Bidenomics at work
- Thread starter CoastalVADawg
- Start date
I am confused, if this is for "homeowners" looking to sell and buy another home then how is this helping "first-time buyers"?
As I understand it, it would help increase inventory for first time buyers, while simultaneously giving first time sellers a 10k credit who feel "stuck".
As someone still in a "starter home" and looking to expand with a growing family but can't/won't given my 3% rate, certainly something I will look into and won't turn it down if it can help. Doubt it really moves the needle though.
As someone still in a "starter home" and looking to expand with a growing family but can't/won't given my 3% rate, certainly something I will look into and won't turn it down if it can help. Doubt it really moves the needle though.
Do the math and pay close attention to the total interest paid on a new loan. Thinks it’s mostly smoke and mirrors.
Thinks the best thing is for the interest rates to fall…..BWTFDIK.
Apply your scenario w/ this mortgage calculator below & with what you may be looking for.
If the math works, do it:
https://www.mortgagecalculator.org/
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It's an election yr vote buying give away. You may be to sophisticated to fall for a 10K bribe that will likely result in 100K more in payments over the life of the loan but thousands and maybe hundreds of thousands only see the 10K as a gift. We are past the point of the masses learning to vote for benefits. That is the real threat to the republic and democracy.
Most long-time renters (which are the majority of first-time homebuyers these days) aren't looking for a "starter home," they are looking for home ownership.
Oh I know how to do the math. Haha. I appreciate the link though. Every resource I can get my hands on is helpful. You may very well be right in your analysis RE: rates falling.
It's all about finding the "dream house" as it's called. I hate moving. The next move is the last one until I retire.
Current rates and prices would double my mortgage right now. No thanks. plan has always been for them to drop before we even start looking. This is now just one more variable to the equation; does it change anything? 🤷♂️
It's a credit and not a deduction. That's gonna factor in somewhere. The new interest rate pushes me back into itemization territory before things revert back to pre-TCAJA rules (exemptions + deduction + increase SALT deductions). Then who knows what it looks like at that point.
Question really is does it make sense to utilize now vs how rates/taxes MIGHT look in the future. Oh...and current inventory....
I’m really surprised at how he thinks the gov’t works. Not saying it’s illegal/ unconstitutional to offer this, but the market should be dictating prices.
We finally have inflation normalizing and he wants to write huge checks and heat things up again? That would be a very bad idea.
The democrats treat the treasury like a giveaway bag to purchase votes. Pathetic.
Here you go - I’ll pay your loans back
Here you go - $10K to sell your house
Here you go - let’s let murderers vote
You can only answer that question as things are now, not predicting and hoping. Or, you can just take a risk/gamble and see how it turns out.
My advice is to just hang in there for now, take care of any maintenance issues and maybe update your home if needed. Wait for the rates to fall, be sure it all is advantageous to you & family.
Also, just be smart with your vote. I don’t have any confidence at all that rates will fall under Biden….but that is just my personal view.
Eventually, rates will drop. They always do.
Do these f’ing morons not understand that for the new supply that is generated by this policy there will be an equal amount of new demand? This will not make housing more affordable for new home buyers.
That $10k bribe won’t move the needle for almost anyone. Just another vote buying gimmick we’ll probably see from Joe every week until election day. All they’ve got.
If this was proposed under a republican president this place would be ecstatic...
Judging from some of your post, I think you are just lost……..math is easy, figure it out or hire somebody.
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I think it is you that is missing the point of my post/lost...
Some folks are claiming this is "bribing" or "buying" votes since a democratic president is proposing tax credits to a very select subset of people (those selling starter homes). I don't recall the same uproar when kemp gave us multiple gas tax holidays in Georgia in an election year. I also didn't care as I paid less at the pump.
My point is if you changed it from Biden to "insert pub nominee here" the response would be vastly different on this board. The team jersey mentality is strong in this thread.
Republicans loving paying less taxes. It's odd they would hate this...
Actually, it’s pretty stupid logic for any party.
So where is the seller going to live? How does this increase housing inventory. The issue is there is a 4 to 5 million housing unit shortage. Whether you like the immigration policy or not - where are all of those people going to live? The US quit building homes after the 2007 meltdown. Only the last couple years have home builders new home delivery exceeded the 50 year average. Lower rates would create more activity but not more inventory.
So where is the seller going to live? How does this increase housing inventory. The issue is there is a 4 to 5 million housing unit shortage. Whether you like the immigration policy or not - where are all of those people going to live? The US quit building homes after the 2007 meltdown. Only the last couple years have home builders new home delivery exceeded the 50 year average. Lower rates would create more activity but not more inventory.
Hang in there, when you figure out when it’s the right time to buy a home to move on up…..hopefully you can join in on the next step in life.
Just don’t think you are there yet, You’re still taking baby steps….
I did a poor job there, I admit it. I should have said supply of available starter homes, as that is what the credit is referring to. Inventory was way too broad a term/incorrect term. Apologies. Thanks for pointing that out.
Fiscal conservatives hate paying more money to the most inefficient entity on earth and then having that money used to:
1. Retard the incentive to work and creating a permanent underclass.
2. Watching politicians using that tax money to create personal wealth and fiefdoms all the way from the POTUS to members of local school boards.
3 Using tax policy as a tool for social engineering.
4. Using tax dollars to bribe voters by promising free benefits.
My guess is most fiscal conservatives that have historically voted Pub would want their reps to vote against another give away program. We also understand that we've probably hit the 50% threshold of voters that have decided taking money from those that have earned it and giving it to those that won't work even though they have sound minds and bodies is a legitimate function of government.
Wouldn't taking action to get hedge funds out of residential real estate or doing something (anything) to lower interest rates be a whole lot more effective? Without pushing more inflation?
The best thing the government can do is stay the f’ out and do nothing. Government policy never helps it only hurts. Every policy distorts behavior and has consequences. How does the government keep hedge funds out of housing? Most homes owned by hedge funds are new construction rentals. Most equity for new construction apartment projects comes from private equity, or other institutional funds. Everyone complains about housing prices being too high but remember what happened when they dropped dramatically 16 years ago? I live in fear of government involvement more than anything else.
I agree with all of your points. In fact, reading your response shows me that I did a poor job of trying to make my point. Certainly, government interference always creates more problems. Conversely, withdrawing bad public policy (not adding more) should improve matters.
Bad public policy has led to higher interest rates. That has far more effect on housing costs for first time buyers than offering a comparatively meaningless tax credit as an "incentive" to sell lower price homes. Government programs to support home buyers are hugely inefficient. Maybe you fix FHA before considering token inflationary tax credits.
I'm not talking about the broad market of new construction rentals, here. We are talking about the fairly recent phenomenon of hedge funds targeting established neighborhoods to buy up and convert to rentals.
The reason hedge funds can buy up big chunks of homeowner property and convert them to rentals or hold speculatively, is the exaggerated difference in borrowing costs. The hedge fund has a much lower cost of funds than the individual homebuyer. They can offer more to the seller and still have a lower total cost (price+interest+purchase costs) than the consumer. When interest rates are lower, there is less of an advantage and less incentive to buy owner property and convert to rentals.
One hedge fund bought up 15% of the Atlanta housing market in one fell swoop in the wake of covid. More importantly, that one fund bought 90% of the market in targeted zip codes. Those houses were exactly the ones that first time buyers would find most desirable. And that's just one fund.
This forces rents and house prices higher at the same time. Limited availability drives higher prices. No realistic option to buy forces more people into rental property, driving rents up. Government regulation of the housing market, such as forcing construction of rental property in proportion to single family home construction, artificially holds down the supply of new homes. Higher interest rates, of course, have the same effect.
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WOW! What a desperate POS..throw everyone else’s tax money at the problems he created
Print the money,...pay for programs "votes" of past people being hurt by inflation (money printing),...govt creating its own demand
