Why the need for a Buyer tax credit?
Lots of talk making its way through our industry and the public about a possible first time buyer tax credit. Some say possibly $15,000 is a number but nothing is even close to being on paper, much less a law. But as long as people are going to talk about this, why not have a really good look at it?
- How is $15,000 going to help a first time buyer when the ONLY thing it will do is increase prices and the number of people looking for the lowest price homes in each market?
- More people chasing fewer properties only drive prices higher!
- If the seller knows everyone has an “extra” $15,000, what do you think is going to happen?
To those members of Congress who think throwing money at a problem that doesn’t exist somehow solves something, you are wrong! We need more people learning to save more money by themselves, or taking all the stimulus money already in the pipeline and using that money if they like; but there is no lack of opportunity for people to earn and save money if they want to do it! You already have programs in place to help the first time buyers. There is no shortage of potential buyers in this market!!!
To those members in Congress who think they must throw money at the housing market for some reason or another, how about doing so in a way that might actually help? Why not actually help the market by issuing a $15,000 tax credit to anyone that SELLS a house? More incentive to sell would help bring more homes to the market. It would provide opportunities in all markets, not just the entry point. This would:
- Not only help buyers at the entry level get in, but would also help everyone in all markets!
- Pulling people into the market from the top, middle, and bottom; not just pushing the weakest into an already crowed arena.
- Might help out investors who have been abused by government decree to allow tenants to stop paying rent to landlords who must still do so!
- Investors might take advantage of selling investment properties and making them available back to owner occupied market!
So PLEASE, no first time buyer tax credit, it will only make things worse! If you must spend money; please put it into play in a way that will likely help everyone, not just a select few! A seller credit will do a much better job and work for everyone!
If any member of Congress wants to discuss this with me, I will be happy to make time and help you through this thought process.
[email protected] I look forward to a lively discussion!
