Hope for home buyers
Stimulus helps first time owners
Jason Ovalle
Issue date: 3/9/09 Section: Opinion
In these times of economic hardship, not many students are looking to buy a home.
However, it would behoove a lot of students and faculty members to look into the new home buyer tax credit. It is another one of the many programs that have passed with the new economic stimulus plan to jumpstart the slumping American economy.
The first-time home buyer tax credit (The Housing and Economic Recovery Act of 2008) was passed last year by Congress and President Bush. It was for people who were first- time home buyers and the applicants could receive up to $7,500, but the home owners would have to pay back the tax credit over a 15-year period. In the new home buyer tax credit, the new owner would receive up to $8,000 and would have not have to pay anything back if the owner or owners would stay in the home and not sell it for three years.
Those already aware of the bill are excited about possibly receiving the tax credit for a new home. With the passage of the bill, many young people are going to be able to buy a new home and receive a historic amount of money for their purchase. Being a home owner not only gives one a great sense of pride, but it also benefits you around tax time. Homes are also usually bigger and have more square feet compared to rental properties.
"I am already interested in buying and do not want to waste money renting," Maria Palacios, international studies student at North said. Palacios also said, "it's going to help for sure."
In the past year, the Houston area has become more of a buyers' market. In a recent article in the Houston Chronicle, about the growing foreclosures in Houston, one in three homes sold last month had previously been foreclosures.
The price of homes is tumbling down as well. The cost of the median home in January was $127,850 down from$139,720 last January.
In these times of uncertainty, many would think it would be unwise for one to purchase a home, especially if they are a first-time home buyer, but why not.
However, it would behoove a lot of students and faculty members to look into the new home buyer tax credit. It is another one of the many programs that have passed with the new economic stimulus plan to jumpstart the slumping American economy.
The first-time home buyer tax credit (The Housing and Economic Recovery Act of 2008) was passed last year by Congress and President Bush. It was for people who were first- time home buyers and the applicants could receive up to $7,500, but the home owners would have to pay back the tax credit over a 15-year period. In the new home buyer tax credit, the new owner would receive up to $8,000 and would have not have to pay anything back if the owner or owners would stay in the home and not sell it for three years.
Those already aware of the bill are excited about possibly receiving the tax credit for a new home. With the passage of the bill, many young people are going to be able to buy a new home and receive a historic amount of money for their purchase. Being a home owner not only gives one a great sense of pride, but it also benefits you around tax time. Homes are also usually bigger and have more square feet compared to rental properties.
"I am already interested in buying and do not want to waste money renting," Maria Palacios, international studies student at North said. Palacios also said, "it's going to help for sure."
In the past year, the Houston area has become more of a buyers' market. In a recent article in the Houston Chronicle, about the growing foreclosures in Houston, one in three homes sold last month had previously been foreclosures.
The price of homes is tumbling down as well. The cost of the median home in January was $127,850 down from$139,720 last January.
In these times of uncertainty, many would think it would be unwise for one to purchase a home, especially if they are a first-time home buyer, but why not.
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