Yeah! Some in the realty business breathed a mass sigh of relief when the government agreed to prolong the first time home buyer tax credit initially approved last year.
Real estate markets across the nation were lifted by this tax credit and many homes were sold that otherwise may not have been.
Discussions range broadly in their determination of how much impact the tax credits have had on the real estate market. Some tax payers are upset at the use of their tax dollars assisting someone else purchase a home. Since so many jobs in much of the U.S. are bound to the real estate sector in one way or another, the mindset that objects to the use of tax dollars to help people buy their homes is minimized.
Another standpoint is that the first time home buyer credit is only going to get people who were already planning on buying, to buy for the tax credit. Since the tax credit was engineered to be a quick and limited boost to the real estate market, it’s critic are missing the mark. The tax credit is supposed to push people who are on the edge of buying into making their decision to help the market short term, rather than several months down the road.
And, there is always those who try to manipulate the system. Many people who do not qualify for the first time home buyer tax credit will fraudulently claim the benefits. Trading the tax credit for a stiff fine and jail time doesn’t seem like a good deal to me.
Given that real estate prices were in a free fall, prior to the approval of the tax credit, it is a hard argument to make that says that they were not warranted. As the job market starts to rebound the realty market will find more buyers and will start to become much rosier in its projections.
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