Any idea if this is going to continue past June 30th?
Looks like they may extend not only the credit of 8k to first time buyers until June 30th, 2010 - but they upped the income limits and they are now offering a credit to those purchasing a second home - income limits still apply and there are some qualifications that one must fit.
credit extended and more
we shall see what happens..
Any idea if this is going to continue past June 30th?
I dont think it will - and this is a very good thing.. why would someone pay $1500 a month to rent when they could buy for less than that? this is just an added incentive ... thankfully our area has not seen the downturn in realty that others have seen. its better for the economy to have home owners than renters
The countdown is under way. We have four months to get buyers under contract by the April 30 deadline. A property must be closed by June 30.
C'mon Colleen. Who in this neighborhood pays $1500 a month in rent? Any prudent landlord would require documented income of $4500 per month to rent to that tenant.why would someone pay $1500 a month to rent when they could buy for less than that?
If you can document $4500 per month in income you could buy a house in the $120k to $150k range. The tax credit may cover your closing costs and a portion of the down payment, but that scenario requires 95% to 100% leverage on an owner-occupied property. Best of luck breaking even if you sell within 5 years.
Everyone is getting boned on this tax credit. Home buyers are over-leveraging themselves with FHA financing. Why do you think congress just passed a bill offering full government backing to FNMA and FMAC? It's because they are writing loans that will never be repaid. The taxpayers are on the hook for that money. Advocacy by a real estate sales agent is no different than a public union slug claiming they pay taxes too. It's just recycled money. In some ways I have sympathy for the union slug because some of them don't want to pay dues that ultimately screw the taxpayer, much like I have a hard time writing a check to BNAR twice a year to support a lobby effort that is butt-f'ing everyone in this country.
We all know who who is benefiting from the tax credit:
Emphasis added to demonstrate the true beneficiaries of the tax credit. It ain't the person buying the house.The countdown is under way. We have four months to get buyers under contract by the April 30 deadline. A property must be closed by June 30.
PS. Zanna, you may want to paraphrase instead of copy/pasting the NAR bulletin.
Most of all I like bulldozers and dirt
The rents out in Amherst are amazing what they are getting ... really crazy, even $1500 is a drop in the bucket for a lot of places and I never understood why someone would pay that for renting, but they honestly do.
I will most definately agree with you that people should not extend themselves at all.
It's a nice perk for someone who is already thinking of buying and has the ability to purchase anyway - using it to overextend is not a good way to think of it, although I realize a lot of people will or do.
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