Would you enter the housing market as a first time home buyer with the new bill that has been passed?

Question

The housing bill is offering a $7500 tax credit for all new first time home buyers if they buy before july of '09. Do you think I should jump on this, or wait until home prices drop more?

Answer 1

I am thinking about it, but I need more info. I have tried looking up at cnnmoney, msn money, yahoo finance for additional info, all with no luck. I make over 80,000 a year with my two jobs.  Usually, there is an income limit.  If there isnt a limit, or I qualify for the full amount, I am definitely thinking about it.   I have a lease expiring in Sept. I am thinking of renewing for only 6 months and starting to save up as much cash as possible and try and make a move in March or April.

If it is every first time homebuyer gets the full credit no matter the cost of the house or their yearly income, count me in.  There are nice 2 bedroom houses going for 100,000 in my neighborhood.

If I saved 7500 in taxes, that is 7.25% of the value of my house. I could take the rebate (tax credit) and apply it all to the house.   Say I put 15,000 down, I will be at 85,000 mortgage.  Than, an additional 7500 9 months later (when I get the rebate) I will be down to 77500 and have 23,000 in equity (not including the payments I will make over the first year).

Answer 2

What?  Does that $7500 apply to all buyers who purchased in 2008?  Do you have any more information about it?

Answer 3

Great question.  Personally, a bill passed by elected officials in an election year should not be the reason you buy a home.  The situation should be right for you and your family.  Are prices lower, yes, are rates good, not really, but they're not bad either.  The housing drop isn't over, I would wait at least until after the election, let the economy stablize and see where the market is.  this should also let you save up for a down payment

Answer 4

the $7500 has many strings attached. It's more like an interest-free loan that needs to be paid back in installment over the next 15 years. and it starts to phase out with single filer making over 75K. so it's not all that great