Comments on: More about the homebuyer tax credit…… http://www.bostonreb.com/2009/10/more-about-the-homebuyer-tax-credit/ Boston real estate, Boston condos, Boston luxury condos, Boston luxury real estate, Back Bay condos, Back Bay real estate, Back Bay luxury condos, Boston Back Bay condos Mon, 06 Feb 2012 05:38:19 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Funny http://www.bostonreb.com/2009/10/more-about-the-homebuyer-tax-credit/comment-page-1/#comment-12387 Funny Wed, 28 Oct 2009 17:24:33 +0000 http://www.bostonreb.com/?p=24121#comment-12387 It should also be said that the point of stimulus spending is to infuse cash asap. The tax credit (like cash for clunkers) may not be changing the fact that a person is going to buy, just when. Getting money into the system now is the most important thing, then slowly scaling back government involvement as consumer and investor confidence comes back is the big picture. It should also be said that the point of stimulus spending is to infuse cash asap.

The tax credit (like cash for clunkers) may not be changing the fact that a person is going to buy, just when.

Getting money into the system now is the most important thing, then slowly scaling back government involvement as consumer and investor confidence comes back is the big picture.

]]> By: Jimmy H http://www.bostonreb.com/2009/10/more-about-the-homebuyer-tax-credit/comment-page-1/#comment-12373 Jimmy H Wed, 28 Oct 2009 02:33:40 +0000 http://www.bostonreb.com/?p=24121#comment-12373 I think that the 8k credit was effective in bringing some homebuyers who were "on the fence" into the market. However, most people who bought were already going to buy, tax credit or not. I think that the money should have been used in much different ways, such as for extending unemployment benefits as Aaron mentioned. I think that the 8k credit was effective in bringing some homebuyers who were “on the fence” into the market. However, most people who bought were already going to buy, tax credit or not.

I think that the money should have been used in much different ways, such as for extending unemployment benefits as Aaron mentioned.

]]> By: Aaron Weber http://www.bostonreb.com/2009/10/more-about-the-homebuyer-tax-credit/comment-page-1/#comment-12370 Aaron Weber Tue, 27 Oct 2009 22:45:26 +0000 http://www.bostonreb.com/?p=24121#comment-12370 Yes and no. If the goal is to persuade people to buy a home, it fails: As you point out, very few people are motivated to buy a home based solely on an $8000 discount. However, as a way of getting money moving around, it's less bad. $8k cash back won't persuade me to buy, but it might persuade me to renovate the kitchen or buy a better washer or hire movers instead of persuading my friends to do it for me. The stimulus is more targeted to people who are likely to spend it than, say, $250 to every senior citizen out there. Regardless, it's not as effective as unemployment insurance. New homebuyers are likely to spend money, and that's OK for getting money spent, but if you really want to do something that helps people and stimulates the economy, food stamps, unemployment insurance, and reversing local service cutbacks would do a heck of a lot more. Yes and no. If the goal is to persuade people to buy a home, it fails: As you point out, very few people are motivated to buy a home based solely on an $8000 discount. However, as a way of getting money moving around, it’s less bad.

$8k cash back won’t persuade me to buy, but it might persuade me to renovate the kitchen or buy a better washer or hire movers instead of persuading my friends to do it for me. The stimulus is more targeted to people who are likely to spend it than, say, $250 to every senior citizen out there.

Regardless, it’s not as effective as unemployment insurance. New homebuyers are likely to spend money, and that’s OK for getting money spent, but if you really want to do something that helps people and stimulates the economy, food stamps, unemployment insurance, and reversing local service cutbacks would do a heck of a lot more.

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