First time home buyers incentive being removed?

[michael21]

Can anyone tell me more about this and their thoughts?

Is this going to be a bad thing or did the FHSA replace this?

Is there anything I should do before the deadline? I never bought my first home yet...

 

[davisalw]

@michael21 It was a bad program. In exchange for a loan, you basically signed a portion of ownership of your home to the federal government. The loan would be paid after 24 years or when you sold.

It was ill conceived, cost the tax payers zillions and was under utilized. You didn’t miss out on anything.

 

[barrettf50cal]

@davisalw Cost the taxpayers zillions? Do elaborate and maybe provide some color to that statement by showing how much exactly it cost.

 

[davisalw]

@barrettf50cal The Feds as always won’t release the actual cost, but there was at the least an entire level of bureaucracy if not two. The deferred cost of the loans, lawyers, titles, liens, oh my. So much money.. the humanity..

It was a dumb. Get the picture?? Is that enough color for ya?

 

[barrettf50cal]

@davisalw FHSA won't be any cheaper, since you are so good with color...

As an aside 22,826 people took it up... Even if the cost per transaction was $20k, it ends up being less than 500 million which is certainly less than what FHSA will cost and definitely less than zillion. Drop in the bucket really.

Tax revenue lost to 22,826 middle class people who put in $40k over five years at 30% marginal tax is $274 million for FHSA. I'll bet you money that 10-20x amount of people will take this program on because it's so simple to do and very beneficial.

The original program probably paid for its costs with appreciations on homes along the way.

Also, don't be a jackass, as anyone can be one. Do better.

 

[wren84]

@michael21 FHSA is a much better program. You should absolutely use it if there is any chance you'll buy within 15 years.