Time Running Out for First Time Buyers
Real estate has it’s own program within the economic stimulus package that did not get quite the hype that Cash for Clunkers did, but honestly, it could be considered a little better. This information may have escaped you, the deal is that if you are a first-time homebuyer you can claim an $8,000 tax credit (or 10% of the purchase price). This credit that you receive does not even have to be repaid! With cash for clunkers in the spotlight, this part of the package was not talked about as much, and it is a shame because many people are just finding out about it, with only 3 months left. The worst part, people who are thinking of taking advantage of the deal now have to start searching and act immediately because we all know it takes around 90 days to close on a house after the contract is signed. Most of the properties that have been taken advantage of with this plan are actually short sales. What a great deal. But this is causing a feeding frenzy because as soon as a repossession listing hits the market, there are several bids within a couple of days. The odds of getting a contract are slim, and so are the pickings depending on your standards. There has been a lot of recent activity in real estate and you can’t help but wonder if most of the credit goes to this stimulus package. We will soon find out come November 20th when it ends. Let’s make sure activity stays up, make some deals and work on some short sales. Real estate investing is the place to be right now.