According to reports out of Washington, D.C., Senators will soon vote in favor of extending and expanding the first-time homebuyer tax credit that is due to expire on Dec. 1, 2009. The expansion of the program will include current homeowners looking to trade up.
The following is a summary of the details from a Reuters report:
Key senators agreed to extend the $8,000 first-time homebuyer tax credit, which expires at the end of next month, through April of next year, sources familiar with the matter told Reuters.
A spokeswoman for Senate Majority Leader Harry Reid said the deal would also allow for those who have been in their home for at least five years to receive a $6,500 tax credit if they purchase a new primary residence.
She also said the credit would be available for individuals making up to $125,000 a year and couples earning up to $250,000 per year, raised from $75,000 and $150,000, respectively, in the current tax credit.
I am generally against more government spending, especially in an arena such as housing where long-term imbalances need to be worked out by the private sector, no matter how painful that may be. But my opinion and $2.25 will get you a ride on the Chicago Transit Authority, so take it for what its worth. In any event, the federal government’s efforts have been effective in warding off a depression.
Also, notice that every time stock markets appear to be near a major correction, the government steps in with another stimulus program. This will continue for a while yet, and it will keep the market rally going, certainly through the end of this year and into early 2010. However, at some point the government stimulus efforts must be discontinued and the economy sink or swim on the back of private sector investment.
I make no predictions about the future. Rather, we must carefully watch consumer spending and private sector capital expenditures to gauge whether 2010 will see a continuation of the current mini-bull market or whether the long-term bear market will reappear. As an example, the third quarter GDP figures were largely boosted by consumer spending—however, consumer spending was boosted by the cash-for-clunkers and first-time homebuyer government programs.
To review the full Reuters report, please click on the following link: Senators eye extending home credit to end of April.
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Gregg D. Killoren
victoria1014
Homebuyer Tax Credit Extension Close
According to reports out of Washington, D.C., Senators will soon vote in favor of extending and expanding the first-time homebuyer tax credit that is due to expire on Dec. 1, 2009. The expansion of the program will include current homeowners looking to trade up.
The following is a summary of the details from a Reuters report:
I am generally against more government spending, especially in an arena such as housing where long-term imbalances need to be worked out by the private sector, no matter how painful that may be. But my opinion and $2.25 will get you a ride on the Chicago Transit Authority, so take it for what its worth. In any event, the federal government’s efforts have been effective in warding off a depression.
Also, notice that every time stock markets appear to be near a major correction, the government steps in with another stimulus program. This will continue for a while yet, and it will keep the market rally going, certainly through the end of this year and into early 2010. However, at some point the government stimulus efforts must be discontinued and the economy sink or swim on the back of private sector investment.
I make no predictions about the future. Rather, we must carefully watch consumer spending and private sector capital expenditures to gauge whether 2010 will see a continuation of the current mini-bull market or whether the long-term bear market will reappear. As an example, the third quarter GDP figures were largely boosted by consumer spending—however, consumer spending was boosted by the cash-for-clunkers and first-time homebuyer government programs.
To review the full Reuters report, please click on the following link: Senators eye extending home credit to end of April.
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