http://bloggingrealestateinnova.com/rants/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/?utm_source=rss&utm_medium=rss&utm_campaign=the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit Everything You Wanted To Know About Real Estate Fri, 09 Jul 2010 23:16:25 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://bloggingrealestateinnova.com/rants/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/comment-page-1/#comment-12 Doug Francis Wed, 28 Oct 2009 14:33:58 +0000 http://bloggingrealestateinnova.wordpress.com/2009/10/07/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/#comment-12 Remember that the income limit for joint-filers is $150,000 and then the credit is prorated. Yes, the tax credit did motivate some people to buy a first home... on sale too! Remember that the income limit for joint-filers is $150,000 and then the credit is prorated. Yes, the tax credit did motivate some people to buy a first home… on sale too!

]]> http://bloggingrealestateinnova.com/rants/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/comment-page-1/#comment-11 Evan Fri, 23 Oct 2009 16:45:18 +0000 http://bloggingrealestateinnova.wordpress.com/2009/10/07/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/#comment-11 Thanks for replying. My husband and I are young (27), first time buyers who waited until the "peak" was over to buy. However, I'm not sure the credit makes us feel any more secure in buying a home. If demand is high due to the credit, what happens when the credit is gone? Are we again faced with a situation where we owe more than what the home is worth due to falling demand after the credit expires? It seems like more risk has been taken again and unless the credit is kept in place, we definitely won't "recover." So, what if the credit isn't replaced? What happens then? It all seems like a big gamble as there are a lot of unknowns about the future of this credit and its impact on the market after it expires or if it even will expire . . . and as practial accountants, we don't like to gamble. We can't predict the future but it seems like how much we should pay for a home and the timing of when we should buy is highly dependent upon whether this credit will expire or not because if the credit is allowed to expire and we buy a home before it does and the lack of the credit causes the market to suffer again, that doesn't seem like a very appealing position to be in. Without the credit, things could become very volatile all over again . . . and that's scary. Thanks for replying. My husband and I are young (27), first time buyers who waited until the “peak” was over to buy. However, I’m not sure the credit makes us feel any more secure in buying a home. If demand is high due to the credit, what happens when the credit is gone? Are we again faced with a situation where we owe more than what the home is worth due to falling demand after the credit expires? It seems like more risk has been taken again and unless the credit is kept in place, we definitely won’t “recover.” So, what if the credit isn’t replaced? What happens then? It all seems like a big gamble as there are a lot of unknowns about the future of this credit and its impact on the market after it expires or if it even will expire . . . and as practial accountants, we don’t like to gamble. We can’t predict the future but it seems like how much we should pay for a home and the timing of when we should buy is highly dependent upon whether this credit will expire or not because if the credit is allowed to expire and we buy a home before it does and the lack of the credit causes the market to suffer again, that doesn’t seem like a very appealing position to be in. Without the credit, things could become very volatile all over again . . . and that’s scary.

]]> http://bloggingrealestateinnova.com/rants/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/comment-page-1/#comment-10 Blogging Real Estate in NoVa Fri, 23 Oct 2009 16:30:54 +0000 http://bloggingrealestateinnova.wordpress.com/2009/10/07/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/#comment-10 What I have found time and time again in this crazy market is that those who played by the rules, did there homework and did not use there homes as ATM's have had very little in return from uncle Sam or lenders. Take the Cash for Clunkers program, I own an older car that I would have loved to get $4K for but it gets 24 mpg. So guess what, my civic still sits in my driveway. What I like about the $8K program is the number of young/1st time buyers who would normally have had to wait years to buy are buying now. Everyone pretty much agrees that the market has turned( at least in the DC, Fairfax County, and Loudoun County area). For these young buyers this is a chance of a life time. I don't think this is articifical demand ( maybe delayed demand)since these buyers are not for the most part flipping the houses they are buying. I will also add that investors are coming back into the market BIG TIME. Thank you so much for the input I love comments! Chuck What I have found time and time again in this crazy market is that those who played by the rules, did there homework and did not use there homes as ATM’s have had very little in return from uncle Sam or lenders. Take the Cash for Clunkers program, I own an older car that I would have loved to get $4K for but it gets 24 mpg. So guess what, my civic still sits in my driveway.
What I like about the $8K program is the number of young/1st time buyers who would normally have had to wait years to buy are buying now. Everyone pretty much agrees that the market has turned( at least in the DC, Fairfax County, and Loudoun County area). For these young buyers this is a chance of a life time. I don’t think this is articifical demand ( maybe delayed demand)since these buyers are not for the most part flipping the houses they are buying. I will also add that investors are coming back into the market BIG TIME.
Thank you so much for the input I love comments!
Chuck

]]> http://bloggingrealestateinnova.com/rants/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/comment-page-1/#comment-9 evan.weintraub@gmail.com Fri, 23 Oct 2009 15:48:16 +0000 http://bloggingrealestateinnova.wordpress.com/2009/10/07/the-washington-post-gets-it-wrong-on-the-8000-buyers-tax-credit/#comment-9 Just as you think her article is "biased," as a partner in a real estate firm, your thoughts on her article and the "success" of the tax credit are biased as well as you have a vested interest in the success of the market. My husband and I are looking for a home in Northern VA, not because of the tax credit but because we have been renting for awhile, have saved up sufficient cash, and have progressed in our careers to a point where we feel it is in our best financial interest. As CPAs we are both financial conscious, practial people. I wasn't necessarily against the tax credit until I started this process and realized what it is doing to the market. I feel bad for people who cannot afford to live in their homes but my husband and myself did not buy a home we could not afford. Now, it appears that we are paying with our responsibility for the mistakes of others. Every home we are interested in goes under contract within a day or two due to the tax credit which has also caused prices to go up. Thus, this has again created "articifical demand" which will cause another bottoming out once the program is over. What's the fair value of home in our area these days? No one knows . . .and no one will continue to know until you remove all these wasteful programs and allow the market to reach a natural equilibribum. Otherwise, the tax payers will continue to pay for a program - and for how long? One year? Two? Perpetuity? Just as the market was manipulated during the peak, it is being manipulated now - maybe to a lesser degree but manipulation is manipulation. Just as you think her article is “biased,” as a partner in a real estate firm, your thoughts on her article and the “success” of the tax credit are biased as well as you have a vested interest in the success of the market. My husband and I are looking for a home in Northern VA, not because of the tax credit but because we have been renting for awhile, have saved up sufficient cash, and have progressed in our careers to a point where we feel it is in our best financial interest. As CPAs we are both financial conscious, practial people. I wasn’t necessarily against the tax credit until I started this process and realized what it is doing to the market. I feel bad for people who cannot afford to live in their homes but my husband and myself did not buy a home we could not afford. Now, it appears that we are paying with our responsibility for the mistakes of others. Every home we are interested in goes under contract within a day or two due to the tax credit which has also caused prices to go up. Thus, this has again created “articifical demand” which will cause another bottoming out once the program is over. What’s the fair value of home in our area these days? No one knows . . .and no one will continue to know until you remove all these wasteful programs and allow the market to reach a natural equilibribum. Otherwise, the tax payers will continue to pay for a program – and for how long? One year? Two? Perpetuity? Just as the market was manipulated during the peak, it is being manipulated now – maybe to a lesser degree but manipulation is manipulation.

]]>