Life without the buyer tax credit
Letter to the Editor
By Inman News, Thursday, August 20, 2009.Re: 'First-time-buyer tax credit is "unfair" ' (Aug. 18)
Dear Editor:
Since when is life fair -- or the tax code, as far as that goes? To argue that the tax credit is artificially inflating prices for homes as prices drop in nearly all markets is just one more argument for, "Every man for himself and damn the rest."
The jobs provided by the housing industry, tax base and infrastructure upgrades are not mentioned -- just the lucky flippers and rich real estate brokers and lenders.
Let's look at it this way: About 50 percent of the current market is first-time homebuyers. Those getting and using the tax break are buying homes typically under $200,000. Lenders have tightened their standards and so have appraisers.
To argue, "Another fine mess we've gotten into," is fear-mongering and unfounded. As for the fact that the tax credit program expires on Dec. 1, it does so with good reason. Buyers can't wait for an eternity for prices to drop and EXPECT government help forever.
What about sellers and owners in this market? How would you like to have foreclosed homes around you in your neighborhood because the government wasn't willing to help with the problem?
You think property values are down now? Imagine that scenario. The nation's wealth depends on jobs and housing. The ones screaming about higher taxes are still paying less than ever before.
John Goldhammer
Principal broker
Windermere/Baldwin Properties
Hillsboro, Ore.
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Submitted by Robert A. Hulme on August 21, 2009 - 3:39am.
Whether or not the Tax Credit is fair, my first-time home buyers are loving life these days. What great opportunity this tax credit is allowing many people to enter the housing market.
www.UtahCountyHomes.ws
www.UtahCountyRealEstate.us
Submitted by Fred Glick on August 21, 2009 - 3:58am.
If you are in real estate, plan a vacation for this winter, not now.
It's a hot, muggy August pre-sunrise morning and thoughts of beaches and hydration are on people's minds.
Sweat, shorts and sodas are soaking their souls and the thoughts of economic recovery, tax credits and mortgage backed-securities are not nearing their frontal lobes.
(OK, here comes the BUT....)
BUT, we are just over 90 days away from the second real estate bubble explosion in the last few years.
Why? The expiration of the $8000 tax credit matched with the Gestapo like mortgage guidelines, high interest rates and the lack of job creation will blow up the temporary real estate blip that we've seen since the spring.
If you a first time eligible buyer for the credit, you must CLOSE and FUND by 11-30-2009 in order to get the credit.
That means, you need to find a house and start your inspections, mortgage, etc ASAP so real estate agents need to do a 24/7 for their clients in order that they make the timing.
If you are a Seller, don't be ridiculous, if you need to come down a couple of thousand in order to sell, do it because if you don't, you may cry in your egg nog this Christmas because once the credit goes away (which was the catalyst for buyers to get off the fences to begin with), the buyers go back to the Dark Side!
Now, a message for our friends in the mortgage world:
YOU ARE TURNING AWAY GOOD MORTGAGE WITH STUPID NEW RULES
Need I say more? The rules are just stupid for conventional programs and the crap they are allowing into the Government agency loans (FHA) are also nuts.
I again call for all the mortgage bureaucracies (Fannie, Freddie, FHA, VA, USDA) belong into one agency, one set of guidelines and reality to set back in.
Also, each loan needs to have a small insurance fund payment and the government just needs to back each loan, post-insurance so we never have to bail out banks again.
Now onto rates. If you want to stimulate an economy, the basics are that we lower interest rates and we've done that with the Fed lowering the rates to the banks (Fed funds, etc) but what about rates to the public?
Mortgage rates should be very, very low and there should be very easy rate reduction refinances with NO appraisals for people that have the income and good credit.
Most of their loans are already securitized by Fannie and Freddie, so why not let them take a trip to Banana Republic or a trip to Disneyworld to help get the country going so we can add real jobs.
To summarize, if you are a Buyer that can qualify for the credit, get an agreement as soon as possible because Sellers may raise prices in the early part of September to capitalize on the end-of-the-credit people looking to get their share.
If you don't qualify for the credit, wait until the week before Thanksgiving to start looking.
The buyers will have been sucked out like a vacuum cleaner on high and the winter will start coming in.
Sellers might get into a realistic mood and sell at a lower price.
The other idea is to wait until January or February when they may be suffering more and not have the idea that spring is around the corner.
So real estate people, it's hard work followed by Disneyworld!
http://fredglickre.blogspot.com/2009/08/disney-time.html