Spring Rally Cost Taxpayers $23,500,000,000
Government boondoggles are never cheap, but we spent $23.5 billion to pull demand forward a few months. What a waste....
Irvine Home Address ... 6 BIRDSONG Irvine, CA 92604
Resale Home Price ...... $752,000
Lazy you just stay in bed
Lazy you just stay in bed
You don't want no money
You don't want no breadDeep Purple -- Lazy
Does anyone else find it ironic that Labor Day is a holiday so no labor is actually performed? I suppose that is preferable to the way our government spends its time and efforts to produce nothing of value and squander our resources....
IRS paid $23.5 billion in homebuyer tax credits and related loans
* by Jacob Gaffney
* 10:06 AM September 3, 2010
The total bill for the homebuyer tax credit so far, as reported by the Internal Revenue Service, stands at $23.5 billion.
About $16.2 billion of that is for the $8,000 (Recovery Act) and $6,500 (Assistance Act) grants shelled out to first and second-time homebuyers, respectively. The other $7.3 billion is for interest-free loans through the Housing Act provision. Americans who qualified for these loans will begin repaying them next tax season, which starts in January.
The numbers are based on IRS filings through July 3.
The Government Accountability Office estimates that with all of the first-time homebuyer tax credits, the total revenue loss to the federal government will be about $22 billion.
California, being the most populous state with nearly 37 million residents, received the largest chunk of the money — $814 million, the GAO said in a letter yesterday to John Lewis (D-Ga.), chairman of the oversight subcommittee of the House Ways and Means Committee.
Florida came in second with $455.5 million in homebuyer tax credit dollars received so far. Georgia is third with $295.8 million, followed by New York with $276.9 million and Illinois with $268.7 million.
On a per-resident basis, Nevada took the top spot, but the overall pay out is considerable less at $104 million.
Have you noticed that $23.5 billion doesn't sound like that much money? It's like when I profile a HELOC abuse case for less than $200,000. The numbers are outrageously large, but given that other numbers this disaster has produced have been so much larger, it doesn't seem like a big deal.
Do you think he can get that?
Its hard for me to criticize an entrepreneur trying to make money on a trustee sale flip, but I think this guy has overreached a bit. He got a reasonable auction price, and he put in standard pergraniteel to appeal to an Irvine buyer. So far, so good. But then he asks $456/SF in hopes of making a 25%+ return? Good luck with that one. Do you think he will get it?
Irvine Home Address ... 6 BIRDSONG Irvine, CA 92604 
Resale Home Price ... $752,000
Home Purchase Price … $522,500
Home Purchase Date .... 8/21/2010
Net Gain (Loss) .......... $184,380
Percent Change .......... 35.3%
Annual Appreciation … 527.1%
Cost of Ownership
-------------------------------------------------
$752,000 .......... Asking Price
$150,400 .......... 20% Down Conventional
4.34% ............... Mortgage Interest Rate
$601,600 .......... 30-Year Mortgage
$144,223 .......... Income Requirement
$2,991 .......... Monthly Mortgage Payment
$652 .......... Property Tax
$0 .......... Special Taxes and Levies (Mello Roos)
$63 .......... Homeowners Insurance
$43 .......... Homeowners Association Fees
============================================
$3,749 .......... Monthly Cash Outlays
-$707 .......... Tax Savings (% of Interest and Property Tax)
-$816 .......... Equity Hidden in Payment
$237 .......... Lost Income to Down Payment (net of taxes)
$94 .......... Maintenance and Replacement Reserves
============================================
$2,558 .......... Monthly Cost of Ownership
Cash Acquisition Demands
------------------------------------------------------------------------------
$7,520 .......... Furnishing and Move In @1%
$7,520 .......... Closing Costs @1%
$6,016 ............ Interest Points @1% of Loan
$150,400 .......... Down Payment
============================================
$171,456 .......... Total Cash Costs
$39,200 ............ Emergency Cash Reserves
============================================
$210,656 .......... Total Savings Needed
Property Details for 6 BIRDSONG Irvine, CA 92604 
------------------------------------------------------------------------------
Beds: 3
Baths: 1 full 1 part baths
Home size: 1,650 sq ft
($456 / sq ft)
Lot Size: 4,515 sq ft
Year Built: 1976
Days on Market: 5
Listing Updated: 40424
MLS Number: S630819
Property Type: Single Family, Residential
Community: Woodbridge
Tract: Othr
------------------------------------------------------------------------------
According to the listing agent, this listing may be a pre-foreclosure or short sale.
Gorgeous one story three bedroom and two bath single family detached home located inside the loop in the beautiful village of Woodbridge. Shows like a model home. One of the safest cities and top school system within walking distance. Extensive upgrades include: totally remolded, everything new, new modern dark chocolate kitchen cabinets with crown moldings, new professional series stainless steel appliances with gas range, new Italian stainless range hood, new designer stainless steel troft sink, new 20' Italian kitchen tile, new premium granite, new recessed lighting, new central heating, new garage door, new double pane vinyl windows, new dark maple hardwood floors, new marble fireplace, new front door, new 20' bathroom floor tile, new bathroom granite countertops, new master bathroom shower with custom glass shower door and custom soap box, new interior/exterior designer paint, new sod front and backyard with automatic sprinklers, and many more upgrades. Welcome to your Dream Home!
I hope you are enjoying your holiday.
So, what’s the story with this house? The previous owner purchased it for about $225,000 and had it for more than 20 years. Was this house actually foreclosed on? If so - wow.
To misquote Stalin, $225,000 is a tragedy; $23,500,000,000 is just a statistic.
I know it’s California but that price is just shocking. You can get 4,000 square feet on a nice treed lot near downtown for that here. That place would go for 200K if he’s lucky if it was a really well located.
Yeah, you can also get a newer 4,000 sq. ft. Mac Mansion home in California for $275,000 but you have to go a little more inland, like Lake Elsinore and such. The subject seller is trying his luck - pure and simple. Will he find a buyer itching painfully to buy and who cannot wait any longer? That’s the question!
You know, homes this size go for $625 across the street in Oak Creek. 25 years newer too. What is up with these WB people?
Three quarters of million dollars for this house, good god we still have a ways to go. The first thing I noticed is zero curb appeal. This place looks like a two car garage with an attached room on one side…WTF. But as Planet Reality would say, this is at rental parity. Rents need to go down then!
Just idle speculation: maybe Irvine has such a low crime rate because thieves think these are dull, lower-middle class houses with nothing inside worth the time to steal. Clever camouflage!
I guess it would be nice to own a good-looking house, but then again why waste the effort to have a place to impress people driving by down the street? Who cares if random strangers think about how nice your house looks for the half-second it takes them to go by?
This house will sit until it reduces to about his original purchase price or below.
But the house has a “custom soap box”. Maybe that contributed to the 200k markup
Not going to happen. This flopper is nuts. I’m an agent in Irvine and have lived here for 30 years. At best that might sell for 590K.
Can somebody explain how it was bought 8/21/2010 but “According to the listing agent, this listing may be a pre-foreclosure or short sale” - in 2 weeks?
Small lot, smallish house. Seems overpriced by $100K+ (above and beyond the current general overpriced Irvine market).
The previous sale date does not look right - Redfin says July 21, 2010, not August, which makes a little more sense.
And what’s the deal with no refrigerator?
No way on this price. My friend just sold his WB house inside loop for ~280 per sq ft and it was 4000 sq ft and had nice backyard. I see northpark newer homes listed under 300. This flipper is lucky if he can get back his auction amount.
You guys have it all wrong. Case-Shiller shows home prices going up year over year. Those guys went to Yale and know what they’re talking about because they are smart. There isn’t a housing collapse anymore, that was just for one year. Okay, two years.
I will soon sell my 2/2 condo for 950k here in irvine. I paid 800k in ‘06 which means a tidy profit. You are all suckers.
It seems we are witnessing the end of the dead cat bounce. The return of housing prices to values that are supported by the local economy is occurring in slow motion. The efforts of the federal government working with the banking industry to support housing prices until the economy recovers is not working.
It will be very painful for those that purchased homes over the past 10 years to watch their deposits and/or paper profits disappear.
Nightly Business Report had some great quotes tonite:
“If you’re a white male with an advanced degree and not working in construction, you’re fine. Otherwise ... it’s the Apocalypse.” - Greenlaus.
“Economic recovery could be in 2012 or 2013 ... or 2020. There are several fundamental reasons for later.”
“The real unemployment rate is not 10%, it’s 20%.” - Leo Hindery, former CEO, TCI/AT&T Broadband.
“19 countries of the G20 do not reciprocate trade with us.” - Leo Hindery
“It’s unreasonable to expect the services industries to carry us when mfg. only employs 11% of the population now ... it needs to be 20%.” - Leo Hindery
“Credit crises are harder to recover from than the typical recession. It took us entering WW2 to recover from the last credit crisis.”