Housing Giants - August 25, 2008 - (Page 9) VIEWPOINT eventually on new home sales in the move-up market. “First-time buyers don’t have homes to sell. That’s why they’re targeted. We need them to bust out of this thing.” Deitz also points out that the tax credit will have an impact on worldwide financial markets. “It helps by providing certainty for the revenues attributable to mortgage-backed securities,” he says, “and certainty and stability in financial markets will help both lending to builders and to home buyers. It’s all connected.” Not bad for a measure that’s really only an interest-free loan rather than a traditional tax credit, because the $7,500 must be repaid to the federal government over 15 years, beginning in 2010. Still, it gets money into the hands of first-time buyers when they need it most: the year they sign on the dotted line. Housing industry management consultant Chuck Shinn takes a somewhat jaundiced view of that repayment requirement. “Don’t it gets money into the hands of first-time buyers when they need it most: the year they sign on the dotted line. hold your breath waiting for those repayments,” he says. “I think the tax credit will be repaid about as often as student loans to college kids.” If the tax credit gets us out of this mess, no one will care. HG anD ginniE maE, too? Read more from Bill Lurz on his blog, Ear to the Ground. www.Housinggiants.com 8.25.08.Housing giants http://www.housingzone.com/blog/1360000536.html http://www.housinggiants.com
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