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Your Take: Isakson’s $15,000 Homebuyer’s Credit

Posted By Jim On 06/19/2009 @ 8:08 am In Your Take | 39 Comments

If you’re signed up for the Bargaineering newsletter [3], I included a mention of a potential $15,000 homebuyer credit in the latest Thursday email. The $15,000 homebuyer’s credit was introduced by Senator Johnny Isakson (GA-R) that would increase the current $8,000 first-time homebuyer credit [4] to $15,000 and could be used by anyone who bought a primary residence, not just first-timers. Another crucial change would be the removal of the current income limits. Isakson played a big role in getting the first $8,000 homebuyer credit into law. The logic behind this increase is in stimulating the “move-up market.” That is, those going from their first home to their second home. This US News article [5] has more “expert” opinion on the subject if you’re interested, but I wanted your opinion.

My feelings about this potentially new credit are mixed. On one hand, I recognize the importance of stimulating the housing market. On the other, it’s another $32 billion of spending. What’s $32 billion in a budget of trillions?

I don’t like the slippery slope we’re going down. First we had the first-time homebuyer loan, then the $8,000 homebuyer credit, and now potentially a $15,000 homebuyer’s credit – all benefiting the housing industry. We have the cash for clunkers [6] program, which recently passed both chambers of Congress and will likely be signed into law soon, which benefits the auto industry. All these programs to spur spending, which is important during a recession, but is it the right thing to do?

What do you think?

(Photo: billtex48 [7])

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[2] Email: mailto:?subject=http://www.bargaineering.com/articles/isaksons-15000-homebuyers-credit.html

[3] Bargaineering newsletter: http://www.bargaineering.com/articles/bargaineering-email-newsletter.html

[4] $8,000 first-time homebuyer credit: http://www.bargaineering.com/articles/8000-first-time-homebuyers-credit.html

[5] US News article: http://www.usnews.com/blogs/the-home-front/2009/06/12/will-the-8000-first-time-home-buyer-tax-credit-expand-to-15000.html

[6] cash for clunkers: http://www.bargaineering.com/articles/cash-for-clunkers-bill.html

[7] billtex48: http://www.flickr.com/photos/billtex48/886589178/sizes/l/

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