The current law replaced the earlier one from 2008, in which people who bought homes were given a $7,500 loan that had to be paid back over 15 years, and probably made a lot of people wish they had waited until the new law began in in 2009.
Now, however, Uncle Sam may be ready to serve up an even juicier-piece of legislation. Yes, it's true, Uncle Sam wants you to buy a home! And not just your primary residence.
This past week, Sen. Johnny Isakson (R-Ga.) introduced a bill that would provide not just $8,000, but a $15,000 tax credit to any person who buys a home of any kind.
Time to Stop Dreaming and Start Buying?
Furthermore, under the proposed legislation, there are no longer any income restrictions. That means that even the Donald Trumps of the world can add to their portfolio and receive a tax credit. The legislation would extend the tax credit for one year from the date of enactment, and would still allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.
On Senator Isakson's Web site, he makes the following statement:
"I believe our economic problems start with the housing market and that we must restore the housing market if we are going to restore our economy. To draw buyers back to the market, I have introduced a proposal to invigorate housing demand and to boost the economy by expanding the first-time homebuyer tax credit passed by Congress earlier (this) year."
Isakson goes on to say that an illiquid housing market, decline in equity, and decline in net worth must be reversed, and that the recent high percentage of foreclosure and short sales is only contributing to the downward spiral of prices.
He had brought a similar bill to the Senate floor in February 2009, but the $15,000 amount and terms of the bill were reduced by a Congress under political pressure to cap their stimulus spending.
This is a very striking piece of legislation, and one that could have a major positive impact upon the housing market. The new legislation could:
1) Entice more first-time homebuyers to finally enter the market.
2) Stimulate current sellers (who have enough equity) to reduce their price, get it sold, and buy another home for the tax credit.
3) Motivate investors to add to their portfolios.
4) Appeal to those who have been waiting to buy second homes and vacation properties.
5) Help buyers recoup money spent on the larger downpayments that are now required.
Time to Stop Dreaming and Start Buying?
Furthermore, under the proposed legislation, there are no longer any income restrictions. That means that even the Donald Trumps of the world can add to their portfolio and receive a tax credit. The legislation would extend the tax credit for one year from the date of enactment, and would still allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.
On Senator Isakson's Web site, he makes the following statement:
"I believe our economic problems start with the housing market and that we must restore the housing market if we are going to restore our economy. To draw buyers back to the market, I have introduced a proposal to invigorate housing demand and to boost the economy by expanding the first-time homebuyer tax credit passed by Congress earlier (this) year."
Isakson goes on to say that an illiquid housing market, decline in equity, and decline in net worth must be reversed, and that the recent high percentage of foreclosure and short sales is only contributing to the downward spiral of prices.
He had brought a similar bill to the Senate floor in February 2009, but the $15,000 amount and terms of the bill were reduced by a Congress under political pressure to cap their stimulus spending.
This is a very striking piece of legislation, and one that could have a major positive impact upon the housing market. The new legislation could:
1) Entice more first-time homebuyers to finally enter the market.
2) Stimulate current sellers (who have enough equity) to reduce their price, get it sold, and buy another home for the tax credit.
3) Motivate investors to add to their portfolios.
4) Appeal to those who have been waiting to buy second homes and vacation properties.
5) Help buyers recoup money spent on the larger downpayments that are now required.
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