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Think before you leap - ending tax credit

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Uborrow-Upay
Valued Contributor

Re: Think before you leap - ending tax credit


@LynetteM wrote:

@rockymtngrl wrote:
I have read several articles during the time they have been offering the credit & loan that it is actually helping keep prices up. Sellers know they can ask for/get a little more because buyers are getting a credit. I've read several articles/experts say that when the credit expires housing prices are going to fall. In the past couple of weeks I have also read a couple of articles about how another round of foreclosures are about to hit and banks are going to have to start moving thier shadow inventories so prices are expected to fall.

 

+1

 

I know someone who works in finances for a national home builder. They look at the tax credit as a handout to sellers.

 

Yes. Sellers.


+2

 

I won't get any tax credit, but the fact that it is there for others has contributed to my decision to postpone certain purchases for a while.  IMO, the prices will still drop somewhat, but I'm looking at this from an investor's standpoint, not as a potential owner-occupant.

 

Everyone's situation is a little bit different, and I've got to agree that thinking before you leap is always a good idea, tax credit or not.

Message 11 of 14
monkeywre
Valued Member

Re: Think before you leap - ending tax credit

Buying a primary residence shouldn't be considered a short term investment. Like all investment products homes carry risk, but in general they appreciate over the long term, and just like other investments that appreciate you should choose carefully which home you want to purchase. Some homes and some locations appreciate faster than others, and some have always done poorly, think trailer parks. Just because prices are a little lower a few months after you purchased your home does not necessarly mean you made a bad decision or that you are going to lose lots of money. No one can accurately predict when any market will hit rock bottom so hopefully you guys were in a good position to purchase your homes when you bought them and in several years if you go to sell you should get your money back and then some statistically speaking. Enjoy the house you purchased, how much it's worth really should be none of your concern until you go to sell a little later. If the market wasn't so volitile then there wouldn't be $8000 of free money. I didn't qualify for the FTHB credit when I purchased my home last Feb, and if I had waited I could have gotten $6500 but in my case I'm happy with my purchase and would do the same thing again.
Message 12 of 14
MonkeyMan17
New Contributor

Re: Think before you leap - ending tax credit

I'm in the market to buy NOW...not because of the tax credit but because of the low interest rates. This will be my last house so I'm not worried about the potential of additional falling value since eventually the market will stabilize and resume normal appreciation of 1-2% a year
Message 13 of 14
llecs
Moderator Emeritus

Re: Think before you leap - ending tax credit


gpeach wrote:

So we were on the fence and leaped this past summer before the tax credit ended. Well 9 months later our home has decreased in value as the other homes they are builiding here with more space and options for less. Prices are falling on already built homes. In our market we would have been better off to wait. To top it off collecting this 8000 is a bit of a nightmare for some. I hope it does not go too much longer for me. 

 

If you are thinking of buying a home the 8000 sounds great. But what if the market continues to go down? I am being sincere that you want to look at the big picture. Wait for the perfect house that is a great deal. Don't buy it quick because of the credit. That is what the govenment wants. That is what we did and won't get into details but wished we had looked more and not settled so quickly.  

 


 

+1. Well said. We are in the DC area and prices really haven't dropped in the past many months, well, certainly not like everywhere else. But it appears the frenzy is winding down and prices are declining rather quickly. I resisted the calls from family to buy...Buy...BUY. Glad I waited now. If only I can keep rates low.
Message 14 of 14
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