First Time Homebuyers Tax Credit

[Greg Bell]

The State of Florida has started a program that will give first time buyers $8000 up front to use as a down payment on their new home. The buyer has 18 months to pay the money back to the state from their federal tax returns.

[wsiegel]

Yeah, but they have not figured out how to fund it yet. Another stupid idea with no thought behind it.

[Doug Edwards]

I just love government stupidity. The bucket has got a hundred and fifty holes in it, leaking like a sieve so their answer is to put a few new holes in it. I wonder how many people actually get 8,000 dollars back in federal income tax returns?

[Nick Gromicko]

I never really understood why the government offers this stuff only to "first-time buyers." This economy will require people to move more often in the future. Young people today will end up with a dozen different careers before they retire. In general, owning a home disincentivizes younger people from moving, and therefore advancing.

It is as dumb as offering $8,000 to any young person who will agree to limit themselves to only those opportunities within a 50 mile radius.

[John Harrison]

This program has been in effect since last year. They just increased it to $8000 this year and depending on when you purchase your home you may not have to pay back any on the money.

Nick you stand with a couple of good points related to young buyers limiting themselves. Also take note that under the provisions of this package that a first time home buyer is anyone purchasing a primary residence whom has not done so in the last 3 years.

A first time homebuyer by these standards can be almost anyone.

[Nick Gromicko]

I wised up 10 years ago and will never own a home again as long as I live. I don't own because I don't like throwing money down the drain.

[Nick Gromicko]

I'll be happy to prove to anyone who is interested that buying a home is throwing money down the drain and renting a home is financially wise... but back to our $8K incentive to buy...

What the state doesn't understand is that there is a strong correlation between home ownership and unemployment. Their program increases unemployment.

[Jeffery L. Haynes]

Originally Posted by gromicko

What the state doesn't understand is that there is a strong correlation between home ownership and unemployment. Their program increases unemployment.

Maybe they do understand it.....they (liberals) want more and more people to rely on them......obviously the majority who voted for the present administration wanted more social programs enacted.

Jeff

[Greg Bell]

The story I heard yesterday said that the state would have funds available by August 2009. If nothing else it will allow more people who can't afford a house to buy one.

[Greg Bell]

Originally Posted by gromicko

What the state doesn't understand is that there is a strong correlation between home ownership and unemployment. Their program increases unemployment.

Are you saying that it increases unemployment since people are stuck where they are at if they own a home?

[Michael Roberson]

I wised up 10 years ago and will never own a home again as long as I live. I don't own because I don't like throwing money down the drain.

Interesting concept Nick. Ever read Rich Dad, Poor Dad? I have heard this argument before (similar anyway) He places his house in the Liability category, against common practice, Because it costs him money monthly, and makes him no money. (if/until he sells)

[rmaday]

Originally Posted by dedwards

I just love government stupidity. The bucket has got a hundred and fifty holes in it, leaking like a sieve so their answer is to put a few new holes in it. I wonder how many people actually get 8,000 dollars back in federal income tax returns?

This is nearly a mirror of the fed program - 1st time buyers/$8,000.

Seems the state is simply loaing the money up front and plans to take the $8K fed credit when the new homeowner files his taxes.

They assume that people are not smart enough to consider the $8,000 credit during the course of the year and make adjustments.

[Doug Edwards]

I believe this kind of program is exactly how the Real Estate market got into the mess its in. Giving money to people to use as a down payment who otherwise can NOT afford to make the payments. I do not know how many inspections I have done over the years where the Realtors ask me for a discount on my fee because "these people do not have any money". If not for some kind of Government program they would not be qualified for a loan or down payment. This is insane. Have we not learned anything? It is setting people to fail, ruining any credit they may have, not to mention the condition of the homes they end up leaving because of a default on their loans. They tend to trash the home before they leave it. God save us from the Politicians.

[Nick Gromicko]

Are you saying that it increases unemployment since people are stuck where they are at if they own a home?

Yes. Furthermore it rewards poor local government. When Philadelphia raised the city wage tax to over 4% and opened an "urban violence" wing of the hospital that handles gunshot wounds all night.... I gave away my worldly possessions and drove out west.

Anyway, a lot of the unemployed, especially younger families, are unemployed because they bought a home and can only look for employment around their home. When/if their local economy goes sour, their opportunities dry up and their home value drops. All of a sudden they are trapped.

[rmaday]

Originally Posted by gromicko

I'll be happy to prove to anyone who is interested that buying a home is throwing money down the drain and renting a home is financially wise...

Ok, I'm interested in your theory.