January 26th: Senator John Ensign (R-NV) and I [Benjamin L. Cardin (D-MD)] are urging our colleagues to act quickly to pass a new $20,000 refundable tax credit for first-time homebuyers to help jumpstart our nation’s ailing housing market. I, a member of the Budget Committee, and Senator Ensign, a member of the Finance Committee, are working closely this week with our colleagues to consider this bill as part of the American Recovery and Reinvestment Act of 2009 or as a stand-alone measure (S. 312).
Many potential first-time homebuyers, like myself, have been sitting on the sidelines as the housing market continues to crumble along with the economy. It is a very difficult decision for the younger generation of Americans (who already are deep in debt) to expose themselves to such a volatile marketplace. Even with the current $7,500 tax credit available, the housing inventory is increasing and their values continue to plummet.
There is hope for all of us. This would truly change my mind (and life) if a $20,000 tax credit would be involved in the proposed stimulus. Let’s get this bipartisan vote and make it happen. This would be a immense first step for the new administration and President Obama.
Are you standing on the sidelines as a perspective buyer? Would this new proposed deal ‘woo’ you?
Stupidly Yours,
Matt
Source: Benjamin L. Cardin’s Senate website
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StupidCents was founded by Matt in 2009. His thoughts are shaped by his family and career and seasoned by his endless motivation to succeed personally, professionally, and financially.
I’m still probably 4 years away from my first home buy, but that significant increase is fantastic. The potential downfall though is we get tricked into buying $12,500 more house than before. You know how we kids are.
Very true. I think there is enough inventory on the market in most areas to keep prices competitive. There is also the possibility of housing prices being somewhat inflated.
I think the 20,00 refundable tax credit would be great. We are first time home owners, well we close Feb. 20th. The tax credit would greatly help us to get the things wee need like appliances and fixtures that were taken when the house went into foreclosure.It is pricey to buy a home but even pricier when you have to get appliances and then pay closing cost and appraisal and inspection and escrow etc. So I would love the extra help.
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We’re looking at possibly purchasing a home soon, and this would motivate us to make that jump…as it would with a lot of other potential first time home buyers, I’m sure. Crossing my fingers that this might actually happen – thanks for the post!:)
@ Nicki
I believe this never made it to the proposed stimulus, but rather a 15,000 tax credit for all homebuyers. See http://stupidcents.com/262/15000-homebuyer-tax-credit-added-to-proposed-stimulus/
Currently, only first-time homebuyers are eligible for the $7,500 which dates back to last year.
Thanks for stopping by!
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