Money Happens

If you haven't already heard the news from every Realtor, lender and title company you've ever done business with, the $8,000 tax credit for first time home buyers has been extended.  Even better, current home owners can get a tax credit of $6,500.  Even better, the income limits to be eligible are significantly raised from $75k for single filers and $150k for joint filers to a whopping $150k and $225k. One catch:  You have to be under contract by April 30, 2010 and close in 60 days.  Read the details here.

Here's why this is such a great program:  Economist predict that job growth should kick in by the 2nd quarter next year.  This program will spur economic activity during the 1st quarter.  Although these tax credits are big amounts for individual payers, the tax revenue that buying a home generates will cause it to pay for itself, plus, plus.

Just think about all of the businesses that make money, and pay taxes, when you buy a house starting with, yours truly, your Realtor.  There are also the loan officer's commission, the banks and their admin staff, appraisers, title companies, home and radon inspectors, termite inspectors, and home warranty issuers.

Think about the trades that get business either when a home owner is fixing up their house to sell, or when an inspection reveals work that needs to be done, or after the home is purchased and the buyer is making it their own.  That includes plumbers, electricians, roofers, painters,  flooring companies and installers, appliance manufacturers and their stores, handymen and home improvement stores.

Speaking of getting your house ready for sale, you'll need to be on the market by March 1st at the absolute latest to have a ratified contract by April 30th.  It isn't too early to start thinking about what you need to do to get your home ready.

The last couple of winters I've been able to stay inside and toasty warm most days because there weren't a lot of people buying and selling.  I expect this year I'll be breaking out the hat, mittens and snow boots.  I'm ready!