November 30th, 2009 is the deadline for the current First-Time Home Buyer Tax Credit of $8000. If you want it, you better go out and buy your home and have it closed by then. The buzz however, is that the first-time home buyer tax credit is not only going to get an extension, but also an expansion.
At this point, there is nothing in writing except a bill simply called, the “Home Buyer Tax Credit Act of 2009″ sponsored by Johnny Isakson which suggests that the current Tax Credit be extended and expanded to $15000 and to ‘any’ buyer who buys a home for a primary residence.
Should I wait to buy my first home?
Many people are asking me if they should wait to buy a home because the Tax Credit might get extended. Honestly, I can’t speculate whether or not the extenstion will pass. My gut tells me that it will, but again, it really boils down to each and every buyer situation. What I can tell you for certain is that there is currently $8000 on the table for you and there is something of a chance that December 1st, 2009 there won’t be.
Determine your needs, your financial health and make your decision based on the facts, not the unknown. I imagine that the closer we get to the current Tax Credit deadline, we’ll know more. But remember, it takes at least 30 days to get through escrow and close so don’t risk it unless you can afford the home without the tax credit.
How Much Does The First-Time Home Buyer Tax Credit Cost Tax Payers?
Approximately 1.5 million homes have been purchased this year. Of which, 350,000 were first-time home buyers. It’s estimated that less than half of those first-time home buyers actually needed it to close the home. “If you do the math, that breaks out to $43,000 per first-time home buyer – a pretty hefty fee”, says Martha White of the BigMoney.com .
Tell Us Your Thoughts: Do YOU think the tax credit will be extended/expanded?
Leave your comments below and let us know what you think!
- Will the tax credit get an extension?
- Will the Tax Credit Act of 2009 pass and get expanded beyond first-time home buyers to include ANY buyer?
- Should we extend the tax credit?
- Should we expand the tax credit?
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The first time home buy credits will be extended without a doubt although with all the spending going on they may have used their last get out of jail free cards and not be able to increase spending without being kicked out of office. They are trying to pass health care and if they increase the first time home buyer credit it might put that in jeopardy so they will not increase the credit if health care isn’t passed first. A glut of foreclosures are scheduled to hit the street in winter 09 and sping of 2010 so expect prices to adjust downward barring an unforeseen hiring bonanza.
Good point(s) as always Jeff!
There is a lot of speculation and talk around the ‘ghost listings’ that banks are not putting on the market and the foreclosures that are coming up. I can’t speak to the ghost listings, but I know for certain that many people are still struggling financially and jobs in the Boise market need a boost before we see any significant turn arounds in the real estate market.
I’ll be glad to see most of the short sales making their way to REO status so that the time on market and inventory of those homes can fall.