As stimulus package was signed into law this past Wednesday, speculation about the housing provisions in it ceased. During the course of congressional negotiations we went from a $15,000 tax credit to nothing, and everywhere in between.
The simple facts
Under the $787B recovery package, first time homebuyers (that make less than $75,000/year) are eligible to get an $8,000 tax credit that does not require repayment, if they purchase a primary residence from January 1st, 2009 through December 31st, 2009. The credit is refundable - If the annual tax liability is less than the credit, the taxpayer will receive the difference in a check. The tax credit does not apply for investment properties or second homes.
Here’s an idea
The median home price in Houston Real Estate as of January 2009 is about $130,000. In the current environment, buyers are getting an average discount of about 7% off asking price. Bank and government foreclosures are often priced 15%+ less than their true market value. With FHA financing, homebuyers can purchase a Houston home with a 3.5% down payment. Finally, the stimulus package tax credit amounts to about 6% of an average priced starter home.
To put it all together: You would be purchasing a home at a sweet 31.5% Off!! As in 68.5 cents on the dollar.
Need I say more to support my conviction that this is THE best time to buy a home in the last 50 years? To spin off a Warren Buffett nugget of wisdom: Be agressive when others are fearful and fearful when others are agressive. The time is now…
-- Dig this? Head over to ErionHouston | Houston Real Estate for original content or Subscribe Via RSS Also, follow @ErionHouston on Twitter
Comments(1)