New California Tax Incentives for First Time Home Buyers

I pondered in past posts, “What will happen to the market after the tax stimulus offering is over, come April 30, 2010?”  Well, it looks like we will not have to answer that question until the end of the year.  The news is buzzing with the almost-done bill that will be signed by Governor Schwarzenegger to give new home buyers up to $10,000, starting May 1, 2010.  For so many of my buyers this is fantastic news, since the old dead line loomed and rush to find a home was on.  Yesterday after telling one of my clients about this news, he asked, “So does this mean that I could potentially get $18K from the government?”  I quickly said, “Yeah right, I don’t think so [greedy man!]”  Well, I just read an article this morning stating that this may be true for some.  Those who are in contract on a home purchase by the end of April and then close after May 1, 2010 will most likely get both, since the $8K is federal money, while the $10K is California money.  The writer called it a potential “stampede.”  This is a great visual and probably a true forecast – first time home buyers are going to go nuts over this.  Who wouldn’t?!?!  I thought $8,000 was extremely generous!

While this is great news for buyers and Realtors alike, I keep wondering, where is our State and Nation going to get this money?  My wife just chimed in, “China!”

Thoughts and opinions?

Enjoy,

Keith Klassen – Real Estate Broker

916.669.9030

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One response to “New California Tax Incentives for First Time Home Buyers

  1. I keep wondering the same thing Keith. This is a great incentive, but where is the money coming from?

    Like

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