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Replies (8)
- crazyghoda
- Contributions:23
You forgot to mention that if the home owner sells their house within 3 years, they have to pay back 8000$.
- Pamela Zwiefel, "pamelazwiefel"
- Contributions:92
True! Still seems fair.
- jimmy57
- Contributions:1511
Wow, Pamela. You're not just using this tax credit deal to sell houses, you're encouraging first-time buyers to "spend" this 8K on furniture, decor, remodeling, etc.? Sounds like the kind of financial planning that will get people upside-down in a hurry, especially in a market with falling house values.
The government wouldn't be baiting homebuyers (with taxpayer money, GD'mmit!) if the economy was healthy and home values were stable. If people are going take the risk of buying a house in this environment, they should be thinking of that credit as buffer against losing equity, not as an excuse to put in a freakin' hot tub!!!
The government wouldn't be baiting homebuyers (with taxpayer money, GD'mmit!) if the economy was healthy and home values were stable. If people are going take the risk of buying a house in this environment, they should be thinking of that credit as buffer against losing equity, not as an excuse to put in a freakin' hot tub!!!
- Maria Morton, "MariaMorton"
- Contributions:716
Good point, Jimmy57. Buyers could put the 8k away for a rainy day.
Phoenix median price has dropped from 143K in december, to 130K in January, and 125K in february. So, at this rate, that 8K gift from the government would be destroyed in 30 days or less. The 3.5% fha downpaymen would be gone in another month.
Sure there will be a bottom someday, but a few months early so far has been disastrous for many buyers...
And foreclosures set a new record in February: 5300 compared to what looks to be 6500 sales or so (8500 notice of trustee sales)
Sure there will be a bottom someday, but a few months early so far has been disastrous for many buyers...
And foreclosures set a new record in February: 5300 compared to what looks to be 6500 sales or so (8500 notice of trustee sales)
- Pamela Zwiefel, "pamelazwiefel"
- Contributions:92
Thanks Jimmy and Maria for pointing out the obvious. It should go without saying that you need to pay yourself first and have emergency savings set aside (8 months of living expenses), plus retirement, plus down payment etc. before you buy a home. I am not a financial expert and wasnt prepared to lay out a full financial plan.I was trying to pass along the details that a lot of people are looking for.
People ask me all the time what they can use the money for. The government made the rules. Dont shoot the messenger.
Also, even with the market as low as it is, nobody knows where the bottom is. If you buy a home and expect to sell it within three years, in many cases real estate fees, taxes and closing costs will likely wipe out any equity you could build in three years and yes, the $8,000 will then need to be paid back. Use it wisely, buy wisely, and plan to stay put for a while.
If you are asking me, Jimmy is right, save it for a rainy day.
People ask me all the time what they can use the money for. The government made the rules. Dont shoot the messenger.
Also, even with the market as low as it is, nobody knows where the bottom is. If you buy a home and expect to sell it within three years, in many cases real estate fees, taxes and closing costs will likely wipe out any equity you could build in three years and yes, the $8,000 will then need to be paid back. Use it wisely, buy wisely, and plan to stay put for a while.
If you are asking me, Jimmy is right, save it for a rainy day.
- jimmy57
- Contributions:1511
It is my mission, Pamela, to point out "obvious" things that REAs somehow fail to mention. ;)
Again, as must repeated so often, we buyers don't have pick the date of "The Bottom" because there's little danger of missing any significant appreciation on the other side. On the other hand, there's great risk of financial loss by buying too soon, while prices are still falling.
The very fact that this tax credit is being offered is evidence of the lack of support for house prices. In fact, I wonder if it won't scare many savvy buyers (including investors who don't even qualify under the terms of this subsidy) into continued inaction, even as it attracts a few imprudent newbies to pull the trigger. Unintended consequences.
Again, as must repeated so often, we buyers don't have pick the date of "The Bottom" because there's little danger of missing any significant appreciation on the other side. On the other hand, there's great risk of financial loss by buying too soon, while prices are still falling.
The very fact that this tax credit is being offered is evidence of the lack of support for house prices. In fact, I wonder if it won't scare many savvy buyers (including investors who don't even qualify under the terms of this subsidy) into continued inaction, even as it attracts a few imprudent newbies to pull the trigger. Unintended consequences.
- jhs5401
- Contributions:1
My daughter is getting married June 20, 2009. Her fiance currently owns a home jointly with his roommate. They would like to buy his roommate out so they can move into the house. My question is: if my daughter qualifies for the credit and they close the loan prior to their marriage on June 20 can she and her fiance be co borrowers on the new loan and jointly own the property? From what I understand about the tax credit she could purchase the house individually and qualify for the credit and she and her fiance could purchase a house prior to being married and she would qualify for the credit--so I'm just wondering if the fact that he currently co owns the property would that create an issue with her filing for the tax credit on her indivdiual taxes for 2008?
Tax credit info for first time home buyers
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- 0.0/5.0
- (no reviews)
Contributions:92Info about the $8,000 first time home-buyer tax credit!
Right now, an $8,000 tax credit is being offered by the government to enable aspiring homeowners to buy their first home. The tax credit is designated for first-time home buyers. A first-time home buyer is defined as a buyer who has not owned a home in the last three years.
If you are eligible, the tax credit can help ease the financial transition from renting to owning. It can assist with buying furniture and home-decor; making home improvements – like remodeling, landscaping and painting; or paying down debt as you adjust to new monthly expenses. Homes purchased between January 1, 2009 and December 1, 2009 are eligible.
The tax credit is equal to ten percent of the home purchase price, which is capped at $8,000. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. Single taxpayers with incomes between $75,000 and $95,000, and married couples with incomes between $150,000 and $170,000 qualify for partial credit.
All homes purchased between January 1, 2009 and December 1, 2009 including single-family, townhomes, or condominiums will qualify for the tax credit, provided that the home is used as the principal residence. This also includes new construction homes if occupied by December 1, 2009.
Source: Edina Realty, MAR
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