: Is There Really Such a Thing - Free Money?

Is There Really Such a Thing - Free Money?

Is there really such a thing - Free Money?

We, as Realtors, have been bombarded with email from the National Association, our mortgage reps and home inspectors calling on us to lobby for an extension of the $8,000 first time home buyers tax credit.  They call it 'free money'.

. .

They say the gains in the housing market over the last few months will be undone if this 'free money' program is not extended.

I'll be the first to admit this program COULD be responsible for increasing sales numbers (and home prices) in much of my service area, but is it 'free money'?

Doesn't somebody have to pay for it down the road...Who, and when, will that be?

Keller Williams Realty - Atlantic Shore

Laura Giannotta


Comment balloon 13 commentsLaura Giannotta • October 17 2009 04:43AM


I'm of the opinion that the tax credit doesn't increase sales very much. I believe that folks who want to buy a home will. Now or later.

The tax credit, I believe, simply encourages folks to buy now rather than later.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 9 years ago

on the radio the other day a interviewer was asking people on the street where the stimulas money was coming from.  Most people's first reply was "Obama"...when the interviewer asked where Obama was getting the money from....most people had no clue....

Posted by Debbie Cullen, Your Cape Coral, FL Specialist (REMAX Realty Team-Cape Coral, FL) over 9 years ago
The government can't give you anything they haven't already taken from you, can they? Maybe, you and I paid for it. Should they bring back the "cash for clunkers"?, what about the $250 lump sum payment proposal for social security, instead of a cost of living increase? Is that a good idea? Where and when does it end? These problems are just the tip of the iceberg, that our country has!
Posted by David Jirasek, ALC, CCIM (Jirasek Realty) over 9 years ago
The theory is the first time home buyer credit, cash for clinkers, etc. will all help to stir the economy back and get us out of this recession. There is some proof that it is working. But you are right we will have to pay it back in taxes. But again the theory is the new jobs created by these programs is where the tax dollars to cover them comes from. The alternative is a continued stagnant economy or possoibly a depression. Let's just hope it all works.
Posted by Bob Murphy (Keller Williams Realty Consultants) over 9 years ago

Only if you are a politician buying votes.  I also beleive in Santa Claus.

Posted by Jim Crawford, Jim Crawford Atlanta Best Listing Agents & REALTOR (Crye-Leike REALTORS®) over 9 years ago

Nice story and I am happy for this young couple but I wonder if my grandchildren will feel the same when they realize that they will still be paying for this couples home 20 years from now just so some politician can buy some more votes.

I for one do NOT want the home buyers tax credit extended.

Posted by Edward Bachman, Your Kingwood TX Realtor (EXIT REALTY SOLUTIONS) over 9 years ago

Hi Laura, Good post. Thanks for sharing.

Best - Sash

Posted by Sasha Miletic - Windsor Real Estate (RE/MAX Preferred Realty Ltd.) over 9 years ago

This is a good post.  Thank you very much for sharing the video! 

Posted by Lisa Matykiewicz (United Brokers Group) over 9 years ago

Out here in a strange little place I like to call reality, there is no such thing as free period. Much less when it comes to money.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

JL hit the nail right on the head. There's no such thing as free.

However, I do believe that if people are buying homes, they'll also buy things to run their homes.

Both are good for the economy.

Posted by Craig Rutman, Raleigh, Cary, Apex area Realtor (Helping people in transition) over 9 years ago
Laura...I found that the only people who really gained were the ones that were going to buy anyway. We all will pay for it in the long run.
Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 9 years ago

Lenn, I agree!  I just have a problem calling it 'Free Money', and I'm probably guilty as well.

Debbie, that's a hugh part of the problem.

Bob and David, it's got to come from somewhere!

Jim & Edward, politicians always have to look as if their doing something, rarely do we realize the long term effects.

Sash, not as neat as your videos, but thanks.

Lisa, our REALTOR Association has a bunch of videos...this one struck me because our past president calls it 'Free Money"

JL & William...you're speaking to the choir!

Craig that's a very good point, but again it's not free!

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) over 9 years ago

It makes the ones that would buy anyway just go ahead and do so a little earlier. Whether it is helping I'm sure is debatable and will be till the pigs come home.

Posted by Charles Stallions Real Estate Services, Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl. (Charles Stallions Real Estate Services Inc) over 9 years ago