$8,000 Tax Credit

[MichiganM]

Anyone going to take advantage of the first time home buyer credit? It's awaiting Obama's signature but it looks like it's been bumped $500 to a total of $8,000 or 10% of the home price, whichever is lesser. I haven't purchased a home yet, but this looks very promising and I have until Dec. 1st to take advantage of it. It also appears it's fully refundable unlike the non-refundable $15,000 credit that the Senate was initially considering. I could purchase a Condo this year and get a check for 8 grand plus the rest of my usual refund next year...that could pay off my car and then some.

Any thoughts from any other first time home buyers?

 

[Headbanger]

I already own a home. If I did not and I had ANT plans to buy in 2009 that would certainly make the decision that much easier to take the plunge now. Also if you are on the fence you can still wait and see if prices drop even farther before signing a contract.

 

[smokinghole]

My wife and I are looking to buy. From what I understand this $8k credit is one which is not paid back unlike the current $7500 which is paid back in $500 increments over 15yrs. The senate's was essentially double the current $7500 plan and paid back similarly. I actually have a buyer's agent (highly suggested) and he is showing me houses tomorrow.

 

[MichiganM]

My wife and I are looking to buy. From what I understand this $8k credit is one which is not paid back unlike the current $7500 which is paid back in $500 increments over 15yrs. The senate's was essentially double the current $7500 plan and paid back similarly. I actually have a buyer's agent (highly suggested) and he is showing me houses tomorrow.

You are correct, this new credit does not have to be repaid over 15 years. It is really a great deal if you are a new home buyer and in the market. If you purchase soon you can get the money on this year's taxes. If you've already filed you can amend or you can just wait until you file in 2010.

 

[Anthem]

If you have the money then buy.

The finacial rule of thumb (this is only the idea and it is a rough estimate) is that if you can afford your rent plus 50%, so if rent is 800 and you can put away 1200 a month, then you can afford the house. This extra is intended to go towards taxes, upkeep, emergency furnace repair and/or everything else that costs money to own a home.

Many reports say it is the time to buy. Just to protect any of the family here I might also suggest seeing a finacial consultant.

Go get em and best of luck.

only my 0.02

 

[MichiganM]

I am in the market to buy...and here in Michigan you can get condos that were built within the last 5 years at under 80 grand...and we're talking very nice 2 br 2 bath condos at around 1300+ sq feet. I can put 10 percent down and then some....but I still have a desire to move south..so we'll see I guess. It's a buyers market for sure, but since this tax credit is good until the end of the year it gives you some time to see where things go like Steve said.

 

[smokinghole]

That is one thing that is hanging on the back of my mind. With the 100lb brain economists saying the housing market may still decline 10-15% I might try and hold off till the summer to be ultra serious about buying. With whatever housing stimulus package it seems to be from 1/2009 till 12/2009 so there is not really a rush in order to get this tax credit.

I'm envious of the Michigan market. I wish I could touch eight year old condos/townhouses for $100k. The Harrisburg area of PA has weathered this housing problem very well which means Adam and his wife can't afford as much as others.

 

[njstone]

This credit is a GREAT idea--one of the few in the current stimulus plan, imo--and I really think it's worth taking advantage of. Especially considering that with the housing market what it is these days, you can also get some really great deals.

If you have a stable job, then I think it's definately worth some serious thought and prayer.

 

[tedski]

I don't plan on a house purchase, but will probably take advantage of the 65% COBRA subsidy.

 

[njstone]

I don't plan on a house purchase, but will probably take advantage of the 65% COBRA subsidy.

Yea, that's one of the other good ideas!

 

[MichiganM]

Hmm, I've been doing some more research and it seems like it's 8,000 for couples and just 4,000 for single home buyers...I have to find some more information to back that up. As a single home buyer, that would suck!