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First Time Homebuyer’s Update: Plan B Looks Good For Big D

Posted on October 28th, 2009 7:48am by Candy Evans
Filed under Changing market trends in Real Estate, Real Estate

Bloomberg is reporting that the Senate has another deal in mind to stimulate home-buying: a tax credit of up to $7290. (with income limitations, of course, which appear to be $250,000 for joint filers) for “step-up” buyers who have been in their home at least five years. Bloomberg says the price of the home will be capped at $800,000. That could be very beneficial for our Dallas market, because $800,000 buys a lot of home in Dallas. Stay tuned, I’m watching this one for you…

2 Comments to “First Time Homebuyer’s Update: Plan B Looks Good For Big D”

Matt @ October 28th, 2009 at 10:31 am

Let’s see. On a 7%, 30-year note, $800K runs a little more than $5K/month or more than $60K/year. Plus another $17,500 or so in property taxes in Dallas for that property.

A joint filer after federal income tax takes home about $190K, so a person taking maximum advantage of this new “stimulus” is spending more than 40% of their take-home on owning the new house, not to mention furnishing it, maintaining it, or paying for little things like utilities.

Sounds to me like they’re just building the structure for the next crash.
Matt @ October 28th, 2009 at 11:00 am

Er — a joint filer at the maximum $250K income takes home about $190K after federal income taxes.