Federal Assistance to First Time Home Buyers Right Now? Are You Kidding Me?!

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Filed under: Market Comentary

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I mentioned this topic a few months ago – but I’m amazed that it’s actually trying to fight its way through congress right now. There’s a bill released where they are trying to put together a $25,000 credit (in the form of down payment assistance) for first-time homebuyers.

Not all first-time homebuyers would qualify; you have to be a first-generation home buyer. On the surface, it sounds great – let’s help people buy their first home.

2 Reasons Why it Doesn’t Make Sense

First off: right now? Are you kidding me? There is such low supply, and we are going to add buyers that currently aren’t in the market?

Secondly: Through the Bush 2.0 and Clinton eras, it all about the idea that everyone should own a home. See where that landed us in 2006 – 2008?

They are talking about adding demand to a market that already has the shortest supply in history.

Should Everyone Own a Home?

I am a huge believer that real estate is one of the biggest builders of generational wealth in America. Period. My home is a big part of the overall retirement plan I have for myself, and hopefully building a bit of wealth for the kids.

I love the idea of helping people out. But the government cannot be there to solve every problem. The timing of this is crazy.

What’s Your Opinion?

If there was ever a time to speak up and talk about what a bad idea this is – I feel like this is the time. Also, I’m interested to hear the other side of this issue. Of course, I see the interest in helping people buy a house for the first time ever. But what about other important issues, such as first-time college students?

It’s a slippery slope, and the timing of this is laughable because of current market conditions. I realize that I might make people upset with my thoughts on this topic. But I’m genuinely interested to hear your thoughts and perspectives. Share in the comments and let me know what you think.

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