Buying a home in 2010

Homeownership is the best Stimulus

The writers over at the Times blog push forward one negative theory that is rolling around, namely that more families should be renting, well of course we believe this is hogwash. First the Times article:

Knocking the home buyer tax credit

Category: NWI in the News

The economics blog Calculated Risk takes on the notion of expanding and extending the home buyer tax credit, claiming it will cost taxpayers more than $100,000 for each additional house sold.

The thinking is that the $8,000 tax credit primarily goes to people who were going to buy a house anyway, and so doesn’t have much stimulative effect on the home market.

There’s another effect, evidenced by something I overheard at our Editorial Advisory Board meeting, where one of the members talked about not being able to get tenants for rental property he owns.

On this very subject, the article from the Las Vegas Sun, which the blog post cites goes into detail.

The reasons we find this so frustrating:

• Calculated Risk is merely a negative talking anti-economy bunch. They don't like homeownership, they wanted the bubble and aren't too happy to see the economy already bouncing back.
• Who cares if landlords now have some competition, that's good for the market. Perhaps take the opportunity to fix up your property while it's empty.
  
• Homeowners make the best community citizens, they stay, the keep maintained, they are part of the neighborhood.

If you are renting now, your rent is going to go up this year. Time to talk about buying a home. Let's talk today!