During Gov. Schwarzenneger's State of the State address at the state Capitol today, the governor announced a new proposal for another home buyer tax credit of $10,000. It was received by a big round of applause. Of course, you don't hear that applause when you skim through the goofy comments left by readers of the Sacramento Bee.
Jim Wasserman reports that the tax credit proposal, if passed, will apply to buyers of new and existing homes, and it's in addition to the $8,000 federal first-time home buyer tax credit that expires on April 30, 2009. The new proposed tax credit could possibly give qualified buyers up to $18,000 to buy a home.
The governor plans to get this money by setting aside $200 million. This is twice the amount set aside last year, and last year's California home buyer tax credit applied only to new homes, not existing homes.
There is no mention of an expiration date. I suppose this means that, like year, once the fund has been tapped, the credit goes away. Man, oh, man, if you really want to start a buying frenzy in California, offering buyers another $10,000 of free money is certainly one way to kick the market into high gear.
All I can say is if this goes through, hold on to your hat. Oh, my goodness.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
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