The original homebuyer tax credit was so successful for first-time homebuyers that congress is thinking about again.
If approved, the previous credit of $8,000 for first time homebuyers and $6,500 for current home owners purchasing a new primary residence would be extended for one year. According to the IRS 479,622 homebuyers claimed the credit in 2009 and this third extension would be a big boost to the housing market.
While bills are introduced all the time and it’s no telling whether the president will sign this one, if it is approved can you imagine what it will mean to potential new homebuyers?
Right now, you can pretty much buy a home for 30 to 40 percent less than what you would have paid 5 years ago; in addition, mortgage interest rates are at their lowest making for an unbelievable combination.
Top that off with another reinstated homebuyer tax credit and you can move into the home of your dreams without much capital at all.
While many potential homebuyers are looking at a bleak picture of what the housing market looks like now, many others see the potential value of buying a new home now – instant equity.
It’s predicted that the housing market will begin to recover faster towards the fall of this year which translates into higher prices, higher mortgage interest rates and higher property values. New homebuyers are looking at instant equity, just by purchasing homes right now. The longer you wait the less equity you instantly accumulate.
With today’s depressing economy, you can pretty much get more than what you need and almost all of what you want; price reductions, improvements, and closing costs and some of the features of buying a home now. Sellers want contracts so they can move on with their lives.
It’s in every new homebuyer’s interest to start looking for a new home because if this third extension is approved it will be competition to get the best of homes with all the incentives included.
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