The $8,000 tax-credit for first-time home buyers seems to have boosted real estate markets across the country. From Raleigh to Portland, tentative first-time buyers are taking the plunge.
The program is set to expire Nov. 30, 2009 but lawmakers are considering extending the deadline as well as raising the tax-credit to $15,000.
As the government seeks to boost the economy are these short-term solutions the best idea? Of course the National Association of Home Builders is behind a plan like this and at face-value it sounds great. But don’t forget you can continue to take tax deductions from mortgage interest and property taxes while you own your home and this tax-credit is coming from our own coffers.
A tip from the WSJ: If you do purchase a new home and plan on taking advantage of the tax-credit, wait until the home closes before rushing out and buying furniture or spending large amounts to decorate. Lenders are occasionally running credit reports just prior to closing, and they might not like to see an increase in credit card debt or indications that debt could soon increase. So hold off on that new car or jacuzzi tub as too many credit checks can also raise the red flag.