Home buyers in California could enjoy up to $18,000 in tax credits

Market Watch ^ | 2-28-2009 | Andrea Coombes

[MeneMeneTekelUpharsin]

SAN FRANCISCO (MarketWatch) -- It's getting more rewarding to be a home buyer. There's the $8,000 federal tax credit for first-time home buyers. ....There's just one hitch: You have to buy a newly-constructed home that's never been lived in.

(And later in the story) There are some other limitations: The credit is available for just one year. Also, the state allocated $100 million to the credit -- once the funds run out, so does the tax break. And taxpayers must live in the home for two years or pay the credit back, Morris said. The state tax agency will pay out the credit over three years; ....

Read entire story at link....

[MeneMeneTekelUpharsin]

Liberals. Always saying or doing something that sounds good, but is not effective, long-lasting or wise. Morons.

[romanesq]

With California unemployment now in double digits, we don’t really need to wonder how house buying credits is going to help now do we?

[screaminsunshine]

Wait til they see the property tax bill.

[avacado]

What is Obama going to do about my 401K that began tanking when the Democrats took control of Congress in Jan 2007, and then took a total nose dive when he, Obama, took office this Jan 20, 2009!

[MeneMeneTekelUpharsin]

Wait til they see the property tax bill.

How true.

[silverleaf]

Oh, is the state back to being able to pay its tax refunds instead of issuing IOU’s”?

[bray]

First time buyers are what got us into this problem in the first place. Look for more foreclosures down the road.

Pray for America

[behzinlea]

This is like giving a crack addict $18,000 to spend on crack in the expectation that he’ll kick the addiction.

[4rcane]

ROFL only $100 million? Thats going to run out FAST! And who would be the buyers? The ppl who could afford it

[pieceofthepuzzle]

“What is Obama going to do about my 401K that began tanking when the Democrats took control of Congress in Jan 2007, and then took a total nose dive when he, Obama, took office this Jan 20, 2009!”

Your 401K tanking actually plays quite nicely into the democrat world-view. You don't have the wisdom to handle your own money and provide for your own future, so they should have your money and ‘put it away’ for you. Having private investments tank is something they can point to when opposing privatization of social security etc. The compassionate and wise elite (i.e. them), and the masses (you).

[TCats]

Yes. Those things and also adorning each manipulation with complex rules and conditions that make compliance more expensive than the ‘Subsidy’. And then there is the Gov’t handling fee in the form of waste and fraud.

But they get the people jumping through hoops to get these illusions of a free lunch.

[4rcane]

Also, after 7k ppl, the fund is cut off, no cheese for you

[STONEWALLS]

“With California unemployment now in double digits, we don’t really need to wonder how house buying credits is going to help now do we?”

YEP!...it’s all about buying the votes of minorities....who will promptly default within a year or so....and BTW, you won’t believe how fast a neighborhood turns to sh*t when these folks move in.

[avacado]

Yep, you are right... unfortunatley. 401Ks tanking just lets the Democrats show that private investment is not the way to go. “Give us your money, we know what to do with it...”

[behzinlea]

You’re right. The Obamassiah and his minions are already casting their little piggie eyes on our 401ks. The storehouses of the prudent and money-wise are the only places left to raid for assets to fund Great Society II. That’s why I have drastically curtailed my 401k investments. There’s little I can do about what’s already in there, but I can avoid making the target larger.

[jammer]

I object to your use of the words, not “effective” and “long-lasting”. The “solutions” are effective in creating more dependence on government and in decreasing personal accountability. That’s the hidden goal, and the libs succeed. And the solutions are long-lasting—we can never extirpate the cancer without a complete reset.

[From The Deer Stand]

Why would they give tax credits? After all the Libs say all the time that tax cuts don’t work.

[TCats]

You might want to look into a transfer of your 401K into a Self Directed IRA. I'm not sure about how this would go. Maybe someone else can help?

One thing I do know, Employer Sponsored 401K’s are a rip off. The Employer selects the Plan Administrator (No doubt with special deals from the Administrator to the Employer to the detriment of the Owner), numerous, high hidden costs and almost impossible for the real owner to have much control.

You are better off selecting your own Mutual Funds without paying the 1-5% fees of this middleman to do the same thing.

[TCats]

This is a Wealth Transfer, not a Tax Cut. They either borrow the money and pay it back with future Tax increases or fund it now, again from Tax increases. All Tax increases are on the wealthy and all credits hopefully go to low income home buyers.

[pepsionice]

So what they are doing....enticing construction...while people are leaving the state...thus driving the prices of houses down because you don’t get the credit for buying a “used” house. Obviously, the new house builder folks are going to make some cash off this...but the typical guy who had a house and puts it up on the market for sale...gets ten to twenty percent less than what he could have gotten last year.

This is what happens when everyone rushes in to “fix” something...you just make a bigger mess.