I was reading an Article today from REALTOR® Magazine called "Tax Credit Changes that could Unleash Home Sales". Now this is just some story written by NAR; which I don't always have the utmost reliance on.
However; the proposal is: revamping the Home Buyer Tax Credit which was passed last year. This Tax Credit allows 1st-Time Home Buyers to take a one time tax credit of $7500. The sticker is this: It must be repaid within 15 years.
I have yet to have any buyer take advantage of the Federal Housing Tax Credit. If you want to offer a credit - offer a credit - not a loan. We owe enough in the country!
The widely successful: Washington DC 1st Time Home Buyer Credit; was put into place years ago and renewed many times. It allows for 1st Time Home Buyers to receive a 1-time Tax Credit in the amount of $5000 - with NO repayment. It is credited with helping DC increase the number of residents (and thus its tax base) as well as help to revitalize the city.
Why DC is the only place in the country that offers such a program (that I am aware of); is a bit of a mystery? I can think of a few other places that could use such a thing (Detroit comes to mind).
I wonder - would this REALLY Help get buyers to buy? What if they could apply this tax credit towards their closing costs up front instead of waiting to file on their Tax Returns?
Hmm....
Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the Greater Washington DC area. Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA
