Whilst everyone jumpson board and many economists say the tax credits need to be extended and Realtors and builders shout it from the rooftops are these credits really good or really bad? Could they be adding or doing the same damage that all the toxic loans have done.
Will Americans only buy when something is on sale or when they have a coupon/tax credit? Can we really expect our economy to recover when there is no confidence, when buyers are still concerned prices will drop further because there is weak unemployment and more foreclosures coming down the road to affect home values.
Are these credits pulling buyers forward to spend now rather than when they were ready.
Maybe, we need to take a deep breath and re-set the horizon. To realize that buyers need to have money to put down so they will have to save and that will take time. That a home is a place to live, not to make money, a place to have a family and entertain friends, a place that will be a shelter for us and a place of refuge when we need it. Just maybe we need to stop and think again about what a home really is.
What do you think? Good or bad?
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I personally think that the goverment is spending way tooooooo much of money we do not have. They need to run a budget like we have to. Pretty soon our dollar wiill be worthless. Just go overseas and see how much it costs compared to Pounds or Euros (becasue of weakened dollar).
Great question and I have read the pros and cons....we know the pros...but the cons are -- just add the tab to the federal deficit...which we'll be paying (or our children will be paying) for years to come!
I believe the tax credit does entice a few buyers to leave renting and become homeowners. That hard earned money should be better used for their benefit not the landlord.
Ed and Celia, I agree, but the situation was so bad they have to keep the boat afloat right now and that meant spending and borrowing. Unfortunately we are also paying for a war.
Amanda - if the economy had collapsed would it have been worse or better?
Angelia - sure it helps to buy a home, there are many benefits, so long as those are not removed to pay for the tax credits. As has been said at some stage the budget has to be balanced.