I can't believe I haven't posted since Valentine's Day. And some really exciting things have happened in the real estate world. Most significantly, the passage of the $8,000 Tax Credit Stimulus for first-time home buyers is fantastic. For buyers who haven't owned a home in the last three years, they will receive an $8,000 tax credit that does not have to be re-paid as long as they own the home for the three years. This is a significant improvement to the $7500 tax credit that was passed last year which was the equivalent to an interest-free loan.
So what are some implications?
1. If I were renting and felt comfortable that I were going to stay in an area for at least three years, there couldn't be a better time to buy. Between our current low interest rates, a great inventory of homes at slightly depressed prices AND the tax credit, there really couldn't be a better time to buy.
2. If I were a parent of a college student or grad student (which I actually aspire to) in an area that I felt like my child was going to stay for a time period, I would seriously consider helping them make a purchase of a home to live in while they are in school.
With the income tax mortgage deduction and the affordability of interest rates, for those who have the credit to buy a home renting really makes no sense.
I have a great FAQ about the tax credit stimulus which I'll be posting to my website www.GwenMathews.com if you'd like more information or feel free to email or call me directly.
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