February 2, 2010

Buy a New Home and get $8,000 Tax Credit!!!

Real estate was one of the biggest causes of the recent economic downturn in the United States. Now the same industry is being pumped up to ensure economic recovery of the world's largest economy. One of the first schemes instituted by the new government was the $8,000 first time home buyer credit for 2009. The response to this program was quite enthusiastic and spurred the government to extend it further.

Now people who are planning to buy their first home before April 31, 2019 can also avail the $8,000 Tax Credit. Another addition to this scheme is that this tax credit has been extended to people who are upgrading to a larger home provided they have lived in their principal residence for the past five years and their new home is less than $800,000. I think these schemes are really good for those who have held on to their jobs in this economy and have substantial savings. I wonder if this really helps those people who have lost jobs and can't afford to pay their bills!

On a retrospective real estate experts say that every time a new home is bought or sold it infuses about $60,000 into the local economy. If this is true it might actually help in job creation and get some of the people who have lost jobs back into the workforce. I have embedded a very informative video in which the CEO of Coldwell Bankers speaks about this program and how it is beneficial to America.

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