Even though late today, President Obama called the delay to the new stimulus plan “inexcusable“, it appears as if the stimulus package will pass in some form relatively soon.
One important piece of the plan to anyone who is thinking of buying a home is the $15,000 tax credit for new home buyers along with forgivness of the repayment of the $7,500 tax credit for anyone who bought a home under the currently-in-place plan.
Although nothing has been passed officially into law yet, here are a few of the key items of interest related to real estate in the stimulus bill:
- The $15,000 tax credit can be taken over one year or spread over two years
- The $15,000 tax credit doesn’t have to be repaid
- The $15,000 tax credit will apply for anyone who buys a home – not just first time home buyers
- The $15,000 tax credit is a credit – not a deduction: meaning you will get the full $15,000
- The $15,000 tax credit is the lesser of $15,000 or 10% of the purchase price of the home
- The $15,000 tax credit will be allowed for homes that are bought within one year of if/when the bill is passed
Will this $15,000 tax credit “fix” everything that is currently wrong with today’s real estate market?
No.
But I don’t see how it could hurt-putting money directly into people’s pocket for buying something has shown to be effective in the Auto industry to drive sales – maybe it will work in the real estate industry as well?
For the most recent updates on the bill and for detailed information, The Phoenix Real Estate Guy has done a nice job of presenting a “level 201″ outline of what the $15,000 tax credit could mean for the real estate market – and to consumers alike.
More From Arizona Mortgage Team
- The FHA Streamline Refinance: Do You Need A 620 Credit Score?
- What Recent Changes In The Financial Markets Mean To You: Lock. Now.
- $8000 Tax Credit Coming To An End
