Comments on: First Time Home Buyers Tax Credit- Worth The Cost? http://financialhighway.com/first-time-home-buyers-tax-credit-worth-the-cost/ Personal finance blog discussing investments, savings, insurance and financial planning ideas to grow wealth Tue, 22 May 2012 06:20:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Kyle http://financialhighway.com/first-time-home-buyers-tax-credit-worth-the-cost/#comment-1347 Kyle Fri, 02 Oct 2009 14:59:00 +0000 http://financialhighway.com/?p=2938#comment-1347 If you compare it to the cash for clunkers program there is a pretty solid chance of a large drop off in home sales when the program ends. Dealerships have gone from record sales to little sales after the clunkers program ended. Just my two cents If you compare it to the cash for clunkers program there is a pretty solid chance of a large drop off in home sales when the program ends. Dealerships have gone from record sales to little sales after the clunkers program ended. Just my two cents

]]> By: Randy http://financialhighway.com/first-time-home-buyers-tax-credit-worth-the-cost/#comment-1343 Randy Fri, 02 Oct 2009 11:41:25 +0000 http://financialhighway.com/?p=2938#comment-1343 First, I have personal interest in this program. My daughter was able to get her tax credit earlier this year and my step-son is actively looking for a home (but may not be ready to move in time). Additionally, my house is on the market. It seems the boost in sales has come mostly at the low end of the market. What I've seen is that home sales below $150k and to a lesser degree between $150k and $250k are up compared to a year ago. But home sales above $250k (mine is in that category) are still down. I have yet to hear any official report on what happened to the auto industry after cash for clunkers. I read several reports that similar programs in other countries saw a drop in sales after the program. I suspect that happened here (but has yet to be reported) and I suspect that will happen to the housing market as well. Long term effect? I'm on the fence. I'm not sure we can ever know what would have happened if we hadn't done the tax credit. First, I have personal interest in this program. My daughter was able to get her tax credit earlier this year and my step-son is actively looking for a home (but may not be ready to move in time). Additionally, my house is on the market.

It seems the boost in sales has come mostly at the low end of the market. What I’ve seen is that home sales below $150k and to a lesser degree between $150k and $250k are up compared to a year ago. But home sales above $250k (mine is in that category) are still down.

I have yet to hear any official report on what happened to the auto industry after cash for clunkers. I read several reports that similar programs in other countries saw a drop in sales after the program. I suspect that happened here (but has yet to be reported) and I suspect that will happen to the housing market as well.

Long term effect? I’m on the fence. I’m not sure we can ever know what would have happened if we hadn’t done the tax credit.

]]> By: Thursday Round-Up First Snow of the Year Edition http://financialhighway.com/first-time-home-buyers-tax-credit-worth-the-cost/#comment-1339 Thursday Round-Up First Snow of the Year Edition Thu, 01 Oct 2009 22:18:43 +0000 http://financialhighway.com/?p=2938#comment-1339 [...] Ray at Financial Highway ask the question “First Time Home Buyers Tax Credit- Worth The Cost?” [...] [...] Ray at Financial Highway ask the question “First Time Home Buyers Tax Credit- Worth The Cost?” [...]

]]> By: John DeFlumeri Jr http://financialhighway.com/first-time-home-buyers-tax-credit-worth-the-cost/#comment-1337 John DeFlumeri Jr Thu, 01 Oct 2009 19:54:39 +0000 http://financialhighway.com/?p=2938#comment-1337 The $8000 is nice when you qualify. The $8000 is nice when you qualify.

]]> By: Broke MBA http://financialhighway.com/first-time-home-buyers-tax-credit-worth-the-cost/#comment-1336 Broke MBA Thu, 01 Oct 2009 17:46:10 +0000 http://financialhighway.com/?p=2938#comment-1336 It's hard to say if the long-term effects of this program are worth the cost. I tend to agree with all of your points, including that it did what it was supposed to do in the short run. I will be taking advantage of this tax credit. However, it didn't "stimulate" me to purchase when I wouldn't have otherwise. The only effect it had on my personal situation was moving my closing date up one to two months. In a sense, the government is giving me 8K for something I was going to do shortly anyways. While I will take the credit, it does seem like a waste of tax payers $$$ when given to people in my shoes. It’s hard to say if the long-term effects of this program are worth the cost. I tend to agree with all of your points, including that it did what it was supposed to do in the short run. I will be taking advantage of this tax credit. However, it didn’t “stimulate” me to purchase when I wouldn’t have otherwise. The only effect it had on my personal situation was moving my closing date up one to two months. In a sense, the government is giving me 8K for something I was going to do shortly anyways. While I will take the credit, it does seem like a waste of tax payers $$$ when given to people in my shoes.

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