Brian McLane

Media and Social Commentary

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BRING BACK THE FIRST TIME HOME BUYER CREDIT

May 3rd, 2012 · No Comments · Politics

Congress needs to IMMEDIATELY bring back $8,000 tax credit for first-time homebuyers. It was enacted in 2009 and was extended through April 30, 2010. Further legislation gave buyers already in the process of buying a home an additional 3 months to take advantage of the credit if they were already in the process of purchasing a home.

Purchasing Power
The primary benefit of the $8,000 tax credit is that the money can be used in many cases to go to the down payment or closing costs on a home. Amen here! To be sure, if people can’t come up with the key money, meaning the down-payment they shouldn’t be buying a home in the first place. But when one thinks of moving, rubbish removal, taxes, lawyers, inspection, and so on, those costs add up and can push people to opt for the rental. Nowadays people can roll those costs into the mortgage and spread them out over 30 years at a low interest.

Such is the benefit of buying a home in this economic environment.

The bottom line though is that people need to start buying homes. It is the bedrock of our economy. The greater the demand for home purchases the better for the employment index and helps the housing industry by stimulating business for general contractors, retailers, mortgage companies, title companies, real estate firms, brokers and real estate investors, transportation companies and so on.. New homebuyers purchase furniture and other goods, products and services.

I don’t pretend to understand the tax Issues involved but at its most fundamental level, it will help people buy homes. Like me.

Check out this article in the San Francisco Chronicle.

bring back the 8000 first time homebuyer tax credit

bring back the 8000 first time homebuyer tax credit

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