Bigger, Better Home Buyer Tax Credit Taking Shape
July 13, 2009
If the $8,000 first time home buyer has proven to bring reluctant first time buyers into the market then the recently proposed $15,000 tax credit to all buyers Tapioca
Winnie the Pooh: A Valentine for You video Under Siege dvdrip could be a game changer. The real estate market has been in the doldrums for the past few years and with the introduction of the first time home buyer credit earlier this year the market has finally begun to see home sales increase with 40% of first time buyers making up the market.
The idea behind the most recent bill, introduced in mid-June 2009 and referred to the Committee on Finance, would be to increase the current home buying credit from $8,000 to $15,000 and to release the restriction that the home buyer must be purchasing their first home in order to be eligible for the tax credit. The bill, S. 1230: The Home Buyer Tax Credit Act of 2009, was originally introduced by Sen. John Isakson [R-GA] and is currently co-sponsored by 15 Senators.
The bill is unlikely to see much face time until the current first time home buyer credit runs its course and expires on December 1, 2009. As unfortunate as it may be, delaying the passing of an increased home buyer credit until the expiration date passes on the current incentive makes perfect sense. Rather than first time buyers holding off on their purchases in anticipation of an even greater credit they will continue purchasing homes through November 2009.
That said, should a $15,000 home buyer credit eventually come to fruition for buyers in 2010 the potential for an increase in the sale of luxury and new homes is significant as more buyers and current homeowners are able to take advantage of the new credit.
Have you seen a dramatic increase in home buyers eager to take advantage of the current $8,000 tax credit or has it been business as usual? Will a $15,000 tax credit make a difference? Tell us what you think in the comments below!
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11 Responses to “Bigger, Better Home Buyer Tax Credit Taking Shape”
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The $ 15000 credit makes a lot of sense as surely there would be a significant surge in home buying activity, which in turn can spur many other businesses, employment in related industries and help with the recovery from the current recession. I do believe that it would be somewhat unfair to those folks who are taking advantage of the current $ 8000 credit and who possibly by just one day may miss out on a greater credit. I think it should be retroactive so that people who bought with the $ 8000 credit would be able to get the difference and the same breaks… after all the additional money would be likely spent on furniture, appliances, automobiles and so on. This would definitely be a game changer and would in my opinion spur the necessary economic activity to create work and jobs and get out of this recession.
I really do not support the home buyer tax credit. Can anyone explain to me what happens when the tax credit disappears? Then what? Our country is actually poor because of the amount of borrowed outstanding debt. False economies do not work! Can american tax payers keep paying for a tax credit? NO!
We haven’t seen an immediate benefit to the $8,000 tax credit yet because homeowners won’t be receiving them until Spring 2010. Even so, I can appreciate Robert’s point of view that this is all costing us in the long run.
That said, I can’t even begin to count how many people I know of who have been buying homes this year specifically because of the $8,000 tax credit so I would be hard pressed to say it didn’t spur market activity.
If the U.S. government is going to invest our taxes into something I am glad that they at least chose to give it back to the taxpayers who could use it as discretionary income to enhance their first home and improve the economy at the same time.
If the government really wants to spur the housing market. They need to drop the corporate income tax to 10% for the the next 100 years, which would draw companies left and right the the United States. Then we would see a decreasing supply and an increase in demand. Our governing body needs to be real about spurring the economy and not just give it an energy drink that wears out quickly.
This has spurred some interesting conversation. I have to agree mostly with Robert said. Sadly we’re using our own money to create a surge in the real estate market.
It is working and would have been working even more if they would have enabled anyone that purchases a home that credit. NAR and local associations we’re lobbying for the 15k tax credit from the very beginning they turned it down and instead bailed out companies that people in government had direct relations with.
Great way to spend our tax dollars I wonder if there’s even more money to do another tax credit.
I am just wondering will the extent the credit? Time is running out now and we need something to continue to make the market better.
I have read where we have only used 1/3 of the money. I hope they let us have the rest.
I can’t believe no one has said the obvious. The mass inflation that will take place in the housing market further perpetuating the problem, people buying homes that are worth less then their paying for them
Won’t this just artificially prop up the housing market, taking it longer to …. I missed the 1st time home buyer tax credit in March 2009 by 5 months. … I think 4% interest rate is a bigger benefit than the tax credit of $8K … Condo Associations are in such sad shape that they can’t qualify for an FHA loan,
I hope there is a $15,000 tax credit. Yes, I believe it artificially inflates the demand for housing, but housing puts a LOT of people to work. I would rather line the pockets of local plumbers, roofers, lumber salesman, window companies, tile companies, cabinet makers, carpet installers, drywallers, floor sanders, excavators, landscapers, my local sod farm, painters, clean up companies, foreman, and builders who live within 5 miles of me and support local business than just about anyone else.
[...] Johnny Isakson? He’s the Georgia Senator who introduced the The Home Buyer Tax Credit Act of 2009 in June of this year which would have increased the first time buyer tax credit from $8,000 to $15,000. It would have [...]
I definitely believe that if the tax credit increased from $8000.00 to $15,000.00, and it was not just for first time buyers, more people would take advantage. Also, maybe some people who have severed financially, can somehow buy a home, and this would not only help to improve the economy, but restore people’s faith that our country’s financial setback is on the road to recovery.