First Time Home Buyer Tax Credit: Extend or Expand? (ActiveRain Post)

By rerockstar • October 9th, 2009

San Antonio's Rockstar Real Estate Agent - Matt Stigliano - ActiveRain

Dissect and discuss.

** UPDATE July 2, 2010 – Congress separated the first time home buyer tax credit and National Flood Insurance Program extensions from their original bill and passed them as H.R. 5623 and H.R. 5569 respectively. President Obama signed them into law on July 2, 2010. **

** Please note: the first time home buyer tax credit extension only applies to those who were already under contract as of April 30, 2010. **

PREVIOUS UPDATE: The amendment allowing for the extension and expansion did eventually pass and was signed into law by the President. You can read up on the new rules and changes in “First Time Home Buyer Tax Credit – The New Extension And Expansion.”

The First Time Home Buyer Tax Credit has created a bit of a stir in the real estate community recently as Congress continues to murmur about possible extensions and expansion to the tax credit as a way to continue to motivate people to buy homes. Everything from a flat out extension to offering it to everyone to bumping up the dollar amount to only offering it to people who buy new homes has been suggested or gossiped about. My guess is we’ll know something by the end of November about what they plan to do, but I’m hoping they’ll reveal it sooner, so that the speculation ends.

While most agree that the First Time Home Buyer Tax Credit will continue in one form or another, some think the idea should be scrapped. There are as many reasons as to why it should/shouldn’t continue as there are theories on how to continue it. Regardless of what one thinks is the final outcome, I think it’s important to know the issues at stake and talk about them openly with agents, lenders, politicians, home buyers, and home sellers. What I definitely don’t like is the often self-serving attitude that it must be continued because we are all “back in business” over the last few months. Although I depend of the buying and selling of homes to make a living, this is bigger than my wallet alone. This about our future as well as the people it effects.

So take a moment and read “First Time Home Buyer Tax Credit – So Many Opinions: What To Do About It?” over at ActiveRain and let me know what you think.