Tuesday, February 17, 2009
Unfortunately, I think I jinxed the US Senate's recent attempt to add an amendment to the stimulus bill that would have increased the homebuyer tax credit to $15,000 (read my previous post). The final version that made it through both houses ended up with a first time homebuyer credit of $8,000. While not what the Senate had hoped for, it is still a very meaningful credit and, unlike the current incentive in place, it does not have to be repaid.
Thursday, February 05, 2009
It looks like Washington is finally going to do something significant to support the housing market. Last night the Senate passed an amendment to be included in the economic stimulus bill that would give all homebuyers over the next year a $15,000 tax credit. This is a vast improvement from the current credit, which gives first-time homebuyers a credit of $7500 that must be repaid over a 15 year period, effectively making it an interest free loan. The new amendment, sponsored by Senator Johnny Isakson (R-Ga.), has a few minor caveats – e.g. primary residences only – but by and large it’s as good as it appears. Uncle Sam is truly paying you to buy a home. The effect on the housing market could be substantial, as the new tax credit gives prospective homebuyers a reason to jump off the fence and get into a home.
