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The Up to $8,000 Tax Credit Actually Benefits All American Tax Payers

Published On: October 1, 2009

The Views expressed here are the opinion and only the opinion of the Designated Broker Tom Peterlin. Any informaton gathered and provided from resources such as the Arizona MLS is considered to be approximate in nature. It is strongly recommeded that Buyer & Buyer's agent and Seller & Seller's agent to verify any information provided in this blog for themselves.

This morning I heard on the radio that it was reported that real estate sales nationally was up 1% in 2009 over last year largely in part to the “up to $8,000 tax credit for new, first time  home buyers”. In turn, it was estimated that without such a tax credit that the real estate housing market would have been down by approximately 6% from last year. There are critics of this real estate tax credit that say it is an inequitable tax credit benefiting only those people who are qualify for such credit, and that it hurts the overall tax base.

The reality is that first time home buyers buoy the entire real estate buying community. First time home buyers push up those existing homeowners who want to move up in their home buying purchases. Since it is estimated that home building aspect of real estate makes up to 15% of the entire overall United States economic engine, it would make perfect sense to support or expand this tax credit beyond November 30, 2009 when this federal program ends.

Is it better to give potential new home owners an opportunity to invest and fix up abandoned, deficient properties that are an eye sore to our neighborhood communities? Or to do away with the tax incentive to balance the equity line for all tax payers?

I for one believe that uplifting our neighborhoods by providing such incentives to first time home buyers benefits the entire tax base. It creates potential opportunity for first time home buyers, but it also brings back into line those abandoned properties which can provide future tax revenues for the entire tax base. These future tax resources benefits everyone and helps property values increase and helps brings neighborhoods back to life.

If interested, please call  me at 480-756-2121 or email me at tom@c21seago.com  with questions or to request more  information.