Good News For Boise Real Estate Buyers!

Federal government extends first time home buyer tax credit for 7 more months!

Whew! Many us in the real estate industry breathed a collective sigh of relief when the federal government agreed to extend the first time home buyer tax credit initially passed last year.

This tax credit is really what buoyed the real estate market by stimulating many prospective home buyers, who presumptively may not have purchased without it.

There are many perspectives on this topic as with most things, that contradict and even oppose each other. Many taxpayers do not feel like their tax dollars should go toward giving other people a credit for something as random as buying a home. This perspective is negated once you understand that the tax payer is getting in return for his tax dollars, a more stable economy and a better job market since home construction takes many contractors from different disciplines.

Another point of view is that the tax credit is only going to get people who were already going to buy, to do so for the tax break. This point of view forgets that the entire point of establishing the tax credit was to help the real estate market for the short term. 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. In this case it is people who have not purchased a home that qualifies under the first time home buyer tax credit program, but will claim the credit anyway. This is, of course, tax fraud and if convicted many homeowners will find themselves facing possible jail time and penalties that make any tax credit they may get pale in comparison.

The fact that the first time home buyer tax credits have helped buoy short term real estate prices is undeniable and many whose hard earned dollars went to fund this program know that it was a necessary step to keep the entire nations home prices from falling a lot further. As the job market starts to rebound the real estate market will find more buyers and will start to become much rosier in its projections.

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