A lot of talk has swirled around the $15K tax credit for all home buyers in 2009 that was proposed as part of the stimulus package.
Then, reports were that the credit was paired back to $7500, but still all home buyers would receive the tax credit. And, in committee, that morphed to an $8000 tax credit for first time home buyers only (i.e. anyone who has not owned a home in the past 3 years), who buy in 2009.
Still great for all the first time home buyers around metro Atlanta, where there are some excellent deals to be had. But, just not what most real estate professionals were hoping for to jump-start the housing market.
But think of it this way: if a buyer comes into the market, and has not filed their 2008 taxes as yet, then here’s what that buyer could do. Find that perfect home in, say, Cobb county, with a purchase price of $228,500. Come up with the necessary down payment of 3.5% to go with the very attractive FHA financing. 3.5% down payment on a home priced at $228,500 is, you guessed it, $8000.
Then, file their taxes and receive the tax credit of $8000, and the government will have subsidized their down payment for the home. Not a bad deal at all, especially considering that homes are prices so attractively compared to just 2 years ago.
Related posts:
