the $8,000 tax credit.
The National Association of Realtors wants Congress to extend and expand the $8,000 tax credit. Now it will not only be for first time home buyers, but everybody.
As an agent, I would continue to do everything I can to get my clients this credit if it remains in effect.
However, I believe that the cost to the country (over $200 billion) is not necessary. Further, I believe that this could encourage more unrealistic upward pressure on home prices –something that got us in to this mess.
I think the expectation is that the housing market will drive the economy. That is questionable when the commercial real estate market is tanking. I believe that there will be an imbalance as people obligate themselves to new homes while unemployment might continue to rise and the commercial real estate market might result in more lay-offs.
The result could be many more people buying houses that they cannot afford.
This recovery needs to be driven, not by real estate, but by investment in infrastructure, energy and technology.
For your information, here is the National Association of Realtors Call to Action. I have called and told the Senators and Rep. Mitchell that I do not want to see the extension.
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Dear Arizona REALTOR:
The U.S. Senate will be voting on an amendment this week that would extend the first-time homebuyer tax credit.
NAR is supporting the Dodd-Lieberman-Isakson amendment because this amendment will:
–Provide the $8,000 tax credit to any buyer (not just first time)
–Set income limits at $150,000/$300,000 for single/married buyers
–Make the credit available until June 30, 2010
NAR’s Legislative talking points on the Dodd-Lieberman-Isakson Amendment $8,000 Homebuyer Tax Credit also are attached for your use.
NAR is asking for your help in generating phone calls from Arizona REALTORS to the offices of Senator McCain and Senator Kyl in Washington, DC.
Please request to speak to each Senator’s Tax Legislative Assistant and ask them to support the Dodd-Lieberman-Isakson amendment. We need to generate as many calls as quickly as possible. Below are the phone numbers for our Senators.
Senator McCain: 202-224-2235
Senator Kyl: 202-224-4521
Thank you for your prompt response on this important issue!
Ken, that’s a thoughtful and reasonable view on the matter. It’s nice, and sadly too rare, to see people taking positions based on reason and what is right for the most people rather than starting from self-interest and then finding ways to justify it.
You make some excellent points. I purchased my first home in summer of 2008 and was given the 7500.00 tax “loan” during the Bush administration. I am very very lucky that i was smart enough to purchase a home well within my budget because months later I was forced to take a job that paid MUCH less. But that was me being a smart buyer, I could see where others feel forced to get in a little more over their heads, especially because of the low prices. It almost reminds me of two very close friends who bought in summer and winter of 2006, they thought if they didn’t buy then, they would never be able to purchase a home. Their homes are underwater and now they are trying to pay of the ARM part of their 80/20 loan… this 8000.00 and the very low prices creates a buzz similar to that and some of these buyers might not be completely ready especially in this economy.