{"id":6854,"date":"2009-02-09T11:39:23","date_gmt":"2009-02-09T18:39:23","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=6854"},"modified":"2009-02-09T11:38:24","modified_gmt":"2009-02-09T18:38:24","slug":"some-ugly-questions-about-that-15000-home-buyers-tax-credit","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6854\/some-ugly-questions-about-that-15000-home-buyers-tax-credit\/","title":{"rendered":"Some ugly questions about that $15,000 home-buyers tax credit…"},"content":{"rendered":"

I let the hoopla over the $15,000 tax credit for home-buyers of all incomes<\/a> slide last week. There’s way too much sick-making news coming out of Washington right now, and, somehow, Republicans dancing in triumph because they had managed to squeeze out a little theft for the rich — and for the NAR — was more than I wanted to try to digest.<\/p>\n

Actually, my pet bette noir<\/em> last week was the ridiculous idea of a compulsory 4% mortgage rate<\/a>. What this economy really<\/em> needs is a mandatory 720 FICO score!<\/p>\n

Pinocchio — the NAR — is a vampire<\/a>, a dead thing that feeds on the living, we all know that. But I was writing about that $15,000 gift from the taxpayers to the NAR this morning, and some ugly question came to me.<\/p>\n

For one thing, this is a direct transfer of funds from the Federal budget to the housing industry. Normally I love the idea of starving the government, but the net effect of this tax credit is that we will artificially buttress home prices, delaying but not avoiding the ultimate price decline that we have to go through to achieve a true recovery.<\/p>\n

Am I wrong? I read the tax credit as being a net reduction in taxes paid. If you owe $15,000 in taxes, but if you bought a primary residence, you pay no taxes.<\/p>\n

I can’t see lenders resisting a bait like that. They will find a way to lend you the dough now, and you pay it off over the next 12 — or 24 or 36 or 360 — months. Your $15,000 can pay for up to 10% of the purchase price of the home, and your net tax liability will be reduced by $15,000 next April. If you have another $15,000 in cash — set aside for taxes, perhaps? — you’ve got an 80\/20 loan on a $150,000 home with no PMI.<\/p>\n

Let’s go once better: $15,000 down on an FHA loan gets you to a $428,571 purchase price — in excess of the jumbo limits in Phoenix. Have you been craving that $400K house up the block. It Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I let the hoopla over the $15,000 tax credit for home-buyers of all incomes slide last week. There’s way too much sick-making news coming out of Washington right now, and, somehow, Republicans dancing in triumph because they had managed to squeeze out a little theft for the rich — and for the NAR — was […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,62,29,6,5],"tags":[],"class_list":{"0":"post-6854","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-dirty-laundry","8":"category-group-therapy","9":"category-marketing","10":"category-real-estate","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":14590,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14590\/more-thrilling-real-estate-math-from-the-national-association-of-realtors-how-much-did-first-time-home-buyers-benefit-from-their-8000-tax-funded-subsidy-can-you-count-to-negative-15000\/","url_meta":{"origin":6854,"position":0},"title":"More thrilling real estate math from the National Association of Realtors: How much did first-time home-buyers benefit from their $8,000 tax-funded subsidy? Can you count to negative $15,000?","author":"Greg Swann","date":"May 11, 2011","format":false,"excerpt":"You read that right. On average, recipients of the $8,000 federal housing subsidy lost $15,000 on the homes they purchased using the subsidy as their incentive. From SmartMoney.com:The government's recent $8,000 cash incentive for first-time home buyers has proved even more costly for recipients than for taxpayers, according to data\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5554,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5554\/nar-promotes-housing-stimulus-plan\/","url_meta":{"origin":6854,"position":1},"title":"NAR Promotes Housing Stimulus Plan","author":"Dave Phillips","date":"November 12, 2008","format":false,"excerpt":"Here is a fresh bone for Bloodhounds to chew on.\u00a0 This 4-point stimulus plan was approved by the NAR Board of Directors this past Monday and is being pushed heavily in Washington DC.\u00a0 The National Association of Realtors\u00ae will offer a four-point legislative plan to reinvigorate the housing market, calling\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12341,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12341\/first-time-home-buyers-tax-credit-the-morning-after-the-governments-gift-to-new-home-buyers-a-house-immediately-worth-8000-less-than-they-paid-for-it\/","url_meta":{"origin":6854,"position":2},"title":"First time home-buyers tax credit, the morning after: “The government’s ‘gift’ to new home-buyers? A house immediately worth $8,000 less than they paid for it.”","author":"Greg Swann","date":"June 22, 2010","format":false,"excerpt":"From the National Review Online:Things are looking worse on the housing front, with a severe drop-off in existing home sales following the expiration of the home-buyer tax credit. It's hard to overstate how stupid this policy was. The government marketed it as a measure to boost residential real-estate prices by\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8539,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8539\/what-would-it-take-to-reform-the-national-association-of-realtors-to-turn-it-from-an-anti-consumer-cartel-into-a-steadfast-defender-of-the-right-of-american-citizens-to-own-use-and-enjoy-real-proper\/","url_meta":{"origin":6854,"position":3},"title":"What would it take to reform the National Association of Realtors, to turn it from an anti-consumer cartel into a steadfast defender of the right of American citizens to own, use and enjoy real property?","author":"Greg Swann","date":"May 21, 2009","format":false,"excerpt":"Joe Loomer: > what could and should NAR do to dispell your views of it as a criminal enterprise? In very broad outlines: 1. Stop writing and lobbying for legislation devised to churn the real estate markets. 2. Work tirelessly to eliminate all laws that serve to advance the interests\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14450,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14450\/when-all-you-have-are-fangs-everything-looks-like-an-artery\/","url_meta":{"origin":6854,"position":4},"title":"When all you have are fangs, everything looks like an artery","author":"Teri Lussier","date":"April 16, 2011","format":false,"excerpt":"So now the NAR is looking at its own members and licking its lips, and after the Town Hall meeting, I think I might understand the thought process at work here. After all, if all you have are fangs, everything looks like an artery.","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14708,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14708\/lay-down-with-dogs-and-you-wake-up-with-fleas-worse-if-you-decide-to-rape-the-taxpayers-via-nars-rapac-scam-you-get-plague\/","url_meta":{"origin":6854,"position":5},"title":"Lay down with dogs and you wake up with fleas? Worse. If you decide to rape the taxpayers via NAR’s RAPAC scam you get… plague!","author":"Greg Swann","date":"June 29, 2011","format":false,"excerpt":"From the Phoenix Realtor Forum, the monthly newsletter of the Phoenix Association of Realtors: Alas, the plague is a swarm of vampire-like locust Realtors. These are RAPAC's objectives, according to the article, with interstitial commentary by me in bold text. Mortgage Interest Deduction: NAR opposes any changes that would limit\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=6854"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6854\/revisions"}],"predecessor-version":[{"id":6855,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6854\/revisions\/6855"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=6854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=6854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=6854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}