All Real Estate Info Blog

This is the most exciting news from the government since they made the profit (up to $500,000 for married couples) from the sale of a personal home tax free. There is a new law for first-time homebuyers that will give the lucky buyers a $7,500 tax credit. This is not a tax deduction, it is a credit. It must be repaid over 15 years. So, what is so great about that? It is like getting a $7,500 loan interest free.

 My daughter and new son-in-law will qualify. He may use the money to go back to college and get his masters. Or, put some of it into his companies 401K that matches at 100% on first 3% of income and 50% on the next 2%. You can't find that kind of return anywhere else. But you might be able to find some good returns of your own.

The money would make a nice emergency savings account. Wouldn't that make it easier to sleep at night. The loan does have to be paid back at $500 a year at tax filing time. And if you sell the house and make a profit, you would have to pay it back then. But, if the house doesn't sell at a profit, you are forgiven the loan. This is a great incentive to buy a house now. This offer is only good until June 30th of 2009.

If you have questions, please email me at mhildenbrand@realtyexecutives.net