Senate Mulling $15k Tax Break for Homebuyers

By
Real Estate Agent with Utah Homes 9334967-SA00

Capitol Place 2 by Harrison KeelyThe stimulus package before Senate keeps growing in scope. The latest addition: upping the tax break for homebuyers two-fold. Currently, first time home buyers (and those who haven't owned for a while) can apply up to a $7,500 credit against their taxable income. The Senate proposal is to raise it another $7,500.

As reported by the Associated Press, "The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers."

Voting on the proposal is expected to take place Friday.

In other housing related news:

  • D.R. Horton and Centex surprised Wall Street by reporting smaller-than-expected losses. Both were rewarded with a jump in trading and rise in stock price.
  • Home sales improved in December. Lower prices appear to be enticing buyers.
  • FNMA unveiled a plan to assist home buyers and investors. Buyers of FNMA bank owned homes are able to purchase with 3% down and no mortgage insurance. Plus, the home warranty is free. I've discovered, however, that the current interest rate currently exceeds FHA- making them slightly more costly. Time will tell whether this is temporary or long term.

Are you looking to purchase an Arizona home? Just give me a call at 480.292.0600 and we can explore your opportunities.

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Chuck Willman is an Arizona based real estate agent. www.azVest.com

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Photo Credit: "Capitol Place 2" by Harrison Keely

Comments (11)

Eric Murrietta
Homeowners Financial Group USA, LLC - Scottsdale, AZ

We must be reading the same stuff cause I just blogged about the same thing...your blog is of course better and more thought out.   

Feb 05, 2009 02:39 AM
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

I just posted a blog about this too.  I just went to the Optimist Board, and there was yours.  It is hilarious:  we take vacations at the same time, we think of the same subject matter at the same time, we seem to be joined at the "cortex"...   It is highly entertaining seeing my "cerebral double" right here on AR...

Feb 05, 2009 02:44 AM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Sellers keep complaining to me about what their house is worth.  I also keep telling them they can probably buy for less.  So it's a wash.

Feb 05, 2009 05:43 AM
Gail MacMillan
Titusville, FL

Hi Chuck- The politicians had better get off their behinds soon and propose something meaningful and do-able if we are going turn this behemoth housing disaster around.  Why not give anyone an incentive to buy and start getting these distressed properties out of inventory.

Feb 05, 2009 08:59 AM
Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales

Good info on FNMA -- and the rest. Thanks.

Feb 05, 2009 01:17 PM
Mara Hawks
First Realty Auburn - Auburn, AL
Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL

It appears from this morning's early news that there's a green light now for this---such good news and can really help to get things moving.

Feb 05, 2009 08:25 PM
Niman Singh
SimplifyEm - Fremont, CA
Property Management Software

Hi Chuck!

You should post this in the real estate and taxes group! http://activerain.com/groups/RealEstateTaxTips

Feb 06, 2009 06:36 AM
Chuck Willman UtahHomes.me
Utah Homes - Alpine, UT
Utah Homes

Eric- this *is* a great topic. I have no problem posting about anything that saves money or lowers the personal tax burden.

Mirela- Another parallel universe experience... which is getting harder... I haven't had as much time to post as before (which I'm thinking is happening with you also, right?)

John- To the extent this generates more demand, the sellers should like it almost as much as the buyers.

Gail- When the inventory tightens, I think we'll all begin to feel a bit more confident about this market.

Ann- The FNMA properties are starting to show up in larger quantities. It's nice that they come with their own set of perks.

Mara- I see that the house and senate have been trying to put this, and other measures, on the president's desk as soon as possible.

Niman- I wasn't aware their was such a group- thanks!

Feb 07, 2009 01:47 PM
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Hi, Chuck.  I with Gail.  Washington has no clue what to do.  Give money to the thieves.  Great idea!!! And then they can hold us all hostage while they go out and get their names on stadiums, buy jets and $10K potties. 

Feb 07, 2009 10:29 PM
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Chuck - I think the $15K incentive with no repayment is a good start... But I agree with the other comments that they really don't know what to do to get housing moving... 

Feb 07, 2009 11:52 PM
Steve Hoffacker
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor

Chuck,

This rebate has really done nothing. It does nothing to make the sale now, it has to be repaid, and it may not even be the full amount. :)

Steve

Feb 08, 2009 03:12 AM