Comments on: Congress Set to Double the Size of Sprawl-Centric Home Buyer’s Tax Credit http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/ Covering the New York City Streets Renaissance Fri, 10 Feb 2012 16:07:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dennis Norman http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-149281 Dennis Norman Thu, 05 Nov 2009 20:40:13 +0000 http://www.streetsblog.org/?p=85231#comment-149281 Homebuyer Tax Credit Update: The House of Representatives just passed the bill by a vote of 403 to 12. It is now headed to the President for his signature..he is expected to sign today or tomorrow which then puts the extension and expansion of the tax credit into law. I have complete details as well as links to the bill in a post at: http://www.realestateindustrynews.com/real-estate-market/home-buyer-tax-credit-extension-update/ Homebuyer Tax Credit Update: The House of Representatives just passed the bill by a vote of 403 to 12. It is now headed to the President for his signature..he is expected to sign today or tomorrow which then puts the extension and expansion of the tax credit into law. I have complete details as well as links to the bill in a post at:

http://www.realestateindustrynews.com/real-estate-market/home-buyer-tax-credit-extension-update/

]]> By: fpteditors http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148951 fpteditors Thu, 05 Nov 2009 16:30:24 +0000 http://www.streetsblog.org/?p=85231#comment-148951 When gasoline is $5/gal, these homes will be available again. This is just more autosprawl subsidy. It is time to stop worrying about bike lanes and start fighting for free public transit. When gasoline is $5/gal, these homes will be available again. This is just more autosprawl subsidy. It is time to stop worrying about bike lanes and start fighting for free public transit.

]]> By: Daniel Nairn http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148831 Daniel Nairn Thu, 05 Nov 2009 12:57:58 +0000 http://www.streetsblog.org/?p=85231#comment-148831 I can't recall the study off-hand, but these homeownership subsidies generally don't seem to even increase the rates of homeownership by that much. Most of the money goes toward allowing people who would be purchasing a home anyway to buy a bigger home. I can’t recall the study off-hand, but these homeownership subsidies generally don’t seem to even increase the rates of homeownership by that much. Most of the money goes toward allowing people who would be purchasing a home anyway to buy a bigger home.

]]> By: Tubulus http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148761 Tubulus Thu, 05 Nov 2009 03:11:50 +0000 http://www.streetsblog.org/?p=85231#comment-148761 The simple fact is that the government decided many years ago that high levels of home ownership was an important goal, leading to the situation we are in now where consumers have a massive leveraged bet on housing. I've been a renter both in a usual city apartment and now in a suburban house. I have no desire to use leverage in my personal investments, and this includes making a levered bet on housing. I don't see why my choice of where to live should have anything to do with what bets I make with my personal money. I am extremely unhandy when it comes to home renovations and general upkeep - I clearly do not have a comparative advantage in personal property management, so I am happy to let someone else serve that function. The simple fact is that the government decided many years ago that high levels of home ownership was an important goal, leading to the situation we are in now where consumers have a massive leveraged bet on housing. I’ve been a renter both in a usual city apartment and now in a suburban house. I have no desire to use leverage in my personal investments, and this includes making a levered bet on housing. I don’t see why my choice of where to live should have anything to do with what bets I make with my personal money. I am extremely unhandy when it comes to home renovations and general upkeep – I clearly do not have a comparative advantage in personal property management, so I am happy to let someone else serve that function.

]]> By: Cap'n Transit http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148751 Cap'n Transit Thu, 05 Nov 2009 02:07:10 +0000 http://www.streetsblog.org/?p=85231#comment-148751 Yes, Vroomfondel, <a href="http://marketplace.publicradio.org/display/web/2009/11/03/pm-home-buying-credit/" rel="nofollow">that segment of Marketplace</a> was even more infuriating than <a href="http://capntransit.blogspot.com/2009/11/narrow-worldview-of-energy-greens.html" rel="nofollow">Frank O'Donnell's hyperventilation</a>. Yes, Vroomfondel, that segment of Marketplace was even more infuriating than Frank O’Donnell’s hyperventilation.

]]> By: Vroomfondel http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148721 Vroomfondel Thu, 05 Nov 2009 01:28:31 +0000 http://www.streetsblog.org/?p=85231#comment-148721 It's interesting to see different takes on this legislation: Last night a segment on WNYC complained that the Home Buyer's Tax Credit fails to distinguish between healthy communities and those hit by foreclosures. The commenter basically argued that the credit ought to be limited to places like Sprawlville, FL. I found myself shouting at the radio. It’s interesting to see different takes on this legislation: Last night a segment on WNYC complained that the Home Buyer’s Tax Credit fails to distinguish between healthy communities and those hit by foreclosures. The commenter basically argued that the credit ought to be limited to places like Sprawlville, FL. I found myself shouting at the radio.

]]> By: Ian Turner http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148681 Ian Turner Wed, 04 Nov 2009 23:42:14 +0000 http://www.streetsblog.org/?p=85231#comment-148681 Denkman, Renters pay property taxes just fine, thank you: Even if all residents are renting, somebody owns the property, and they pay the property taxes out of rents. --Ian Denkman,

Renters pay property taxes just fine, thank you: Even if all residents are renting, somebody owns the property, and they pay the property taxes out of rents.

–Ian

]]> By: Denkman http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148641 Denkman Wed, 04 Nov 2009 23:24:18 +0000 http://www.streetsblog.org/?p=85231#comment-148641 I don't usually comment, but it's really important to note that the best part about putting people in homes that they own is increasing the take on property taxes (that renters just don't pay). I know that we're all pretty progressive here, but the additional amount of money local governments suck out of property taxes has to make up for the Federal input. This is just a fancy way of subsidizing local governments without just handing them money (which people would kvetch about as well). I don’t usually comment, but it’s really important to note that the best part about putting people in homes that they own is increasing the take on property taxes (that renters just don’t pay). I know that we’re all pretty progressive here, but the additional amount of money local governments suck out of property taxes has to make up for the Federal input. This is just a fancy way of subsidizing local governments without just handing them money (which people would kvetch about as well).

]]> By: Dennis Norman http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148581 Dennis Norman Wed, 04 Nov 2009 21:59:01 +0000 http://www.streetsblog.org/?p=85231#comment-148581 Tax Credit Update - Senate voted 9701 today shortly after noon to end debate on H.R. 3548 (The Unemployment Compensation Extension Act of 2009) which contains the amendment extending and expanding the tax credit....Next step is for the Senate to vote on passage of the bill with the amendment...this may happen tomorrow night or Friday...I have complete info in a post at http://www.realestateindustrynews.com/real-estate-market/home-buyer-tax-credit-extension-update/ Tax Credit Update – Senate voted 9701 today shortly after noon to end debate on H.R. 3548 (The Unemployment Compensation Extension Act of 2009) which contains the amendment extending and expanding the tax credit….Next step is for the Senate to vote on passage of the bill with the amendment…this may happen tomorrow night or Friday…I have complete info in a post at

http://www.realestateindustrynews.com/real-estate-market/home-buyer-tax-credit-extension-update/

]]> By: Mark Walker http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148571 Mark Walker Wed, 04 Nov 2009 21:57:56 +0000 http://www.streetsblog.org/?p=85231#comment-148571 Renters need economic justice. It should take two forms: Rental affordability, as Elana says. But also assistance to renters who have lost their jobs and have seen their unemployment benefits run out. Those who are in danger of eviction need immediate economic assistance if they're not eligible for Section 8. Renters need economic justice. It should take two forms: Rental affordability, as Elana says. But also assistance to renters who have lost their jobs and have seen their unemployment benefits run out. Those who are in danger of eviction need immediate economic assistance if they’re not eligible for Section 8.

]]> By: Glenn http://www.streetsblog.org/2009/11/04/congress-set-to-double-the-size-of-sprawl-centric-home-buyer%e2%80%99s-tax-credit/comment-page-1/#comment-148561 Glenn Wed, 04 Nov 2009 21:47:10 +0000 http://www.streetsblog.org/?p=85231#comment-148561 What are the new income limits? That's the other way the incentives discriminate against urban dwellers. Housing prices are so high that you need the higher incomes to afford to buy an apartment. The best way to run an incentive like this would be for giving folks lower interest rates, not a lump sum. With a lower interest rate folks would be encouraged to stay there longer and they would not have as much interest to write off. Maybe they could subsidize a point on the mortgage at closing? What are the new income limits? That’s the other way the incentives discriminate against urban dwellers. Housing prices are so high that you need the higher incomes to afford to buy an apartment.

The best way to run an incentive like this would be for giving folks lower interest rates, not a lump sum. With a lower interest rate folks would be encouraged to stay there longer and they would not have as much interest to write off. Maybe they could subsidize a point on the mortgage at closing?

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