The hottest topic in real estate these days is whether the $8,000 first-time buyer tax credit that was initiated in February will be extended beyond its November 30 deadline. In Washington, it is the subject of an intense lobbying campaign and in markets around the country, first-time buyers are scurrying about trying to lock up homes that they can close on before November 30.
Here's one strong argument against an extension for the credit - the cost.
Originally projected to be $7 to $8 billion, the total tab now stands at over $15 billion and counting. Proponents say that it's evidence the credit is working. Opponents say the government can't continue to subsidize a program that has been this expensive when so many other needs are being unmet.
Here's one strong argument against an extension for the credit - the cost.
Originally projected to be $7 to $8 billion, the total tab now stands at over $15 billion and counting. Proponents say that it's evidence the credit is working. Opponents say the government can't continue to subsidize a program that has been this expensive when so many other needs are being unmet.
Here's one strong argument for an extension of the credit - estimates are that the tax credit has inspired nearly 400,000 sales nationwide, including tens of thousands of foreclosures that were sitting vacant and neglected. Most of these buyers are pouring at least some of their tax credit money back into home improvements, which help create stronger, safer and more vibrant neighborhoods.
So will the tax credit stay or will it go? Bottom line - it's a toss up.
Two months ago, I thought an extension was a slam dunk. Now I'd call it 50/50, maybe less than 50/50, that the credit is extended.
Too expensive to continue? Or too successful to unplug? That's the question being debated in Washington right now.
So will the tax credit stay or will it go? Bottom line - it's a toss up.
Two months ago, I thought an extension was a slam dunk. Now I'd call it 50/50, maybe less than 50/50, that the credit is extended.
Too expensive to continue? Or too successful to unplug? That's the question being debated in Washington right now.
