The Senate has now proposed a tax credit of 10% of the purchase price of a home, with a $15,000 limit, for those who buy a residence. The theory is this will help stimulate the housing market, which is underlying most of the other problems. I really hope it passes. It still has to survive the House of Representatives.
If it becomes law, the economics could be such that it might make more sense to take advantage of it rather than invest in asset such as equities - something that you probably will never hear me say again. Once I know more, I'll follow up with a full analysis and some hard data ... this could turn out to be the opportunity of a lifetime.
How would this work if you already filed your taxes and took the $7500 tax credit (as a first time home buyer)for last year?
We are in the process of purchasing a foreclosure, scheduled to close Feb 13th. When do you think enactment date will be? I have heard Obama say that he wants it to take place on Presidents Day which is the Monday following our scheduled Friday closing. If this is the case, I’m thinking we would be crazy not to pay the $150 that the bank charges
to delay closing. What are your thoughts?
FOR THOSE WHO BOUGHT IN JANUARY:
THE HOUSE PASSED THE BILL FOR A $7500 TAX CREDIT THAT DOESN’T NEED TO BE REPAID AND IS AFFECTIVE FOR PURCHASES OF HOMES AFTER 01/01/09.
THE SENATE CHANGED IT TO A $15,000 TAX CREDIT BUT IT IS ONLY AFFECTIVE FOR PEOPLE WHO PURCHASES AFTER IT’S SIGNED.
IF THE SENATE PASSES THERE’S TODAY, THEN THERE WILL BE A MEETING BETWEEN MEMBERS OF THE SENATE AND MEMBERS OF THE HOUSE TO WORK OUT THE DIFFERENCES BETWEEN THE 2 BILLS.
I BOUGHT IN JANUARY SO I OBVIOUSLY WANT THE $15,000 TAX CREDIT THE SENATE PROPOSED BUT WITH THE START DATE THE HOUSE PROPOSED.
YOU NEED TO MAKE YOUR VOICE HEARD AND CONTACT YOUR SENATORS AND HOUSE REPRESENTATIVE. THIS IS AMERICA SO YOUR VOICE IS YOUR POWER. E-MAIL THEM OR CALL THEM. HERE IS A CONVENIENT NUMBER. CALL AND ENTER YOU ZIP CODE AND IT WILL GET YOU IN CONTACT WITH ALL OF YOUR CONGRESSMEN. DECISIONS ARE BEING MADE, DO IT NOW. 1-866-924-NAHB (6242)