Hello!

Currently Congress is debating whether to extend and revise the tax credit. The  first-time home buyer tax credit has been noted a success with the latest estimates indicating that approximately 400,000 additional sales occurred this year due to the tax stimulus and computes to about 8% of all sales this year.

The proposed bill would extend and expand the $8,000 tax credit for first-time home buyers. Additionally, a new credit of up to $6,500 for some existing homeowners would also be included for all homeowners who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income loan limits to $125,000 for single taxpayers and $250,000 for joint taxpayers from the current $75,000 and $150,000.

While 4000,000 purchases by first time home buyers is an impressive number, it still is disconcerting to me that the increase in home sales credited with turning the housing market around is part of a huge stimulus that will result in an enormous tax burden on future generations.  Even more appalling is the enormous bail-out of huge American corporations and banking institutions with its unconscionable bonuses to CEOs?

In conclusion, Americans should be encouraged toward home ownership, but sustainable housing markets and  buyers who can afford not only to get into a home, but remain there, are vital considerations.  A discussion of median household incomes must be an integral part of a stable housing market.

P.S. A great book on property ownership is  “The Mystery of Capital” by Hernando De Soto.