First-Time Home Buyer Tax Credit
House tax writers are proposing to make a first-time home buyer tax credit more attractive to buyers and provide tax refunds for builders and certain financial institutions that have incurred large losses in 2008, but were profitable in past years. 'This package was developed with strong coordination between the House and Senate leaders, president-elect Obama and his economic team,' Rep. Rangel said. The tax package removes a repayment requirement on the $7,500 first-time homebuyer tax credit. But, it does not increase the tax credit or expand it to all homebuyers as requested by the homebuilders and Realtors. These tax provisions and others will be included in the economic stimulus bill. If all home buyers become eligible for a tax credit without repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory, the National Association of Realtors says. An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase. Source: National Mortgage News and NAR
When the National Association of Home Builders convenes its annual trade show in Las Vegas begining Jan. 20, attendees will be considering many new trends in home design and amenities. Since 1992, the number of U.S. homes with porches and patios has doubled. New homes in warm climates are being built with courtyards that offer shelter and privacy while still offering an outdoor feel. With lots geting smaller, underground space is growing more valuable for everything from family rooms to "man caves" to underground garages. Great rooms continue to grow in importance, while formal living rooms grow ever more passe. In addition, there are no more offices in spare bedrooms. The latest is to have a seperate space where the mobile workforce member can receive work-related visitors or seat assistants without traipsing these folks through the home. Finally, wider doors and first floor masters help aging baby boomers stay home as they grow old. Source: Business Week