I knew this would happen. Bad economics combined with suck up politics. The Senate is close to agreeing on an extension of the Homebuyers Tax Credit. But as the late Billy Mays says, WAIT, THERE’S MORE!!!
How about a credit for every homebuyer whose name is not Rockefeller. You don’t need to be a first time homebuyer, everyone can get in on the action. We will not credit your home purchase 2%, not 4%, not 8%… NO, WE WILL CREDIT IT 10%!!! (read the fine print)
And with all the extra spending we are doing you need not worry, we are going to roll it into the huge pile of debt in the corner of the budget. You will never even notice it.
When the April 30th deadline approaches, don’t you worry… The NAR and the NAMB will send our buddies their lobbyists to the hill and we will do it all over again. So we will systemitize an extra 8,000 on every real estate transaction going on into the future with tax money.
Now here’s how to order.
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{ 4 comments… read them below or add one }
Brilliant post, Tom. I can’t believe there has not been some kind of outcry from non-homebuying tax payers. NAR’s (and mostRealtors’) position is short-sighted, and delaying the market’s true bottom. Every one of my clients who took advantage of the $8K would have bought anyway in 2009. And now it is going to be extended to anyone who wants to take it. The next thing you know the feds will be artificially lowering mortgage rates. Ever think about why rates are so low in this time of high risk? That economic formula doesn’t work either.
NAR should know better and this includes the Realtors supporting the tax incentives. The entire group should want the economy as a whole to recover. The only way the housing market will truly recover is from job creation and that will take time. By creating these incentives we are creating another bubble. How is the market supposed to stabilize with these incentives pushing prices up?
I agree with the other two responders. I guess the only way I can justify this in my mind is to say that if this administration/congress is going to squander tax dollars at least it’s tax dollars going into my industry. It’s hard to remain silent at various meetings I attend when everyone is cheering on this credit.
Congress has finally extended the first time home buyer tax credit into 2010. President Obama is signed the bill into law on November 6, 2009.
The first time home buyer tax credit extension allows a buyer to enter an agreement with a seller by April 30, 2010 and close on the house by June 30, 2010. First time home buyers are defined as anyone who has not owned a home for the past 3 years. First time home buyers will get an $8,000 tax credit, similar to the tax credit for much of 2009. Other home buyers, who have owned their current home for at least five years, are eligible for a $6,500 tax credit.