I think this is extremely promising and I am actually believing that this will eventually work out. That is the sustainability of the sales of the homes even after the tax credit ends in Mid June 2010 which is great news! This is mainly because people buy because of the discounts they get and eventually the number of foreclosures is offsetted by the number of new purchases. With a lower number of houses left dwindling around the corner, the Fed will make more money.
However, my only concern is that the people who are offering the $8000 and $6500 tax credits respectively might be suffering big time, imagine the number of sales multiplied by the amount of money per credit. It is a gargantuan sum and how are they going to recover that sum?
Then again, if the home prices will be sustainable because of this program, it is certainly worth it because the money that can be earned from each home will definitely be more than $8000 in the long run :) Just look at the utilities bill of each household, the maintainence fee, the service fees like rubbish collections and the demands of a new household in that area.
Like I said before, houses play a pivotal role in the industry because it requires the help of so many other industries to function properly. Examples of such are the bricks industry, bank industry, furnitures industrsy, oil industry, lighting industry, gardening industry, tax industry, consumer goods industry, luxurious goods industry and etc. So much money can actually be made from an occupied home and so much money can also be lost from an unoccupied home. Thus, if the tax credit can relieve the number of foreclosures, it is definitely a worthy and safe bet.
Credits -marketwatch, -ourcountryspresident, -yourroadmaptohome, -bendoregonrealestate
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