I've had a couple of people ask me this week about the new tax credit on a first time purchase. This is a sweetened incentive for first time buyers, or if you have not owned a home since 2005, that increases the credit from $7500 in 2008, to $8000. More significant is that the new credit which is part of the 'American Recovery and Reinvestment Act', , will not have to be repaid if a buyer holds the property for three years or more. The previous version of the tax credit had to be paid back. This is not anything that will cause people to run out and buy a condo in Manhattan, but the government kicking in a few bucks can't be a bad thing either if you are moving out of a rental, and buying your first home before the end of November. This is part of the Obama administration's stimulus package, and a step in the right direction. All home purchases involve a host of transactional, moving, and home improvement costs, so these dollars will likely be funneled right back into the local economy. One bedrooms are actually where most of the activity in the market is right now and this will be of benefit to a few of my customers. You should check with your accountant or financial adviser for more info about if your purchase will qualify. Here is a Q&A that the NAR recently distributed about it:
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