Senators Go Wild!, Approve House Flipping Subsidy

Are these people completely nuts?

Why should I subsidize someone buying a house?

(now excuse me while I check the real estate ads)

http://prospect.org/csnc/blogs/beat_the_press_archive?month=02&year=2009&base_name=senators_go_wild_approve_house

The reporters covering the stimulus have been so busy editorializing against it that they haven't had time to pay attention to what Congress is doing. Tonight Congress approved the Isakson amendment which gives $15,000 (or 10 percent of the purchase price, whichever is lower) to every person who buys a home in 2009.

Somehow, Isakson has this thing costing just $19 billion. Let's break the Washington rules and try a little arithmetic. Even with weakness in the housing market, it is still virtually certain that we will sell close to 5 million homes in 2009. The overwhelming majority would qualify for the full credit. So, we get 5 million times $15,000. That sounds a

lot like $75 billion.

And this is before we get to any gaming. It's hard to see why tens of millions of people wouldn't figure out a way to buy a house from a friend or relative and get their $15k. If we can get one-third of the country's homes to change hands (lots of jobs for realtors) that would be good for $375 billion.

It would have been helpful if reporters had talked to an analyst who could have explained these points for readers.

--Dean Baker

Meh. I really hope they have some sort of goal in mind and aren't just pull stuff out their ass and making it law. Bc if it's the latter, then that's some expensive **** that's starting to pill up.

Can I sell my house to my wife?

Can I sell my house to my dad, and then buy it back from him? BAM, instant $30k in the family. That's a lot of family vacations with the kids.

Can I "trade" houses with my neighbor?

Time to buy that house now

For the sake of those who knew this housing market would die and are waiting to steal something, please let this provision die

OK - Lets now discuss actual facts

1) It sure doesn't promote house flipping, since you have to pay it back as soon as you sell the house

2) Even if you don't sell the house, you have to pay it back, starting 3 years later, over the next 15 years after that.

3) So you are going to sell your house to your wife? Well, it has to be for at least $150k if you want to claim the 15k. Someone who doesn't file (So say your neighbor). You would actually have to move since you have to live there for at least 2 years (Or pay it back ASAP). You would have to pay taxes on it still, filling fees, title charges, basically all closing costs....

There is a $7500 tax credit right now for 1st time home buyers, this simply changes it to $15,000 and will remove the 1st time buyers rule.

It is estimated at 19 billion because many won't claim it since they have to repay it.

The most likely effect is that home prices will all rise about $10k to $15k - not a bad idea....

But now go back to you bashing a provision you clearly didn't read....

The most likely effect is that home prices will all rise about $10k to $15k - not a bad idea....

So my property taxes go up again?:mad:

Hang em all.

Any link to that paying back if ya keep it?...****s

OK - Lets now discuss actual facts

1) It sure doesn't promote house flipping, since you have to pay it back as soon as you sell the house

2) Even if you don't sell the house, you have to pay it back, starting 3 years later, over the next 15 years after that.

3) So you are going to sell your house to your wife? Well, it has to be for at least $150k if you want to claim the 15k. Someone who doesn't file (So say your neighbor). You would actually have to move since you have to live there for at least 2 years (Or pay it back ASAP). You would have to pay taxes on it still, filling fees, title charges, basically all closing costs....

There is a $7500 tax credit right now for 1st time home buyers, this simply changes it to $15,000 and will remove the 1st time buyers rule.

It is estimated at 19 billion because many won't claim it since they have to repay it.

The most likely effect is that home prices will all rise about $10k to $15k - not a bad idea....

But now go back to you bashing a provision you clearly didn't read....

Easy there, hoss. I know you're addressing several people at once here, but I was asking those questions BECAUSE I hadn't read the details.

Take it easy... It's just the Internet.

And thanks for the information. That makes a lot more sense.

So my property taxes go up again?:mad:

Hang em all.

Any link to that paying back if ya keep it?...****s

The orginal bill, that is already law, is for $7500 for 1st time home buyers for any house bought from April of 2008 to end of 2009.

This bill simply changes a few things to that law. Making it a 15k limit, and removing the 1st time provesion.

I'm sure you can find the text of the bill somewhere...

Mjah - Sorry - You are right.

I was wrong about a key fact though - Apperently in the new bill, as long as you live there for 2 years or longer, you DON'T have to pay it back.

It still will prevent house flipping, since then you will have to pay it back. But if you live there for 2 years or longer, your good. (And yes, you have to LIVE there for 2 years, not just own it)

house flippers are **** let them beg on the streets

I was wrong about a key fact though - Apperently in the new bill, as long as you live there for 2 years or longer, you DON'T have to pay it back.

Seriously?

My dad is totally buying this house, then -- and I'm buying his.

OK - Lets now discuss actual facts

.......

But now go back to you bashing a provision you clearly didn't read....

:applause:

Just another example of what happens when those who pay no taxes outnumber those that do among the nations population.

.

But now go back to you bashing a provision you clearly didn't read....

Now let's go back to LMAO and checking the real estate ads.

You mean they left it open to sell to immediate family as long as it is the primary residence?

house flippers are **** let them beg on the streets

House flippers have fixed up ****MANY**** a neighborhood falling to crap.

I actually failed at that a couple years back.. but having researched it and watched it nonstop.. They take crap and build them back up in 'most' cases.

I so want to see my house and grab a foreclosure, but i can't sell mine..

This may help. If i could get my 300k house for 189 i'm all over it.

There is a $7500 tax credit right now for 1st time home buyers, this simply changes it to $15,000 and will remove the 1st time buyers rule.

It is estimated at 19 billion because many won't claim it since they have to repay it.

The most likely effect is that home prices will all rise about $10k to $15k - not a bad idea....

Oh goody, so we try to reinflate the bubble that got us in this mess while giving tax breaks to those that really don't need them.(since only high income earners will be able to write it off)

That repaying bit is important ain't it?

Oh goody, so we try to reinflate the bubble that got us in this mess while giving tax breaks to those that really don't need them.(since only high income earners will be able to write it off)

That repaying bit is important ain't it?

I think a $15k bump in prices isn't exactly "reinflating the bubble," but I do think this is a useless measure.

So I ran the numbers on buying last year vs. buying this year. Given mortgage rates, my home's appreciated value (!?!) since last year, and what I still owe, it looks like I'd actually be in the hole by $10k had I waited until this year to buy this same house -- and that's after the $15k.

Now I don't feel personally inconvenienced anymore... and I'd like to thing my home value also goes up by $15k or so as a result of this program, eventually more than offsetting my tax burden to pay for it. Is it reasonable to think of this as a government subsidy to modestly increase home prices across the board without forcing homeowners to pay the difference? ...Thereby increasing property tax revenues, etc. and bolstering local/state economies?

What's the time lag between the start of the subsidy and the full change in home values? Is it instant? Is there a genuine lag to take advantage of? Is that the whole point?