Feedburner
Senate Moves Home Buyer Tax Extension Forward
Now that the Senate has reached agreement on an extension of the first time home buyer tax credit, it's much more likely to move forward. Details are still fuzzy and likely to change, but here's where it stands.
Key Components:
- $8,000 for first time buyers
- $6,500 for trade up buyers who have not purchased a new home in 5 years
- Maximum purchase price of $800,000
- Adjusted gross income of less than $125,000 ($225 for married couples)
- Property must be under contract by 4/30/2010, closed by 6/30/2010.
Additional Resources:
---
Silver Fern Homes can help you make a smarter real estate decision. To learn how, call us at 303.746.6896.---
Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog are the opinion of the writer and subject to market uncertainties. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.
2 Comments:
Ugh. I am disgusted by this continuation of poor policy. Especially the 'move-up' buyer freebie. In the long run, this will fail to prop up home prices - the ultimate goal. In the short run, it means sellers get $8K more than their home is worth.
How about a bailout for college loan payments to those who are paying off an education in sectors decimated by the recession. After all, if I can't use the education I'm paying for because the need for my skills no longer exists, shouldn't I get a free ride too? How about $8K toward that? It would free up more of my funds for purchasing goods and services. This policy rewards those who invested in the skills America needs and who are paying a high price now in a time of high unemployment and few opportunities.
Meanwhile, the health related sectors and financial industries siphon the lion's share of the economic pie, whilst the makers in our society stare into the abyss. Truly and utterly shameful.
But I digress...
I bet you and your realtor compatriots are psyched!
I don't know about my "compatriots" but I'm not psyched. I think it's simply shifting the demand curve forward. Those that would have bought anyway are just buying a little sooner and getting the credit.
Don't get me wrong - I'm glad my clients have been able to benefit, but from a big picture perspective, it's not a good use of debt funded stimulus.
In this market, the $8,000 tax credit is really not a huge motivator for buyers anyway. It's nice -sure, but it's too small a percent of the purchase price to have much of an impact.
Post a Comment