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ClintClint

Beach Fanatic
Jul 2, 2008
599
78
it is a dollar for dollar reduction in the amount of income tax owed.

Thank you Bob! There are some very insightful posts in many threads in this Real Estate Discussion. They are invaluable to us in reading the "pulse" of the market and info you can't (or won't) get from the professionals. But, there are many well intentioned but ill informed posts when it comes to tax and/or legal advice.
 

Franny

Beach Fanatic
Mar 27, 2005
4,046
410
Pt. Washington
Wow, that's pretty amazing. It's a complete give away of 8K, with some income limits. No wonder we've seen a spike in sales. I wonder if Congress will renew it to keep juicing the system or let it expire?

In the news there is talk of extending the 8k and opening it up to everyone..we will see.
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
I'm not so sure that the $8000 tax credit for certain qualifying buyers is the reason for the boost in sales. You have to be a first time home buyer (by their loose definition) and the home must be your primary residence. (those aren't the majority of homes in our mostly second-home community). It is my belief that the reason for the increase in sales is due to some sellers finally coming to terms and pricing property at a level where buyers find value. A tax credit of $8000 has no value if a home is overpriced by $200,000. The right price is selling property, not tax credits. However, a tax credit and very low interest rates make home buying more exciting.
 

tidewater

Beach Comber
Apr 25, 2009
11
0
Screw this socialistic handout country.we're a broke country giving out money we don't have.watch and learn as interest rates sky to 7-15% over the next 2-10 years as out debt balloons to $15 trillion and we can't make our interest payments and default. our country has changed forever and economic activity will be slow and recession like for years to come. we're another japan with a down to sideways stock mkt and economy for as far as the eye can see.if printing money to solve problems worked all country's would do it.i expect mass protests in the capital and mass non tax compliance in the years to come

Stop predicting the the sky is falling.
Have you heard, Japan is having a very nice recovery. In fact, the first among of all other nations.
 

Lynnie

SoWal Insider
Apr 18, 2007
8,176
431
SoBuc
Stop predicting the the sky is falling.
Have you heard, Japan is having a very nice recovery. In fact, the first among of all other nations.

I think Japan had it pretty rough for about a decade and threw yen after yen to stimulate their economy.....new construction to stimulate, etc.

Back to the USA: with the tax credit however, last year it was $7,500 and this year $8,000.....extended only until Nov. 30, right? Has it been extended from that date, yet?

I haven't paid attention to how it is similar or different to last year's tax credit.......

It seems I did read recently that homes sales were up slightly. Can anyone confirm that?
 

gmarc

Beach Fanatic
Jan 19, 2009
506
65
tidewater maybe you didn't here the sky already fell for the 10% unemployed.japan has had a nice recovery?you must be hiding under a rock. japan has been in a deflationary spiral for 20 years. there stock market is down 80% from 1989. the reason why is the same path the usa is taking. because we couldn't make the tough decision and let weak co's fail we've propped them up employing huge borrowing of $12 trillion we don't have. this is called a misallocation of capital(using money that should go toward productive assets instead goes to prop up dying co's that will fail anyway). this misdirection of capital actually impedes the growth of the economy long term(an example is japan who has had zero interest rates for 20 years and almost no growth). america is now starting down the same path. japan overconsumed in the 1980's as has the us has for 30 years. now comes the retrenchment in the usa were americans must live within there means which means spending much less and paying massive debt down.what does this mean for the economy longer term? its not very bright as we have such an overcapacity in such areas as retail and restraunts that eventually many fo these co's must go bankrupt to adjust supply and demand to the new economy.but our gov't refused to take the short term pain and allow the strong to survive and weak to perish thus flushing the system and making it stronger. instead they flooded the system with printed dollars thus in the short term saving a few co's and crushing our currency and reducing our standard of living and buying power going foward. this will backfire badly as over time foreigners will shun the weakening $ causing interest rates to rise over time as in order to attract foreign capital we'll have to entice buyers with higher rates.in addition with a $12 trillion debt now comes the back end of much higher taxes to pay the debt down thus impeding growth for years to come.just a small overview of whats happend the past 12 months.
 

Lynnie

SoWal Insider
Apr 18, 2007
8,176
431
SoBuc
tidewater maybe you didn't here the sky already fell for the 10% unemployed.japan has had a nice recovery?you must be hiding under a rock. japan has been in a deflationary spiral for 20 years. there stock market is down 80% from 1989. the reason why is the same path the usa is taking. because we couldn't make the tough decision and let weak co's fail we've propped them up employing huge borrowing of $12 trillion we don't have. this is called a misallocation of capital(using money that should go toward productive assets instead goes to prop up dying co's that will fail anyway). this misdirection of capital actually impedes the growth of the economy long term(an example is japan who has had zero interest rates for 20 years and almost no growth). america is now starting down the same path. japan overconsumed in the 1980's as has the us has for 30 years. now comes the retrenchment in the usa were americans must live within there means which means spending much less and paying massive debt down.what does this mean for the economy longer term? its not very bright as we have such an overcapacity in such areas as retail and restraunts that eventually many fo these co's must go bankrupt to adjust supply and demand to the new economy.but our gov't refused to take the short term pain and allow the strong to survive and weak to perish thus flushing the system and making it stronger. instead they flooded the system with printed dollars thus in the short term saving a few co's and crushing our currency and reducing our standard of living and buying power going foward. this will backfire badly as over time foreigners will shun the weakening $ causing interest rates to rise over time as in order to attract foreign capital we'll have to entice buyers with higher rates.in addition with a $12 trillion debt now comes the back end of much higher taxes to pay the debt down thus impeding growth for years to come.just a small overview of whats happend the past 12 months.

I think this is spot on. We follow the Nikkei because they open before our markets and we can guage by their trading, etc.....which BTW has also been over the 10,000 mark for two days.



Anyway, has our home sales increased slightly over the last few months? There is a push and sense of urgency for first time home buyers and this tax credit. Int. rates are hovering around 5%, which is amazing. First time home buyer by Fannie/Freddie and FHA is defined as one who hasn't had home ownership in the last three years. Lookback on BK and foreclosure is 3 yrs and 2 yrs respectively.......so, timing could be perfect for many.

;-)
 
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