2009 Stimulus Plan – Not So Stimulating
February 13, 2009 by Bob Schenkenberger · 2 Comments
I’m not sure how handing the states billions of dollars for education and medicaid will help the economy, but the lawmakers must be smarter than me. I don’t know why it still shocks me when a bill with a specific purpose becomes so multi-faceted that no one really knows all that’s in it.
A quick rant over, the real purpose of this post is to update everyone on the real estate aspects of the package. So here goes.
- $8,000 or 10% of the purchase price, whichever is less, looks like it’s going to be the final number.
- There is an income provision which phases out the credit for couples earning more than $150k per year and singles earning more than $75k. Those above $200k are unlikely to see any benefit.
- Looks like it will run from the first of the year until the end of November of 2009. That would have a retroactive effect for buyers who bought in Jan but not those who bought in 2008.
- Buyers will have to repay the credit if they sell within the first 3 years of home ownership.
- The bill is aimed at first time homebuyers only. Move up buyers are not considered.
This has not been signed into law by President Obama, but is expected to be signed by Monday.
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Bob has been an active REALTOR for Over 20 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)
i’m in agreement – billions of dollars in spending does not necessarily stimulate the economy, create jobs, or improve infrastructure. billions of dollars in spending is just that – an expensive habit.
Doing the same thing and expecting a different result is insanity, wasn’t it Einstein who said that? We cannot solve problems using the same level of consciousness that created them. What we’re witnessing is a paradigm shift, one in which government is making poorer and poorer decisions while at the same time sophisticated communications techniques allow public citizenry to articulate a mandate, reach out for broad public support and awareness, and present government with solutions. The government is evolving from master back into servant, which is how it should be.
An accountable economic recovery plan must have built into in an incentive for investors to invest, and an incentive for borrowers to payback. The government has not provided us with this plan, but one does exist – created through public discourse. Find out more at:
http://www.theprosperitymandate.org/blog/job-creation/
matts last blog post..What You Should Know About Economic Stimulus and Job Creation
cant believe they arent allowing vouchers, talk about a soft tyranny