| Author |
Message |
    
Nephalist
Member
Username: Nephi
Post Number: 124
Registered: 12-2005
| | Posted on Sunday, February 08, 2009 - 05:35 pm: | 
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Some of the run down foreclosures in my neighborhood are approaching an affordable price (200k for me). If the new stimulus package contains the $15,000 tax credit, my fear is that home sellers will hold their prices firm, or even raise them ~15k since they know the buyers get a 15k government coupon. This is assuming the market picks up a little and shifts from a buyers to a sellers.
I read on the HUD website that there used to be a downpayment assistance program. The owners could make a donation to Ameridream, which could shuffle it to the buyer who could use it as a downpayment. But then the owner would simply raise his price by the amount of the donation. So there is a precedent for this type of thing. Opinions? |
dhacker
Senior Member
Username: Dhacker
Post Number: 1621
Registered: 11-2002
| | Posted on Sunday, February 08, 2009 - 05:52 pm: |
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I think you are 100% correct.
You see, you have used logical reasoning in the process based on the past facts. Our government is so anxious to get the stimulus plan passed, that there is no way they could have even begun to consider all the pitfalls . . which are incredibly numerous.
With a broad brush statement, we are getting ready to piss away $800 billion and bankrupt the country. |
Bill Pierce
Moderator
Username: Billpierce
Post Number: 9933
Registered: 01-2002
| | Posted on Sunday, February 08, 2009 - 06:17 pm: |
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It's not a pretty situation. A pessimist might conclude from the events of the past couple of months that we are going to hell no matter what we do or don't do. I have to say I'm not very optimistic. To quote T.S. Eliot: "This is the way the world ends. Not with a bang but with a whimper." |
Nephalist
Member
Username: Nephi
Post Number: 125
Registered: 12-2005
| | Posted on Sunday, February 08, 2009 - 07:09 pm: |
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I'm desperate to buy my first home so the bill has something for me, but no one is talking about how this deficit will ever be paid off. I'll pay more than 15k in the long run in terms of interest.
How big was the deficit when Clinton brought it down? Didn't the tax revenue from the dot com bubble help him? We'd need something gargantuan like that to take care of this deficit.
On a tangent I think the only new technology that can have that much impact would be a cheap energy source such as cold fusion. I'd wholeheartedly support a trillion dollar investment towards research in that direction. |
Joe Rovito
Member
Username: Joez8
Post Number: 228
Registered: 03-2003
| | Posted on Sunday, February 08, 2009 - 09:52 pm: |
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Just what we need. A cheap unlimited supply of energy. We'd incinerate the planet in a decade.
Re: 15k Coupon
The idea is to stop the falling prices and stabilize the housing market. Not necessarily to get people in houses they can barely afford. And if a 15k tax credit makes a difference to a person on a 200k house, that person can't afford a 200k house. Period. That seller and/or bank has already lost a bundle - maybe their life's savings - on that foreclosure or forced sale.
But in any case, hope you get the house you want at a price you can afford. I may be movin' into your basement! |
Bill Pierce
Moderator
Username: Billpierce
Post Number: 9934
Registered: 01-2002
| | Posted on Sunday, February 08, 2009 - 10:15 pm: |
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Joe, in many areas a $200K house is an entry level home, even with the drop in market value over the past year. As far as I know, we're still committed to making home ownership possible for those who have a stable income in the upper 75 percent or so. I agree that banks and mortgage firms eased the credit requirements way too much during the housing bubble. But if there is a chance of saving this economy we have to do something to stabilize housing now. If there are any lessons from the debacle, among them is that what happens at the bottom end has a profound effect on the entire market. |
Connie
Senior Member
Username: Connie
Post Number: 1346
Registered: 10-2000
| | Posted on Friday, February 27, 2009 - 07:23 pm: |
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I noticed a small farm for sale outside metro Atlanta....13+ acres four bedroom, three bath. Barn and out building and a small creek on the property for under $300K. I think I'll look at it this weekend. I'd love to have a large garden area....and a new tractor  |
Bill Pierce
Moderator
Username: Billpierce
Post Number: 10021
Registered: 01-2002
| | Posted on Friday, February 27, 2009 - 07:35 pm: |
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Connie, there will be lots of tractors available at bankruptcy and estate sales.  |
Connie
Senior Member
Username: Connie
Post Number: 1347
Registered: 10-2000
| | Posted on Friday, February 27, 2009 - 08:04 pm: |
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I've been looking, but gotta have the acres first  |
davidwaite
Senior Member
Username: Davidw
Post Number: 1956
Registered: 03-2001
| | Posted on Friday, February 27, 2009 - 09:16 pm: |
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Fear not, Connie, Secretary of Ag Tom Vilsack is coming to the rescue of the small farms/farmers! He'll make sure you can afford that new tractor!
(cough, cough, hack, pffftt) |
Ron Siddall
Advanced Member
Username: El_cid
Post Number: 749
Registered: 12-2005
| | Posted on Saturday, February 28, 2009 - 02:53 pm: |
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Some people will be so desperate to sell their homes that they will not bother to try to suck the $15k out of you in pricing.
However, taxpayers who lived by the rules and invested and spent wisely will be the ones that pay through the nose and we are already. |
Jim DeShields
Member
Username: Niquejim
Post Number: 154
Registered: 07-2006
| | Posted on Tuesday, March 10, 2009 - 08:07 pm: |
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This kind of thread reminds me of why I got some of these bumper stickers
http://www.tngop.org/contribute/incentive/ |
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