Comments on: First-time Homebuyer Credit Viewed As a Success http://www.taxgirl.com/first-time-homebuyer-credit-viewed-as-a-success/ Paying taxes is painful... but reading about them shouldn't be. Sun, 12 Feb 2012 17:55:29 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Ron Hassett http://www.taxgirl.com/first-time-homebuyer-credit-viewed-as-a-success/comment-page-1/#comment-12122 Ron Hassett Sat, 19 Sep 2009 22:34:07 +0000 http://www.taxgirl.com/?p=4066#comment-12122 In some ways a boost. In others a bust. We are all chasing the same dollar around the economic doughnut. When dollars stop circulating (consumers stop spending) there is a recession. This was one of the things done to get those dollars circulating again. It appears to have been successful especially since new housing starts have picked up. A strong positive sign. Yes and it will produce a bubble but hopefully the economic recovery will be far enough along to absorb the bubble. As far as extending it, no. It did what it was intended to do and extending it would do nothing more than run a good thing into the ground. In some ways a boost. In others a bust. We are all chasing the same dollar around the economic doughnut. When dollars stop circulating (consumers stop spending) there is a recession. This was one of the things done to get those dollars circulating again. It appears to have been successful especially since new housing starts have picked up. A strong positive sign. Yes and it will produce a bubble but hopefully the economic recovery will be far enough along to absorb the bubble. As far as extending it, no. It did what it was intended to do and extending it would do nothing more than run a good thing into the ground.

]]> By: justin h http://www.taxgirl.com/first-time-homebuyer-credit-viewed-as-a-success/comment-page-1/#comment-12114 justin h Fri, 18 Sep 2009 22:48:27 +0000 http://www.taxgirl.com/?p=4066#comment-12114 I've been semi-serious about buying a home this year, and the tax credit definitely enticed me. But, I decided to wait until I have a little more saved up for a down payment on a better home and my wife completes grad school. Having watched the market for about two years (when I started saving), I definitely see the bubble effect. When the tax credit went into effect, homes under and around $200k (a starter home in Minneapolis) started selling much, much faster, sometimes over their asking price. I fully expect to see the market cool down again once the credit expires, and in fact I'm counting on it so I can be more picky. I’ve been semi-serious about buying a home this year, and the tax credit definitely enticed me. But, I decided to wait until I have a little more saved up for a down payment on a better home and my wife completes grad school.

Having watched the market for about two years (when I started saving), I definitely see the bubble effect. When the tax credit went into effect, homes under and around $200k (a starter home in Minneapolis) started selling much, much faster, sometimes over their asking price. I fully expect to see the market cool down again once the credit expires, and in fact I’m counting on it so I can be more picky.

]]> By: First-time Homebuyer Credit Viewed As a Success http://www.taxgirl.com/first-time-homebuyer-credit-viewed-as-a-success/comment-page-1/#comment-12110 First-time Homebuyer Credit Viewed As a Success Fri, 18 Sep 2009 19:50:44 +0000 http://www.taxgirl.com/?p=4066#comment-12110 [...] News Sources wrote an interesting post today onHere’s a quick excerptIf by success, you mean that a lot of people took advantage of it… The IRS has reported that 1.4 million taxpayers have claimed the first-time homebuyers credit. The credit is available to taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase of a new home. Other restrictions and income limitations apply. The credit is fully refundable, which means that to the extent that the credit exceeds a taxpayer’s tax bill, they’ll re [...] [...] News Sources wrote an interesting post today onHere’s a quick excerptIf by success, you mean that a lot of people took advantage of it… The IRS has reported that 1.4 million taxpayers have claimed the first-time homebuyers credit. The credit is available to taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase of a new home. Other restrictions and income limitations apply. The credit is fully refundable, which means that to the extent that the credit exceeds a taxpayer’s tax bill, they’ll re [...]

]]> By: Fix the Tax Code Friday: Extending Tax Programs | taxgirl http://www.taxgirl.com/first-time-homebuyer-credit-viewed-as-a-success/comment-page-1/#comment-12108 Fix the Tax Code Friday: Extending Tax Programs | taxgirl Fri, 18 Sep 2009 19:30:11 +0000 http://www.taxgirl.com/?p=4066#comment-12108 [...] by the popularity of the Cash for Clunkers program – and the perceived success of the First Time Homebuyer’s Credit – Congress is considering whether to extend both programs in [...] [...] by the popularity of the Cash for Clunkers program – and the perceived success of the First Time Homebuyer’s Credit – Congress is considering whether to extend both programs in [...]

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