First time home buyers, not really first time, just not in the past three years, home buyers tax credit “free money”, likely to be extended even expanded. They are raising the income level for those who qualify to expand the program.
A generation of people of the United States is willing to tap into, possibly bankrupt their grand children’s financial future to prop up the value of their own assets, their homes. We as a society seem to continue to refuse to accept responsibility for the housing bubble.
First time home buyers tax credit of $8,000 will be extended and most likely expanded in a desperate attempt to put a floor under home prices. Those dollars they are printing and handing out will have to be paid back by the children of today and tomorrow.
You hear plenty of grumbling about government spending and waste. Many people complain about bank bailouts and stimulus frivolous programs. Washington DC is fighting to prevent private corporations from paying top executives too much in compensation.
It seems all you hear these days is how much money the current administration is spending and wasting. They now own banks, auto companies, and some insurance companies.
Yet when it comes to individuals and their own home values anything goes. If it will save the price of my home from falling further, then go for it. Extend those credits, give that money away. Greed at its most despicable level, at the expense of our children.
For the most part improved sales have only been at the lower end of the price ranges. The mid and upper range home values continue to fall. What most consumers pushing to extend these credits do not seem to understand is that we are pulling sales from next year, extending the pain.
The other growing issue is the fact that most of the mortgages being made to people receiving these tax credits, and I will say it again “free money from the government”
are high loan to value government guaranteed loans. The buyers have almost none of their own money in the game, no equity. No reason to stick around if the going gets rough.
The market values went up because of this type of funny money and mindless speculation. We are now going to use our children’s future hard earned tax dollars to protect those values based in our own mistakes and greed. We should be ashamed.
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027