A new tax credit, that was approved by the Senate on Wednesday, February 4, 2009, could allow potential homebuyers a subsidy of up to $15,000 on real estate purchases, if approved by Congress. In the summer of 2008, the tax break that passed allowed a credit of $7,500 to first time home buyers with the stipulation that the money would have to be paid back within 15 years. This new tax credit will provide homebuyers a credit of 10% of the purchase price of the home, not to exceed $15,000, that would be applied to their tax bill; the credit can be spread out over two years.

Of course, with every positive step there are those that will find the negative! Some argue that subsidizing real estate purchases while so many still cannot afford to purchase a home will only provide assistance to those that can afford to buy a house, not the folks that have been removed from their homes or the many renters out there. ok...let's look at this for just a second...subsidizing real estate purchases is a bad thing, because there are people that still cannot afford to purchase a home, have been removed from their home for lack of payment and/or are renting? hmmm...the home prices and interest rates are at an all time low, if you still can't afford a home, than perhaps buying one at this time would be a bad idea, if I'm not mistaken, I believe that is one of the reasons that there are a record number of foreclosures at the moment. I know! Let's have the government give every American a house and hope that they can make the payments for the next 30 years! ...and what about renters? Has it occurred to anyone that many of these people are renting a house because they want to? They may not want to be tied down to a mortgage loan for the next few decades! There are also those that want to purchase a house and can't due to the tight lending standards, should we make the government fix our personal credit too? Silliness! ok...I'm stepping down from my soapbox now!

I, for one, am pleased with the new tax credit; I think it is a step in the right direction! By giving another incentive to the potential homebuyer, in the hopes that it will aid those that do wish to own a home, have the credit score to do so and can afford the purchase! And as an added bonus, it will stimulate the economy as well...what do you think?