$15,000 Rebate Checks For All Home Buyers???

[grugind]

http://www.wsbtv.com/news/15575616/detail.html

Sorry if this is posted somewhere else but I didn't see it so I was wondering what everyone thought. I actually think it's a good idea as it may slow down price declines which helps current owners and sellers and it give prospective buyers incentive to enter the market. I am looking in the 250k area in Thurston county and this would be a significant insurance policy for me, giving me some wiggle room for price depreciation.
I see a couple of negatives in that it wouldn't help with affordability by propping up prices and an estimated cost of 15 billion over 2years will cost everyone in general with taxes going to pay for it. It seems cheaper than if we have to bailout more banks because we let the home market totally die though. I liked that it's not just a bank and big business handout but helps buyers and sellers. Combined with stricter lending requirements, this may motivate qualified buyers to jump in. I know the rebate wouldn't be too much of an insurance policy with Seattle's median being so high but in the lower end areas it might work. Thought and comments? What am I missing other than the affordability and the tax payer contribution. Or is this some bogus article since I haven't heard about it at all until I noticed it today on another site.

[rose-colored-coolaid]

This is a terrible idea.

A) Many parts of the country saw no/little bubble. These are the cheaper parts, and this plan would immediately inflate prices in those areas by 10%-15%. This just spreads the bubble more.

B) Areas that did bubble are so highly priced that this will do little. In Thurston (your example), it is 7% of total price. But prices in Thurston County are likely to fall over $50k (my guess).

C) It creates moral dilemma. Do this and how do you not retroactively bailing out previous buyers?

D) The poor still can't buy. You are stealing from them to give to the upper middle class.

[perfectfire]

It doesn't help at all with the problem (affordability), but since it helps you out to the tune of $15k you think it's a good idea. You could just wait about 6 months and pay $15k less and it won't cost the taxpayer a dime.

[Markor]

I know without even looking that this is a Republican-posed idea. It's like how they compensated 9/11 victims' families, and then they retroactively paid off the Oklahoma City bombing victims' families too. All with borrowed money of course. What a joke. Hey, let all us taxpayers give fat checks to car accident victims too, and $100 to anybody who stubs their toe. Idiocies like this have run the country into the ground in just 7 years. Just more proof that Republicans love welfare and couldn't manage their way out of a paper bag.

[rose-colored-coolaid]

[deejayoh]

</politics>

[Markor]

[Markor]

[perfectfire]

[Lake Hills Renter]

Markor, your endless political rants are getting as tiresome as Ray's endless self promotion. And I'm not a Republican saying that.

[Markor]

[deejayoh]

[grugind]

Wow, a simple post on the merits of the idea become a political debate. Well, I see both parties lining up with their patriotic plans to help homeowners so I agree it may be political but it's not just one party as the driving force.

I still am not convinced that there isn't some merit in this idea. Sure it doesn't help affordability but it won't directly inflate prices 10-15%. I'm still going to be able to afford a maximum payment and if this is indeed a rebate I won't see that money until after the transaction. Now I'm sure some creative lender could do wonders trying to leverage that 15k but hopefully they squash any attempts at fraud using the 15k rebate as part of your original home purchase. Yes, it would help me currently, Perfectire, but there are lots of ideas out there. Most of the ideas hurt me and make it harder for me to get a home and this one would at least even the playing field a little bit as it would be an incentive that benefits buyers also. I also pointed out that at least the homebuyer can share in part of the "bailout" instead of it going only to banks and irresponsible borrowers. I would rather the market correct but as the evidence is starting to show, the government is going to only let things get so bad before they do something drastic. I would prefer that I can get some of the benefits at least instead of just being the taxpayer that helps people keep their houses. 15k in hand is more insurance adainst home prices dropping than I have now and better than the assistance prospective homebuyers were getting in any previous bailout plan. The way I see it there are going to be 2 choices down the road. Participate in the plans offered and hope you benefit or complain about how there should be no bailout while everyone else who can takes advantage of it
. Both parties are talking about bailouts for homeowner so it seems inevitable that something will happen. I don't really see a scenario where something drastic isn't done. These guys are all clamoring for votes. I hope econimic sense prevails and the housing crisis is left to work itself out but I seriously doubt it. Logically, when presented with limited choices I would rather get some benefit out of this than to just be the contributor to the bailout funds.

[perfectfire]

[rose-colored-coolaid]