With strong lobbying from various groups, President Obama signed a Homebuyer Tax Extension, thereby giving 3 additional months for qualifying transactions to close (and let’s face it, short sales take time and even with the extension some just won’t close in time). And now there are already many in the real estate industry clamoring for another tax credit for first-time and repeat home buyers. Should we entertain such an idea? My answer is quite simply an absolute NO!
With jobless claims rising, sales of previously occupied homes slipping, and consumer confidence decreasing, there is no indicator that more government intervention (at taxpayers’ expense, of course) would help stabilize the real estate market. With ineffective programs such as HAMP keeping people in house they can’t afford, tax increases derailing small businesses, and micro-management at levels never seen before, Uncle O’s administration is merely prolonging the crisis. If the only thing that can keep the real estate market moving forward is an additional tax credit to entice buyers, then there are substantially deeper issues with the market that would need be addressed.
Without getting into deeper arguments about the evils/benefits of capitalism, it is one of the main principles on which our nation and its economy were founded. A strong economy is a FREE economy in which profit-motive is staunch and provides the catalyst for investors and inventors to flourish. Sustainable economic growth will result when the federal goverment forgoes further intervention and allows investors to revitalize the market with astute investing strategies and implementation. With that said, let’s heal this market, one investment at a time.
Related posts:
- Federal Mortgage Intervention Ending By End Of Month!
- World Wide Government and Central Bank Tinkering Will Do More Harm Than Good
- Government To Steal $15,000 From Every American Household To Bailout Big Banks and Lenders
- Hotel Industry Ravaged by Fear Stoked by Government, Pleads to Congress
- A Government Program That Works?
Article Author: Alex CortezAlex has written 11 articles for us.
Visit Alex's Website: http://mauirealestatesearch.com
Alex is a real estate agent specializing in properties in south Maui. For an up-to-date blog on Maui and Hawaii news, events, and real estate trends, visit his blog at www.mauihomeandcondo.com or search his site at www.mauirealestatesearch.com
Joshua Dorkin
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This is a terrific blog! Agree 100% – there are far too many individuals fighting for more government aid…the free market needs to find its own course and stabilize on its own. I for one, am hoping that another major goverment intervention does not occur! Again, Great Post & thanks for sharing!
Thanks for commenting, Eric. Sure, every Realtor and their mother was happy when the tax credit was first implemented as it artificially lifted the market, but by no means is it a permanent solution.