The Final Countdown: Federal Housing Tax Credit Expires
Home Buyer Tax Credit To Expire
The deadline to qualify for the Federal Housing Tax Credit is this Friday, April 30th. Many housing markets are in a midst of a flurry of activity as the deadline looms. This government program provides an $8,000 tax rebate for anyone buying their first home, and up to $6,500 to home buyers who have resided in their previous home at least five years. To qualify, you must be under contract by this Friday, and close on your purchase by June 30, 2010.
Market Manipulation
While the actual stimulus program can (and should) be debated, it is no accident that this will be a busy week in residential real estate. Some agents are even trying to capitalize on the momentum by privately extending their own “tax credit” of up to 3% of the purchase price after the government credit expires. Very creative if you ask me!
I have a personal stake in the matter since my house is on the market. I know it will help us get showings this week, but I’m not sure if it’s the best use of taxpayer money.
What About You?
Are you trying to purchase a house and beat the deadline? Was this Federal Housing Tax Credit a good idea? Should it be extended? Tell me your thoughts or experiences with the Federal Housing Tax Credit.
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photo by coffeego
The Tax Credit reminds me of Cash for Clunkers. It was a nice boost in auto sales for a short period of time, but after it’s over sales went back down if I remember correctly. In addition, it’s costing the tax payers money. Something we should all be weary of considering our National Debt ATM. However, if it does serve to substantially aid the economy, than that is one thing. My fear is that it just results in a little blurp of heightened buying and selling and that once it’s over, we will see continued lows.