New $15K Tax Credit For All Homebuyers?

first-time-home-buyer-tax-creditHere in the Bay Area, lots of buyers continue to seek out short sale and REO deals. But what about the “normal” sales? Even with aggressive pricing, some sellers have seen their casas sit on the market for 2, 3, 4 months. Not pretty.

Three thousand miles away, our government sensing that the country as a whole isn’t out of this economic (and in particular real estate) slump yet continue to bandy about the idea of instituting a new tax credit similar to the $8,000 credit for first-time purchases. That little incentive helped bring 1.4 million buyers to the table.

This new proposal would extend the first-time credit through the summer of 2010, open it up to all buyers, and up to $15,000. But not any subsidy or credit there comes a price. Some economists estimate that the new credit would cost somewhere in the $75-$85 billion range. When the first home buyers credit expires on Nov. 30, the government will have forked out $15 billion.

Since we have little control of what legislators enact, it may be smart to simply take advantage of the credit if and when the opportunity arises. We never know when we’ll get our next tax rebate.

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Filed under California, Foreclosure, Tax Credits

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