Let The Tax Credit Expire

That is the headline in an article on MSNBC and if you read my Blog about this you would know that I agree with it on many levels.  It is a privilege to own a home and people who are going to buy will buy with rates so low and properties being so affordable.  Just to put it in perspective for you and the costs involved:

“Extending the credit and expanding its scope is a bad idea on multiple levels. For starters, let’s look at the program’s return on investment. According to the IRS, 1.4 million homes have been bought since the credit’s inception; the National Association of Realtors gives a somewhat higher figure of 1.8 million to 2 million. (Either way, the program is already going to cost about $15 billion if it winds down as planned, according to the Associated Press .) And yet, according to the NAR’s own math , the tax credit was the make-or-break factor in only 350,000 of those sales. The National Association of Homebuilders, another industry group lobbying to extend the credit, places this figure even lower, at 150,000 . In other words, the vast majority of homebuyers would have signed on the dotted line even without the government’s incentive.”