Comments on: Why The First Time Home Buyer Credit Is Terrible For The Economy http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/ Personal Finance. Investing. Wealth Building. Sat, 20 Mar 2010 00:04:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: If The U.S. Government Read Personal Finance Blogs « Eliminate The Muda! http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24615 If The U.S. Government Read Personal Finance Blogs « Eliminate The Muda! Sat, 14 Nov 2009 02:59:50 +0000 http://www.moolanomy.com/?p=2111#comment-24615 [...] would probably help keep them from making so many mistakes. For example Kevin at Moolanomy shares Why The First Time Homebuyer Credit Is Terrible For The Economy. When are they going to learn that the way to stimulate the economy is not through wealth [...] [...] would probably help keep them from making so many mistakes. For example Kevin at Moolanomy shares Why The First Time Homebuyer Credit Is Terrible For The Economy. When are they going to learn that the way to stimulate the economy is not through wealth [...]

]]> By: pfstock http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24559 pfstock Tue, 10 Nov 2009 18:54:25 +0000 http://www.moolanomy.com/?p=2111#comment-24559 The tax credit also artificially inflates the value of homes. While this may not work out to $8000 or $6500 per home, some boost in the value of any home can be expected because it can potentially sold for more money. What most people fail to realize is that this increase can be a boon to local taxing authorities because higher home values can translate into more property taxes being collected, year after year into the future. The tax credit also artificially inflates the value of homes. While this may not work out to $8000 or $6500 per home, some boost in the value of any home can be expected because it can potentially sold for more money. What most people fail to realize is that this increase can be a boon to local taxing authorities because higher home values can translate into more property taxes being collected, year after year into the future.

]]> By: $6500 Tax Credit for Existing Homeowners Who Purchase New Home Signed into Law, Not Retroactive, $8000 New Homebuyer Credit Extended http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24535 $6500 Tax Credit for Existing Homeowners Who Purchase New Home Signed into Law, Not Retroactive, $8000 New Homebuyer Credit Extended Mon, 09 Nov 2009 12:33:52 +0000 http://www.moolanomy.com/?p=2111#comment-24535 [...] Why The First Time Home Buyer Credit Is Terrible For The Economy at Moolanomy [...] [...] Why The First Time Home Buyer Credit Is Terrible For The Economy at Moolanomy [...]

]]> By: Friday Gathering: Daylight Savings Edition http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24534 Friday Gathering: Daylight Savings Edition Mon, 09 Nov 2009 09:01:39 +0000 http://www.moolanomy.com/?p=2111#comment-24534 [...] a staff writer at Moolanomy tells why the first time home buyer extension is a bad idea. I tend to agree with [...] [...] a staff writer at Moolanomy tells why the first time home buyer extension is a bad idea. I tend to agree with [...]

]]> By: To Kill a Mockingbird http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24525 To Kill a Mockingbird Mon, 09 Nov 2009 02:47:59 +0000 http://www.moolanomy.com/?p=2111#comment-24525 [...] are your thoughts about extending the $8,000 first time homebuyer’s credit?  Kevin (staff writer for Moolanomy) gives insightful reasons why it is terrible for the [...] [...] are your thoughts about extending the $8,000 first time homebuyer’s credit?  Kevin (staff writer for Moolanomy) gives insightful reasons why it is terrible for the [...]

]]> By: Friday Scoop on Housing Market and Credit Karma News | Credit Karma Blog http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24503 Friday Scoop on Housing Market and Credit Karma News | Credit Karma Blog Fri, 06 Nov 2009 18:53:30 +0000 http://www.moolanomy.com/?p=2111#comment-24503 [...] Moolanomy throws in its two cents– Why the first time home buyer credit is terrible for the economy. [...] [...] Moolanomy throws in its two cents– Why the first time home buyer credit is terrible for the economy. [...]

]]> By: Curt http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24466 Curt Fri, 06 Nov 2009 04:25:54 +0000 http://www.moolanomy.com/?p=2111#comment-24466 How your talking. The government intervention is in the process of creating another housing market crash, but they don't care. They are focused on the 2010 elections. We need new leaders that work for the long-term benefit of the economy. How your talking. The government intervention is in the process of creating another housing market crash, but they don’t care. They are focused on the 2010 elections. We need new leaders that work for the long-term benefit of the economy.

]]> By: Dr. Dean http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24457 Dr. Dean Thu, 05 Nov 2009 20:32:14 +0000 http://www.moolanomy.com/?p=2111#comment-24457 Three Points 1) I agree with your policy of the less government intervention the better, and that nothing is free-there is always winners and losers, and the feds shouldn't be the ones deciding. 2) I think if you are buying a home this year, and can afford it, it is not morally wrong to take advantage of the program. 3) As far as government programs go, there are many more I think are more egregious than this one. Very thoughtful post. Thanks. Three Points
1) I agree with your policy of the less government intervention the better, and that nothing is free-there is always winners and losers, and the feds shouldn’t be the ones deciding.
2) I think if you are buying a home this year, and can afford it, it is not morally wrong to take advantage of the program.
3) As far as government programs go, there are many more I think are more egregious than this one.

Very thoughtful post. Thanks.

]]> By: mario http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24456 mario Thu, 05 Nov 2009 14:18:01 +0000 http://www.moolanomy.com/?p=2111#comment-24456 The trouble is, the government is in a catch-22 situation. They're damned if they do and they're damned if they don't. I'd rather see them do something. We always find it easy to blame the government for the recession, for jobs going overseas, for high taxes but my observation is this... we the people should also bear the responsibility of looking after one another. Most big private companies do not feel its their moral obligation to keep the jobs here no matter what. Moral obligation is tossed out the window in pursuit of higher profit margins that benefit the few. I'm not against anybody making lots of money but, c'mon, how much do you need to live VERY comfortably? Most of these executives make millions of dollars a year. If I made 10 million a year, I'd give up a million to save at least 30 to 60 jobs. I'm not saying we become protectionists because trade is important but I hope you get the point. The government can't do everything for us. People who can afford need to step up and say "What can I do for my country?" For the housing industry, we are one of those who benefited from the 8000 tax credit. We were in the market for about a year before they announced the tax credit so that was a mere bonus. Earlier in the game, we just thought that the the houses were too overpriced so we kept looking. I mean, we need to take a second look on how we do property assessments. Material for material, the price of the same house located on one area would be 200% more on another. I think there's also a need to correct how one perceives value. Right now it's just a bit skewed. You want to create a demand? Then don't put a $1,000,000 value on a house that only took $200,000 to build. The problem is, we had a get rich quick economy for the past several years, hence the bubble. It's fine to make a profit but gouging is different. Anyway, we did find a house in a nice community with nice schools for a price that was "corrected" for the current market. It wasn't too low that the seller would lose sleep over but it wasn't too high either that we'd be worried about making ends meet for the next 30 years. The trouble is, the government is in a catch-22 situation. They’re damned if they do and they’re damned if they don’t. I’d rather see them do something. We always find it easy to blame the government for the recession, for jobs going overseas, for high taxes but my observation is this… we the people should also bear the responsibility of looking after one another. Most big private companies do not feel its their moral obligation to keep the jobs here no matter what. Moral obligation is tossed out the window in pursuit of higher profit margins that benefit the few. I’m not against anybody making lots of money but, c’mon, how much do you need to live VERY comfortably? Most of these executives make millions of dollars a year. If I made 10 million a year, I’d give up a million to save at least 30 to 60 jobs. I’m not saying we become protectionists because trade is important but I hope you get the point. The government can’t do everything for us. People who can afford need to step up and say “What can I do for my country?”

For the housing industry, we are one of those who benefited from the 8000 tax credit. We were in the market for about a year before they announced the tax credit so that was a mere bonus. Earlier in the game, we just thought that the the houses were too overpriced so we kept looking. I mean, we need to take a second look on how we do property assessments. Material for material, the price of the same house located on one area would be 200% more on another. I think there’s also a need to correct how one perceives value. Right now it’s just a bit skewed. You want to create a demand? Then don’t put a $1,000,000 value on a house that only took $200,000 to build. The problem is, we had a get rich quick economy for the past several years, hence the bubble. It’s fine to make a profit but gouging is different. Anyway, we did find a house in a nice community with nice schools for a price that was “corrected” for the current market. It wasn’t too low that the seller would lose sleep over but it wasn’t too high either that we’d be worried about making ends meet for the next 30 years.

]]> By: Data Entry Lady http://www.moolanomy.com/2111/why-the-first-time-home-buyer-credit-is-terrible-for-the-economy-kduffy09/comment-page-1/#comment-24455 Data Entry Lady Thu, 05 Nov 2009 12:52:54 +0000 http://www.moolanomy.com/?p=2111#comment-24455 I totally get what you are saying. If we ran our households like these we would be living in the street. I totally get what you are saying. If we ran our households like these we would be living in the street.

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