My Thoughts on Housing Stimulus

An older cousin who works in the States for nine years now and who decided to stay there for good five years ago contacted me to ask my opinion on some things, but what struck me was his plan to get his own house. He's been living alone in an apartment these past few years, on his first years in the country he was living in with some relatives who had been there since we were kids but now that he's planning to settle down, he's thinking of getting his own house, a big one at that (or at least bigger than his current crib), as he wants to have kids, he's 35, by the way. He was telling me all his grand plans, he wants a house with a huge front and backyard where his wife can do some gardening and his kids can run and play all they want, he wants to build a tree house if the lot that they'll get have big trees at the back or he can just build a play house if there's none. He wants all the grandeur of a modern house and all the necessities and luxuries of an ancestral home, I was in awe. And then, our conversation drifted to his finances and the legalities of his dreams, he was not as enthusiastic on that part and he told me that he called me up because he wants to ask me a favor. Get ready for this, he wants me to study the Housing Stimulus, I almost choked, he told me that he believes in me big time and he wants to hear my opinion first before he go and plunge in, it seems like he wants to hear it from me first before he hear it from the lawyers *grins*. You might be wondering why he has such faith in me, well, I was well on my way to being a lawyer before I met my husband and chose to settle down than do battle in court.

Truth, I don't know that much about federal income tax credits for homebuyers as I am not, in any way, affected by it, I did not see the need to listen or educate myself about it, so I am basically at zero here. So, I looked around and I found out that the homebuyers tax credit is extended till 2010, it actually took effect last year to help those homeowners and non-homeowners at the peak of US recession and to accommodate more people, the government extended the deal up until the 30th of April. If you're gonna take time to understand it, it's kinda simple, really. If you're a first time home owner or hadn't own one in 3 years, you are eligible to receive an $8,000 tax credit, if you're single, which is my cousin's case at the moment, you have to have an income limit of $125,000, the income limit differs according to your civil status but the cost of the house or property that you intend to buy has to be on the $800,000 range whether you're married or not. If you are interested to know more, feel free to watch the video clip below -

As far as I can see (and understand), the housing stimulus is a win-win battle, it can help boost the economy and it can help people to have their dream houses. As you will hear in the video above, in every house that is built, one person gets to have a job and $60,000 goes straight to the local government, I think it is computed based on $800,000 range; while the taxpayer who have been dreaming to have their own house can grab the opportunity without the trouble of heavy mortgage and tax, it is such a sweet deal. Now, all I have to do is call my cousin up and tell him to hurry up, prepare the necessary papers and file it as soon as he can, this is one of those opportunities that he shouldn't let pass.