Yeah! That is the sound that Some real estate professions made when last years tax credit for first time home buyers was granted a 7 month extension.
The first time home buyer tax credit helped encourage Many home buyers jump into the market who Many not have without it, boosting real the national realty market.
There are Some positions on this matter as with nearly all matters, that contradict and even oppose each other. Some tax payers are upset at the use of their tax dollars assisting someone else purchase a home. Give that all of us benefit from the economic stability that is brought by the tax credits, especially in the real estate business, and fields tied to it.
Many people point out that the tax break simply induces people who were already planning on buying to buy. If the tax credit wasn’t designed to be a short term help, then this point would have more credibility to it. Since Many of the buyers who are buying right now were obviously already looking, then the limited deadline of the tax credit will help them decide to buy sooner, rather than later.
Then, there is always the tax cheats. Some people who are not candidates to receive this credit will also try to cash in. If caught and convicted of the tax fraud involved some will face fines and jail terms that exceed any possible benefit they would have gotten.
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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