15000 tax credit for homebuyers

There’s good news for home buyer in 2009 and that’s a $15,000 tax credit that will apply to your tax bill if you purchase a home within one year of this bill. Some real estate companies are getting more home buying inquiries when they’ve heard of this news. The Bill was passed by the senate on 2/4/2009 and home buyers would get 10% of their purchase price apply to their tax bill and up to $15,000.

Consumers would have to live in the house for at least two years as their main house. This tax credit was approved in hope to churn the real estate economy but it only helps in less expensive places. Other places like California don’t help because real estate prices are too high there and $15,000 isn’t going to help. Last year there was a $7,500 tax credit but it didn’t boost the real estate economy at all. This tax credit might be beneficial in areas that are less expensive.

With home prices dropping to the median of $175,400 in December 2008 according to the Aps, people might still be able to buy their first home now if they’ve been waiting for a long time but what if it’s this time that they got laid off. There’re many issues in this recession and any help from lawmakers would be great but it’s unsure if it’s going to give the housing market any large of a boost. Although lawmakers are trying to help well to do home buyers, people are criticizing them for not helping out renters or the homeless. Even though buyers would get some help from the tax credit, they’ll still be dealing with tight lending mortgage rates that have increase within the last couple of weeks. Real estate lobbyists are pushing the government to fund banks so that foreclosure can be prevented and mortgage rate can drop.

Source: http://www.google.com/hostednews/ap/article/ALeqM5gk-O6w-BLfUXwpefbNc-d3Z2X6-QD965PNM80