Stimulate your Houston home purchase in 2009

As stimulus package was signed into law this past Wednesday, speculation about the housing provisions in it ceased. During the course of congressional negotiations we went from a $15,000 tax credit to nothing, and everywhere in between.

The simple facts

Under the $787B recovery package, first time homebuyers (that make less than $75,000/year) are eligible to get an $8,000 tax credit that does not require repayment, if they purchase a primary residence from January 1st, 2009 through December 31st, 2009. The credit is refundable – If the annual tax liability is less than the credit, the taxpayer will receive the difference in a check. The tax credit does not apply for investment properties or second homes.

Here’s an idea

The median home price in Houston Real Estate as of January 2009 is about $130,000. In the current environment, buyers are getting an average discount of about 7% off asking price. Bank and government foreclosures are often priced 15%+ less than their true market value. With FHA financing, homebuyers can purchase a Houston home with a 3.5% down payment. Finally, the stimulus package tax credit amounts to about 6% of an average priced starter home.

To put it all together: You would be purchasing a home at a sweet 31.5% Off!! As in 68.5 cents on the dollar.

Need I say more to support my conviction that this is THE best time to buy a home in the last 50 years? To spin off a Warren Buffett nugget of wisdom: Be agressive when others are fearful and fearful when others are agressive. The time is now…

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Photo Credit: Lisa Brewster

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