Extending the Home Buying Tax Credit

Are we enticing the right buyers?

While the incentive programs to help the public by houses helps, it might not reduce the home inventory and provide enough capital into the economy.

In order to get our economy moving at a respectable pace, more consumer spending is needed. Who better to provide that spending then the people that have money? If the goal is to reduce the inventory of unsold houses, let’s give people an incentive to buy a second or third home. Won’t they then buy furniture, pay real estate taxes, employ service workers and add money to the local economy? Even the home buying process employs workers, real estate agents, appraisers, settlement clerks, insurance agents and the list goes on and on.

The wealthy have money, maybe not as much as a few years ago, but they have money. Entice them to purchase a second or third home. Let’s go back in time when home interest was tax deductable, whether it was your primary residence or 4th home you owned. Just require the property purchased be in the United States.

The concern with the current tax credit is that people who can marginally afford a home are the purchasers. Some may even be using the tax credit to make their down payment. They may be facing the same foreclosure problems, in the near future, if the economy does not improve. Hardly a great plan for the future.

If we are to offer incentives, let’s not only incent first time homebuyers; let’s give everyone an incentive to purchase a home. Inventory will be reduced and the economy will benefit.

The economy needs any help it can get. Enticing those that have money to add capital to the economy would be a good place to look.