STIMULUS PACKAGE, WHAT REAL ESTATE PARTS MEAN?
February 12, 2009 · Brian Boisson
It seems that a Stimulas Package has been agreed upon, curious what part you feel will be do the most good in the Daly City, South San Francisico, San Bruno and other lower price real estate market places? The $8,000 tax credit for first time buyers, reinstating the $729,500 conforming loan limits, or maybe the raising to 10 the number of 1-4 residential loans an investor can secure. What do you think?
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4 Responses to “STIMULUS PACKAGE, WHAT REAL ESTATE PARTS MEAN?”
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Michael,
All of the above items will certainly help, as would getting the secondary makets functioning again so lenders do not need to portfolio thier
loans.
Another creative idea someone mentioned is a capital gains holiday, whereby a property is bought say in 2009, and when it is sold within a certain time period say with seven years, any gain would not be taxable.
Interesting, in that scenario, investors would be
encoraged to act sooner rather than later.
Assisted down payments for first time buyers would also help. Example: 10% toward down payment,
no payments for a time period, due in fifteen years or upon sale.
It is my understanding that such a program is available in some cities, Brisbane comes to mind, and maybe others could follow.
Brian
Those will all help — hopefully Congress will stay focused on the economy and not feel that there job is done.
Michael,
Of the choices I believe the increase in loan limit will be most helpful in our area. Not necessariy for Daly City or South City but for Millbrae, San Mateo, and San Francisco. It will get some of the homes in the $800,000- $1,000,000 moving.
I have not found the 4 home limit for investor affect my clients.
The Tax credit as I said before is a bonus or reward to home buyers but not a big motivator. I believe making the tax credit/loan available to investors as they were talking would be a motivator. Investors have a different thought process to money than first time home buyers.
In summary if this is what they giving we will take it because all will help.
Lee
Hi Michael,
As usual, very thought provoking. I would think that out there in San Bruno, that the tax credit and loan implications will have the most direct effect on your market. At least it is a start.
Jonathan