I Should Have Known!
A few days ago the US Senate passed a bill that, like the House of Representative’s version, would have provided a tax credit of 10%, up to $15,000 for anyone who purchased a primary residence home. It sounded like a good idea and I’m always in favor of tax cuts. That should have been enough to tell me that it just wouldn’t happen. In the committee meetings to reconcile the two versions of the bill housing got pretty much kicked to the curb. The credit was reduced to a maximum of $8,000 for first time home buyers only – Much less attractive than the previous version of the bill.
President Obama says he will sign the compromise version into law within the next few days although almost nobody (not even the elected officials who just voted) has had a chance to read or digest the 1000 pages plus legislation. The new discussion is on providing additional assistance to homeowners who are behind on their mortgages to try and stop the tide of foreclosures. While this sounds like a good idea it makes me wonder how many people who are presently current on their mortgage will stop paying in order to be eligible for a rate reduction or some other government assistance.
The lesson that won’t be learned for years but maybe some day will become clear is that the worldwide financial markets are larger than our government’s ability to control or buoy up. We will eventually recover from what almost everyone now agrees is the deepest economic downturn since the great depression – The real question is when. The key therefore is not to overpay for any property that you are considering. There are tremendous opportunities now in Gatlinburg/Pigeon Forge/Sevierville real estate where homes can be purchased for prices not seen in many years. If you would like to view our free list of Smoky Mountain foreclosure properties please click here. If you would like our professional advice as to which of these properties make good investments or residences please let us know.