If you'll allow me to slide on my monogrammed Uncle Buck house slippers (if only in my mind) i just saw this Yahoo News headliner Senate OK's $15K Tax Break to Homebuyers.
Now, The Queen and i have been doing some studying lately on the CURRENT law and "tax credit" of $7500 for first time homebuyers. Folks, if you are considering actually USING this as an incentive...let me inform you...this is just a really cleverly disguised ummmmm....'escort service'. Eventually, you're gonna have to pay for what you get. Let's call this what it IS...its a tax credit that must be paid back in the next 15 years (unless they've changed THAT provision in the law too, to say, 30 years) i.e. A ZERO INTEREST LOAN...i.e. debt service. So...if'n ya wanna take on more debt WITH your mortgage AND/OR lose equity money on the eventual sale of your investment...well by all means ENTRE VU. If not, well just do it the Smith Barney way, remember their old slogan..."We make money the old fashion way, we earn it."
5 comments:
My eyes just glazed over.
Actually...in some cases it's really not a bad idea. I'll give you an example of someone I know doing this.
This couple always wants a large refund at the end of the year (which that is the government getting your money at no interest paid to you all year long...but a story for another day)...but to them it's a non-interest bearing forced savings account. They just bought a house and need a another (second) vehicle desperately. They are getting the $7,500 tax credit and will purchase the new vehicle with it.
So out of the large refunds they normally get, they will get $500 less per year. An interest free loan that bought a vehicle and only reduced what they were getting in a refund. It was a sweet deal for them!
Thanks for that Mrs. Napkins, instead of saying the cat can't be skinned, there's always those other options...
MamaLou, i know, but its subject matter.
Don't get me started. Please. This crap is making me crazier than normal. (He said, oh-so-seriously.)
So you get an interest-free loan with money the government either borrows (at some interest) or prints. So who covers the difference? That would be ... us taxpayers maybe?
Post a Comment