The $15,000 tax credit for home buyers has struck a cord across the country. It was dropped in the stimulus bill that is winding it’s way through Congress, but in the long term it may not be dead.
Georgia Senator Johnny Isakson, a former real estate broker himself, is the sponsor of the bill and is looking to get the 15,000 dollar tax credit through the Congress before the end of the year.
With real estate down so much over the past two years and many buyers on the sidelines, this could help the industry get it’s footing.
One thing I am asking is that it be retroactive to the first of the year. And mention it in every speech that he gives on the tax credit.
This would at least keep the market moving forward even if the bill fails. It would not create the situation where the market stalls out waiting for the passage one way or the other.
Quite frankly there is so much outward support for what we did … that I wouldn’t at all be surprised if you didn’t see it come back in some form with a Democrat’s name on it,” he said.
Isakson said he has heard from consumers who have already put contracts on houses in hopes that the credit will be enacted one way or another this year.
“Just the fact that it was being anticipated was starting to drive the market,” Isakson said.
A survey released earlier this week by Fix Housing First, a coalition led by housing industry companies, found that the majority of Americans support the idea. According to supporters of the bill, it would have quickly helped create tens of thousands of jobs and pumped millions of dollars into the economy. ajc.com.
I would say any credit should be retroactive to the first of the year based on the issue of fairness. At this point, one buyer could get a big credit and another buy get no credit just depending on when one closes. If house sales hlep the economy, a sale that closed in January 09 will help the economy as well as sale that closes in July 09.
Perhaps buyers who bought in 08 should also get the credit and not just an interest free loan.
I am still trying to find out whether the current credit has income limits like the current one. Do you know?
Arn,
There are limits. $75,000 for a single first time home buyer, $150,000 for joint filers. I have the summary in a new post here http://www.therealestatebloggers.com/2009/02/13/a…
"Perhaps buyers who bought in 08 should also get the credit and not just an interest free loan."
Speaking as someone that bought in the teeth of the storm in '08, yes. I think we deserve the same treatment as those that buy in '09.
I hope it does come back. The tax credit was the only part of the stimulus bill that made sense to me.
I also bought my first home when it seemed it wouldn't get any worse (11/08)… and it has, but I am ok with that. The townhouse I bought had some instant equity and that was a huge buying factor. I do wish/hope/pray that they extend the credit to '08 buyers. We did just as much 3 months ago as buyers are doing now.
The less short sales, foreclosures and REOs out there, the better.
I Had planned to get rid of my Condo and move up into a larger house.
I'm Getting married in May and the $15,000 would have made this possible for me and a somewhat smart move. I can still afford to get into a bigger place but it would be with a significantly smaller down payment (guess how much smaller? $15,000!). With this being slashed I will be staying in my condo for quite a bit longer.
Chalk up Two lost Sales, way to go stimulus package!
I know Johnny has been working his fellow Congressman hard on getting this bill passed in it's original form. Out of everything in the stimulus package, IMO this would hold the most positive impact.
California lawmakers started back up today trying to secure one last vote for a $42-billion budget-balancing plan. From latimes.com:
… Two Senate Republicans were expected to vote for the package — Dave Cogdill of Modesto, who played a role in negotiating the deal, and Roy Ashburn, a Bakersfield Republican in his final term. Among the concessions Ashburn won was a proposed $10,000 tax break for new home buyers.
This is ONLY for the purchase of NEWLY built homes — must be a principal residence bought on or after March 1 this year and before March 1 2010.
This is not enough! Obama's plan for the nation is not enough for California! Call/EMail your Republican Senator, let them know that help is needed for falling Home Prices and Foreclosures!!!!
California Republican State Senators
Senator Dave Cogdill – District SD14
Capitol Office
State Capitol, Room 305?Sacramento, CA 95814?Phone: (916) 651-4014?Fax: (916) 327-3523
[email protected]
Senator Sam Aanestad – District SD04
Capitol Office
State Capitol, Room 3063?Sacramento, CA 95814?Phone: (916) 651-4004?Fax: (916) 445-7750
[email protected]
Senator Dave Cox – District SD01
Capitol Office
State Capitol, Room 2068 ?Sacramento, CA 95814?Phone: (916) 651-4001?Fax: (916) 324-2680
[email protected]
Senator John Benoit – District SD37
Capitol Office
State Capitol, Room 4066?Sacramento, CA 95814?Phone: (916) 651-4037?Fax: (916) 327-2187
[email protected]
Senator Jeff Denham – District SD12
Capitol Office
State Capitol, Room 3076 ?Sacramento, CA 95814?Phone: (916) 651-4012?Fax: (916) 445-0773
[email protected]
Senator Robert Dutton – District SD31
Capitol Office
State Capitol, Room 5094 ?Sacramento, CA 95814?Phone: (916) 651-4031?Fax: (916) 327-2272
[email protected]
Senator Tom Harman – District SD35
Capitol Office
State Capitol, Room 3070 ?Sacramento, CA 95814?Phone: (916) 651-4035?Fax: (916) 445-9263
[email protected]
Senator Dennis Hollingsworth – District SD36
Capitol Office
State Capitol, Room 5064 ?Sacramento, CA 95814?Phone: (916) 651-4036?Fax: (916) 447-9008
[email protected]
Senator Bob Huff – District SD29
Capitol Office
State Capitol, Room 3048?Sacramento, CA 95814?Phone: (916) 651-4029?Fax: (916) 324-0922
[email protected]
Senator Abel Maldonado – District SD15
Capitol Office
State Capitol, Room 4082 ?Sacramento, CA 95814?Phone: (916) 651-4015?Fax: (916) 445-8081
[email protected]
Senator George Runner – District SD17
Capitol Office
State Capitol, Room 5097?Sacramento, CA 95814?Phone: (916) 651-4017?Fax: (916) 445-4662
[email protected]
Senator Tony Strickland – District SD19
Capitol Office
State Capitol, Room 4062 ?Sacramento, CA 95814?Phone: (916) 651-4019?Fax: (916) 324-7544
[email protected]
Senator Mimi Walters – District SD33
Capitol Office
State Capitol, Room 3082?Sacramento, CA 95814?Phone: (916) 651-4033?Fax: (916) 445-9754
[email protected]
Senator Mark Wyland – District SD38
Capitol Office
State Capitol, Room 4048 ?Sacramento, CA 95814?Phone: (916) 651-4038 ?Fax: (916) 446-7382
[email protected]
Senator Roy Ashburn – District SD18
Capitol Office
State Capitol, Room 3060?Sacramento, CA 95814?Phone: (916) 651-4018?Fax: (916) 322-3304
[email protected]
The new housing credit, by not being retroactive for 2008 buyers like me, not only does not help us, in one important way it actually hurts us. Of all the virtues of the previous housting credit, I saw one clear downside. For 15 years I will have to have an unusual item in my tax return, that $500 repayment, which may become an obscure, rarely supported item as time passes. Over those years it is possible that my tax returns will cost more many, take more time, and offer a reduced choice of accessible programs and sites to file my return, because many sites may neglect to support some feature that only applies to people who bought a home in some 12 month window long ago. Now, by exempting 2009 from repayment but not exempting 2008, it will be a feature that only applies to people who bought a home in some six month window. So down the road, the 2009 housing bill doubles the chance that 2008 homebuyers will need to pay a private accountant, or buy a super premium expensive version of turbotax, years down the road. To me, this is not fair. 2008 buyers did just as much to help the economy, and not only does the new bill not apply to us, it actually worsens our condition by doubling the chance we have bought ourselves 15 years of tax headaches. I think they should either make the no repayment provision retroactive or else offer an alternative repayment plan to forgive the loan for a lump sum payment of $3000 or so.
Marc
What an interesting point. You will be a leper in the tax community. Can you imagine trying to explain this to an H&R type tax preparer in 10 years?
I see a lot about first-time home buyers, but nothing about those of us who have owned before. I am planning to sell my current house and buy another, sometime during 2009 and my yearly income is under the $75,000 threshold. A $15,000 credit would be sweet but even without that much, anything would be a plus. It would make selling easier (because someone else would get the credit) and would be a nice bonus for buying. My target would be a resale home; but I suppose I could go new, if that would qualify me for some sort of credit. Any thoughts – anyone?
Yeah, I too bought a home last year (12/17!). Didn't take the $7500, it doesn't help me much if I have to pay it back. I need all the help I can get though, and wish the new tax credit would apply to 2008 folks, seeing as the economy/housing has been so dismal since Nov. 2007.
Throwing money around and picking people to give it to and not giving it to others…sound like a fair America to me. Best thing of all is we all have to pay it back…those that work and earn their money that is.
Can a first time home buyer get the credit if he/she has a co-signer ont he note? The bank will not give the loan without the co-signer.
Please advise or give me a website for research.
Although not fair there are 4 people I know who would buy their first "affordable" house with the tax credit. Right now $8,000 makes it questionable whether I would buy one or not but $15,000 is a good enough incentive and make it affordable to definitely do so. This should help with the overproduction issue by increasing housing demand dramatically.
Please! How many people like me have relocated for a new job only to find their old houses sitting there with the current housing market? I own a house, so I get no inventive to buy a new one at my new site. This 15k had me looking for weeks until it got creamed. This would help by:
1. Boosting purchasing for transplanters with previous homes
2. Help with payments of new or previous home which market recovers thus limiting forclosures and short sales.
Make sense?
I hate to be harsh, however any new tax credit should not be retroactive. You bought the house already, its already done its part for the economy. The Tax Credit should be for convincing people to buy houses. Fair is not what this country needs…
This is a great idea… but there is one contradiction/issue i have with it… If this is truely to stimulate the housing market…. what is the point to retroact the 15000 credit back to the first of the year. these people have already jumped in, made there decision and purchased a home. The point is stimulating future sales, not rewarding someone for making a prior purchase or were already compensated(8k 1st time) for a purchase….