House leader: Tax credit a go
Senate could vote today on tax-credit extension
By Inman News, Tuesday, November 3, 2009.
House Majority Leader Steny Hoyer says he expects his colleagues will support legislation now moving through the Senate to extend and expand the first-time homebuyer tax credit currently scheduled to expire at the end of this month.
The Senate on Monday voted 85-2 to place limits on further debate of HR 3548, a bill extending unemployment benefits that includes an amendment that would allow homebuyers to claim the credit on sales under contract before May 1. The vote to invoke cloture moves HR 3548 closer to a final vote in the Senate as early as today.
If the version of HR 3548 moving through the Senate is approved by the House and signed into law, the tax credit -- equal to 10 percent of a home's purchase price, up to a maximum $8,000 -- would be available to a larger pool of borrowers.
As amended, the bill would allow homeowners who have owned and used their principal residence for any five-consecutive-year period during the past eight years to claim a credit of up to $6,500 if they sell that home and buy another.
The version of HR 3548 moving through the Senate would also expand income limits for claiming the credit from $75,000 to $125,000 for individuals and from $125,000 to $225,000 for couples, although homes purchases exceeding $800,000 would not be eligible. ...CONTINUED
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Submitted by Robert A. Hulme on November 3, 2009 - 1:30pm.
Passing this legislation is a must.
www.provooremhomes.com
www.alpinehomesforsale.us
Submitted by Douglas Quenzer on November 3, 2009 - 6:24pm.
1. The home credit is like a seller concession. If this is causing homes to be purchased for more than the real market value we have a false bottom and market being created.
2. The home credit is being paid for by all tax payers. I understand the logic is everyone benefits because it keeps values up. But the point is it keeps values up artificially. It really isn't the true market.
3. Like the clunker program,when it is lifted sales will diminish. Thus we will have to find the bottom again. Those people that bought in a bubble market created by the government could actually loose value on their homes because of an inflated market by this government concession.
4. This program also requires more borrowing which inflates the money supply and decreases the value of the dollar. Continued runaway spending will eventually be paid for. There is no free lunch. And homeowners that used the credit will pay for it by paying more for energy. Indeed we will all pay more than we desired.
5. The only people this really benefits is the real estate agents that want to move houses. First time homebuyers aren't really getting that great a deal; especially if it has created a false bubble in values. They could have received the same benefit by simply getting a lower price on the property; a price that more clearly reflects an open market, not a subsidized market.
6. Home sellers might benefit the most since they get more money for their home.
7. As a real estate appaiser if I could know which homes were purchased based upon receiving a government concession I would deduct for it in the market grid if I used them as comparables.
Pay me now or pay me later. For many in this industry it seems they prefer to pay later and later and later and later. There is no free lunch.
Submitted by Douglas Quenzer on November 3, 2009 - 6:24pm.
1. The home credit is like a seller concession. If this is causing homes to be purchased for more than the real market value we have a false bottom and market being created.
2. The home credit is being paid for by all tax payers. I understand the logic is everyone benefits because it keeps values up. But the point is it keeps values up artificially. It really isn't the true market.
3. Like the clunker program,when it is lifted sales will diminish. Thus we will have to find the bottom again. Those people that bought in a bubble market created by the government could actually loose value on their homes because of an inflated market by this government concession.
4. This program also requires more borrowing which inflates the money supply and decreases the value of the dollar. Continued runaway spending will eventually be paid for. There is no free lunch. And homeowners that used the credit will pay for it by paying more for energy. Indeed we will all pay more than we desired.
5. The only people this really benefits is the real estate agents that want to move houses. First time homebuyers aren't really getting that great a deal; especially if it has created a false bubble in values. They could have received the same benefit by simply getting a lower price on the property; a price that more clearly reflects an open market, not a subsidized market.
6. Home sellers might benefit the most since they get more money for their home.
7. As a real estate appaiser if I could know which homes were purchased based upon receiving a government concession I would deduct for it in the market grid if I used them as comparables.
Pay me now or pay me later. For many in this industry it seems they prefer to pay later and later and later and later. There is no free lunch.